Best Credit Card?

[msinc]

Ok, I give up. I can explain it to you, but I’m afraid I can’t understand it for you.

Have a great day!

I have to ask...do you also believe the car dealerships when they say they are going to sell you a car for "$15.00 over invoice"???? How about when they "give" you $8500.00 for your used car trade in???? I have to admit...if I was a credit card company I'd sure want to give you a card.

 

[Erud]

I have to ask...do you also believe the car dealerships when they say they are going to sell you a car for "$15.00 over invoice"???? How about when they "give" you $8500.00 for your used car trade in???? I have to admit...if I was a credit card company I'd sure want to give you a card.

Ok, you are full of great comedy, but can you actually explain the downside of using a credit card with rewards when you pay the balance in full every month?
I get that you don’t like them, and it sounds like in the past you might have had trouble paying your bills on time. If you were using credit card to buy things you really couldn’t afford, that could indeed cause some problems for you. For those who don’t use credit cards irresponsibly, can you please explain the scam that you think we are naively falling victim to?

If you and I go to the same store together and both buy the same item, with very few exceptions (diesel fuel at truck stops comes to mind), the price is the same for cash or credit. You pay cash, I pay the same price on a card. 2 days later, I transfer the amount of the purchase from my bank account to the credit card to pay it off. The amount I take out of my bank account to pay for the item I purchased on the card is the exact same amount that you took out of your wallet when we were at the store together. At the end of the month, I get a credit equal to 2% of that purchase (and all other purchases) in my account that I can use to pay for future purchases, or I can just have them mail me a check. This amounts to hundreds of dollars every year. There is no annual fee, and I don’t pay any interest because there is no balance.

The credit card companies make enough money on the people carrying balances that it is worth it to them to give some of it to customers as an incentive to use their cards more. Their hope is that those customers will buy more than they can afford, rack up piles of credit card debt, and pay them more in interest. While it’s true that they want you to do that, that doesn’t mean that you have to do it. You’re an American, and nobody can push you around. You can pay the balance in full every month like millions of responsible people do, and the credit card company will still pay you the rewards. It is literally free money.

So actually, if you were a credit card company, I’m not the guy you would want to give a card to. You would make transaction fees (which don’t increase my costs in any way) on me, but no interest. Your better customers are the ones who pay you interest. Do you understand?

I eagerly await your eloquent response.

 

[Dave Berg]

I've looked for the 3% Amazon, 2% everything else Chase Visa card and can not find it. Could you kindly reply with the name of that card? Thanks!

Sorry it's actually 5% at Amazon, 2% gas, restaurants, drug stores, and 1% everything else. I prefer the Amazon Store Card as the refund is just subtracted from the monthly bill. No cashing in credits, etc. You have to be a Prime member but that saves me several hundred a year so unless the price for Amazon Prime gets really high I'll always have that anyway.

Amazon Prime Rewards Visa Signature Card

https://www.amazon.com/dp/BT00LN946S/?tag=accuratescom-20

Sorry again. That's the 5% card. Here's the 3% version - no Prime membership required. About two-thirds of the way down the page:

https://creditcards.chase.com/all-c...CELL=6TKV&SP9A=FH24R8&F42G=FH24R8&SP4R=FH24R8

 

[theMadAlaskan]

I love my Costco card. Cashback, no annual fee. One thing to note, if you rent a car with a credit card, you are covered with their insurance if you have a mishap.

Last spring I rented a car with my Visa. At some point I got a door ding and a small scratch in a parking lot. Cost me an extra $905.

 

[msinc]

I get that you don’t like them, and it sounds like in the past you might have had trouble paying your bills on time. If you were using credit card to buy things you really couldn’t afford, that could indeed cause some problems for you. For those who don’t use credit cards irresponsibly, can you please explain the scam that you think we are naively falling victim to?

In regards to the credit card companies "giving you free money" at first I just thought "no one can possibly be this stupid"....but you are way out of line with this batch of assumptions. Exactly what "sounds like I have had trouble paying bills in the past"?????? I have never even said "I don't like them", let alone trouble paying bills.

 

[kelbro]

I've collected more than $6000 from Cabelas on their card and have only ever paid $40 interest (missed a due date by one day doggone it). Thanks world for paying those higher prices. My fishing boat appreciates all of the $$$ electronics that I wouldn't purchase without the free points. The manufacturer gets paid for the product by Cabelas. Their workers get paid. Those higher prices are stimulating the economy and helping Make America Great Again!

 

[Erud]

In regards to the credit card companies "giving you free money" at first I just thought "no one can possibly be this stupid"....but you are way out of line with this batch of assumptions. Exactly what "sounds like I have had trouble paying bills in the past"?????? I have never even said "I don't like them", let alone trouble paying bills.

I took all that time to explain in detail how the process works and then ask you a couple of simple, direct questions, and your only response is to get mad about an apparent erroneous assumption? Ok, I apologize for that, and retract my comment that you may have had trouble using credit cards in the past.

Now, with that behind us, can you please explain how the money that credit card companies pay me to use their cards is not free? How do they get that money back from me? If it really is a scam that I’ve unknowingly fallen for, please help me to understand how it works. Calling me stupid does not answer any questions.

 

[msinc]

I took all that time to explain in detail how the process works and then ask you a couple of simple, direct questions, and your only response is to get mad about an apparent erroneous assumption? Ok, I apologize for that, and retract my comment that you may have had trouble using credit cards in the past.

Now, with that behind us, can you please explain how the money that credit card companies pay me to use their cards is not free? How do they get that money back from me? If it really is a scam that I’ve unknowingly fallen for, please help me to understand how it works. Calling me stupid does not answer any questions.

Let me explain a few things...I retired at 50, I am a real estate developer, I live in/own a 12,000 square foot house, own 15 rental houses and have my name in the land records of this county for very near 1000 acres. I have never borrowed money to buy a vehicle and I have not had a mortgage for the last 22 years. I own quite a bit of land in an adjacent state as well. I do have some problems, like the rising cost of building materials, but you can safely bet credit cards are not one of them. I am not telling you this to brag, I would like you to understand that I have a very clear concept of the cost of money and would never steer anyone wrong.
Now with that behind us....you don't seem to be able to come to terms with answers because it's not what you want to hear. I will say this one last time and leave it to you to try and figure out...or not. This is "cut in stone" about all business; business is there to make money, period, end of story. Business does not "make" money by giving it away. They make it by having their customers believe they are getting something. That something, whatever it is DOES NOT COME FROM OR AT THE EXPENSE OF THE BUSINESS...it comes from customers. The increase in profit margin that allows them to "give" may be generated from higher prices as some have suggested and it may also come from the general way in which they profit to begin with. In this case it is both. Credit card companies bait their customers with certain incentives. Lower interest, consolidate debt for lower payments, "free" bonus points for using it more. "BAIT". Here comes the switch, you might not have gotten to this point yet, for your sake I hope you don't, but eventually the customer slips up. he buys outside or "above his league" as you claim I do. And they got you. Now customer is paying high interest, minimum payments and are committed to long terms. Lenders want you locked up in debt so you just keep on paying. There are far more people in this boat than those that haven't "gone too far" or "over the edge" yet. That is where the high profit comes in. You are fine, doesn't affect you, you pay it on time and unlike you accuse me of you don't go too far. Don't affect you??? back up...they also raise the prices across the board to cover the merchants having to pay the credit card fees. Consumer card holders are not the only ones banged on by the credit company...yep, you guessed it, Wal-Mart gets slammed for a percentage of the charge too. Who pays that??? Well, I'll leave it to you to try and figure out this time.
As a businessman, I can assure you when you come to me to have that custom dream home built I am going to tell you all about the quality and how many we build a year...why the parcel of land I have is just what you need and what a good deal it is. How I am going pass the savings on to you. You will, like all of my customers, be very happy. What I wont ruin it with is how ALL and I mean every last one of the costs will be passed along to you at a profit to me. Credit cards to houses, cars to guns and ammo...welcome to the real world of capitalism.

 

[dolek]

Grow up children, unreal crap...and why not donate to the site if you are going to post ?

 

[Erud]

Let me explain a few things...I retired at 50, I am a real estate developer, I live in/own a 12,000 square foot house, own 15 rental houses and have my name in the land records of this county for very near 1000 acres. I have never borrowed money to buy a vehicle and I have not had a mortgage for the last 22 years. I own quite a bit of land in an adjacent state as well. I do have some problems, like the rising cost of building materials, but you can safely bet credit cards are not one of them.
Now with that behind us....you don't seem to be able to come to terms with answers because it's not what you want to hear. I will say this one last time and leave it to you to try and figure out...or not. This is "cut in stone" about all business; business is there to make money, period, end of story. Business does not "make" money by giving it away. They make it by having their customers believe they are getting something. That something, whatever it is DOES NOT COME FROM OR AT THE EXPENSE OF THE BUSINESS...it comes from customers. The increase in profit margin that allows them to "give" may be generated from higher prices as some have suggested and it may also come from the general way in which they profit to begin with. In this case it is both. Credit card companies bait their customers with certain incentives. Lower interest, consolidate debt for lower payments, "free" bonus points for using it more. "BAIT". Here comes the switch, you might not have gotten to this point yet, for your sake I hope you don't, but eventually the customer slips up. he buys outside or "above his league" as you claim I do. And they got you. Now customer is paying high interest, minimum payments and are committed to long terms. Lenders want you locked up in debt so you just keep on paying. There are far more people in this boat than those that haven't "gone too far" or "over the edge" yet. That is where the high profit comes in. You are fine, doesn't affect you, you pay it on time and unlike you accuse me of you don't go too far. Don't affect you??? back up...they also raise the prices across the board to cover the merchants having to pay the credit card fees. Consumer card holders are not the only ones banged on by the credit company...yep, you guessed it, Wal-Mart gets slammed for a percentage of the charge too. Who pays that??? Well, I'll leave it to you to try and figure out this time.
As a businessman, I can assure you when you come to me to have that custom dream home built I am going to tell you all about the quality and how many we build a year...why the parcel of land I have is just what you need and what a good deal it is. How I am going pass the savings on to you. You will, like all of my customers, be very happy. What I wont ruin it with is how ALL and I mean every last one of the costs will be passed along to you at a profit to me. Credit cards to houses, cars to guns and ammo...welcome to the real world of capitalism.

You've done an admirable job of reiterating the points that I made earlier about how credit card companies make their money. You have not yet explained the downside for a consumer who doesn't carry a balance, only hypothesized that those consumers eventually will carry a balance and pay interest. Let me try another angle here:

As a real estate developer living in a 12,000 square foot house, with 15 rental houses, and your name in the land records of your county for very near 1000 acres, I bet that you have been inside a few contractor supply houses in your day. Let's say that one day you decided to stop into one that you'd never used before. When you get there, you are pleasantly surprised to find that they have donuts out on the counter. You BS with the counter guy for 15 minutes about real estate developer stuff, and eat 3 donuts while standing around. Afterwards, you decide that you prefer the places you normally get your materials, so you leave without buying anything and never return.

Did you eat free donuts?

 

[msinc]

.....You have not yet explained the downside for a consumer who doesn't carry a balance.......
........Did you eat free donuts?

Free donuts??? Now you are back to apples and oranges. You will not allow yourself to understand, it appears I cannot help you. Is your credit card {that you never use} the only way you purchase anything??? How can that be??? When you go to any merchant {Wal-Mart, gas station, liquor store, etc. I know you buy something, anything from somebody} that accepts credit cards {and buy with cash} make no mistake, his prices are adjusted HIGHER to cover the cost of someone {translate to most people these days} using a card. You are paying that higher price {in cash this time} because of credit card use, yours or theirs...they don't care, they are getting the money. You can believe they are getting way more than they pass on to you. Over the years you are paying way more than they are "giving" you.

 

[muleman69]

Grow up children, unreal crap...and why not donate to the site if you are going to post ?

They have saved and made all this money but are to cheap to donate. Im sure they will though

 

[Dave Berg]

They have saved and made all this money but are to cheap to donate. Im sure they will though

They could donate with PayPal tied to a cash back credit card and be Silver Contributors for only $19.60. Then they could use the 40 cents to buy a donut.

How much do donuts cost these days? I get mine free from the local lumber yard.

 

[hoz53]

Free donuts??? Now you are back to apples and oranges. You will not allow yourself to understand, it appears I cannot help you. Is your credit card {that you never use} the only way you purchase anything??? How can that be??? When you go to any merchant {Wal-Mart, gas station, liquor store, etc. I know you buy something, anything from somebody} that accepts credit cards {and buy with cash} make no mistake, his prices are adjusted HIGHER to cover the cost of someone {translate to most people these days} using a card. You are paying that higher price {in cash this time} because of credit card use, yours or theirs...they don't care, they are getting the money. You can believe they are getting way more than they pass on to you. Over the years you are paying way more than they are "giving" you.

If a person pays their card off each month it’s true they aren’t getting something for nothing but someone else is paying for it. At a merchant where everyone pays the same price(cash or card) everybody pays for the merchant fees of the people who charge something. So if you pay cash you’re paying for something you didn’t get. There is plenty of competition in th CC market so the issuers need to figure out a way to set themselves apart. Everybody has to pay the merchant fees no matter what so a person might as well get what they can out of the deal. I think the people who carry balances pay for a lot of what the people that don’t get. Don’t know how much a CC issuer makes off merchant fees compared to revolving balances though.

 

[muleman69]

They could donate with PayPal tied to a cash back credit card and be Silver Contributors for only $19.60. Then they could use the 40 cents to buy a donut.

How much do donuts cost these days? I steal mine from the local lumber yard.

I'm a retired Uber driver and live in my car.

They must think this is the NO FUND ME forum but I'm sure they well come around soon as they both sound like real intelligent folks

 

[Erud]

Thanks for the reminder, fellas. My membership expired a while ago and I never think to renew. Since I have all of this free money on my card, plus extra time right now to argue with real estate moguls on the internet, I got that straightened out just now.

Maybe our resident land baron will be inspired to follow suit?

 

[clunker]

I fear that I may have created a monster in steering this thread away from the OP's question. Sorry about that. At the risk of making things worse, I feel I must explain myself. It is absolutely true that people who skillfully play the game of using credit cards with benefits to pay for everything and then pay off the balance each month have a monetary gain over people who do not. I used to have a roommate who was a master at it, but it was always interesting to see how the types of benefits changed, and how it steered his purchasing. If he got extra kickbacks for purchases at Amazon for one month, guess where he did his shopping. At the same time, by taking advantage of this system, he was driving up the cost of products that I purchase. It's the type of capitalism that I hate. Just on principle, I would rather give up the CC benefits, so I can sleep at night, knowing I am not contributing to corporate greed. I feel the same way about buying locally when I can afford it and choosing to buy American-made products if they still exist, even though it costs more. Not judging anyone else. It makes good fiscal sense to take advantage of those cards.

The major car rental companies would respectfully disagree with you. They will gladly let you pay your bill with a debit card when you return the car but to drive it away they want a credit card. It can be done but they will most likely withdraw enough from your bank account to cover the total estimated rental plus more - up to $350 for some of them. They will also run a credit check on you and if you don't meet their criteria - no car for you.

I have a ne'er-do-well step son-in-law with no credit cards because my step-daughter can't be trusted with one. My wife tried to pay for the car with her CC rather than spend four hours driving back and forth to the airport on Christmas day. Nope, they're interested the credit worthiness (and character) of the person signing the contract and taking the car. So including a three hour delay I got to spend seven hours on Christmas day in the rain and sleet driving and waiting. I wasn't happy. Two days later they wrecked my wife's two month old car - DUI. Hertz and Enterprise were right. That was six years ago and she's still not happy. We don't see them much.

I had no idea about the car rental companies. Guess I won't be renting any cars. What a gut-wrenching story. Not everyone who has bad credit is a risk, but corporations play the odds, and there is a very definite correlation between credit history and risk management. For what it's worth, I totaled my parents' 4-month old car when I was 17. Driving too fast and not paying attention on curvy roads. We all did stupid things as kids, but some of our mistakes were a lot more expensive than others.

 

[JMayo]

We're all grown and we all know how it works for us. . .....Sheesh .......