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What if you just pay off your balance in full and only spend your budget? I can't imagine it's that hard to not overconsume and save money for your retirement/emergency funds?
I mean if you are diligent about your finances there's no real reason not to use a credit card. It's literally free money. But it is a bit scummy that the free money is coming from the poor bastards that are stuck paying 26% APR
Decision makers at large companies will see this comment and take it at face value, basing the future of hundreds of thousands of employees on it for the coming decades in a mad pivot towards making consumers finance every purchase ever lmao. Could be worse though. Could be NZXT's PC rental program.
Its simple, if you can have control and pay your balance IN FULL EVERY MONTH, then having and using a credit for all your expenses is a no brainer, get rewarded (no matter how small) on stuff you buy anyway that costs exactly the same no matter what you use (groceries, gas, eating out etc.) the $100+ of rewards i get a month adds up. And that rewards come at the dime of those irresponsible. But if you cant be responsible and will carry a balance, stick to cash and debit cards and stay out of debt and temptation to overspend But things cost exactly the same, very few places add extra fees for credit card users, only one i consistently run into is my landlord trying to pay rent, never see it otherwise
this, exactly. my partner is the one who caught me up on how he uses his cards and is militant about his (excellent) credit, it’s been SO easy to switch my regular and recurring purchases to my credit card. i make multiple payments through the month to avoid any interest, also bc it’s easier for me mentally to pay $150-200 at a time than a big balance all at once. everything is the same, all my transactions are in one main place, and i get free money back for the stuff i was already buying. we bought a dyson vacuum over black friday and had to drop a chunk on a mobile vet for yearly check ups for our cats-scooped up an easy ~$200 in cashback that adds to what we’re sitting on as a ‘break glass in case of emergency’ balance, and that’s just in credit cards points. like you said, it’s a no-brainer to use credit cards as opposed to debit IF IF IF you’re responsible and are in the financial position to never miss a payment. buy only what you have the actual money for, pay it off constantly, completely, and you’re golden
It’s really icky that credit card benefits are a wealth transfer from poor people to rich people, but personally opt-ing out won’t change the system or the price I pay for goods/services, so I still use credit card rewards to take the free money on the table.
@@heyitsraymond The fact that you were offered that much means you make decent money. A lot of people barely get by because they don't even make $25 an hour. Credit cards often become a fallback every time a sudden, massive expense comes up. It can easily become a trap. The fact that you don't know that happens just proves you're out of touch with how a lot of the country has to live. Most poor people are very frugal. The rampant spending often comes from the $70,000 per year and up crowd. Most poverty is the result of living in areas of generational poverty, so shit job opportunities and social services with no chance of inheritance of any kind, or chronic debilitating medical issues. It's not really a bad decision thing so much as a you're f*cked out the gate issue. Universal healthcare and subsidized child daycares would wipe out a lot of poverty. Also not basing school and other social service funding on the general wealth of the neighborhood but instead dividing the funding between institutions equally. Massively boosting minimum wage would also be necessary to raise wages across the board.
@@heyitsraymond This kinda makes it sound like wealthy people are great at making decisions, but let’s be real-that’s not always true, especially when it comes to impulse control. I mean, how many rich people do you see with a bunch of cars or multiple houses? They don’t need all that, they’re just giving in to their impulses like anyone else. The difference is, they’ve got the money to absorb it, so their impulsive choices don’t hit them financially. For the rest of us, though, giving in to those same impulses can have way bigger consequences because we don’t have that kind of cushion.
If I pay cash, I pay 100% of the cost. If I pay with a credit card, I pay 99% of the cost (1% cashback everywhere). If I can pay with a gift card that I purchased at a grocery store with my credit card, I pay 95% of the cost (5% cashback at grocery stores). I pay off the card at the end of each week. Sounds like a win to most people who aren't spending carelessly.
In that sense yes you sre being responsible but there has been studies showing that you spend more if you use cc vs cash. So even if you are responsible and pay off cc every month you naturally spend more money vs if you were using cash to buy things
I just got my third credit card in the mail. Never paid a cent in interest in 10 years. This card is 0% APR for 15 months, gives 25000 miles for 1000 in purchases, and 1.5x points. Not bad for a free card
@@AlbatrossWhisper A lot of people use credit cards to cover sudden medical debts and car repairs. Also, sudden cash shortfalls like a recent layoff. It isn't just blind consumerism that has caused a credit debt crisis.
@@butterfish-g9f Ive worked in retail for 8 years. Ive seen firsthand how much wasteful spending goes on. Americans just buy everything because of this need to have everything
Congressional hearings with Visa and Master Card was in the news recently, these guys. Tend to make videos about what's in the news to get views (like how everyone had a Game Stop video a couple of years ago)
I have a credit card, but was in the trap many get into when you can only make the minimum payment every month & that only covers the interest. In the end, I got it down to a state where I was able to take out an interest free community loan to pay the outstanding balance. The balance was paid, I locked the card, dropped the limit to the bare minimum & gave the card to a family member for hiding. The loan repayments were at the same amount I was paying the bank, so I wasn’t any extra out of pocket, but being unable to spend it was a relief. I don’t miss the card, but it’s there as an “emergency” card.
One thing worth mentioning is that credit cards became a big deal to consumers at the same time that: * Wage stagnation (wages not keeping up with inflation) started * Deindustrialization of the "rust belt" and the shift to non-union service work started * The rise of appliance, clothing and other consumer good obsolesence (both planned and unplanned) This is not a coincidence. Basically the banks and credit card networks became the new version of the loan sharks, but with a much bigger market. Even middle class people often can't cover everything with cash.
Credit card companies also have enormous political power globally, they aren’t just silent middlemen. Just look at how they financially strangle companies in Japan like DLSite.
I'm disappointed that JCB wasn't covered despite the chart showing it as bigger than Amex. An examination of what differences there are between American credit card companies and non-American ones would have been interesting.
One thing you omitted from the credit card act of 2008 was card issuer’s were allowed to increase the APR to almost double in some instances your choices were accept the new APR or close your account and pay it off at the original APR and if you were carrying a balance at the time the only option that made sense was to close your card. Lots of people lost the ability to have a credit card available to them.
American economists frequently tout how important it is that people go into debt to spend more, and that this is a sign of a healthy economy. It's not just banks who are selling this fiction, its the political class as well.
Glad someone else pointed this out. Credit card owners are at fault too but it's as if there isn't a whole growth-based narrative of US exceptionalism whose foundations are precisely... High levels of government and household debt feeding into corporate profits. There would be much lower growth if people spent and saved responsibly.
The way people are conditioned into spending is insane. Every debt is a risk, and if you live on credit long enough, it is inevitable you'll slip. And then you'll have to work twice as hard to get back to zero. I used mainly cash until the pandemic. Then I moved to debit card. I have a credit card, the bank offered me better mortgage rate if I get it, but I have yet to use it years later, and I plan to cancel it right after I pay off the mortgage. Having debts give me anxiety.
It's because it was propagated onto us more and more after our exportation of manufacturing. We shifted from a manufacturing export economy to a mass import consuming economy. This is maintained and held in balance through the use of the federal debt budget and the dollar being the world reserve currency. I believe the government created and instilled this as seeing it the only way to continue our "growth and prosperity" that we had in our manufacturing days. When a society goes from 3rd world to 1st world, living conditions and the expectations of further improvement of it creates wages that can't compete with foreign nations. Thus creating mass manufacturing job exportation as globalization occurs. That's why China is growing so rapidly, it's from them receiving all our previous manufacturing jobs. Yet, even china will lose their position as the top manufacturer and will have to find a way, just like America, to keep their econonmy steady.
Hyatt properties are not everywhere and cost more than comparable Marriott or Hilton, so while you think you get a good deal redeeming UR points 1 for 2, you are essentially paying more for essentially nothing extra or special.
@mlodyme3675 how is that possible when you can get a basic room for 5k points and Marriott and Hilton are over double that.? Transferring Chase points to Hyatt is the move Also I have status with Hyatt soni get all the good perks
@@mlodyme3675 How is that possible when you can get a basic room for 5k points and Marriott and Hilton are over double that.? Earn chase points transfer them to Hyatt
Marriott points are definitely the most valuable of any of the hotel chains both because of their prices and because of their larger portfolio of properties and greater geographic dispersion third. Delta/Skymiles are the most valuable airline points
@@Laotzu.Goldbug Hyatt points are way more valuable you can get more for less points. Alaska miles and Southwest miles are worth more than sky miles. Sky miles are called sky pesos
Having that in our house is probably fine, especially if you keep it in a drawer, but to anyone considering doing the same thing at work, don’t. It’s real easy to pull a fire alarm and take some photos
Just a request for my own purposes: Would you be willing to link a pastebin, google doc, or just a series of links to your sources? I would like to do further reading on this.
This video acts as if credit can go up endlessly when in fact sooner or later all credit bubbles end in massive collapses. It is all good until it isn't.
Guys, trust me, The Gilded Nexus of Prosperity is the kind of book that sneaks up on you. I started it casually and ended up pulling an all-nighter to finish! It talks about making money techniques
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@@maxinef6654 remind them that it's the fee for the application and you make no promise that you'll even get approved. I've had some pushback, but applying for a card hits your credit report and if I applied for every card I'd get dinged on my score even if I never used the card.
Interesting I have heard this debate depending on how mindful you are. It was even on a business channel, this one commentator said he advised clients to either get 2 cards or up to 30. His point was that if you set up a card for everything (grocery, car, house, etc) the points and value you get were massive.. BUT, if you can't keep it under control. just 2 cards and walk away. I am experimenting with the multiple cards approach right now, and for me it works. I estimate it saved me about $600 this year and will benefit me $2K next year. Of course I started with 0 debt, so there's that factor as well. How do you keep track of 9?
@@_CoachW I only I on 3 cards regularly. Sapphire preferred for restaurants & travel, world of Hyatt for everything else and ink unlimited for business stuff. The other hotel cards I just use at that hotel brand and the Amex is for the benefits and credits All cards are set to autopay
@@_CoachW I only I on 3 cards regularly. Sapphire preferred for restaurants & travel, world of Hyatt for everything else and ink unlimited for business stuff. The other hotel cards I just use at that hotel brand and the Amex is for the benefits and credits All cards are set to autopay
@@_CoachW I use the CSP for restaurants & travel, H yatt for everything else and ink unlimited for business spend My AMEX is just for the benefits and credits and the other hotel cards are for those hotel everything is on auto pay
when in the hands of resposible users, this statement is true. the financial filings data presented in the video shows that these companies make the majority of their fortune on the interest that comes from balances.
So let me get this right, we are paying twice for the "risk" the banks take to issue these credit card loans? when they charge 30% + interest on the acctual card and 3% when they charge the business for using credit card?
American express really isn't a credit-card company like visa and mastercard are. They have less customers, less accepted merchants. They won't accept low credit-scores, don't charge interest rates and highly discourage payments over time (which you will pay interest on). They make their money on the transaction fees which are way higher then any other card-company. And since there customer-programs are that good, a customer will search for another store when yours doesn't accept Amex. There is a specific name for these types of credit-cards which is "charge-cards", they are intended to be paid in full every month. Dinners club is another example of a charge-card. Dinners was actually the first one with there paper charge card in 1950, American express started in 1957 with the paper one and was the first one in 1959 with a plastic charge card.
I'm a bit confused now. My wife and I paid off our house this Summer. We have no debts. We own our cars. The credit reporting agencies say my Credit Score is going down only because I don't use any credit cards. I'm debt free, have Soc Sec and retirement funds. I don't want anymore debt.
Use credit card for daily life and then pay off in full each billing cycle. Your credit score will climb. Following a budget and tracking expenses will keep you from going overboard.
22:34 Walgreens has a really terrible credit card they are forcing employees to over-promote. It's a bottom of the barrel card with terrible interest and few benefits. It's a gasp for a company that's not doing well.
I would argue that even if rewards aren't that valuable, credit cards still provide a barrier to financial fraud. Someone could quickly drain your entire bank account if they get your debit card. If someone uses your credit card you have more ways to fight it
Had this playing in the background this morning, the last 45 seconds or so of the video had me stop what I was doing and go "Damn. He's throwing heat!". Caught me off-guard haha
The ad was annoying. I could tell immediately I was being given a pitch because the video swung off topic, it was related, but not the point of the video, and was overly focused on fearmongering to sell a product.
Even the credit card disciples must know they pay 3-4% more for all goods they buy for the processing fee these companies charge merchants to accept credit as payment.
Is that even true? Back in the days of mostly cash, wouldn't merchants have to pay for security to move cash around safely? Seems like credit card transactions reduce the risk of theft and overhead.
It's debatable if that is true, but even if it isn't there's essentially nothing you can do because the coordination problem. if you're suggesting that Merchants have unilaterally raised their prices across the board to account for credit card fees and if credit cards didn't exist you'd pay less then you really have no choice but to use the credit cards and gain the rewards Because unless you can coordinate with everyone in your nation to stop using credit cards then you're going to be paying those higher prices regardless and your unilateral individual decision to abstain is not going to move the market. Said, credit cards have been around for so long that unless you are extremely old you have never experienced that jump in costs and therefore it is the water you swim in, there is really nothing that is not influenced by it including inflation and wages so it's pretty much built in.
The thing is Americans dollar amount spent is more.... but what Americans get for their dollar in America is FARRR less. This is a country that has "maximized profit", which means the prices for everything are jacked up higher than everywhere else.
Hence why it's great to be an American... overseas. From what I hear among working age Americans they're more than ready to move abroad permanently as long as they're still paid in USD.
The final problem with credit cards is that even when the card holder pays off their balance on time every time they still spend more money anyway than if they just spent from a debit card or with cash.
One thing to note is that credit card benefits aren’t universal. American issued cards tend to have better travel benefits, cashback, sign up bonuses, etc with them. This might be a reason why Europeans could care less about using a credit card instead of a debit card or cash.
@heyitsraymond You wouldn't even have that limit if the majority didn't pay interest. They'd make no money. Our society wouldn't be built off debt and this video likely wouldn't even exist. You're also not the reason why they're in business. You're an outlier. But those dang "poor" people, you're right. Don't blame anyone or anything else, just "poor" people. I really don't think you have a concept about how all "this" works from the question you asked. It's far more complex than a widget set at some random price another person purchases then immediately blaming a rich person. Stay classy Raymond.
So sad to hear that Modern MBA zipped himself inside a duffel bag and threw himself from a 17th floor balcony. I never would have guessed he suffered from such demons.
Most important part of using a credit card is to use someone else money that is protected by law versus using your own, but this obviously takes into consideration that the one using the credit card is a more responsible individual
Right, that's the danger of using debit where it's your money that goes missing if someone skims your swipe. Meanwhile on a credit card it's the _bank's_ money, and they have the motivation and the professional staffing to go get it back.
I know of Citigold Lounges, but those are in their bank locations meant for clients with like a half-million or more in their accounts to meet with a manager in person.
Credit card rewards/points are a lie that tricks people, makes everything more expensive, and feeds off of the poor. Credit card companies charge business an interchange fee to pay for the rewards/points. The percentage varies by the credit card, but typically the highest is 2%. Businesses raise the cost of all goods and services by 3% to counter this charge and to take a little extra profit. If you have a 2% cash back card, but are being charged 3% more overall, you're actually losing out by 1%. Your rewards/points don't matter of your carrying a balance and paying 15-35% in interest, which the majority of people who own a credit card carry a balance. This hurts poor people the most, because the vast majority of people living in poverty pay with cash so they can't get a 2% cash back by using a credit card, but they wouldn't be able to anyway because the highest cash back rewards cards aren't attainable to people with low credit scores. More businesses should offer a 3% discount for paying with cash or debit card. Can't be done? In the EU, credit card companies had their interchange fees capped. The result? Prices didn't go up at businesses. And people in the EU rarely use credit cards.
But why do people in the EU rarely use credit cards? Is it because cashback rewards aren't a thing since the companies can't make money off of intercharge fees? Because if there still are cashback rewards even after capping intercharge fees it seems like it would be a win-win to use credit cards
@@james_chatmanA 1% charge seems fair considering you're almost certainly going to get that as cash back anyway, might as well use it to support small businesses
I'm a little bit confused as to what Mr MBA is actually suggesting happens with the credit card fees, can anyone give me a quick breakdown? e.g. A merchant is charged a 3% fee on a transaction, so you spend $500 and they have to give $15 to the collection of credit card interest. Who actually gets this? He said it goes to the banks, so if I have a Chase Card Chase is paid $15 and then from that $15 they give a portion to visa/mastercard and visa/mastercard give a portion of their portion to some other middlemen such as payment processors or security infrastructure? Or visa/mastercard collect their portion of the fee and they pay a percentage to the bank?
You're on the right track. To clarify from your example: If you spent $500 at a grocery store, $15 (aka 3% of $500) would go to Chase bank, and $0.75 (aka 0.15% of $500) would go to Mastercard. These fees come directly out of the grocery store's cash flow. Mastercard doesn't charge Chase bank.
@@tacothursdays6546 okay, that makes sense. So in the various examples he used the interchange fee listed is paid entirely to the issuing bank, and some additional but much smaller - likely sub 1% - amount is paid directly to the card network?
Related - As one with an Econ background, reason zillion one for Trump's win? All increases in consumer spending from Aug 2023 to Aug 2024? Were matched by increases in consumer debt, mostly credit card debt.
I have no problem with ads. Going forward, will you please respect your audience’s intelligence by not slyly trying to incorporate an ad into the video topic? The current method of integration feels insulting.
I eventually came to the conclusion that none of it is worth it compared to just earning more. I have 2 amex cards right now, but i’m getting an Apple Card soon & switching almost everything onto there. I care more about UI than categories
Great content, as always! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
They made it easy to get approved and increase your credit line... it got out of control because people wanna be like the next person on Twitter and Instagram.
The appeal in this video to class warfare is disgusting. Corporations have the right to make money like everybody else. If the guy who runs this channel doesn't like it, he can move to Cuba or North Korea.
Are you referring to the graph at 25:10? Check the text again, that is displaying annual credit card circulation by number of cards, not by dollar amount, so it's definitely not in the trillions. If you're talking about the one at 5:40, that's accurate.
VISA and Mastercard might be losing India to local network Rupay and they can’t do anything about it. Rupay is government backed, operated by NPCI which is unanimously trusted by Indians because of their success in other financial services like UPI which is equivalent to China’s Alipay maybe even bigger.
It’s an absurd system. But at least if you’re smart you can work the system. If your credit rating is high enough and you always pay on time you can carry tens of thousand in debt for years and pay no interest at all. But you better find some way to pay it off.
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There seems to be 1000X error on credit card volume. Check 5:40, 14:03, and 15:54.
😂 “Unless there’s a societal shift away from materialism” 😂
So we're screwed.
The foundation of this fucking society is materialism. You can't shift away from it or everything crumbles.
What if you just pay off your balance in full and only spend your budget?
I can't imagine it's that hard to not overconsume and save money for your retirement/emergency funds?
@@Dan-cm9ow we be more crewed if there is a shift away form materialism cause most of the economy is base on materialism
@baconoftheark for many... marketing and instant gratification makes it super hard to live within one's means.
"But Akshually I get points and pay my balance every month!"
Congrats for being the exception to the rule. I pray you continue to be one.
Paid $1.16 in total interest over 9 year and 9 different credit cards 😎
But ashkenezni I get points and never anything pay but the minimum. I like uzhury.
This should be the norm, not the exception. If you actually need to borrow money, I suggest you explore methods which don't involve 28% APR
Is it that hard to imagine someone having some personal accountability?
I mean if you are diligent about your finances there's no real reason not to use a credit card. It's literally free money. But it is a bit scummy that the free money is coming from the poor bastards that are stuck paying 26% APR
youtube hiding this video from me for 30 seconds is crazy work
4:17 ads ends here.
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Boutta finance my pizza hut (18$ , paid in 9 easy monthly instalments of 4,9$)
Little Caesar's lunch combo is $7
@@stoundingresultswith klarna i can pay in 4 easy installments of $1.75!
Decision makers at large companies will see this comment and take it at face value, basing the future of hundreds of thousands of employees on it for the coming decades in a mad pivot towards making consumers finance every purchase ever lmao.
Could be worse though.
Could be NZXT's PC rental program.
Who's here after PolyMatter's video about credit cards😂
I'm currently subbed to both and have free allotted time so...
Me
Collusion?
Thats just wild. I wa talking to my friend about credit cards a couple of hours ago. Wouldnt be surprised if devices are eavesdropping.
I feel like this video was better.
This, Polymatter, who's next, Wendover?
You noticed it too... 1 RUclipsr will make a video about a topic and others follow!
?
How Money Works, The Plain Bagel, and Micro.
@@zerozeru production Time Lines are way too long to copy so quickly
The congress hearing of Visa and MC was clips was popular on social media so I'm guessing they saw them and added the idea to their production list
Its simple, if you can have control and pay your balance IN FULL EVERY MONTH, then having and using a credit for all your expenses is a no brainer, get rewarded (no matter how small) on stuff you buy anyway that costs exactly the same no matter what you use (groceries, gas, eating out etc.) the $100+ of rewards i get a month adds up. And that rewards come at the dime of those irresponsible.
But if you cant be responsible and will carry a balance, stick to cash and debit cards and stay out of debt and temptation to overspend
But things cost exactly the same, very few places add extra fees for credit card users, only one i consistently run into is my landlord trying to pay rent, never see it otherwise
this, exactly. my partner is the one who caught me up on how he uses his cards and is militant about his (excellent) credit, it’s been SO easy to switch my regular and recurring purchases to my credit card.
i make multiple payments through the month to avoid any interest, also bc it’s easier for me mentally to pay $150-200 at a time than a big balance all at once. everything is the same, all my transactions are in one main place, and i get free money back for the stuff i was already buying.
we bought a dyson vacuum over black friday and had to drop a chunk on a mobile vet for yearly check ups for our cats-scooped up an easy ~$200 in cashback that adds to what we’re sitting on as a ‘break glass in case of emergency’ balance, and that’s just in credit cards points.
like you said, it’s a no-brainer to use credit cards as opposed to debit IF IF IF you’re responsible and are in the financial position to never miss a payment. buy only what you have the actual money for, pay it off constantly, completely, and you’re golden
If you use the BILT mastercard, you can pay your rent and the fee is waived. You can even have them send a check to your landlord.
@EragonxVxRevan I know of it, trying to improve my credit to get it
That is what BILT is for :)
It’s really icky that credit card benefits are a wealth transfer from poor people to rich people, but personally opt-ing out won’t change the system or the price I pay for goods/services, so I still use credit card rewards to take the free money on the table.
It’s not a hard concept if you’re not selfish or stupid credit cards are great. Even rich people get destroyed by credit card interest
@@heyitsraymond The fact that you were offered that much means you make decent money. A lot of people barely get by because they don't even make $25 an hour. Credit cards often become a fallback every time a sudden, massive expense comes up. It can easily become a trap. The fact that you don't know that happens just proves you're out of touch with how a lot of the country has to live. Most poor people are very frugal. The rampant spending often comes from the $70,000 per year and up crowd. Most poverty is the result of living in areas of generational poverty, so shit job opportunities and social services with no chance of inheritance of any kind, or chronic debilitating medical issues. It's not really a bad decision thing so much as a you're f*cked out the gate issue. Universal healthcare and subsidized child daycares would wipe out a lot of poverty. Also not basing school and other social service funding on the general wealth of the neighborhood but instead dividing the funding between institutions equally. Massively boosting minimum wage would also be necessary to raise wages across the board.
Yeah it's the poor persons fault great insight @@heyitsraymond
@@heyitsraymondreally nice bait
@@heyitsraymond
This kinda makes it sound like wealthy people are great at making decisions, but let’s be real-that’s not always true, especially when it comes to impulse control. I mean, how many rich people do you see with a bunch of cars or multiple houses? They don’t need all that, they’re just giving in to their impulses like anyone else.
The difference is, they’ve got the money to absorb it, so their impulsive choices don’t hit them financially. For the rest of us, though, giving in to those same impulses can have way bigger consequences because we don’t have that kind of cushion.
If I pay cash, I pay 100% of the cost. If I pay with a credit card, I pay 99% of the cost (1% cashback everywhere). If I can pay with a gift card that I purchased at a grocery store with my credit card, I pay 95% of the cost (5% cashback at grocery stores). I pay off the card at the end of each week. Sounds like a win to most people who aren't spending carelessly.
Fair enough, if you responsible then it's reasonable choice.
The keyword is carelessly
Not unless you're actually paying 101% of the cost and then the cashback makes it 100%.
In that sense yes you sre being responsible but there has been studies showing that you spend more if you use cc vs cash.
So even if you are responsible and pay off cc every month you naturally spend more money vs if you were using cash to buy things
Where does the extra come from? They know many people aren't responsible
I just got my third credit card in the mail. Never paid a cent in interest in 10 years. This card is 0% APR for 15 months, gives 25000 miles for 1000 in purchases, and 1.5x points. Not bad for a free card
That’s why government won’t stop the current credit card system. I’m doing this also it has become my part time job 😂
@ People’s brainless need to consume everything is the problem. Credit cards are fine in the hands of minimalists like myself
@@AlbatrossWhisper A lot of people use credit cards to cover sudden medical debts and car repairs. Also, sudden cash shortfalls like a recent layoff. It isn't just blind consumerism that has caused a credit debt crisis.
@@butterfish-g9f Ive worked in retail for 8 years. Ive seen firsthand how much wasteful spending goes on. Americans just buy everything because of this need to have everything
@@AlbatrossWhisper If everyone was as superior as you are the economy would collapse...or capitalists profits would dry up. Same difference?
Weird how Polymatter also released a credit card video 🤔
Great minds think alike.
Congressional hearings with Visa and Master Card was in the news recently, these guys. Tend to make videos about what's in the news to get views (like how everyone had a Game Stop video a couple of years ago)
I have a credit card, but was in the trap many get into when you can only make the minimum payment every month & that only covers the interest.
In the end, I got it down to a state where I was able to take out an interest free community loan to pay the outstanding balance. The balance was paid, I locked the card, dropped the limit to the bare minimum & gave the card to a family member for hiding.
The loan repayments were at the same amount I was paying the bank, so I wasn’t any extra out of pocket, but being unable to spend it was a relief.
I don’t miss the card, but it’s there as an “emergency” card.
It always starts out as an emergency when you first use it.
One thing worth mentioning is that credit cards became a big deal to consumers at the same time that:
* Wage stagnation (wages not keeping up with inflation) started
* Deindustrialization of the "rust belt" and the shift to non-union service work started
* The rise of appliance, clothing and other consumer good obsolesence (both planned and unplanned)
This is not a coincidence. Basically the banks and credit card networks became the new version of the loan sharks, but with a much bigger market. Even middle class people often can't cover everything with cash.
Credit card companies also have enormous political power globally, they aren’t just silent middlemen. Just look at how they financially strangle companies in Japan like DLSite.
Next do a whole video on Buy Now Pay later (BNPL): Affirm, Klarna, Afterpay, Sezzle, PayPaly pay.
That video has been out for 2 years already
I'm disappointed that JCB wasn't covered despite the chart showing it as bigger than Amex. An examination of what differences there are between American credit card companies and non-American ones would have been interesting.
I could listen to this kind of stuff for hours
Basically only worth signing up for a card if you can redeem the carrot-on-stick rewards and then cancel shortly thereafter.
Read the fine print, claw backs exist. You might have to wait a year to cancel.
One thing you omitted from the credit card act of 2008 was card issuer’s were allowed to increase the APR to almost double in some instances your choices were accept the new APR or close your account and pay it off at the original APR and if you were carrying a balance at the time the only option that made sense was to close your card. Lots of people lost the ability to have a credit card available to them.
Thanks
Thank you for the support!
American economists frequently tout how important it is that people go into debt to spend more, and that this is a sign of a healthy economy. It's not just banks who are selling this fiction, its the political class as well.
Glad someone else pointed this out. Credit card owners are at fault too but it's as if there isn't a whole growth-based narrative of US exceptionalism whose foundations are precisely... High levels of government and household debt feeding into corporate profits. There would be much lower growth if people spent and saved responsibly.
oldskoolmusicnostalgia 🎯
The way people are conditioned into spending is insane. Every debt is a risk, and if you live on credit long enough, it is inevitable you'll slip. And then you'll have to work twice as hard to get back to zero.
I used mainly cash until the pandemic. Then I moved to debit card. I have a credit card, the bank offered me better mortgage rate if I get it, but I have yet to use it years later, and I plan to cancel it right after I pay off the mortgage. Having debts give me anxiety.
Americans being humble and spending withins their means is a rare sighting
It's because it was propagated onto us more and more after our exportation of manufacturing. We shifted from a manufacturing export economy to a mass import consuming economy. This is maintained and held in balance through the use of the federal debt budget and the dollar being the world reserve currency. I believe the government created and instilled this as seeing it the only way to continue our "growth and prosperity" that we had in our manufacturing days. When a society goes from 3rd world to 1st world, living conditions and the expectations of further improvement of it creates wages that can't compete with foreign nations. Thus creating mass manufacturing job exportation as globalization occurs. That's why China is growing so rapidly, it's from them receiving all our previous manufacturing jobs. Yet, even china will lose their position as the top manufacturer and will have to find a way, just like America, to keep their econonmy steady.
Hyatt points are the most valuable unless you can find some crazy flight redemptions
Hyatt properties are not everywhere and cost more than comparable Marriott or Hilton, so while you think you get a good deal redeeming UR points 1 for 2, you are essentially paying more for essentially nothing extra or special.
@mlodyme3675 how is that possible when you can get a basic room for 5k points and Marriott and Hilton are over double that.? Transferring Chase points to Hyatt is the move
Also I have status with Hyatt soni get all the good perks
@@mlodyme3675 How is that possible when you can get a basic room for 5k points and Marriott and Hilton are over double that.?
Earn chase points transfer them to Hyatt
Marriott points are definitely the most valuable of any of the hotel chains both because of their prices and because of their larger portfolio of properties and greater geographic dispersion third.
Delta/Skymiles are the most valuable airline points
@@Laotzu.Goldbug Hyatt points are way more valuable you can get more for less points.
Alaska miles and Southwest miles are worth more than sky miles. Sky miles are called sky pesos
How are hackers going to find my sticky notes? How likely do you think it is that they’ll find their way into my house?
Whats on ur sticky notes isnt what matters, its what u do with that information online that does (e.g. same logins across multiple websites)
Having that in our house is probably fine, especially if you keep it in a drawer, but to anyone considering doing the same thing at work, don’t. It’s real easy to pull a fire alarm and take some photos
Credit Cards
Me : You mean debt plastics
Just a request for my own purposes:
Would you be willing to link a pastebin, google doc, or just a series of links to your sources? I would like to do further reading on this.
You’ll never guess what advert came on right before this video began? You guessed it a credit card commercial! 😂The irony is too much.
To this day I have never owned a credit card.
Did you and Polymatter coordinate uploads?
This video acts as if credit can go up endlessly when in fact sooner or later all credit bubbles end in massive collapses.
It is all good until it isn't.
Two of my favorite channels post 💳 videos on the same day?
I'm here for it.
Guys, trust me, The Gilded Nexus of Prosperity is the kind of book that sneaks up on you. I started it casually and ended up pulling an all-nighter to finish! It talks about making money techniques
I'll definitely buy you dinner for this recommendation
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Highly likely that this new Qvarden Token will probably have a supply shock after launch
I tell cashiers that I charge a $500 fee for a credit application. They have no idea what to do at that point.
😂😂. I’m going to use that one the next time I’m asked if I want to fill out a cc application.
@@maxinef6654 remind them that it's the fee for the application and you make no promise that you'll even get approved. I've had some pushback, but applying for a card hits your credit report and if I applied for every card I'd get dinged on my score even if I never used the card.
Great find, I bought the Bottega knockoffs in kislux because I liked the style but not the price of the originals, hehe!
man, he is good at getting me to watch the implanted add without realizing it....
I have 9 credit cards paying $1,278 but I get over $3k+ value
The hotel cards where you get a free night each year are the best
Interesting I have heard this debate depending on how mindful you are. It was even on a business channel, this one commentator said he advised clients to either get 2 cards or up to 30. His point was that if you set up a card for everything (grocery, car, house, etc) the points and value you get were massive.. BUT, if you can't keep it under control. just 2 cards and walk away.
I am experimenting with the multiple cards approach right now, and for me it works. I estimate it saved me about $600 this year and will benefit me $2K next year.
Of course I started with 0 debt, so there's that factor as well.
How do you keep track of 9?
@@_CoachW I only I on 3 cards regularly. Sapphire preferred for restaurants & travel, world of Hyatt for everything else and ink unlimited for business stuff. The other hotel cards I just use at that hotel brand and the Amex is for the benefits and credits All cards are set to autopay
@@_CoachW I only I on 3 cards regularly. Sapphire preferred for restaurants & travel, world of Hyatt for everything else and ink unlimited for business stuff. The other hotel cards I just use at that hotel brand and the Amex is for the benefits and credits All cards are set to autopay
@@_CoachW I use the CSP for restaurants & travel, H yatt for everything else and ink unlimited for business spend
My AMEX is just for the benefits and credits and the other hotel cards are for those hotel
everything is on auto pay
Nick is doing it right!
my personal finance class talked about credit cards as if they were a discount on life
is it any wonder people feel the urge to get more and more
when in the hands of resposible users, this statement is true. the financial filings data presented in the video shows that these companies make the majority of their fortune on the interest that comes from balances.
So let me get this right, we are paying twice for the "risk" the banks take to issue these credit card loans? when they charge 30% + interest on the acctual card and 3% when they charge the business for using credit card?
American express really isn't a credit-card company like visa and mastercard are. They have less customers, less accepted merchants. They won't accept low credit-scores, don't charge interest rates and highly discourage payments over time (which you will pay interest on). They make their money on the transaction fees which are way higher then any other card-company. And since there customer-programs are that good, a customer will search for another store when yours doesn't accept Amex.
There is a specific name for these types of credit-cards which is "charge-cards", they are intended to be paid in full every month. Dinners club is another example of a charge-card. Dinners was actually the first one with there paper charge card in 1950, American express started in 1957 with the paper one and was the first one in 1959 with a plastic charge card.
I'm a bit confused now. My wife and I paid off our house this Summer. We have no debts. We own our cars. The credit reporting agencies say my Credit Score is going down only because I don't use any credit cards. I'm debt free, have Soc Sec and retirement funds. I don't want anymore debt.
Use credit card for daily life and then pay off in full each billing cycle. Your credit score will climb.
Following a budget and tracking expenses will keep you from going overboard.
Then it does not matter what your credit score is. If you do not plan to take out debt, you do not need a high credit score.
Look for manual underwriting. Dave Ramsey advices instead of using the credit score to prove You are worthy of credit
That's how the system works. Corporate America wants you to keep taking on credit to have "high score" like a dystopia out of a Black Mirror episode.
Hahahaha 🤣🤣🤣🤣 Americans credit score competing for a magical number so your life run smoothly
22:34 Walgreens has a really terrible credit card they are forcing employees to over-promote. It's a bottom of the barrel card with terrible interest and few benefits. It's a gasp for a company that's not doing well.
I would argue that even if rewards aren't that valuable, credit cards still provide a barrier to financial fraud. Someone could quickly drain your entire bank account if they get your debit card. If someone uses your credit card you have more ways to fight it
3:49 - Humane Customer Support???? I shudder to imagine any inhumane support.
Another Credit Cards video after PolyMatter! We are eating good today
Had this playing in the background this morning, the last 45 seconds or so of the video had me stop what I was doing and go "Damn. He's throwing heat!". Caught me off-guard haha
Appropriate sponsored segment this time 😂
LOL u cant be serious right?
The ad was annoying. I could tell immediately I was being given a pitch because the video swung off topic, it was related, but not the point of the video, and was overly focused on fearmongering to sell a product.
Get sponsorblock and let him bag chase
Let bro earn his bread man 🍞
Even the credit card disciples must know they pay 3-4% more for all goods they buy for the processing fee these companies charge merchants to accept credit as payment.
Is that even true? Back in the days of mostly cash, wouldn't merchants have to pay for security to move cash around safely? Seems like credit card transactions reduce the risk of theft and overhead.
It's debatable if that is true, but even if it isn't there's essentially nothing you can do because the coordination problem. if you're suggesting that Merchants have unilaterally raised their prices across the board to account for credit card fees and if credit cards didn't exist you'd pay less then you really have no choice but to use the credit cards and gain the rewards Because unless you can coordinate with everyone in your nation to stop using credit cards then you're going to be paying those higher prices regardless and your unilateral individual decision to abstain is not going to move the market.
Said, credit cards have been around for so long that unless you are extremely old you have never experienced that jump in costs and therefore it is the water you swim in, there is really nothing that is not influenced by it including inflation and wages so it's pretty much built in.
The thing is Americans dollar amount spent is more.... but what Americans get for their dollar in America is FARRR less. This is a country that has "maximized profit", which means the prices for everything are jacked up higher than everywhere else.
Hence why it's great to be an American... overseas. From what I hear among working age Americans they're more than ready to move abroad permanently as long as they're still paid in USD.
The final problem with credit cards is that even when the card holder pays off their balance on time every time they still spend more money anyway than if they just spent from a debit card or with cash.
Convenience will always win in the long run. These bankers are super smart people.
Im french and nobody even gives a fuck about their crédit card lol
In the sense that no one bothers to use them or in the sense that no one cares about paying them off and just holds a balance?
In the sense that no one cares about credit card points etc
One thing to note is that credit card benefits aren’t universal. American issued cards tend to have better travel benefits, cashback, sign up bonuses, etc with them. This might be a reason why Europeans could care less about using a credit card instead of a debit card or cash.
“That’s part of the game”
- Anthony von Mandl (🇨🇦)
I have 27 credit cards but have never paid a cent in interest. My credit score is fantastic 🤑
@heyitsraymond You wouldn't even have that limit if the majority didn't pay interest. They'd make no money. Our society wouldn't be built off debt and this video likely wouldn't even exist. You're also not the reason why they're in business. You're an outlier.
But those dang "poor" people, you're right. Don't blame anyone or anything else, just "poor" people. I really don't think you have a concept about how all "this" works from the question you asked. It's far more complex than a widget set at some random price another person purchases then immediately blaming a rich person.
Stay classy Raymond.
Having credit cards has never made anyone wealthy
24:38 trump jumpscare
So sad to hear that Modern MBA zipped himself inside a duffel bag and threw himself from a 17th floor balcony. I never would have guessed he suffered from such demons.
Most important part of using a credit card is to use someone else money that is protected by law versus using your own, but this obviously takes into consideration that the one using the credit card is a more responsible individual
Right, that's the danger of using debit where it's your money that goes missing if someone skims your swipe. Meanwhile on a credit card it's the _bank's_ money, and they have the motivation and the professional staffing to go get it back.
@doujinflip thank you! Vasudhaiva Kutumbakam !
4:17 skip the ad BS!!!
where is Citibank building lounges? I am not aware of any. I only know Amex, Capital One and Chase airport lounges.
I know of Citigold Lounges, but those are in their bank locations meant for clients with like a half-million or more in their accounts to meet with a manager in person.
Credit card rewards/points are a lie that tricks people, makes everything more expensive, and feeds off of the poor.
Credit card companies charge business an interchange fee to pay for the rewards/points. The percentage varies by the credit card, but typically the highest is 2%. Businesses raise the cost of all goods and services by 3% to counter this charge and to take a little extra profit. If you have a 2% cash back card, but are being charged 3% more overall, you're actually losing out by 1%.
Your rewards/points don't matter of your carrying a balance and paying 15-35% in interest, which the majority of people who own a credit card carry a balance.
This hurts poor people the most, because the vast majority of people living in poverty pay with cash so they can't get a 2% cash back by using a credit card, but they wouldn't be able to anyway because the highest cash back rewards cards aren't attainable to people with low credit scores.
More businesses should offer a 3% discount for paying with cash or debit card.
Can't be done? In the EU, credit card companies had their interchange fees capped. The result? Prices didn't go up at businesses. And people in the EU rarely use credit cards.
But why do people in the EU rarely use credit cards? Is it because cashback rewards aren't a thing since the companies can't make money off of intercharge fees? Because if there still are cashback rewards even after capping intercharge fees it seems like it would be a win-win to use credit cards
The swipe fee really does suck for small business owners. Try to pay cash at those places.
More and more pass it directly to you and it is infuriating.
@@james_chatmanA 1% charge seems fair considering you're almost certainly going to get that as cash back anyway, might as well use it to support small businesses
I'm a little bit confused as to what Mr MBA is actually suggesting happens with the credit card fees, can anyone give me a quick breakdown?
e.g. A merchant is charged a 3% fee on a transaction, so you spend $500 and they have to give $15 to the collection of credit card interest. Who actually gets this?
He said it goes to the banks, so if I have a Chase Card Chase is paid $15 and then from that $15 they give a portion to visa/mastercard and visa/mastercard give a portion of their portion to some other middlemen such as payment processors or security infrastructure?
Or visa/mastercard collect their portion of the fee and they pay a percentage to the bank?
You're on the right track. To clarify from your example:
If you spent $500 at a grocery store, $15 (aka 3% of $500) would go to Chase bank, and $0.75 (aka 0.15% of $500) would go to Mastercard.
These fees come directly out of the grocery store's cash flow. Mastercard doesn't charge Chase bank.
@@tacothursdays6546 okay, that makes sense. So in the various examples he used the interchange fee listed is paid entirely to the issuing bank, and some additional but much smaller - likely sub 1% - amount is paid directly to the card network?
@@Laotzu.Goldbug Yes, that is correct.
Less friction... More money
Credit cards are free money if youre not a potato. Idk what to tell you
Related - As one with an Econ background, reason zillion one for Trump's win?
All increases in consumer spending from Aug 2023 to Aug 2024?
Were matched by increases in consumer debt, mostly credit card debt.
Visa and mastercard are payment processers, not credit cards. Debit cards use them as well.
Another great informative video! Thank you
I have no problem with ads. Going forward, will you please respect your audience’s intelligence by not slyly trying to incorporate an ad into the video topic? The current method of integration feels insulting.
24 with 0 credit cards. I don’t buy things I can’t afford (other than my car) I’m so scared of debt and I will not allow it to control me
Watch Caleb Hammer and you'll see how people really spend
How modern MBA created RUclips addiction
Another excellent video
Ask Sebby is the points 🐐
He should use the points on gym
That dude is a sell out and dgaf about his opinion
@@wilshirebloke his advice has helped me a lot
Literally a card ad below the thumbnail
It lets you buy things on credit. Credit is leverage. Its a tool. There are good ways and bad ways to use it
Exactly but most people do not have the capacity to use them responsibly. Which is why people like Dave Ramsey tell people no credit cards
I eventually came to the conclusion that none of it is worth it compared to just earning more. I have 2 amex cards right now, but i’m getting an Apple Card soon & switching almost everything onto there. I care more about UI than categories
That ad was so sneaky
Never understood how people end up in credit card debt
Graham Stephan being on the thumbail of this video doesn’t surprise me at all. 0:01
Great content, as always! I need some advice: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). How can I transfer them to Binance?
They made it easy to get approved and increase your credit line... it got out of control because people wanna be like the next person on Twitter and Instagram.
Me and my homies love gamifiying credit cards
If there is agreement spoken or otherwise NOT to enroach on each other area of competition that practice may be construed as Anti-competitive duh...
I still don’t understand why should I own a credit card. I only use debit
It’s not an addiction, it’s a lifestyle.
Didn’t expect Anthony on here! Great work dude
@@Dannyclips69 Hey Danny ha!
Gotta do my part on maintaining good media for our space! 🫡 😂
The appeal in this video to class warfare is disgusting. Corporations have the right to make money like everybody else. If the guy who runs this channel doesn't like it,
he can move to Cuba or North Korea.
Its both. I love the credit game
Two things can be true
amazing content
imo the background music is unnecessary and distracting
Annual credit card volume chart seems off by 1000X. It's trillions and not billions.
Are you referring to the graph at 25:10? Check the text again, that is displaying annual credit card circulation by number of cards, not by dollar amount, so it's definitely not in the trillions.
If you're talking about the one at 5:40, that's accurate.
@@Laotzu.Goldbug Yeah thanks for clarifying. 5:40, 14:03, and 15:54
Love your videos
More low rate loans for me 🤑
VISA and Mastercard might be losing India to local network Rupay and they can’t do anything about it. Rupay is government backed, operated by NPCI which is unanimously trusted by Indians because of their success in other financial services like UPI which is equivalent to China’s Alipay maybe even bigger.
Alemio Network is on the radar of major crypto players! Damn
It’s an absurd system. But at least if you’re smart you can work the system. If your credit rating is high enough and you always pay on time you can carry tens of thousand in debt for years and pay no interest at all. But you better find some way to pay it off.
Folks, Alemio’s presale is moving quickly. Locked in my tokens just in time!
the banks should be less aggressive about pop up jail then and approve me