Why are charge cards not more popular?

[sarge12]

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@Anonymous wrote:

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@sarge12 wrote:

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@arkane wrote:

A philosophical question more than anything, but as I was replying to another thread regarding interest charges and what not, it got me thinking why charge cards never really took off.

Is it because banks simply found them too unprofitable? After all why only collect swipe fees when you can capitalize on people's need for instant gratification and charge usurious interest rates! Or is it because our spending habits are such that charge cards would've had limited exposure if they always required PIF each month, as opposed to allowing one to revolve the debt month after month so long as minimum payments are met?

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If you ever learned the hard way, you treat credit cards the same as charge cards...PIF...every...single....month! Credit cards can be a convenience, extend warranties, and get you rewards, or they can be a revolving road to ruin!!!

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Just because something 'can be' a road to ruin doesn't mean that it will. I'm personally carrying 5 figures in 0% APR periods through 2019 on some of my cards simply because it offers me an interest free loan. That leaves my actual cash free to generate earnings through either interest or stocks/bonds or whatever else I choose, and no matter how miniscule the return may be it doesn't change the fact that I wouldn't have received it if I paid cash for my products, or worse-if I took out actual loans that charged me interest. 

But yeah, if someone has no discipline, financial stability, or self-control then they probably should treat all cards like charge cards (and maybe not frequent this forum, lol).

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Agreed....I just recently chose to BT the remainder of an installment loan to an 18 month 0% credit card to save the interest. I did and still do have other options to pay that debt! It was 3500 dollars that when paid freed up the vehicle title that was security on the loan, and allow me to sell it easily should I decide to. I could have easily paid it off with my tax-deferred savings, which is available to me at any time, but drawing out that much more this year would cost me more in taxes than the smaller interest on the loan was. Using the 18 month BT at 0% interest was the choice that made the most sense. I am not such a strict transactor that I ignore the option to choose a credit cards 0% interest option to save money, but it is important that it was the best choice, not my only choice. I would never use a 0% BT offer to finance anything that relies on future income as the only choice. As long as you are not allowing the credit cards ability to let you pay in the future cause you to live beyond your means, then using the banks money interest free can be a good choice. Choice, and self discipline are the key. I have enough saved to pay every debt I have next week, including my mortgage, if I want to, and still have nearly 400k left over. Of course that is usually not true for those who are younger, and a house or car are still needed in life, and is usually worth going into debt for to avoid rent and get themselves to work. Even those 2 debts should be something that will be affordable even if your income changes. Reliable transportation is a necessity, but it does not have to be a new BMW that is not really affordable, to be reliable. If you are paying ridiculous interest on credit cards, you are using them wrong.

[redpat]

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@Anonymous wrote:

They are popular for those who work in large corportations, but I suspect that average consumer may not fancy them as much because a lot of people nowadays are carrying balances.

It is all about financing things! 

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It”s about traveling across the country and world first class (flights and hotel) while paying economy rates and getting travel perks from their cards.

MR points is a great travel currency and Amex charges are a must for individuals who travel a lot.

[Namaste7]

While I understand why banks do not offer charge cards, other than AMEX, I am one of the few that wishes there was another charge card on the market. While, I get you can treat a revolver like a charge card (i.e., PIF), it requires more micromanaging, especially if you don’t want the revolver impacting your utilization percentage.

Of all my accounts, I find my charge card the easiest to manage. I have no concerns of statement balance in relationship to overall credit limit. I have no concerns when I need to toss a higher charge on the account. Lastly, no need to work about CLIs Aside from maximizing offers, it’s a “set it and forget it account”.

On the other hand, some of my revolvers take more care. When I was in AZEO mode, I was sensitive to making sure all charges were paid before the statement date and stopping my spend on a certain date to prevent “run over” charges. Recently, I’ve gone to the traditional PIF by statement date method. While this requires less micro managing because it can be automated, I still track card specific utilization on some accounts.

My wish is that AMEX would update the Green card to 1.5MR with a MR points multipler system based on number of transactions, similar to the everyday card. That would be a nice pairing with the Platinum or the PRG.