Credit Cards are for MoneyWastingExperts

Tight_Old_Git

The overuse of credit cards for purchasing absolutely everything and anything means that we are paying through the nose for the privilege. Rather than celebrate cashback and the interest free period if you pay your balance in full, MSE's don't comment on the fact that the price of goods and services are inflated by the amount that goes to pay the credit card company and that far outweighs any benefit of cashback etc.

I expect Martin Lewis in future to be promoting use of cash, cheque books and debit cards, the man claims to be a MSE but by encouraging CC use it is clear he does not see the bigger picture ie credit cards are costing everyone a lot of money whether you use them or not.

Juni_3

The total amount payable is the same whether its cash or CC. The major companies use shells to pay the credit card charges which gives them nice tax breaks as these shells have no income.

If we all stopped using CC's do you really think that the retailers would drop their prices by 2%?

Graham_S_4

hello,
i do think he promotes using credit cards to shift debt about - put it on a card with a lower rate and pay it off - he doesn't really advocate going out with your new credit card and buying a 72" plasma screen and to hell with the payments

cheers

Graham

the_devil_made_me_do_it

My usage of credit cards stems from cheap purchases via the internet. I would say 99% of items I buy from the web need to be paid for via credit card. Most websites don't accept cheques, and I ain't a big fan of debit cards, I have reasons not to trust banks. Whereas with a credit card, you get good support if the item dosen't arrive ect..
So, not only do I pay my credit card within the month, I also get cheaper goods by huning them down on the internet. The majority of which end up being USA imports.

Tight_Old_Git

Juni wrote:

The total amount payable is the same whether its cash or CC. The major companies use shells to pay the credit card charges which gives them nice tax breaks as these shells have no income.

If we all stopped using CC's do you really think that the retailers would drop their prices by 2%?

Yes but people don't buy everything from bloodsucking major companies do they? I doubt the local hardware store has a shell it can use for tax breaks, no it wacks a percentage on everything to cover the CC charges.

Rickycowslip

Your suggestion may be true in a monopoly market, but given most things we buy are in extremely competitive markets then the price of the payment fees will be bourne by the manufacturer and retailers' profits. That's why they are forced to accept credit cards - see M&S a few years back, they held off accepting cards but eventually had to give in when they saw their customers leaving in droves. Net result - cheaper prices in M&S and we can use cards (accepted there are many other factors in play, the grwoth of Next being a major one...)

Juni_3

Tight_Old_Git wrote:

Yes but people don't buy everything from bloodsucking major companies do they? I doubt the local hardware store has a shell it can use for tax breaks, no it wacks a percentage on everything to cover the CC charges.

But they have to compete with the major DIY chains and on-line stores such as Screwfix. Therefore they have to charge the same prices.

I get all sorts of benefits by using my credit card which I wouldn't get paying with cash or a debit card. After all I need some protection from these "bloodsucking" companies!! :rotfl:

Penny-Pincher!!

I recall you posting about a Capital One credit card that you applied for back in January

PP
xx

Tight_Old_Git

Penny-Pincher!! wrote:

I recall you posting about a Capital One credit card that you applied for back in January

PP
xx

Yes for stoozing not spending please get your facts right.

Tight_Old_Git

Juni wrote:

But they have to compete with the major DIY chains and on-line stores such as Screwfix. Therefore they have to charge the same prices.

I get all sorts of benefits by using my credit card which I wouldn't get paying with cash or a debit card. After all I need some protection from these "bloodsucking" companies!! :rotfl:

Local stores are often cheaper than the major DIY chains and therefore do not have to charge the same prices.

The so called benefits and protection you get from credit card companies has to be paid for by someone ie you. This site is supposed to be about moneysaving not making fat profits for banks although I sometimes wonder :wall:

Penny-Pincher!!

Sorry-no offense meant!

Surely though, whether stoozing or spending-credit cards are still being used? The credit card companies dont know that your using the cards for stoozing, so I dont think it would make a difference IYKWIM.

Personally, I find that by using credit cards for everything, I have received much more in way of discounts and excellent cashback incentives;)

As you feel so strongly about Martin promoting useage of credit cards etc, PM him and ask him how he feels about this? Thats what I would do. I have PM'd him alot about matters like this and he don't bite:eek: LOL.

Keep us updated.

PP
xx