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Their business model is a 1 to 3 percent fee on every transaction they are involved in. My credit card company sends me a notification when a statement is ready

Their business model is a 1 to 3 percent fee on every transaction they are involved in. My credit card company sends me a notification when a statement is ready and another friendly reminder a week before the bill is due. They make money on interest also, but they would rather have someone that spends and pays off a lot than someone that carries a modest balance.

Nextgrid 4y ago
> Their business model is a 1 to 3 percent fee on every transaction they are involved in. In Europe and the UK, interchange is capped to a level that wouldn't support running a financial institution. > They make money on interest also Interest only gets charged a month after (at least on most UK credit cards), so if you're using it "the right way" and paying it off every month you will never incur any interest. It's good for you but ultimately proves that credit card providers rely on the (generally less financially-savvy) people who don't/can't use it "the right way" and incur interest or fees. That's honestly a pretty predatory business model I have no interest in supporting. > My credit card company sends me a notification when a statement is ready and another friendly reminder a week before the bill is due. True but why should I even statements and bills for spending what is my money in the first place? My argument is that you should only use a credit card when you actually need credit and not to merely game a broken system.
- maxerickson 4y ago
  The article is about North American credit scores, so I guess it isn't completely ridiculous to assume that if it is unstated. Does your bank not have a system showing you what transactions you did in a month? The credit card statement is the same thing, for a different account.
- sgjohnson 4y ago
  > My argument is that you should only use a credit card when you actually need credit and not to merely game a broken system. Credit cards are literally the dumbest way to borrow money, second only to payday loans. So you definitely shouldn't use them when you _actually need credit_. But you should use them to build up your credit score, so you can get extremely cheap credit when you actually need it.

Nextgrid 4y ago

> Their business model is a 1 to 3 percent fee on every transaction they are involved in. In Europe and the UK, interchange is capped to a level that wouldn't support running a financial institution. > They make money on interest also Interest only gets charged a month after (at least on most UK credit cards), so if you're using it "the right way" and paying it off every month you will never incur any interest. It's good for you but ultimately proves that credit card providers rely on the (generally less financially-savvy) people who don't/can't use it "the right way" and incur interest or fees. That's honestly a pretty predatory business model I have no interest in supporting. > My credit card company sends me a notification when a statement is ready and another friendly reminder a week before the bill is due. True but why should I even statements and bills for spending what is my money in the first place? My argument is that you should only use a credit card when you actually need credit and not to merely game a broken system.

maxerickson 4y ago
The article is about North American credit scores, so I guess it isn't completely ridiculous to assume that if it is unstated. Does your bank not have a system showing you what transactions you did in a month? The credit card statement is the same thing, for a different account.
sgjohnson 4y ago
> My argument is that you should only use a credit card when you actually need credit and not to merely game a broken system. Credit cards are literally the dumbest way to borrow money, second only to payday loans. So you definitely shouldn't use them when you _actually need credit_. But you should use them to build up your credit score, so you can get extremely cheap credit when you actually need it.