credit cards. UK vs USA.

gazelleintense

not sure how the UK works, but in the USA, credit cards benefit only ONE entity... the banks/lenders...

credit cards do nothing for the borrower/consumer... except put them in financial bondage.

the new U.S. bankruptcy laws were passed because of the pressure the credit card industry put on congress... these laws benefit the credit card companies and not the average american consumer...

the best way to deal with credit cards is to not use one.

my .02 cents worth.

keeperbear

gazelleintense wrote: »

credit cards do nothing for the borrower/consumer... except put them in financial bondage.

Totally disagree. I have both UK and USA credit cards, and they provide me with:

1. Purchase protection on all transactions of over £50 (in the UK). Credit card chargebacks are the consumers friend!
2. Cashback of 1%
3. Upto 28 days of interest free financing on all my purchases
4. The ability to purchase goods in any currency with no fees (Nationwide BS).

Furthermore, I have never paid any kind of fee or interest charge as I always clear my balance in full. Used correctly, a credit card is an invaluable tool in the armoury of the modern consumer. Where else can a consumer effectively borrow money from the banks for free?

spring85195

gazelleintense wrote: »

not sure how the UK works, but in the USA, credit cards benefit only ONE entity... the banks/lenders...

credit cards do nothing for the borrower/consumer... except put them in financial bondage.

the new U.S. bankruptcy laws were passed because of the pressure the credit card industry put on congress... these laws benefit the credit card companies and not the average american consumer...

the best way to deal with credit cards is to not use one.

my .02 cents worth.

Totally disagree.
I don't know which card in US you use, but i saw a world of warcraft card which at least give you some game time. I believe there are some cash back card there too.

Even without the cash back feature, the 5x day interest free period will earn you come interest in you saving a/c

gazelleintense

You bring up a good point which I should Of had in my first post...

if you pay the balance off each month in full and pay no interest, they can be "ok" for a budgeted item.... however, most people don't pay them off... guess thats why I didn't mention that.

The 1% cash back is also a "myth"... because most people overspend and are in debt up to their eyeballs... so 1% back means nothing in truth.

if you do pay yours off and have a zero balance, your what's known as a "deadbeat" in the credit card industry... you are someone that they can't make money off of (aka: screw over).

moonrakerz

keeperbear wrote: »

1. Purchase protection on all transactions of over £50 (in the UK). Credit card chargebacks are the consumers friend!
2. Cashback of 1%
3. Upto 28 days of interest free financing on all my purchases
4. The ability to purchase goods in any currency with no fees (Nationwide BS).

Furthermore, I have never paid any kind of fee or interest charge as I always clear my balance in full.

All that is funded by the extra 3 - 5% the trader adds to his price to cover the costs of the card. So you aren't really saving a great deal !

I would rather have a cash discount.

dzug

moonrakerz wrote: »

All that is funded by the extra 3 - 5% the trader adds to his price to cover the costs of the card. So you aren't really saving a great deal !

I would rather have a cash discount.

But mostly you won't get one. If you do he'd probably do it for the CC as well if you pushed him.

newfoundglory

The Egg Money mastercard, for example, offers many benefits. Including 1% cash back, good interest-free period, 4% credit interest (better than most standard instant access savings accounts), 7.9% in debit interest (far better than most overdrafts and personal loans if you ever needed to borrow), fee-free cash withdrawls from ATMs.

keeperbear

gazelleintense wrote: »

The 1% cash back is also a "myth"... because most people overspend and are in debt up to their eyeballs... so 1% back means nothing in truth.

if you do pay yours off and have a zero balance, your what's known as a "deadbeat" in the credit card industry... you are someone that they can't make money off of (aka: screw over).

Well, the 1% cash back is not a myth to me. I enjoy spending it!

The card company does make money from me. They get the fee they charge the merchant for accepting credit cards. This is normally about 1.25% of every transaction.

I know many other people who pay off their cards in full every month, so they are benefiting from a credit card at the expense of the bank.

ontheup_3

This might be a stupid question , but if you are a UK resident how do you get a USA credit card or the other way round ???

How does a USA company check you are credit worthy etc etc ?

keeperbear

moonrakerz wrote: »

All that is funded by the extra 3 - 5% the trader adds to his price to cover the costs of the card. So you aren't really saving a great deal !

I would rather have a cash discount.

Nonsense. At how many ONLINE retailers can you get a discount for cash? I would rather buy cheaper online with a credit card, then obtain a cash discount from a higher priced bricks and mortar store. In addition, many businesses will not offer a discount for cash as they incur banking costs from handling it.

moonrakerz

dzug wrote: »

But mostly you won't get one. If you do he'd probably do it for the CC as well if you pushed him.

I didn't say I would get one. I was mainly pointing out all these "advantages" of a credit card are being paid for by the user, and the issuer is still making a fat profit