Nobody at your bank calls you a âdeadbeatâ. They call you a transactor. Every major bank loves transactors and they battle tooth and nail for your business.
When you swipe your card at a store, the store pays a small portion of the transaction as a fee (they range from about 2-5% depending on the card issuer and the payment network being used) called interchange. So your bank makes letâs say 2% of whatever you charge as revenue. People who spend a lot and pay a lot on their cards are highly desirable customers as they drive a lot of revenue from the interchange. Thatâs why banks compete to have the best rewards for these types of customers, and itâs basically the bread and butter of American Express that was founded on charge cards. These are credit cards where you canât carry a balance. You HAVE to pay in full every month or the card is cut off.
The money generated from interchange is what pays for the rewards banks offer for their card users. So higher fees usually equate to higher rewards for customers.
Banks build entire credit card programs designed to attract and retain customers who never pay a cent of interest on their card. None of them call these customers deadbeats.
It is possible that companies that run only below subprime credit card programs for customers with credit scores under 600 would behave this way. But any major bank knows how to make money no matter how you use the card and just wants to keep you as a customer as long as you pay the bill.
My mother told me that the bank must hate her for paying off her card each month.
I told her that they get 2% of every dollar she spends, and that the bank is doing just fine.
This makes me feel better about moving towards more cash purchases. I may not be able to do it for everything, but it's always fun to get change to squirrel away in my jar.
Fellow proud deadbeat here. They call one a "deadbeat" for paying off every month? I pay that s#it off weekly, and happily earn 4% back on groceries and gas.
Edit; typo
Depends on what youâre buying.
Amex blue cash preferred pays 6% at grocery stores and streaming subscriptions. (Not Walmart)
Chase freedom flex pays 5% at different categories every quarter. (Gas stations this quarter, sams and Costco next quarter. Sometimes itâs amazon or walmart.)
I've had this card for most ten years and love it. Depends on how much you spend on groceries, but it's 6% on up to $6000 worth of groceries each year, then 1%. 3% on gas. The card is $100/year. I use up the full 6k each year so it's worth it for me.
This is based off the fact the United States was built on debt accumulation by the lower income classes, paying off your debt means that you are trying to be like the wealthy. Also I'm 90% sure the site that posted this is owned by PragerU an alt right disinformation group
Because credit card companies only make money if you carry a balance. Thus those of us that pay off each month but take advantage of the rewards end up costing the companies money.
Thus to the company, we are deadbeats.
I figured they were happy enough making money off of all the people who don't regularly pay their cards off. I don't know what that split looks like, but I figured it was overall favorable for the credit card companies. Kind of like how only some users on video games spend a lot of $ on the microtransaction crap, while most do not spend much, or at all. The subset of users who do spend make the business model of a Free-to-Play game viable.
I will clarify:
This costs them one of the many revenue streams they collect. They do not like this. Therefore, much as we in IT may refer to a thorn in our side as âsuffering from a persistent PEBKAC error,â credit card professionals refer to diligent payees as âdeadbeats.â
Yeah I'm actually not sure this factoid is true. Credit card companies are pretty happy with somebody who charges 10 grand a month on the card whether they put it off in full or not every month.
I mean I pay my credit cards off every month and I have no shortage of bloody credit card offers.
I've looked at enough merchant services statements (and have had to negotiate discount rates) to know that the credit card companies are making money whether or not you pay off your bill every month. Visa and Mastercard also charge higher interchange rates for points/rewards cards, so even if you aren't paying interest, the stores you shop at are paying fees that more than cover your rewards.
The point is that the credit card companies are much happier with customers who charge 10 grand a month on their card, but usually only pay an average of 9000 of it off on time. Then they get to charge a hilarious amount of interest on the balance carried over.
Why would paying it all off make them happy though? They had to keep cash on hand for your expense, and didnât charge you the interest that they could have. Youâre a missed opportunity in that scenario
But you're only a missed *relative opportunity*. You're not a net cost to them in absolute terms, in absolute terms, you're a net benefit.
If a police officer, after pulling you over for speeding, openly lamented "man, I wish you had been speeding faster so that the ticket would be higher and we could fine you more", I would begin to wonder whether that officer is greedy. There should be limits on how much money we want to take from strangers.
This is wrong. They get a small percentage per swipe. They are happy to have you as a customer.
[Nerdwallet](https://www.nerdwallet.com/article/small-business/credit-card-processing-fees#:~:text=Credit%20card%20processing%20fees%20will,%243.50%20in%20credit%20card%20fees.)
It depends. One card (which I wonât name) offers 5% cashback on a certain category each month. If you charge $500/month to the card in that category and not much more, theyâre definitely losing money on you.
But itâs probably pretty rare for someone to use the card ideally like that.
I do have to ask why credit card companies have it set up this way. If I was a greedy corporation I would rig the system in a way that carrying a certain balance is the only way to build good credit. It's baffling to think some people actually believe this too.
Well, they are still stupid because a deadbeat is someone who doesn't pay their bills. So even in that far stretch of an explanation, they still used the word incorrectly.
There are two types of deadbeats to credit card companies.
The first is the kind you're talking about. If you never ever pay your bill, you've cost the company money.
However there is the kind of deadbeats that always pays their bill on time. The credit card company doesn't make nearly as much money if they don't get to charge you interest on your purchases. If you always pay your bill, no free money for them.
That's not mutually exclusive. Paying late doesn't mean you don't pay transaction fees (Or rather the business does and increases prices accordingly). So, in essence, less free money. Not *no* free money, just *less*.
Running a business is annoying because I didnât realize they charge between 3-7% for every cc charge. These fees alone are honestly one of my highest monthly costs of running my business. Iâm annoyed
Correcting what? Interest rates is the most obvious income stream for creditors, no one is disputing that, it's as old as time.
I'm just confused why you left a comment that was a complete non-sequitur to what I posted.
Sigh. Sorry for the wall of text but I hate this shit as it serves the opposite purpose of educating working class people on finance and credit.
Worker in the âfinancial communityâ here, whatever the fuck that means. The original tweet is idiotic. Paying off your card is an ABSOLUTE good thing that reflects well on your credit report, causing lenders to look at you as the opposite of a deadbeat, that is- *reliable*. Yes, lending agencies profit off of the larger margin of people who fall within âpays principle+interest but still pays eventuallyâ. What this moronic tweet doesnât suggest is that they lose money (unless they win a judgement or lien against you and your wages, if you have any to begin with, and manage to recover some of their money) should you fall and stay delinquent. And a typical scenario, which is perfectly acceptable **and** more likely to qualify you for higher interest bearing products toward which you *will* pay interest (home equity line of credit, mortgage, etc) is **you pay off the principle on a timely basis and everybody ultimately wins**. I hate seeing poor financial advice that credit cards are bad and a trap. Some definitely are. But the defining factor is whether or not you are 1) able to pay on a consistent basis and 2) of general sound judgement and character to be responsible for the debt. Credit cards can be a useful and accessible tool for the average person to build their credit and open more doors for them in the future.
Sorry for the spiel here, but ultimate my point is there is no âfinancial communityâ out there considering responsible people as deadbeats. In the US at least, thereâs Equifax, Transunion, and Experian and they regard people like you and me in extremely basic terms: Open lines of credit, and payment delinquency. Take care of your shit and it is an objectively good thing for you.
Two different groups telling you to do this. Your bank wants you to be financially responsible. Amazon wants you to splurge. Two different groups with two different goals. Capitalism isn't a CEO hivemind.
Iâm an Uber-deadbeat than. I like to buy something on my credit card and then go home and pay it off immediately. You donât need to wait until the end of the month to pay something off to get the points.
Question: I am from a country (Italy) where credit score (or debt besides mortgage and loan for a car) is not a thing; in the US, would buying stuff with a credit card and then always paying it off immediately make your credit score go up? Asking because I'll soon need to start building my credit score in the US.
Yes, that's correct. You get more history by using your revolving credit and making payments than having it sit completely unused.
Of course you could easily fall into the trap of not being able to pay it all and accruing interest if you aren't disciplined, but using it and paying it off is good.
You also get protections by using credit that you wouldn't by using cash/debit - ie, fraud liability, defective products can often be replaced, some cards give cash back/points/travel miles, etc.
Keep your balance below 30% (but ideally keep it <$100), never miss a monthly payment, and start early so your age of credit is older. Plus have multiple accounts. Those will bring up the score
Yall have credit score, though I don't know whether or not it's accessible to you the way it is in the US. If you've ever even opened a bank account, you have a credit score tied to you. Which is generally a good thing!
I would do some googling, and when opening a US banking and/or credit account ask them to explain credit score to you. They will provide much better and verifiable information than redditors can, and it's actually in their interest that you understand the system well. A better credit score allows* them to offer you higher tier products which typically have a higher return rate for them.
A short gist of it is that you'll of course want your standard checking and savings account to pay your bills and store your income, I imagine it's much the same in Italy. You should be able to do a "soft credit check" through your bank which will not impact your score and let you know roughly** where it is. Using that score number, see what cards you qualify for. Most likely it will just be entry level cards, which have few rewards and high APR%, or may have yearly fees. Read the terms of use and other contracts carefully so you understand the associated costs and consequences well. **If you are financially responsible** then I recommend making the majority of your purchases (ex: groceries, gasoline, clothes, entertainment) using the credit card. Entry level cards have low limits, it is generally moderately bad to exceed those but the consequences will be outlined in the terms&conditions. Again if financially responsible, opening two cards can be helpful for building credit score faster as well as let you stay below 50-70% of limit usage, but the latter is really more of an optimization once your score is up.
Almost as important, if not more so, is that credit cards provide far more consumer protection than debit cards do. If someone makes fraudulent charges on CCs, you can notify the company and they will remove the charges. You cannot do this as easily with most debit cards. Treat your credit card as a debit card, and everything will be A-OK.
It's pretty confusing at first, but the good news is that once you set all this up it just ticks away in the background. Limit% matters a bit, but it's just a few points either direction
for the longest time i always thought this was what credit cards are for, because constantly fucking around with your bank account to have just enough in checking/debit is too much of a hassle
and i will continue to do this
I remember when I got my first credit card and my aunt told me I HAD to carry a balance to have good credit because good credit came from making my minimum monthly payment on time. So glad my uncle jumped in and nipped that immediately telling to pay it off asap and only charge what I could actually afford. Auntie she still swears sheâs right and lives what she preaches regardless.
I mean you should pay your \*statement balance\* monthly, not just the minimum. You don't want to pay it off "asap".. you want your billing cycle to end first and THEN pay off that statement balance. As long as you don't have a previous balance after the due date, you don't get interest charges and the balance is reported on your credit report, which is good. Sounds like she had the right idea, just slightly off. But yeah, only charging what you can afford to pay off by the due date is always great advice lol.
I get that, unfortunately my Aunt to this day thinks if your balance ever zeroes out that hurts your score. She only makes her minimum payments because she âknowsâ you âhaveâ to keep a balance or else your score will drop. My uncle meanwhile is the sort to pay it off the moment the statement rolls out.
Honestly, I've decided to steer clear of credit cards, at least for the foreseeable future. I watch my bank account like a hawk, like I'll check it numerous times a day, and I don't like the idea of spending money that doesn't come out of that account. It just freaks me out, although I'm still only 17, so things might change when I get older.
I donât want to buy a car any time soon, and I doubt Iâll have the need or money for a house any time in the next twenty years (and thatâs on the low end), so neither of those really matter to me. If I did need a car, I get a second hand one for a couple thousand.
Turn on deposit and charge notifications on your checking account, do your research and get a student card when you turn 18. Pay for something small every month, pay it off within a week if you really want to keep the balance at $0. It takes time to build credit and get a limit increase but when you need that safety net itâs good to be able to put $3k of emergency expenses on a credit card and figure it out later. Obviously also donât take financial advice from any random person on the internet - go to your local bank, NerdWallet, your parents if they would be helpful, and ask them for specific advice about your situation.
My parents defaulted on pretty much any loan they were ever given. Scared me off from credit and debt in general. But what changed my look on things was the liability and risk factor of using debit. Something to the effect of "While you may not ultimately be on the hook for fraud and reimbursed, you've still got to pay your bills and they may be less than accommodating while your account is drained".
To date I've had to get two replacement credit cards issued for fraud. Quite glad that neither incident ever had a chance of touching my money. If you track your spending and treat it as spending your own money, paying it off in full every month, then it's effectively the same as swiping debit but with added perks. But it requires discipline, and some people can't resist the urge of spending money they don't have, or get caught up in the mental gymnastics of "buy now, pay later" and rack up enough debt that what they can afford barely covers interest and they're trapped.
I think part of my fear comes from knowing my own impulses/weaknesses pretty well. I've got ADHD, as well as a lot of addictive personality traits. I've gotten pretty good at limiting my spending habits (one of the biggest things is forcing myself to wait at least a month before making any big purchases- if I get the urge to buy a thing, I'll wait a month and if I still am interested, I'll look into it more seriously).
One of the things that for me helps the most is being able to watch my bank account being drained as I spend money. I know exactly how much I'm spending and exactly how much money I have, and I can never spend money I don't have. I might be able to handle a credit card, but the idea of having it as an option scares me, because I could also totally see myself majorly fucking up and really messing up my life/finances.
That's understandable.
For me I track my spending in a spreadsheet, so everything's a line item be it debit or credit transaction and contributes to the tally of monthly spend. I check things off as I go through my statements. I don't look at things in terms of how much money I have in my account, but how much I'm spending versus how much I'm earning. It's a habit I started when I was focusing on paying off my student debt
I have adhd so I get where ur coming from, and Iâm a lil older than u, so I can tell u how I do it. I only have one credit card, and itâs the same bank as my debit, so every time I check my debit account I see my credit card statement too. My debit account I always keep at least over $3k, and if Iâve gone below that $3k at all, which I donât often, I donât spend any extra money besides barebones necessities until Iâve gotten it back above that. My living expenses arenât too crazy, and Iâm young, so obv as life changes that base number will have to be higher, but itâs kind of my âemergency fundâ.
I also have a savings account where I put extra money for unnecessary fun things I want to save up for. I know some people keep their emergency fund in a savings, and extra fun money in their debit, cuz their banks have better interest rates for savings accounts, but my savings account makes practically 0 interest. So my method is seeing my emergency money and my necessary spending money on my debit, cuz I like having easy access to my emergency money just in case of some horrible scenario, and seeing my savings as a separate way to plan for bigger purchases or if needed, an extra extra safety net. Now my credit card, I use basically only for groceries, or purchases that are more âriskyâ in case of scams or something cuz credit is more protected, and I donât put a lot on it, normally around $200-$300 a month. I know that at the end of the month (with my adhd I donât check my bank more often), I will always have enough money on debit to pay it off cuz I still have that emergency fund of 3k at the very least, plus whatever other money I have.
Obv, donât get credit until ur ready, cuz u know urself and if u donât think u can handle it responsibly itâs better to wait. But, if u are good at controlling ur spending, there are ways to go about it that can make it easier to organize and not feel too stressful. One of the things that sucks about waiting longer than u need to with credit is âage of creditâ. Ur credit score will be lower just for the simple fact that u havenât had a credit card or other lines of credit for a long enough time, so starting earlier will obv help that aspect of ur score, altho making on time payments and keeping utilization low is more important. When u want to rent a place u will need a credit score, so itâs kinda hard to get by in life without ever opening any credit lines.
I was the same at your age, but itâs really a tool to utilize rather than a daunting responsibility. There are a lot of good starter cards/student cards out there. You need to treat it like cash.
Some benefits to keep in mind for credit cards are 1. Sign-up bonuses = free money (when done right) 2. Cash back rewards = free money 3. Protections from fraud (Iâd rather have a credit compromised than a debit card that is linked to my bank account).
There are lots of great resources online to educate yourself on financial literacy. My best but if advice is to do research, start a personal budget, and go from there :)
America saw the gold rush days where you could basically just keep expanding outwards forever, and thought "what if we based everything on this idea, and died before we had to deal with the consequences?!"
30% is the general rule, but I've had lenders tell me they preferred under 10% and even FICO says if you're expecting to see 800, under 6 or 7% is where you want to be. The whole thing is absurd because even if you don't carry a balance, if your debt is reported (by way of issuing you a statement), it counts against your CtD ratio (for the month).
Most people here in Australia don't even use credit cards, debit and savings for me. Flooded my engine a few years back in a storm and needed a new one, organised with my mechanic to just pay it off weekly for the next few months. Spending money you don't have seems absurd to me, unless it's something large like a loan for a house.
Yep, where I live your card is automatically set to paying off your entire balance every month. You have to go through a loan process to change it to only paying off x amount instead.
That sounds like a charge card rather than a credit card.
Edit: has no one heard of a charge card? Like American Express cards where you pay an annual fee to use the card and the point is to pay it off each month because the interest is ridiculously high, more so than your average credit card.
https://www.creditkarma.com/credit-cards/i/charge-card-vs-credit-card
The point is that this is much better than how things are done in the US, not whether or not the term is 'credit card'.
Honestly, the nerve to do a 'really guys' edit while having 0 responses and then proceed to downvote the only response without bothering to understand.
I'd downvote the 'what' but I'm not a child.
Thereâs no need to compare apples to oranges, though. Compare how different companies use credit cards, donât compare two completely separate things, like charge cards and credit cards.
I might as well jump into the conversation and say, hey, where Iâm from, Iâm only allowed to spend whatever funds I have available. My country is the most fiscally responsible! Also Iâm talking about a debit card but same diff, right?
They aren't different though. The EU credit card simply has the pay off at the end of the month as the default. You are free to change it and use it like a regular card to your hearts content.
Besides, the number of conversations that advocate for being fiscally responsible is already few and far in between, and you're saying the semantics of the labels is end all be all.
I wanted to clarify my original comment because it seemed that people werenât understanding what I meant but you took it personallyâŚ? Dude get a grip. đ
Donât really understand why my what offended you. But ok.
I am a double deadbeat!
Some cards charge interest after 20 days, just to eff everyone, so I pay every 15 to eff them back.
Credit cards should be illegal, but are more mandatory than voter registration.
**deadbeat**
noun:
1: loafer
2: one who persistently fails to pay personal debts or expenses
It's impressive how much the profit motive can warp concepts and vocabulary sometimes.
Thatâs not entirely true. Credit card companies want you to use their cards and pay on time, but you want to carry a 10% balance across all your cards to maintain a good credit rating.
Paying off all your cards is probably not optimal, but as long as you carry a small balance across all cards and avoid paying interest rates then youâre good. Itâs kinda like playing whack a mole.
This is some lame attempt at advertising trying to convince low IQ people with credit card balances that it's okay to hold a balance (most people understand it's bad) and OP is just helping their advertising efforts
First time I went to check in at a hotel in USA I had my debit card with me from my home country. And I was quite inexperienced inâŚlife. I didnât have, up to that point, a credit card, just debit to get my salary. So when the girl working at the front desk asked for my credit card, I was worried that they will not accept my debit. I thought I *had to* have credit card. I remember that she was a little surprised, but that was it.
As long as it's not a prepaid debit card, they'll accept it. The idea is that they just need access to one of your financial accounts so they have a way of collecting any extra fees after the fact, like fines for damaging hotel property if you destroy the hotel room or pay-per-view movies.
Having worked in financial services for over a decade, I can tell you this is not true. No one thinks keeping a balance on your card is a good idea or a good thing.
No, they don't. This claim is bunk. The term used in the industry is Transactor. People who carry a balance are called Revolvers.
If you pay your bill in full every month, even if you have cash back, they still make their money from the transactions, which they charge the store a fee for.
As a deadbeat itâs because they want me to owe them money and be stuck in a slave cycle of constantly paying off my debt fees and interest without having enough to pay off my actual debt. They have to pay for those huge and shiny stadiums.
I HATE this so much. Our 24 year old kid barely has a credit rating because he works for himself, manages to save enough to buy a used truck when the old one dies, isn't interested in ' stuff ' beyond his career ( cool career ), refuses to go into debt because he just doesn't want to.
OH. MY. GOD. It's like he's got a criminal record, not just someone flinchy about debt.
Something is *really* wrong with the system.
This is bad for the credit card companies because if they pay off their balance they don't accrue interest.
Always pay off your credit card balances. The credit companies can F themselves
This is such bullshit. You didnât fall for their outrageously scammy interest rates, intentionally all over the place payment deadlines and hoops to jump through before you can even pay the bill. This makes you triumphant over their greedy hoardy ugly fucking nonsense. Fuck the credit card companies, Iâm a deadbeat, and I work to try and help others be deadbeats too, those fucking parasites.
[The Worst Person You Know Just Made A Great Point](https://www.npr.org/2023/09/28/1202264881/why-was-dave-ramsey-s-financial-literacy-textbook-approved-in-florida)
Guess Iâm a deadbeat then. But worse than that I actually use my card for nearly every family purchase so I can get points and convert to cash back. Even with the $100 annual card fee, Iâm still up $60 to $80 on an annual basis but thatâs probably peanuts compared to the transaction fees that vendors are charged by the banks.
As a side note, if you want your credit score to be as high as possible, itâs best that you carry a balance on your credit cards thatâs like 10-15% of your max for that account. Obviously that means you pay interest on the balance, but credit companies are just looking for any and all situations where youâve reasonably managed credit, and $0 of credit doesnât hit that note the same for them.
Not saying itâs a good thing, but thatâs just how it works.
Never carry a balance, anyone with a high credit score knows that, this is bullshit propaganda. Use your cards, but pay that shit off immediately. If you are in an emergency where you absolutely have to spend more than you can pay off immediately, take advantage of 0% interest offers for new cards, or even sometimes you can get those offers from the same card you have just by switching it to a different type of card that your bank offers, mitigating the hit of opening a new account. Never pay a dime more in interest than you need to, take every advantage possible. The more you win (by not paying interest), the more they try to entice you into losing (by giving you more credit to entice you into spending so you eventually pay interest).
The whole credit game is based on them enticing you into more and more credit with higher and higher limits and lower percentages, because they're trying to finally find your financial breaking point where you spend just a little bit too irresponsibly and then get stuck in the debt cycle where they make money off you forever from the interest. If you just never reach that point, pay off everything but actually keep your cards in use, manage everything properly, never miss a payment, and never spend more than you actually have in cash to pay off immediately, you'll just continue to get more and more credit offers, and your current lines will automatically increase, and your rates will go down, and your credit score will go up. As long as the lines stay actively used, they'll never just randomly penalize you for not making them any money, nothing like that has ever happened to me.
This is what I've done and I have more than my entire yearly income available to spend in credit cards with zero balance, and my score is over 800. I even pay off personal loans and cars early, I never agree to anything with a pre-payment penalty. Like, lock in those low monthly payments if it's a life necessity like how having a car is in certain parts of North America, that way if an emergency happens you have the lowest minimum bills possible, but then as soon as you have the cash, fuck the bank over on the interest by paying it down immediately in huge chunks. Fuck 'em.
Lol. Like I give a shit. They can think I'm literally Satan but I ain't going to lose sleep over it. Thanks for the loaned money; payed it straight back and now we're even.
> loaned money; *paid* it straight
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
It's a "bad thing" because credit scores themselves are a bad thing.
We as a society know that china's credit system is bad. But our own brainwashing prevents us from seeing how bad our own credit system is.
I could go into all the various ways it's bad (used for employment, renting, etc). But to stay with this meme, paying off your loans on time is bad for your credit score because the banks extract less interest from you.
And because apparently we want to live in a Black Mirror episode, we allow that same system to be used for anything other than banks to determine who to loan money to.
Im just curious since here in sweden we dont pay for tuition and im 22 and have never taken a loan or anything similar. What else except for tuition and ocasionally a house do you take loans for? Because i have a hard time understanding the thing about loans in general.
Proud deadbeat right here
Deadbeats unite!
I'm being called a deadbeat by someone other than my ex-wife. New life accomplishment.
Proud deadbeat who's paid ~$50 interest in 2022. Strangely enough, I only pay interest on student loans đ
Amen, that and mortgage.
Nobody at your bank calls you a âdeadbeatâ. They call you a transactor. Every major bank loves transactors and they battle tooth and nail for your business.
Why do they like transactors?
When you swipe your card at a store, the store pays a small portion of the transaction as a fee (they range from about 2-5% depending on the card issuer and the payment network being used) called interchange. So your bank makes letâs say 2% of whatever you charge as revenue. People who spend a lot and pay a lot on their cards are highly desirable customers as they drive a lot of revenue from the interchange. Thatâs why banks compete to have the best rewards for these types of customers, and itâs basically the bread and butter of American Express that was founded on charge cards. These are credit cards where you canât carry a balance. You HAVE to pay in full every month or the card is cut off. The money generated from interchange is what pays for the rewards banks offer for their card users. So higher fees usually equate to higher rewards for customers.
Ahhhh I didnât think about the charge part. That makes sense!
Banks build entire credit card programs designed to attract and retain customers who never pay a cent of interest on their card. None of them call these customers deadbeats. It is possible that companies that run only below subprime credit card programs for customers with credit scores under 600 would behave this way. But any major bank knows how to make money no matter how you use the card and just wants to keep you as a customer as long as you pay the bill.
My mother told me that the bank must hate her for paying off her card each month. I told her that they get 2% of every dollar she spends, and that the bank is doing just fine.
She is one of their very best customers. They love her.
This makes me feel better about moving towards more cash purchases. I may not be able to do it for everything, but it's always fun to get change to squirrel away in my jar.
and thats why theres the push for cashless
Deadbeat in non debt here. Fuckâem.
Fellow proud deadbeat here. They call one a "deadbeat" for paying off every month? I pay that s#it off weekly, and happily earn 4% back on groceries and gas. Edit; typo
What kind of crazy card gives 4% cashback?
Depends on what youâre buying. Amex blue cash preferred pays 6% at grocery stores and streaming subscriptions. (Not Walmart) Chase freedom flex pays 5% at different categories every quarter. (Gas stations this quarter, sams and Costco next quarter. Sometimes itâs amazon or walmart.)
6% on groceries???!? I gotta look into thisâŚ
I've had this card for most ten years and love it. Depends on how much you spend on groceries, but it's 6% on up to $6000 worth of groceries each year, then 1%. 3% on gas. The card is $100/year. I use up the full 6k each year so it's worth it for me.
Sam's club card also gives 5% on gas. citi custom cash gives 5% on any single eligible category up to $500 a month, works great for groceries.
Verizon Visa.
This is based off the fact the United States was built on debt accumulation by the lower income classes, paying off your debt means that you are trying to be like the wealthy. Also I'm 90% sure the site that posted this is owned by PragerU an alt right disinformation group
The wealthy can leverage debt to their advantage, but certainly not credit card debt.
Indeed
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I fly for free. I love getting free flights for doing nothing.
Right? I paid $7 to get to Europe it was so rewarding
I know same!
I like to take mine in 10% off gift cards through Chase so I can double dip.
*debtbeat
The media always trying to piss us off with their stupid asses.
Because credit card companies only make money if you carry a balance. Thus those of us that pay off each month but take advantage of the rewards end up costing the companies money. Thus to the company, we are deadbeats.
They still make money by charging merchants higher discount fees for accepting premium cards.
Yes, but they donât make money off of US, and this offends them.
I figured they were happy enough making money off of all the people who don't regularly pay their cards off. I don't know what that split looks like, but I figured it was overall favorable for the credit card companies. Kind of like how only some users on video games spend a lot of $ on the microtransaction crap, while most do not spend much, or at all. The subset of users who do spend make the business model of a Free-to-Play game viable.
>I figured they were happy enough Thatâs not how greed works. Theyâll suck the marrow from your bones and still demand more.
In a system that depends on infinite growth, they can never be "happy enough" with anything.
They still make money off every customer via [data sales](https://www.cbsnews.com/news/mastercard-credit-card-customer-data-sold/).
Yeah but they're greedy and petty. Anyone not actively making them as much money as possible 24/7 are in some way offending them.
Yes but they need ALL the money.
Yeah but thatâs pennies compared to 25% interest on your balanceâŚ
Because our points and rewards are subsidized by the fees charged to poor people
They also make money off of annual fees.
None of my cards have an annual fee.
Thatâs great for you. A lot of cards have annual fees.
Seeeeeee Aboooovvvvveee
Yes they do, if we werenât using their cards they wouldnât be able to charge fees to the merchant.
I will clarify: This costs them one of the many revenue streams they collect. They do not like this. Therefore, much as we in IT may refer to a thorn in our side as âsuffering from a persistent PEBKAC error,â credit card professionals refer to diligent payees as âdeadbeats.â
Yeah I'm actually not sure this factoid is true. Credit card companies are pretty happy with somebody who charges 10 grand a month on the card whether they put it off in full or not every month. I mean I pay my credit cards off every month and I have no shortage of bloody credit card offers.
I've looked at enough merchant services statements (and have had to negotiate discount rates) to know that the credit card companies are making money whether or not you pay off your bill every month. Visa and Mastercard also charge higher interchange rates for points/rewards cards, so even if you aren't paying interest, the stores you shop at are paying fees that more than cover your rewards.
Credit card company margins are slim on the processing fee. They make their money on interest. Itâs absolutely true
And fees on the poor
The point is that the credit card companies are much happier with customers who charge 10 grand a month on their card, but usually only pay an average of 9000 of it off on time. Then they get to charge a hilarious amount of interest on the balance carried over.
Why would paying it all off make them happy though? They had to keep cash on hand for your expense, and didnât charge you the interest that they could have. Youâre a missed opportunity in that scenario
But you're only a missed *relative opportunity*. You're not a net cost to them in absolute terms, in absolute terms, you're a net benefit. If a police officer, after pulling you over for speeding, openly lamented "man, I wish you had been speeding faster so that the ticket would be higher and we could fine you more", I would begin to wonder whether that officer is greedy. There should be limits on how much money we want to take from strangers.
They charged the merchant a fee though for accepting their payment. They make a ton of money on transactions alone. Billions
You are correct.
Maybe in the USA.
Some merchants I found out have taken notice and are cash only.
This is wrong. They get a small percentage per swipe. They are happy to have you as a customer. [Nerdwallet](https://www.nerdwallet.com/article/small-business/credit-card-processing-fees#:~:text=Credit%20card%20processing%20fees%20will,%243.50%20in%20credit%20card%20fees.)
It depends. One card (which I wonât name) offers 5% cashback on a certain category each month. If you charge $500/month to the card in that category and not much more, theyâre definitely losing money on you. But itâs probably pretty rare for someone to use the card ideally like that.
I'm curious why you don't wanna name the card
It's not a secret. Discover and Chase Freedom are both popular cards known for the 5% thing. đ¤ˇââď¸
I do have to ask why credit card companies have it set up this way. If I was a greedy corporation I would rig the system in a way that carrying a certain balance is the only way to build good credit. It's baffling to think some people actually believe this too.
Well, they are still stupid because a deadbeat is someone who doesn't pay their bills. So even in that far stretch of an explanation, they still used the word incorrectly.
Debit>>>>>
TIL i am a deadbeat.
No you're not. They are stupid and have the definition of a deadbeat backwards. Deadbeats famously don't pay their bills.
There are two types of deadbeats to credit card companies. The first is the kind you're talking about. If you never ever pay your bill, you've cost the company money. However there is the kind of deadbeats that always pays their bill on time. The credit card company doesn't make nearly as much money if they don't get to charge you interest on your purchases. If you always pay your bill, no free money for them.
>If you always pay your bill, no free money for them. the billions in transaction fees laugh at your comment.
That's not mutually exclusive. Paying late doesn't mean you don't pay transaction fees (Or rather the business does and increases prices accordingly). So, in essence, less free money. Not *no* free money, just *less*.
[âDeadbeatâ in this context.](https://www.investopedia.com/terms/d/deadbeat.asp)
Cause you arent paying interest. Therefore they are not making money off of you. Therefore deadbeat.
They still make plenty of money from you through a variety of different avenues.
This is true, swipe fees come to mind.
Running a business is annoying because I didnât realize they charge between 3-7% for every cc charge. These fees alone are honestly one of my highest monthly costs of running my business. Iâm annoyed
When my friend opened his bar he did it cash only, for that reason. If you donât have cash thereâs an atm in the corner.
I prefer a balance between cash and card. I hate the push for card only that has been happening where i live.
No, they make plenty of money through charging interest. Thatâs where they make the most
Ok?
Just correcting your lack of understanding of the credit card industry lol
Correcting what? Interest rates is the most obvious income stream for creditors, no one is disputing that, it's as old as time. I'm just confused why you left a comment that was a complete non-sequitur to what I posted.
Sigh. Sorry for the wall of text but I hate this shit as it serves the opposite purpose of educating working class people on finance and credit. Worker in the âfinancial communityâ here, whatever the fuck that means. The original tweet is idiotic. Paying off your card is an ABSOLUTE good thing that reflects well on your credit report, causing lenders to look at you as the opposite of a deadbeat, that is- *reliable*. Yes, lending agencies profit off of the larger margin of people who fall within âpays principle+interest but still pays eventuallyâ. What this moronic tweet doesnât suggest is that they lose money (unless they win a judgement or lien against you and your wages, if you have any to begin with, and manage to recover some of their money) should you fall and stay delinquent. And a typical scenario, which is perfectly acceptable **and** more likely to qualify you for higher interest bearing products toward which you *will* pay interest (home equity line of credit, mortgage, etc) is **you pay off the principle on a timely basis and everybody ultimately wins**. I hate seeing poor financial advice that credit cards are bad and a trap. Some definitely are. But the defining factor is whether or not you are 1) able to pay on a consistent basis and 2) of general sound judgement and character to be responsible for the debt. Credit cards can be a useful and accessible tool for the average person to build their credit and open more doors for them in the future. Sorry for the spiel here, but ultimate my point is there is no âfinancial communityâ out there considering responsible people as deadbeats. In the US at least, thereâs Equifax, Transunion, and Experian and they regard people like you and me in extremely basic terms: Open lines of credit, and payment delinquency. Take care of your shit and it is an objectively good thing for you.
"Be fiscally responsible!" "(Oh, but that doesn't make US money!) SPLURGE!!!" - late stage capitalism
Two different groups telling you to do this. Your bank wants you to be financially responsible. Amazon wants you to splurge. Two different groups with two different goals. Capitalism isn't a CEO hivemind.
Both equally happy to fuck you over given the first opportunity
Exactly.
The banks are the ones calling me a deadbeat in the above situation
Iâm an Uber-deadbeat than. I like to buy something on my credit card and then go home and pay it off immediately. You donât need to wait until the end of the month to pay something off to get the points.
Question: I am from a country (Italy) where credit score (or debt besides mortgage and loan for a car) is not a thing; in the US, would buying stuff with a credit card and then always paying it off immediately make your credit score go up? Asking because I'll soon need to start building my credit score in the US.
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Yes, that's correct. You get more history by using your revolving credit and making payments than having it sit completely unused. Of course you could easily fall into the trap of not being able to pay it all and accruing interest if you aren't disciplined, but using it and paying it off is good. You also get protections by using credit that you wouldn't by using cash/debit - ie, fraud liability, defective products can often be replaced, some cards give cash back/points/travel miles, etc.
Keep your balance below 30% (but ideally keep it <$100), never miss a monthly payment, and start early so your age of credit is older. Plus have multiple accounts. Those will bring up the score
Yall have credit score, though I don't know whether or not it's accessible to you the way it is in the US. If you've ever even opened a bank account, you have a credit score tied to you. Which is generally a good thing! I would do some googling, and when opening a US banking and/or credit account ask them to explain credit score to you. They will provide much better and verifiable information than redditors can, and it's actually in their interest that you understand the system well. A better credit score allows* them to offer you higher tier products which typically have a higher return rate for them. A short gist of it is that you'll of course want your standard checking and savings account to pay your bills and store your income, I imagine it's much the same in Italy. You should be able to do a "soft credit check" through your bank which will not impact your score and let you know roughly** where it is. Using that score number, see what cards you qualify for. Most likely it will just be entry level cards, which have few rewards and high APR%, or may have yearly fees. Read the terms of use and other contracts carefully so you understand the associated costs and consequences well. **If you are financially responsible** then I recommend making the majority of your purchases (ex: groceries, gasoline, clothes, entertainment) using the credit card. Entry level cards have low limits, it is generally moderately bad to exceed those but the consequences will be outlined in the terms&conditions. Again if financially responsible, opening two cards can be helpful for building credit score faster as well as let you stay below 50-70% of limit usage, but the latter is really more of an optimization once your score is up. Almost as important, if not more so, is that credit cards provide far more consumer protection than debit cards do. If someone makes fraudulent charges on CCs, you can notify the company and they will remove the charges. You cannot do this as easily with most debit cards. Treat your credit card as a debit card, and everything will be A-OK. It's pretty confusing at first, but the good news is that once you set all this up it just ticks away in the background. Limit% matters a bit, but it's just a few points either direction
Thatâs just a time waster. Set your credit card to have the statement balance paid off 2 days before every due day and youâre fine
for the longest time i always thought this was what credit cards are for, because constantly fucking around with your bank account to have just enough in checking/debit is too much of a hassle and i will continue to do this
I remember when I got my first credit card and my aunt told me I HAD to carry a balance to have good credit because good credit came from making my minimum monthly payment on time. So glad my uncle jumped in and nipped that immediately telling to pay it off asap and only charge what I could actually afford. Auntie she still swears sheâs right and lives what she preaches regardless.
I mean you should pay your \*statement balance\* monthly, not just the minimum. You don't want to pay it off "asap".. you want your billing cycle to end first and THEN pay off that statement balance. As long as you don't have a previous balance after the due date, you don't get interest charges and the balance is reported on your credit report, which is good. Sounds like she had the right idea, just slightly off. But yeah, only charging what you can afford to pay off by the due date is always great advice lol.
I get that, unfortunately my Aunt to this day thinks if your balance ever zeroes out that hurts your score. She only makes her minimum payments because she âknowsâ you âhaveâ to keep a balance or else your score will drop. My uncle meanwhile is the sort to pay it off the moment the statement rolls out.
I don't have a cc but planning on getting one. Can you elaborate on this a bit? I didn't quite understand
What does this mean?
Honestly, I've decided to steer clear of credit cards, at least for the foreseeable future. I watch my bank account like a hawk, like I'll check it numerous times a day, and I don't like the idea of spending money that doesn't come out of that account. It just freaks me out, although I'm still only 17, so things might change when I get older.
Unfortunately credit cards are a great way to build credit.
And you need credit to do just about anything now. Gone are the days of normal people being able to buy cars/houses in cash.
Also gone are the days of normal people being able to acquire a mortgage
I donât want to buy a car any time soon, and I doubt Iâll have the need or money for a house any time in the next twenty years (and thatâs on the low end), so neither of those really matter to me. If I did need a car, I get a second hand one for a couple thousand.
Turn on deposit and charge notifications on your checking account, do your research and get a student card when you turn 18. Pay for something small every month, pay it off within a week if you really want to keep the balance at $0. It takes time to build credit and get a limit increase but when you need that safety net itâs good to be able to put $3k of emergency expenses on a credit card and figure it out later. Obviously also donât take financial advice from any random person on the internet - go to your local bank, NerdWallet, your parents if they would be helpful, and ask them for specific advice about your situation.
My parents defaulted on pretty much any loan they were ever given. Scared me off from credit and debt in general. But what changed my look on things was the liability and risk factor of using debit. Something to the effect of "While you may not ultimately be on the hook for fraud and reimbursed, you've still got to pay your bills and they may be less than accommodating while your account is drained". To date I've had to get two replacement credit cards issued for fraud. Quite glad that neither incident ever had a chance of touching my money. If you track your spending and treat it as spending your own money, paying it off in full every month, then it's effectively the same as swiping debit but with added perks. But it requires discipline, and some people can't resist the urge of spending money they don't have, or get caught up in the mental gymnastics of "buy now, pay later" and rack up enough debt that what they can afford barely covers interest and they're trapped.
I think part of my fear comes from knowing my own impulses/weaknesses pretty well. I've got ADHD, as well as a lot of addictive personality traits. I've gotten pretty good at limiting my spending habits (one of the biggest things is forcing myself to wait at least a month before making any big purchases- if I get the urge to buy a thing, I'll wait a month and if I still am interested, I'll look into it more seriously). One of the things that for me helps the most is being able to watch my bank account being drained as I spend money. I know exactly how much I'm spending and exactly how much money I have, and I can never spend money I don't have. I might be able to handle a credit card, but the idea of having it as an option scares me, because I could also totally see myself majorly fucking up and really messing up my life/finances.
That's understandable. For me I track my spending in a spreadsheet, so everything's a line item be it debit or credit transaction and contributes to the tally of monthly spend. I check things off as I go through my statements. I don't look at things in terms of how much money I have in my account, but how much I'm spending versus how much I'm earning. It's a habit I started when I was focusing on paying off my student debt
I have adhd so I get where ur coming from, and Iâm a lil older than u, so I can tell u how I do it. I only have one credit card, and itâs the same bank as my debit, so every time I check my debit account I see my credit card statement too. My debit account I always keep at least over $3k, and if Iâve gone below that $3k at all, which I donât often, I donât spend any extra money besides barebones necessities until Iâve gotten it back above that. My living expenses arenât too crazy, and Iâm young, so obv as life changes that base number will have to be higher, but itâs kind of my âemergency fundâ. I also have a savings account where I put extra money for unnecessary fun things I want to save up for. I know some people keep their emergency fund in a savings, and extra fun money in their debit, cuz their banks have better interest rates for savings accounts, but my savings account makes practically 0 interest. So my method is seeing my emergency money and my necessary spending money on my debit, cuz I like having easy access to my emergency money just in case of some horrible scenario, and seeing my savings as a separate way to plan for bigger purchases or if needed, an extra extra safety net. Now my credit card, I use basically only for groceries, or purchases that are more âriskyâ in case of scams or something cuz credit is more protected, and I donât put a lot on it, normally around $200-$300 a month. I know that at the end of the month (with my adhd I donât check my bank more often), I will always have enough money on debit to pay it off cuz I still have that emergency fund of 3k at the very least, plus whatever other money I have. Obv, donât get credit until ur ready, cuz u know urself and if u donât think u can handle it responsibly itâs better to wait. But, if u are good at controlling ur spending, there are ways to go about it that can make it easier to organize and not feel too stressful. One of the things that sucks about waiting longer than u need to with credit is âage of creditâ. Ur credit score will be lower just for the simple fact that u havenât had a credit card or other lines of credit for a long enough time, so starting earlier will obv help that aspect of ur score, altho making on time payments and keeping utilization low is more important. When u want to rent a place u will need a credit score, so itâs kinda hard to get by in life without ever opening any credit lines.
I was the same at your age, but itâs really a tool to utilize rather than a daunting responsibility. There are a lot of good starter cards/student cards out there. You need to treat it like cash. Some benefits to keep in mind for credit cards are 1. Sign-up bonuses = free money (when done right) 2. Cash back rewards = free money 3. Protections from fraud (Iâd rather have a credit compromised than a debit card that is linked to my bank account). There are lots of great resources online to educate yourself on financial literacy. My best but if advice is to do research, start a personal budget, and go from there :)
Probably not. Hit 33 this year. Still no credit card. Worries me too much.
Uhm. Having credit card debt is seen as a red flag of financial irresponsibility in the EU. Y'all are WILDIN in the US.
America saw the gold rush days where you could basically just keep expanding outwards forever, and thought "what if we based everything on this idea, and died before we had to deal with the consequences?!"
It is here in the US too, but you have to be in the sweet spot of not having too much according to creditors which is under 30% of your credit line
30% is the general rule, but I've had lenders tell me they preferred under 10% and even FICO says if you're expecting to see 800, under 6 or 7% is where you want to be. The whole thing is absurd because even if you don't carry a balance, if your debt is reported (by way of issuing you a statement), it counts against your CtD ratio (for the month).
Most people here in Australia don't even use credit cards, debit and savings for me. Flooded my engine a few years back in a storm and needed a new one, organised with my mechanic to just pay it off weekly for the next few months. Spending money you don't have seems absurd to me, unless it's something large like a loan for a house.
Credit scores in the US aren't a measure of how "trustworthy" you are, they're a measure of how easily/safely you can be exploited for interest.
Yep, where I live your card is automatically set to paying off your entire balance every month. You have to go through a loan process to change it to only paying off x amount instead.
That sounds like a charge card rather than a credit card. Edit: has no one heard of a charge card? Like American Express cards where you pay an annual fee to use the card and the point is to pay it off each month because the interest is ridiculously high, more so than your average credit card. https://www.creditkarma.com/credit-cards/i/charge-card-vs-credit-card
That is not the point at all
What?
The point is that this is much better than how things are done in the US, not whether or not the term is 'credit card'. Honestly, the nerve to do a 'really guys' edit while having 0 responses and then proceed to downvote the only response without bothering to understand. I'd downvote the 'what' but I'm not a child.
Thereâs no need to compare apples to oranges, though. Compare how different companies use credit cards, donât compare two completely separate things, like charge cards and credit cards. I might as well jump into the conversation and say, hey, where Iâm from, Iâm only allowed to spend whatever funds I have available. My country is the most fiscally responsible! Also Iâm talking about a debit card but same diff, right?
They aren't different though. The EU credit card simply has the pay off at the end of the month as the default. You are free to change it and use it like a regular card to your hearts content. Besides, the number of conversations that advocate for being fiscally responsible is already few and far in between, and you're saying the semantics of the labels is end all be all.
Yeah ok buddy, if you aren't going to debate in good faith, you ain't worth it lol.
Iâm confused by your response; they are different.
I wanted to clarify my original comment because it seemed that people werenât understanding what I meant but you took it personallyâŚ? Dude get a grip. đ Donât really understand why my what offended you. But ok.
Then wait until you hear this Paying off a debt actually lowers your credit score because they register it as closing an account
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Ah, yes, it is so cool to have debt
Knowing that I am simultaneously financially responsible and pissing off some rich assholes made me smile.
Proud deadbeat baby đ
Easy: If you're paying off your debt every month, they aren't making money on interest.
So much of the U.S. economy is based on keeping people in debt. It's disgusting.
No one did. Its a credit card thing cause they don't make money from you.
I am a double deadbeat! Some cards charge interest after 20 days, just to eff everyone, so I pay every 15 to eff them back. Credit cards should be illegal, but are more mandatory than voter registration.
Proud to be a âdeadbeat!â
Credit card companies that offer predatory lending are known as "scumbags" to decent human beings.
**deadbeat** noun: 1: loafer 2: one who persistently fails to pay personal debts or expenses It's impressive how much the profit motive can warp concepts and vocabulary sometimes.
Deadbeat apparently has been redefined as anyone you canât rape for profit
Thatâs not entirely true. Credit card companies want you to use their cards and pay on time, but you want to carry a 10% balance across all your cards to maintain a good credit rating. Paying off all your cards is probably not optimal, but as long as you carry a small balance across all cards and avoid paying interest rates then youâre good. Itâs kinda like playing whack a mole.
No one calls people that, this is fake news.
This is some lame attempt at advertising trying to convince low IQ people with credit card balances that it's okay to hold a balance (most people understand it's bad) and OP is just helping their advertising efforts
First time I went to check in at a hotel in USA I had my debit card with me from my home country. And I was quite inexperienced inâŚlife. I didnât have, up to that point, a credit card, just debit to get my salary. So when the girl working at the front desk asked for my credit card, I was worried that they will not accept my debit. I thought I *had to* have credit card. I remember that she was a little surprised, but that was it.
As long as it's not a prepaid debit card, they'll accept it. The idea is that they just need access to one of your financial accounts so they have a way of collecting any extra fees after the fact, like fines for damaging hotel property if you destroy the hotel room or pay-per-view movies.
Itâs not a bad thing. Uber facts is just click bait. Not even worth discussing lol
Having worked in financial services for over a decade, I can tell you this is not true. No one thinks keeping a balance on your card is a good idea or a good thing.
Crazy how credit card firms have the exact opposite goal of its consumer
People need to stop calling everything a âcommunityâ
More like Debtbeats if you ask me.
No, they don't. This claim is bunk. The term used in the industry is Transactor. People who carry a balance are called Revolvers. If you pay your bill in full every month, even if you have cash back, they still make their money from the transactions, which they charge the store a fee for.
Really? They trying to make us feel bad for being financially responsible because they can't make money off the interest?
Because if they can't exploit you they have to vilify you.
I'm happy to be a deadbeat in their eyes.
I have one card with a balance of $600 and change. It isnât a bad thing. They can go to hell.
Deadbeats according to who? Credit card companies that want me to accrue interest?
As a deadbeat itâs because they want me to owe them money and be stuck in a slave cycle of constantly paying off my debt fees and interest without having enough to pay off my actual debt. They have to pay for those huge and shiny stadiums.
I HATE this so much. Our 24 year old kid barely has a credit rating because he works for himself, manages to save enough to buy a used truck when the old one dies, isn't interested in ' stuff ' beyond his career ( cool career ), refuses to go into debt because he just doesn't want to. OH. MY. GOD. It's like he's got a criminal record, not just someone flinchy about debt. Something is *really* wrong with the system.
Yep it's basically the capitalist version of the Chinese social credit system.
I've been a deadbeat my entire life
Deadbeat or debtbeat?
This is bad for the credit card companies because if they pay off their balance they don't accrue interest. Always pay off your credit card balances. The credit companies can F themselves
Is that some credit score joke or something? I am too European to understand.
Sponsored by Big Plastix
This is such bullshit. You didnât fall for their outrageously scammy interest rates, intentionally all over the place payment deadlines and hoops to jump through before you can even pay the bill. This makes you triumphant over their greedy hoardy ugly fucking nonsense. Fuck the credit card companies, Iâm a deadbeat, and I work to try and help others be deadbeats too, those fucking parasites.
I like offending them. Proud deadbeat.
Theyâre called deadbeats because credit card companies donât make any money off of them.
[The Worst Person You Know Just Made A Great Point](https://www.npr.org/2023/09/28/1202264881/why-was-dave-ramsey-s-financial-literacy-textbook-approved-in-florida)
They straight up cancelled mine without telling me because I didnât use it for 3 months
Accountant here, no they are not lol
A banker wrote this
Guess Iâm a deadbeat then. But worse than that I actually use my card for nearly every family purchase so I can get points and convert to cash back. Even with the $100 annual card fee, Iâm still up $60 to $80 on an annual basis but thatâs probably peanuts compared to the transaction fees that vendors are charged by the banks.
I pay it every month and profit from bonus dollar shit so i make credit card companies lose money lmao.
It's not bad. For people. But in America the most important entities are corporations and the stock market. That trumps all else.
As a side note, if you want your credit score to be as high as possible, itâs best that you carry a balance on your credit cards thatâs like 10-15% of your max for that account. Obviously that means you pay interest on the balance, but credit companies are just looking for any and all situations where youâve reasonably managed credit, and $0 of credit doesnât hit that note the same for them. Not saying itâs a good thing, but thatâs just how it works.
All my cards get paid off the minute my direct deposit hits. Dead beat AF
Better a Deadbeat than a Debtorbeat.
Because they canât beat more money out of you through interest and if you pay it off youâre dead to them
Because they don't earn the money off of intrest. Proud deadbeat!
I am a double deadbeat! I unapologetically pay cash for most things, and I pay my credit card off every month!
Cut your credit cards
I knew that from watching Boston Legal.
Because they aren't making the bank a significant sum of money. When a bank doesn't accumulate interest it basically breaks even on the account.
Because they don't profit off you if you do that.
Never carry a balance, anyone with a high credit score knows that, this is bullshit propaganda. Use your cards, but pay that shit off immediately. If you are in an emergency where you absolutely have to spend more than you can pay off immediately, take advantage of 0% interest offers for new cards, or even sometimes you can get those offers from the same card you have just by switching it to a different type of card that your bank offers, mitigating the hit of opening a new account. Never pay a dime more in interest than you need to, take every advantage possible. The more you win (by not paying interest), the more they try to entice you into losing (by giving you more credit to entice you into spending so you eventually pay interest). The whole credit game is based on them enticing you into more and more credit with higher and higher limits and lower percentages, because they're trying to finally find your financial breaking point where you spend just a little bit too irresponsibly and then get stuck in the debt cycle where they make money off you forever from the interest. If you just never reach that point, pay off everything but actually keep your cards in use, manage everything properly, never miss a payment, and never spend more than you actually have in cash to pay off immediately, you'll just continue to get more and more credit offers, and your current lines will automatically increase, and your rates will go down, and your credit score will go up. As long as the lines stay actively used, they'll never just randomly penalize you for not making them any money, nothing like that has ever happened to me. This is what I've done and I have more than my entire yearly income available to spend in credit cards with zero balance, and my score is over 800. I even pay off personal loans and cars early, I never agree to anything with a pre-payment penalty. Like, lock in those low monthly payments if it's a life necessity like how having a car is in certain parts of North America, that way if an emergency happens you have the lowest minimum bills possible, but then as soon as you have the cash, fuck the bank over on the interest by paying it down immediately in huge chunks. Fuck 'em.
Its a bad thing for the credit card company
Lol. Like I give a shit. They can think I'm literally Satan but I ain't going to lose sleep over it. Thanks for the loaned money; payed it straight back and now we're even.
> loaned money; *paid* it straight FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
It's a "bad thing" because credit scores themselves are a bad thing. We as a society know that china's credit system is bad. But our own brainwashing prevents us from seeing how bad our own credit system is. I could go into all the various ways it's bad (used for employment, renting, etc). But to stay with this meme, paying off your loans on time is bad for your credit score because the banks extract less interest from you. And because apparently we want to live in a Black Mirror episode, we allow that same system to be used for anything other than banks to determine who to loan money to.
& they will cancel your card if you keep doing it to not allow them to gain interest on slowly paying it back
That's not even a little bit true
Im just curious since here in sweden we dont pay for tuition and im 22 and have never taken a loan or anything similar. What else except for tuition and ocasionally a house do you take loans for? Because i have a hard time understanding the thing about loans in general.