Comment on How can we return to techno-optimism?

• QuarterSwede@lemmy.world ⁨2⁩ ⁨months⁩ ago

  Yep, the rich are rich because they borrow other peoples money. 0% free interest lines are about the best discount you can get on anything. I get to make the interest while you hold the loan? Sign me up! Siri, remind me in 11 months to pay off the X loan.

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  • helenslunch@feddit.nl ⁨2⁩ ⁨months⁩ ago

    Surely you know that’s too good to be true. The card issuer charges fees to the merchant and then throws a portion of the money you just gave them back to you. But the prices of products are being driven up and the merchants aren’t eating them.

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• DMBFFF@lemmy.world ⁨2⁩ ⁨months⁩ ago

  Fair enough, but they know what you bought.

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  • QuarterSwede@lemmy.world ⁨2⁩ ⁨months⁩ ago

    And? How has that harmed you overall?

    Not saying I like that they track everything but I’ve yet to see it impact me personally.

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• andrew_bidlaw@sh.itjust.works ⁨2⁩ ⁨months⁩ ago

  There are no free money. These are loans. And making them attractive with cashbacks and rewards is done to trap unresponsible spenders. 95% of the time you don’t need to borrow money from the bank, unless you are in emergency or you are to invest these to achieve some payback (e.g. a loan to open your business).

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  • Passerby6497@lemmy.world ⁨2⁩ ⁨months⁩ ago

    These are loans. And making them attractive with cashbacks and rewards is done to trap unresponsible spenders

    I am aware, which is why I specifically said

    This is bad advice for anyone with good credit and spending habits.

    For people who aren’t irresponsible spenders, it’s a bad financial decision not to take the short term bank loan. Sure, I don’t need to spend the banks money because I have enough in my checking account to cover it. But by not doing so, I lose money on any transactions that don’t charge me a fee to run my card.

    If you’re not responsible enough to use a credit card and not destroy your finances, absolutely do not use them. But for those of us who are, it’s a dumb idea to eschew it just because you have the money on hand. Like I said, I haven’t paid interest in a decade and have made thousands from my normal spending habits.

    If I followed your advice, I would be objectively worse off, because I’d be losing money from my rewards for no benefit whatsoever. And I can guarantee I’d be materially worse off, since my credit card is the reason my credit is as good as it is, and that bullshit has a pervasive and perverse effect on your life. It’s not only loans that are impacted, but insurance, housing and employment can be as well. So maybe I should have left good credit off, since responsible spending will build your credit up even if it is bad currently.

    TL;DR - responsible credit card use is a good thing, and foregoing it just because you have money on hand is a bad financial decision. Pay that shit off immediately and there’s no material downside and you still get all the benefits.

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