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The Reality of Credit Cards

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Regular Contributor

The Reality of Credit Cards

 

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.

 

Message 1 of 16
15 REPLIES 15
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Valued Contributor

Re: The Reality of Credit Cards

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.

Chase Sapphire Reserve • PenFed Power Cash Rewards • and five cards in the sock drawer

No CC debt • No bonus chasing • No app sprees • No gift cards • No AZEO • No airline incidentals • No hotel cards • No store cards • No business cards • No authorized users
Message 2 of 16
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Contributor

Re: The Reality of Credit Cards

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

Message 3 of 16
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Super Contributor

Re: The Reality of Credit Cards

So much wisdom in two paragraphs. Great job!



01/2019:
02/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 4 of 16
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Super Contributor

Re: The Reality of Credit Cards

Darkness...Darnkess everywhere.... Smiley Wink

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.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 5 of 16
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Super Contributor

Re: The Reality of Credit Cards


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

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.



01/2019:
02/2020:

Closed: CareCredit $10K, B&H Payboo $7500
Hover over my cards to see my limits!
Goal cards: Cash+, Freedom.
Message 6 of 16
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Frequent Contributor

Re: The Reality of Credit Cards


@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.

Amex BCE | Discover | Chase Freedom | Citibank DC | SYNCB | Barclay Rewards | BoA Cash Rewards | CapOne QS | Chase CSR | Chase FU | Amex Ascend | 2019 Goals = Done |
Message 7 of 16
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Established Contributor

Re: The Reality of Credit Cards

You mean Amex really doesn't like me? Smiley Sad

 

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

Over $200,000 in credit across 12 cards.

FICO ranges from 791 -824 as of 07/26/2019
Message 8 of 16
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Established Contributor

Re: The Reality of Credit Cards

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.
Message 9 of 16
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Valued Contributor

Re: The Reality of Credit Cards

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

Message 10 of 16
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