Alvaro da Luna
Warlord
- Joined
- Jan 28, 2004
- Messages
- 256
The credit card industry in the United States
- Thread starter Masquerouge
- Start date
Masquerouge
Deity
What I actually find disturbing is that it is now mandatory to have a credit cart (mainly because of that Credit History thing), yet it certainly doesn't have to be that way.
I also am not very fond of the fact that credit card companies basically charge for each transaction, but forbid businesses to reflect that charge in their prices - in other words, even though a business earns more money when a consumer pays cash, it cannot make the consumer pay a bit less if they pay with cash.
I also am not very fond of the fact that credit card companies basically charge for each transaction, but forbid businesses to reflect that charge in their prices - in other words, even though a business earns more money when a consumer pays cash, it cannot make the consumer pay a bit less if they pay with cash.
One quick item though - for those of you using debit cards, protection from fraudulent charges is significantly lower, and you could lose virtually your entire bank account, wheras with credit cards there is more protection (or so I've read). The ideal would seem to be having a single high-limit card that can be used for emergencies, has no annual fee, and is paid off in full monthly.
It's not actually mandatory, it's just very hard not to have one. But you don't have to use it much, or at all.
Masquerouge
Deity
That's what we do with my wife. We pay the occasional restaurant with it, and we have a link between our checking account and our credit account so that the money is automatically transferred.
Oh and also, why is it so freakin'hard to check your credit score?
skadistic
Caomhanach
I got my home loan 7 years ago with no credit line at all at 4.8%. If you shop around and know what to look for it can be done with out getting the long shaft. Most people I fear don't know what their doing when it comes to loans and credit. I got my personal credit cards 2 years ago when the house was paid off. I use to pay cash for everything.
Cars are cheaper if you buy in cash.
CartesianFart
Deity
What laws are they breaking?
The question should really be that how can you teach people to not be tempted to purchase goods at a relative short time and price that they cannot afford?
We can only dream that we can destroy all datas of credit.
Or how we can teach credit card companies not to issue credit cards to consumers with bad profiles. Bailing out the credit card comapnies with corporate welfare legislation sends the wrong message. These companies need to get burned if they are issuing risky lines of credit. It is the only way they are going to learn to lend more responsibly.
CartesianFart
Deity
True.I remember that my brother told me that in some sense closely akin to mortagage loans.
That's the next bailout coming as I'm sure both parties are being heavily lobbied by the lenders who are about to take a big hit from their irresponsible lending practices.
Credit card companies are basically legal bookies, and as such, people who deal with them should treat them as such.
1)Never get a card that charges a yearly fee.
2)Never carry a balance.
If you follow those 2 suggestions, you won't have credit card problems.
It's irrational spending by consumers that allow the CC companies to make billions of dollars annually.
If you can't afford something, don't buy it. It's as simple as that.
1)Never get a card that charges a yearly fee.
2)Never carry a balance.
If you follow those 2 suggestions, you won't have credit card problems.
It's irrational spending by consumers that allow the CC companies to make billions of dollars annually.
If you can't afford something, don't buy it. It's as simple as that.
skadistic
Caomhanach
Whats wrong with yearly fees? I get alot for my fees like towing, protection, and some other perks. I can see if you can't afford to pay them but if you can and you use the things you pay the fee for I don't see why thats a problem.
Masquerouge
Deity
So in order to give a sarcastic twist to that thread, it's basically okay for a company to screw up stupid people?
Bamspeedy
CheeseBob
This goes back to the second part of the OP. Is saying that the check is due at 10:00 on May 1st (for example), but the credit card companies, knowing that their mail isn't received until 11:00, breaking the law or just merely being unethical by charging the consumer a late fee because they received the check an hour late (when they knew ahead of time that would happen, while the consumer would have no idea when the credit card companies receive their mail).
It may not be technically illegal, but sure is unethical.
Fugitive Sisyphus
Escape Artist
Yes, there is no law against that.
skadistic
Caomhanach
Is it ok for stupid people to screw them self? Since its volentary to do business with the company the idiots have no one to blame but thenselves.
Leonel
Breakfast Connoisseur
That's why I'm very wary about having a credit card. I don't like spending money I don't have and if I have to I go to my folks and pay them off.
skadistic
Caomhanach
Well if those people had paid the day before that late fee wouldn't have been charged. If people wait till the last minute isn't it their fault?
Masquerouge
Deity
Ah but the thing is, a credit card is borderline mandatory - so I'm not sure of how volontary it is...
Bamspeedy
CheeseBob
To a certain extent, yes, but there should be some restrictions to help protect consumers. Otherwise, we might as well disband the FTC. The question is if the credit card companies are over-stepping the boundaries into areas that one might consider to be illegal.
http://www.ftc.gov/ftc/consumer.htm
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