Log In | Register
Credit cards are the most lucrative segment of banking, and not just because of the interest charges. It's a case of the hook - the low interest rates, the line - the high interest rates, and the sinker - the fees.
Everyone in the industry wants to sell you a credit card. Don't be fooled by the offers. Below we present a dirty dozen traps and tricks used by credit card peddlers to fill their pockets and empty yours.
The Dirty Dozen Credit Card Traps
Seeded on Fri Aug 17, 2007 11:19 AM EDT
Article Source: careonecredit.com- Enjoy this article? Help vote it up the 'Vine.
- Public Discussion (5)
The best advice: cut up your credit cards and live debt-free. Your credit card is not an additional source of income, though I see people using them as if there were all the time. If I can't afford something, no matter how much I may want it, I can't get it, plain and simple.
- 2 votes
#1 - Fri Aug 17, 2007 11:22 AM EDTCredit cards are to allow you to not carry cash to make purchases, they aren't for making purchases you don't have the funds for - there is a difference. I really felt the purpose of credit cards faded away when debit cards and/or checkcards came around. There can be a very tiny benefit in the monthly float but it's seriously not worth the hassle. If you have enough money and spend enough money for it to matter you also have enough to hire a person to do all your finances for you.
I keep one credit card account open and not used (and doesn't have a no activity fee) because of the arcane calculations that go into credit score that actually give points for having some credit line (but you can overdo it very easy).
I don't think government regulation would help as implied in the story. Trying to protect people from themselves is a short term answer to a long term problem. In the end you have a stupid populace that is dependent on others for everything - a situation we are dangerously close to already.
#2 - Fri Aug 17, 2007 12:26 PM EDTI see nothing wrong with government trying to at least keep these companies honest through regulation -- people should have a clear understanding of it when they're being @!$%#ed in the ass, after all. One credit card company had a legal disclaimer on it's card and fees which was 27 pages long -- that's 27 pages of legal jargon; the equivalent to maybe 1,000 human-readable pages. The fact that these companies ruthlessly prey on people who are not aware enough to stay away from them, or can't afford to have credit cards in the first place, means some sort of regulation is in the best interests of the country; although that's never really a concern for government, which usually does everything it can to protect, defend and bail out these legally-shielded, corporate rapists.
- 2 votes
If you're not smart enough to look after yourself, or rather wise enough, then you usually aren't wise enough to know if you need looking after. Without a meritocratic system for citizenship the only logical conclusion is to assume maturity. If the maturity assumption is grossly inaccurate then whatever measure of maturity you are using is flawed for it's environment. Our current measure is the age of 18. If by 18 enough citizens aren't mature enough to be citizens then make the law continue to treat them as children or institute a more accurate measure of maturity than age.
To create a nation of least common denominators is as gross an injustice as deliberately removing less desirable people. Freedom means allowing others to make choices you wouldn't.
Personally, I have number of credit cards that I use on a for just about everything. They kickback a couple hundred dollars each year. I pay them off every week.
I prefer a credit card to my debit card because they are legally better protected and also if there is a dispute the cash is in my account and the not person who I am in dispute with. Also I won't auto-debit anything to my checking account, I will to my credit card.
I'm not convinced that more regulation is really needed. However, I do think maybe requiring credit card companies to spell out terms in english (not legalese) in an easily read font (ie not mousetype) is appropiate.
- 1 vote
#3 - Fri Aug 17, 2007 3:16 PM EDTYou're in Easy Mode. If you prefer, you can use XHTML Mode instead. |
As a new user, you may notice a few temporary content restrictions. Click here for more info.
