topic Re: The Reality of Credit Cards in General Credit Topics

The Reality of Credit Cards

GomerPyle — Wed, 16 Jan 2019 15:24:01 GMT

After playing the game for many years I wanted to share my thoughts about credit cards.

All of the credit cards in my wallet belong to their respective issuers. I am allowed to use them but I do not own them. The credit lines associated with that plastic also do not belong to me. It is not my money. That money I assume belongs to depositors in those institutions. Therefore I do not care nor am I distressed when card issuers do funky things with their cards. They can do whatever they want to do. There are two things that belong to me in regards to credit cards. One is the accumulated debt that they incur. Yes, the debt is mine. It is all mine. Therefore, I pay my credit cards in full so that I do not own the debt. The other thing that I own are the rewards. I redeem the rewards regularly before the card companies change their minds and steal the rewards. I absolutely do not trust them now or ever.
Credit is a game and it pays to know the rules. I play the game so that I will always win. I hate to lose. It pays to pay attention because everything in this game is stacked against the card holder. Large print giveth but fine print taketh away. There is no lender on earth that has your best interest at heart. They are all ruthless and care only about being repaid and thereby guaranteeing they make a profit. In reality, you are an account number and not even a real person to them. Be careful as you play this game because there are always sharks in the water ready to feast on you. Borrowing money is a stupid pathway to being in debt. Some would call me pessimistic. I prefer realistic. Cards are a blessing or they are a curse. You get to choose.

Re: The Reality of Credit Cards

UpperNwGuy — Wed, 16 Jan 2019 14:40:29 GMT

Very wise observations, and I thank you for sharing them. Too many people on this board "love" their credit cards and the credit card issuers, and that's a mistake. Always be suspicious, and keep expectations low. When things go well, it will be a pleasant surprise. When things go poorly, it won't be a surprise.

Re: The Reality of Credit Cards

Anonymous — Wed, 16 Jan 2019 15:12:19 GMT

So true... couldn't have said it any better.

Re: The Reality of Credit Cards

Anonymous — Wed, 16 Jan 2019 15:16:49 GMT

So much wisdom in two paragraphs. Great job!

Re: The Reality of Credit Cards

NRB525 — Wed, 16 Jan 2019 15:35:21 GMT

Darkness...Darnkess everywhere....

Some very good points, OP. The thing is, as long as we are able to pay for the purchases, the bank is happy to be the payment processor. Shopping banks for the best loan rates, and avoiding the typical purchase APR is a good idea.

But what a lot of us are doing is using the banks competing against each other, to find the best rewards. The banks probably look at us as ungrateful wretches for not using their 1% “rewards” credit card exclusively.

Re: The Reality of Credit Cards

Anonymous — Wed, 16 Jan 2019 15:56:21 GMT

@NRB525 wrote:
Darkness...Darnkess everywhere....

Some very good points, OP. The thing is, as long as we are able to pay for the purchases, the bank is happy to be the payment processor. Shopping banks for the best loan rates, and avoiding the typical purchase APR is a good idea.

But what a lot of us are doing is using the banks competing against each other, to find the best rewards. The banks probably look at us as ungrateful wretches for not using their 1% “rewards” credit card exclusively.

There isn't really a probably about it. Chase's 5/24 says it all.

Re: The Reality of Credit Cards

Anonymous — Wed, 16 Jan 2019 16:40:47 GMT

@GomerPyle wrote:

After playing the game for many years I wanted to share my thoughts about credit cards.

All of the credit cards in my wallet belong to their respective issuers. I am allowed to use them but I do not own them. The credit lines associated with that plastic also do not belong to me. It is not my money. That money I assume belongs to depositors in those institutions. Therefore I do not care nor am I distressed when card issuers do funky things with their cards. They can do whatever they want to do. There are two things that belong to me in regards to credit cards. One is the accumulated debt that they incur. Yes, the debt is mine. It is all mine. Therefore, I pay my credit cards in full so that I do not own the debt. The other thing that I own are the rewards. I redeem the rewards regularly before the card companies change their minds and steal the rewards. I absolutely do not trust them now or ever.
Credit is a game and it pays to know the rules. I play the game so that I will always win. I hate to lose. It pays to pay attention because everything in this game is stacked against the card holder. Large print giveth but fine print taketh away. There is no lender on earth that has your best interest at heart. They are all ruthless and care only about being repaid and thereby guaranteeing they make a profit. In reality, you are an account number and not even a real person to them. Be careful as you play this game because there are always sharks in the water ready to feast on you. Borrowing money is a stupid pathway to being in debt. Some would call me pessimistic. I prefer realistic. Cards are a blessing or they are a curse. You get to choose.

Excellent post OP!

I have just highlighted the parts I liked.

Re: The Reality of Credit Cards

Berk — Wed, 16 Jan 2019 17:23:38 GMT

You mean Amex really doesn't like me?

Been saying the same thing for years on these forums. It truly does amaze me that people think any different.

Re: The Reality of Credit Cards

Anonymous — Wed, 16 Jan 2019 18:29:04 GMT

What, this can't be.
The letter from my bank thanked me for being a "valued customer", then went on to say congratulations on "your" new credit card.

Re: The Reality of Credit Cards

bourgogne — Wed, 16 Jan 2019 21:58:29 GMT

good post but a minor caveat, you don't always own the rewards. see the fine print re amex lol

Re: The Reality of Credit Cards

Cred4All — Thu, 17 Jan 2019 01:00:17 GMT

A nice set of reminders for folks, thanks for those!

Re: The Reality of Credit Cards

Andypanda — Thu, 17 Jan 2019 01:03:35 GMT

@GomerPyle wrote:

After playing the game for many years I wanted to share my thoughts about credit cards.

All of the credit cards in my wallet belong to their respective issuers. I am allowed to use them but I do not own them. The credit lines associated with that plastic also do not belong to me. It is not my money. That money I assume belongs to depositors in those institutions. Therefore I do not care nor am I distressed when card issuers do funky things with their cards. They can do whatever they want to do. There are two things that belong to me in regards to credit cards. One is the accumulated debt that they incur. Yes, the debt is mine. It is all mine. Therefore, I pay my credit cards in full so that I do not own the debt. The other thing that I own are the rewards. I redeem the rewards regularly before the card companies change their minds and steal the rewards. I absolutely do not trust them now or ever.
Credit is a game and it pays to know the rules. I play the game so that I will always win. I hate to lose. It pays to pay attention because everything in this game is stacked against the card holder. Large print giveth but fine print taketh away. There is no lender on earth that has your best interest at heart. They are all ruthless and care only about being repaid and thereby guaranteeing they make a profit. In reality, you are an account number and not even a real person to them. Be careful as you play this game because there are always sharks in the water ready to feast on you. Borrowing money is a stupid pathway to being in debt. Some would call me pessimistic. I prefer realistic. Cards are a blessing or they are a curse. You get to choose.

Just a nit pick, it not just depositers, the bank also lends out money recieved from bonds holders, which I think technicley are not deposits.

Re: The Reality of Credit Cards

800FICOGoal — Thu, 17 Jan 2019 07:58:47 GMT

Great post. This is has been my thought pattern for decades. I treat my credit cards just like a debit card. If I don't have the money then I don't need it. I keep money in the bank for emergencies and save for anything I wish to purchase.

@GomerPyle wrote:

After playing the game for many years I wanted to share my thoughts about credit cards.

All of the credit cards in my wallet belong to their respective issuers. I am allowed to use them but I do not own them. The credit lines associated with that plastic also do not belong to me. It is not my money. That money I assume belongs to depositors in those institutions. Therefore I do not care nor am I distressed when card issuers do funky things with their cards. They can do whatever they want to do. There are two things that belong to me in regards to credit cards. One is the accumulated debt that they incur. Yes, the debt is mine. It is all mine. Therefore, I pay my credit cards in full so that I do not own the debt. The other thing that I own are the rewards. I redeem the rewards regularly before the card companies change their minds and steal the rewards. I absolutely do not trust them now or ever.
Credit is a game and it pays to know the rules. I play the game so that I will always win. I hate to lose. It pays to pay attention because everything in this game is stacked against the card holder. Large print giveth but fine print taketh away. There is no lender on earth that has your best interest at heart. They are all ruthless and care only about being repaid and thereby guaranteeing they make a profit. In reality, you are an account number and not even a real person to them. Be careful as you play this game because there are always sharks in the water ready to feast on you. Borrowing money is a stupid pathway to being in debt. Some would call me pessimistic. I prefer realistic. Cards are a blessing or they are a curse. You get to choose.

Not only do you have to think this way with regards to the credit card rewards, but also to any program you transfer point to such as airlines.

Re: The Reality of Credit Cards

Anonymous — Thu, 17 Jan 2019 09:03:12 GMT

Informative post! Will add, we do not own the rewards so as you mentioned we need to get them away from the bank and into our hands. One only needs to read the Terms and Conditions from say Citi Bank, to see they are their rewards until we cash them out. It gets even better, some banks have a "claw back" provision on rewards so it pays to read your "Rewards Terms and Conditions" as one size may not fit all.

Re: The Reality of Credit Cards

AverageJoesCredit — Thu, 17 Jan 2019 12:21:16 GMT

I "LUV" My Credit Cards , they ARE mine ( in my Wallet) and yes AMEX loves me , the Credit Report tells me so!!

Re: The Reality of Credit Cards

UpperNwGuy — Fri, 18 Jan 2019 04:00:30 GMT

@bourgogne wrote:
good post but a minor caveat, you don't always own the rewards. see the fine print re amex lol

So true. If the rewards are in the form of points, the bank owns them. If the rewards are in the form of miles, the airline owns them. But if the rewards are in the form of cash, they can be yours immediately (except when the bank imposes some silly $25 minimum redemption rule).