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Why are credit cards 'evil'? Honest question. I mean they don't go spend themselves, are protected 100% against fraud (in the US at least) and if paid in full

by shiven 12y ago

Why are credit cards 'evil'? Honest question. I mean they don't go spend themselves, are protected 100% against fraud (in the US at least) and if paid in full every month, cost nothing to the card holder. If anything, it is not a company's fault that Northern Europe has social/cultural hang-ups for a mode of payment!

romaniv 12y ago
Because credit card system is not sustainable without various hidden fees, overdrafts, default rates and so on.
- middleclick 12y ago
  Is it? I have never paid any hidden fee, or overdrafts. Set a reminder for every fifteen days, pump up the credit card and everything sails smoothly.
  - toast0 12y ago
    Merchant fees are more or less hidden: somewhere between 1% and 5% of your purchase does not go to the merchant.
    - kijin 12y ago
      That's the same no matter what method of payment you use. PayPal charges merchant fees. Most banks charge fees for direct debit. Bitcoin has transaction fees. Western Union has transaction fees. Even if you only accept cash, checks, and money orders, it will cost you time and fuel to deposit them at your bank. The percentages might differ, but as long as you let someone else facilitate your transactions, there's no way to avoid paying some sort of fee.
  - pyre 12y ago
    The parent said (emphasis mine): > Because credit card system is not sustainable and you say: > I have never paid [...] and everything sails smoothly. The parent is talking about the system as a whole, while you are talking about your individual usage/experience. Is it not possible that your usage is subsidized by those less financially organized?
- adventured 12y ago
  You're going to have to actually provide real information to back up such an extreme claim if you want to come across as believable. What is inherent about the credit card system, at even a modest flat rate of 7%, that makes it unsustainable exactly? An examination by logic says that it is very sustainable, banking history says that it is very sustainable. It's absolutely no different in concept than a bank loan or line of credit, so long as the lending agency vets their customers properly based on the ability to pay. If you do that, it's an extraordinarily convenient and useful system. Banks have been making money on 7% loans for centuries. There is absolutely nothing unique about borrowing money on the spot via a credit card based on a previously set credit line.

by shiven 12y ago

romaniv 12y ago

Because credit card system is not sustainable without various hidden fees, overdrafts, default rates and so on.

middleclick 12y ago
Is it? I have never paid any hidden fee, or overdrafts. Set a reminder for every fifteen days, pump up the credit card and everything sails smoothly.
- toast0 12y ago
  Merchant fees are more or less hidden: somewhere between 1% and 5% of your purchase does not go to the merchant.
  - kijin 12y ago
    That's the same no matter what method of payment you use. PayPal charges merchant fees. Most banks charge fees for direct debit. Bitcoin has transaction fees. Western Union has transaction fees. Even if you only accept cash, checks, and money orders, it will cost you time and fuel to deposit them at your bank. The percentages might differ, but as long as you let someone else facilitate your transactions, there's no way to avoid paying some sort of fee.
- pyre 12y ago
  The parent said (emphasis mine): > Because credit card system is not sustainable and you say: > I have never paid [...] and everything sails smoothly. The parent is talking about the system as a whole, while you are talking about your individual usage/experience. Is it not possible that your usage is subsidized by those less financially organized?
adventured 12y ago
You're going to have to actually provide real information to back up such an extreme claim if you want to come across as believable. What is inherent about the credit card system, at even a modest flat rate of 7%, that makes it unsustainable exactly? An examination by logic says that it is very sustainable, banking history says that it is very sustainable. It's absolutely no different in concept than a bank loan or line of credit, so long as the lending agency vets their customers properly based on the ability to pay. If you do that, it's an extraordinarily convenient and useful system. Banks have been making money on 7% loans for centuries. There is absolutely nothing unique about borrowing money on the spot via a credit card based on a previously set credit line.