4 ms·

5% on unsecured debt? Absolutely no one would offer credit cards, period. They wouldn't exist. I'm not saying a lower regulated rate couldn't work, but it would

5% on unsecured debt? Absolutely no one would offer credit cards, period. They wouldn't exist. I'm not saying a lower regulated rate couldn't work, but it would be to be considerably higher than 5%.

dghlsakjg 4y ago
Right? There are people paying higher rates than that on a mortgage, which is usually a pretty safe bet to underwrite
watwut 4y ago
Which would be OK, I think. There is no reason fer credit cards to exist. Debit cards are just fine for what most people do.
- niij 4y ago
  Not everyone has as much liquid capital as you do. Short term loans can help cover necessary expenses (broken AC, car, etc) for those with less means.
  - watwut 4y ago
    Taking these loans for someone without my means is even worst idea, because the interest payment will hit them more. And I mean, broken AC is not necessary expense. It is a luxury item. A car may be necessary expense if your place don't have public transport, but at least here, poor people don't have cars.
- dahfizz 4y ago
  The #1 feature of a CC is the fraud protection. If my credit card gets stolen, the criminal has access to the bank's money. If my debit card gets stolen, the criminal has access to my money.
  - notch898a 4y ago
    Just don't be an idiot like me, have your credit card at the same bank that you have your bank account at. Then have someone steal your card info, spend lots of money, and then use the vast legal resources of eBay to fight your fraud claim with piles of paperwork. I've found the fraud protection of CC quite lacking. Bank puts up no real fight to the counterparty appeal of the charge back and then you're fucked, especially if the bank already has your assets. In my case the appeal was from some guy with literally 'pirateArrrggh' in his email address and they stated it absolutely must have been me. My bank literally laughed at me and insinuated I was a fraud for daring to claim I couldn't have been the buyer of religious and women's beauty products as a straight atheist man.
drexlspivey 4y ago
You get almost 5% at the moment by lending money absolutely risk free to the US government. OP is living in a fairytale if he thinks anyone would lend to random people at 5% with no collateral.
- dsfyu404ed 4y ago
  It's not risk free. It's just incredibly low risk on a short/medium timeline.
  - xuki 4y ago
    If the US defaults on its debt we have bigger problems.

5% on unsecured debt? Absolutely no one would offer credit cards, period. They wouldn't exist. I'm not saying a lower regulated rate couldn't work, but it would be to be considerably higher than 5%.

dghlsakjg 4y ago

Right? There are people paying higher rates than that on a mortgage, which is usually a pretty safe bet to underwrite

watwut 4y ago

Which would be OK, I think. There is no reason fer credit cards to exist. Debit cards are just fine for what most people do.

niij 4y ago
Not everyone has as much liquid capital as you do. Short term loans can help cover necessary expenses (broken AC, car, etc) for those with less means.
- watwut 4y ago
  Taking these loans for someone without my means is even worst idea, because the interest payment will hit them more. And I mean, broken AC is not necessary expense. It is a luxury item. A car may be necessary expense if your place don't have public transport, but at least here, poor people don't have cars.
dahfizz 4y ago
The #1 feature of a CC is the fraud protection. If my credit card gets stolen, the criminal has access to the bank's money. If my debit card gets stolen, the criminal has access to my money.
- notch898a 4y ago
  Just don't be an idiot like me, have your credit card at the same bank that you have your bank account at. Then have someone steal your card info, spend lots of money, and then use the vast legal resources of eBay to fight your fraud claim with piles of paperwork. I've found the fraud protection of CC quite lacking. Bank puts up no real fight to the counterparty appeal of the charge back and then you're fucked, especially if the bank already has your assets. In my case the appeal was from some guy with literally 'pirateArrrggh' in his email address and they stated it absolutely must have been me. My bank literally laughed at me and insinuated I was a fraud for daring to claim I couldn't have been the buyer of religious and women's beauty products as a straight atheist man.

drexlspivey 4y ago

You get almost 5% at the moment by lending money absolutely risk free to the US government. OP is living in a fairytale if he thinks anyone would lend to random people at 5% with no collateral.

dsfyu404ed 4y ago
It's not risk free. It's just incredibly low risk on a short/medium timeline.
- xuki 4y ago
  If the US defaults on its debt we have bigger problems.