Why Credit Cards Are A Scam - Honest Ads
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- Опубликовано: 28 сен 2024
- If you've ever wanted to know what it's like to sell your soul and never get it back, just open up a credit card.
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Why Credit Cards Are A Scam
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I'd like to see this presentation given in high schools before graduation.
I think they will never. When we finish schools and come out, we start to learn from scratch about life. "Schools are the biggest scams, teaching the students nothing about life"
If you don't spend beyond your means and pay your card off like anyone with a brain there's tons of benefits to using a CC 🤷♂️
@@andrews2438 Amortize whenever possible. Do you understand, though, how difficult it is to convince people to stay withing their means and amortize when it's so easy for them to just go into debt instead?
@Rick Gould What about orphan children?
@Rick Gould that's really sad 😔
2.4M subs with 2.4M views, what a loyal crowd
now 2.5 milion subs and views but only almost 90k likes-which are probably more important for monetisation
@@olegoleg258 oh, is that so :(
Oleg Oleg no it’s views, 1,000 views is $1 which today is around 80p
Yes 2.5 now
Lol
If only this guy could report the news
He'll ya
😂😂😂 I'd watch religiously for sure. Truth sounds do much better than the smoke they're blowing up our arses 😳
Cnn and MSNBC would shut down tomorrow
then stop watching nbc
Just watch every single news channel they're all that dumb
I swear that’s the American motto right there: “Doesn’t that sound like it should be illegal? It’s not! 😉”
Yup
Thats capitalism in general
@@anthonyfaucy2761 Ah, the joys of blaming everything to a single catch-all phrase.
@@bakerboat4572hey, just because it's simple doesn't mean it's wrong
@@bakerboat4572 It’s actually an economic system, and said economic system has done something so great that no other system has done before: *Made life slightly more livable.* Slightly as it usually ends up creating these issues we have today because it sometimes incentivizes them.
You forgot how they will monitor your location and spending habits so they can sell your private information to someone that will target your spending habits.
I have had credit cards for about 35 years and have NEVER paid interest. I only use a credit card for convenience so I can pay for gas at the pump or order from online sellers.
Credit card companies must really hate you. They already hate me for opening up my first credit card and paying it all off every month I have a balance on it.
@@tankdogization It depends on the credit card company. Some companies hate users who do this while others tolerate it or encourage it as they use their credit card reward system to cross sell you other financial products. Chase is good about encouraging people to game points because they will try to sell you auto loans, their wealth advisor services, etc. AMEX hates users who game points because they have nothing to cross sell
@@tankdogization That's where Credit Card Companies came up with transaction fees that they charge merchants.
26 years now and I have also NEVER paid interest or a fee. Though I myself put 90% of my purchases on my card, I do not spend beyond my ability to pay it back and I am far from wealthy - I keep a budget. Though I’ve lost track years ago, I have easily banked 5 digits+ in reward payouts. At one point I had $1,800 saved in ‘Subaru bucks’, which I used to buy new tires and cover maintenance (that card has since folded up 😅). To increase my ‘rewards’ beyond my earning capacity I’ve even gone out of my way to offer my personal card for reimbursed business expenses when convenient. One year, I put close to twice my yearly salary on my card through business trips. Why my boss did not issue a company card is beyond me, but I have since freely shared my methods. 😊
@@tankdogization They are charging the merchant fees for every transaction.
“Why use gross paper covered with pictures of dead guys when you can use my square piece of dinosaur carcass with numbers on it?”
From exploding dinosaur remains.
why use debit cards?
@@unfuzzy Because using a debit card is like using cash, it comes from your bank, not some guy who's gonna charge 10000000% interest.
@@notapirat3387 - using a credit card is like using cash so long as you pay it off on time. and banks often charge a service charge for using a debit card. THE POINT IS debit cards are *also* square pieces of dinosaur carcasses with numbers on them. or did you not get that part?
Yes
True fact: Credit card companies have a term for those who pay their balance in full every month -- they call them "deadbeats".
Dean Champion 😮 Wow!
DEFINITION of 'Deadbeat', in the twisted logic of the credit card companies' world:
Deadbeat is a slang term for a credit card user who pays off his or her balance in full and on time every month, thus avoiding the need to pay off interest that would have accrued on their accounts. A deadbeat, also called a “nonrevolver” or a “transactor,” gets this derogatory name by being a potentially less profitable customer for a credit card company than a revolver, or someone who carries a balance from month to month.
By not carrying a balance, a deadbeat does not incur any interest charges, and by paying on time, he or she does not incur any late fees. However, so-called deadbeats in the credit world also do not rack up bills they never pay, so they do not generate significant losses for credit card companies like true deadbeats, who do not pay their bills.
Thank you for expounding on the definition.
Your welcome. Yeah, I laughed when I first heard that, but then I thought about it and realized that they treasure the people that they can take advantage of the most, and it made more sense.
@@deanchampion6777 Credit card companies still profit from deadbeats. They charge a credit card fee to businesses.
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"I'm Roger by the way, and I'm back."
Perfect. I truly needed some levity this morning.
Michael Swaim, Soren Bowie, Daniel O’Brien, Katie Willert, Katy Stoll, and Cody Johnston are some other names from 2017...
Rogers back so you're ok
Cashback: “It’s like you’re digging a hole, and we throw in a handful of dirt to get you out, but only if you dig 5 feet deeper.”
That is assuming that you were otherwise not going to spend that money at all, if you use a credit card for your everyday expenses that you were gonna spend anyway then cashback is pretty nice considering you don't get any reward for paying with cash. The problem is not credit cards it's simply people spending money they don't have which is stupid no matter how you look at it. If you are digging yourself a hole to get that 2% then you are an idiot but getting 2% for free just from your groceries, bills, etc. seems like a great deal to me.
@@cameronmacdonald294 However (and this won't happen) if no one used credit cards merchants wouldn't have to pay the fees to accept credit cards so products could be less expensive (or not go up in cost as much) - then everyone gets cash back - but it's cash they just never had to give out in the first place. Currently cash back is funded by those that don't use credit cards.
I like how their "cash-back" is metaphorcally morphed into dirt because that's what t basically is... dirt.
@@erikanderson618we're too far gone buddy.
@@erikanderson618 Well that and the people who do use credit cards and don't make their full payments every month
This captures the madness in a way that is socially acceptable
"A bank is an institution that will lend you money if and only if you can prove you don't need it." ~ I can't remember who
George Carlin
No that was me, I said that.
I issued a copyright takedown on your comment.
ThatguywiththeAegis
You *really* like the Aegis hey? 😉
there are some cases, like the need of a bigger house because of a new family that makes going in debt inevitable.
That sounds like something Dave Ramsey would say
Gross paper with dead guys
LMAO
😂😂😂😂 i can't
Too accurate and funny
I still believe in cash!!!
😂😂😂
Luckily on euros we have architectural bridges and other stuff 😂
Use a credit card as if it were a debit card and you'll be fine, in fact you'll be more than fine as any error's on your credit card, you'll have no financial liability for.
But if you don't understand what I'm saying, then it's best to stick to cold hard cash.
Warribo yeah. Stick to small purchases you can immediately pay off. That way no interest and your credit looks good (at least thats what i was told i dont jave a cresit card yet lol)
Warribo that's if the bank dosnt limite how much money you can retrieve
Warribo Agreed
Warribo careful. You’re talking “common sense”.
Richard Siemion I know... disgusting lol
“If you can’t afford to buy something twice, you can’t afford it”-Dan Lok
Thank Me Later
STUNNERJOKES nice!
Good advice
Actually Jay Z said it first
Lol was looking for the Jay Z reference
Those are not Dan Lok's words
Honestly that’s something I could never get about the USA. In my country credit cards are unheard of - everyone just uses debit cards.
We have both. But the credit that he mentioned, that's real. When you buy a house, if you can't afford the entire thing outright (and they cost $400,000 on average) then you have to get a loan. A loan will have interest, and that interest is based on your credit score. Your credit score is based on how frequently, and effectively you can use a credit card, and pay it off. If you don't use a credit card, then you won't have a credit history, and they will see that as bad, and give you a higher interest rate. So everyone who isn't rich is entirely reliant on being in debt to a credit card company, so that they can show they have the ability to budget well enough to pay that debt off, so that they can get into more debt when they want to buy a house, or car, or have any kind of medical treatment. Of course you can still get those things without a good credit score, it will just mean that the interest rates are higher, and therefore it takes longer to pay off, and you're less likely to be able to pay it off, so you'll be more likely to get stuck in and endless loop of paying off debt that is growing ever higher, at a rate that you can't afford to keep up with, unless you get another loan, or credit card to pay off the first one, and so on. But don't worry the government has put laws in place that enable this practice, and make it easier to do, because the credit card companies are one of their biggest sponsors, regardless of the political party they are from.
@@LeafMaltieze How paying off a loan quickly is better financial responsibility than not taking a loan at all?
I’m from Poland and here if the bank sees that you finance everyday spending with loans they will assume you are irresponsible and thus you will be less likely to get a mortgage.
In general in Polish culture having any loan other than mortgage is viewed as being financialy irresponsible.
@@player400_officialI wish that was the case in the US.
@@player400_official It gives the bank data to judge how responsible you are. When you're not taking out loans, you're not leaving behind a paper trail, so if all of a sudden you come to the bank to ask for a giant home loan with no history to back up your trustworthiness, the banker will assume the worst and saddle you with a high interest rate.
I'd also like to point out that responsible credit card users always pay off their monthly balance in full and on time and thus pay zero interest. Also, if it gets stolen, you can void all spending on that card after the reported time of theft and lose nothing, which you can't do with a debit card. It basically becomes a debit card with reward perks that is shielded from your bank account.
@@LeafMaltieze How about... don't buy a house until you can afford it?
This man has transcended sarcasm. He hasn't taken it to a new level, he's taken it to a new plain of existence
It's "plane", not plain.
@@scottdoesntmatter4409 Online spelling mistake eh? Sounds like the perfect example of something that doesn't matter...
**plane**...☺️..✈️
That's called..... ready to learn a new word??? Satire. Bu Dummmmm
Yeah it’s called reality. Credit cards are a scam
Fun fact: debts don't transfer to one's children unless those wishing to collect can trick them into voluntarily taking responsibility for the debt.
True and untrue. If children or other relatives co-signed for things that left the deceased in debt, usually, the debt will then become their debt, because it was their loan too. Also, debt after death is settled through the estate. If loved ones are expecting an inheritance, they may get less or even none, because the debts will be paid back/taken by collectors first.
@@morningwoodfarms713 minors can´t legally sign or agree to anything
This highly depends on the country. In many European cooky l countries, the debt can very well be transferred.
@@morningwoodfarms713cosigning makes the debt your responsibility whether the original borrower is dead or alive. Never cosign to prove you trust someone. You hear that girlfriends?!
Unsecured debt after death has a time limit on collection. Creditors must go after the estate within state time limits.
Never owned a credit card. Never will. Was always told I'd need a credit card in order to get a house or a car. Well, now I have both, without a credit card, and my score is in the top 1% of the country.
Do not take financial advice from anybody who is not exactly in the financial situation you'd like to be in. If you're taking advice from someone in debt just because they're "older and wiser" you're going to find yourself in debt. Period.
Your doing great Greg
Greg Jones can you tell us how you did it?
I want to know before I get into debt
@@ulisesdelaluz7063 Save up and pay with cash. I bought a fantastic 2013 car for 6 grand upfront this year. No payments. Live within your means, don't borrow, pay your bills on time every time, find ways to save money long-term at the cost of short-term (ie. pay for your entire year of insurance all at once, you'll often get up to 25% off by doing so), and if you follow any one piece of advice while ignoring all the rest, it should be this; DRAW UP A BUDGET ON PAPER! It's so easy to spend your money when you don't have a firm grasp on what you make vs what you spend.
Good advice
@@Valefolken so how can you manage to lets say buy a house?
the car part is pretty well said and all but i think what most people want to know is how to afford to pay out a house when saving up can work but sometimes it doesn't due to the high rising prices of homes, for example in the bay area if someone were to save 500k by 2009 to buy a home and to this day they have saved close but a little less than that but the house price rose to 1.1 million then when will someone meet even?
This should actually be shown in financial literacy courses
lol one video will not stop impulsive behavior.
you are idealistic....
Financial literacy should be taught in high school. A mandatory course for graduation.
Yeah, drop out and get a job! Doing what, exactly? The only job you'll be remotely qualified for is bagging groceries at a supermarket. I mean, sure, I guess you could try and learn a trade. Btu there are only so many trades and not everyone's cut out for manual labor. Not everyone wants to do manual labor. Good luck getting a non-manual labor job without a college diploma, let alone high school.
College is not for everyone, I will give you that. But you should absolutely finish high school, or at least get a GED. That way, if you ever do decide to go to college, you have that option, and potential employers won't think you're a fucking failure who couldn't even put in the minimal effort required to finish high school.
This is the exact type of brainwashing I HATE. Its all bullshit. You do not need a degree to have a net worth in life. I understand college benefits some, some require it. Thats fine. But hearing go to college, or your a worthless piece of shit? You can just go fuck off. I got that basically in high school and had the college fair etc for better opportunities like I was supposed to just be a cog.. Here is the fact for me. I have an associates in building websites "web technologies". Want to know something? The government funded the degree. 2. I have never used or got a job FROM that degree. In fact I learned nothing important from the classes. I admit I know I am a bit of a "gifted" person in that I am naturally technically inclined, and I self-taught myself, but regardless that can apply to anyone who puts in the effort. Oh and right now, I am making about 81 an hour as a freelance engineer with no formal education that taught me that skill and have plans to start some other ventures. I did start out at shit money, but I went up in ranks with showing experience and past work. The world isn't just you working and being a cog in a corporate machine, but also you being the machine!
Logo Lee I strongly agree. ^.^ Funny and educational, rare combo.
Cashback!? Was that a Tina Fey shot
Lol
i know i am in the minority. But i had a card since i was 16. And i never used a credit card to buy something i couldnt pay off. I have 8xx credit score. after 20 years. never paid a cent in interest. and made plenty of cash back that i used to buy gifts. I live minimum wage jobs. So it can be done. But yes most do not watch their spending and have the will power to say no when they cannot afford something.
NOO NOPE It's ridiculous that you're in the minority.
Noo Nope, well said and well done. Me the same but only had a credit card when I was in late twenties and used extensively recently. Just pay on time and all will be well. If cannot pay on time, don't use credit card. Must really budget and not be tempted to get the latest Hi-Fi and smartphone etc
I always check my bank account balance before I use my credit card.
Hear hear!
I'M IN DEBT UP TO MY EYEBALLS
It's ironic that I am watching this video a week after I paid off my Capital One credit card. Incidentally my credit score jumped to 754.
Its like your grandmother telling a killer how to kill you.
TheTallMan35 That's pretty bad.
ooh my!!! you are doomed, how hard is it for people to have 0 credit ??? it never hurts not to borrow.
Life Saver L.S I think credit cards are the single greatest scam of a lifetime, across multiple generations.
pretty hard, considering if you have 0 credit, most places won't let you take out loans, won't let you buy a house, won't let you buy or lease a car, etc, not to mention if you have 0 credit, your insurance rates are insanely high. As an example, before I had any credit, tried to get insurance on a 2005 Buick Lesabre, plenty of safety features, a clean driving record, and other things that would bring rates down, but with no credit, the lowest monthly payment I could find, was about 500 a month, for a 10 year old car. After I got credit, I was finding rates as low as 230 a month, which isnt too bad! (For full coverage)
As a former credit card salesman, I always recommend that people don’t get credit cards. Ever.
If you NEED one, for whatever reason, then treat it like a debit card. Pay the entirety of the debt off at the end of the month so that there’s no interest, or as much as you can. Minimum payments lead to impossible debts and a spiral of changing companies and cards over and over.
Trent Pattillo if I have to pay every single month my credit. I tell you straight aware that, unless you don't hide that fact in front of me, you can be robocop of selling credit cards you will never get me, just because is it not convenient. I don't have time to meditate and sleep properly and will spend it where I don't have to. Noooooooooo
Trent Pattillo I agree with everything you said except for one tiny detail. People who follow the behavior in your second paragraph don't use credit cards because they "need" them; it's part of their daily life.
Otherwise, yeah, I agree with everything you said
I use the credit card as a debit card because of cash back reward. Also, if there is a fraud, it will not immediately affect my checking account because I have a separate account ( credit card account). I can then call the bank and have them to fix it. For instance, if there is an unauthorized charge of $800 appears in my card and if that's a debit card, it will take me a week to get cash back or 2 weeks to get a refund if an investigation is required. During that 2 weeks, if I need to pay bills, this can affect me and my quality of life. Credit card won't have such issue. Of coz, I can do the same thing without a credit card by opening a 2nd checking account and use the associated debit card of the 2nd account. I can store money in that 2nd checking account from my main checking account to "charge up" the debit card. It's like a pre-paid cash-card. But again, there is no cash reward and how on earth I am going to build up credit score? I really do not like using credit card in the first place but is there a way not to live with but still able to have credit score built?
that's what i do. i pay it in full every month religiously. no issues whatsoever. never been in debt in my life.
Than how do you build credit.
Tricks on you.... I went bankrupt 9 years ago and had all cards taken. Sucked at the time, had to use a travel card and throw money onto it for online purchases. Now have 2 real credit cards but I pay the balance to zero each month. Now my credit rating is in the 840's. Glad I am no longer using cards to pay off cards, or calculating how much I could charge on maxed out cards after minimum payments were made just to cover food.
Credit cards are great if you use them like a debit card. I never pay interest and only pay annual fees on cards where the value of perks I'd use anyways are worth more than the fee. Example, I have Chase cards for Hyatt, IHG, and Marriott. Each card gives me free nights that cost more than the annual fees. My United card gives me free checked bags and lounge access that quickly pays for itself on just a couple of trips.
Credit cards aren't the problem. It's the stupid people who spend beyond their means are. You could earn hundreds, even thousands in Cash back every year on things you already spend on anyway just by paying off your Credit cards before it's due and pay the bank nothing in interest.
I get your point, but credit cards make it easier to run up debt and spend money you don't have. It's a much more convenient way to rack up debt than going to a bank.
I only use cash when I have no other option, so I actually carry very little with me. If you pay your credit card bill, credit cards build credit.
The thing is, it is IN THE INTEREST OF THE CREDIT CARD COMPANY to MANIPULATE YOU into spending more.
Sure, but that can happen in any situation. The solution is to control your own emotions and not be controlled by that of others.
It is in every single company's interest to get consumers into spending things they don't need. That's the whole point of a business
This is 10 times funnier to me since I took Dave Ramsey's Foundations in Personal Finance. I'm so glad that I won't have to succumb to several _"dinosaur carcasses with numbers on them"_ after taking that elective. I feel like my adult life was saved before it even begun.
What, did that idiot teach you that "credit is evil?"
You'll find out how it's the exact opposite when you're 25 and want to get a mortgage.
I love Dave Ramsey!! I know so many people who have followed his plan successfully and have paid cash for their homes, cars, kid's college, etc.
Henry Black Nope, is Ramsay’s system prevented people from buying homes, he wouldn’t be as successful as he is.
Henry Black Essentially, Ramsay’s advice is to save money for a large down payment and get a manual underwriting. And then, here’s the crazy bit for people who aren’t used to saving money, pay the house in full with cash. Revolutionary, huh? Believe it or not, saving $250k is actually possible if you’re good with your money.
I took his class at 18 with my mom and older sister. He came to our church and it was such a fun experience.
I'm European and I didn't know these things existed. Here we use the cards where we have a positive amount of money and we receive more from interests
The secret is to, ironically, use a credit card only when you *don’t* need it. If you use it like a debit card, and pay it off every month, or several times a month, your credit score will be lit. You must never overspend though, or you’ll be caught in that debt for a long time.
Thats just called common sense
But some people dont have it
That's exactly right. And, also, get one that has cashback that is applied no matter what. That is, the cashback will still apply even if you pay it off in full all the time. That way, you would have had to pay less than what you would have paid if you used cash. Your credit card will actually be working for you instead of eating at your funds.
But why you need a good credit score? So you get caught in another bigger trap
@@nordinator89 To qualify for loans with preferential rates offered only to those who have good credit scores.... loans I don't really need, but very handy when I do need to grab one.
@@0daadaadaa0 "preferential rates" that's what it is called a trap.
Sure, the cards are a scam, but that's only if you don't treat them like debit cards. If you did, then all the perks and rewards and benefits is like extra money in your pocket.
It also helps to download your card's app so that you get a notification every time you swipe, to help keep better track of your spending. Plus, credit is safer than debit, as it is easier to get the money back from a credit card company when something goes wrong than it does from a bank. Might have something to do with credit not being real money until you have to pay that bill.
Good perspective.
Thanks.
Debit cards don't spend money that you don't already have in you bank account.
@@HWEWSWEW - charging interest on money loaned is considered grossly immoral according to most prominent religions of the world as well.
Reason: It is simply immoral to take advantage of somebody in need! Ethical conduct is to help someone without taking advantage of their troublesome position.
This is why to parasite off of interest will always be considered unethical, unjustified, immoral, as far as such philosophical discourses go!
@@HWEWSWEW - In principle, charging interest on anything lent is, and will always be considered morally lacking.
Most proper religions also prohibit this strongly.
And you speak as if charging interest is the reason for mankind's technological advances, which is ridiculous.
People who live off of charging interest are always seen as untrustworthy, and will be, because it implies the creation of value, not out of labour but merely by virtue of having a surplus, and taking advantage of other's need. This surplus could very well be ill-acquired as well.
Don't just think about 'high-heels', also think about ploughing instruments or seeds which a poor farmer might need to earn a hard living.
You must know of debt-traps.
That is that.
@@mahatmacharya Interest is such a scam. I give you money then you give me more money than I gave you in return when you pay off the debt. Like, what am I paying extra money for?
An old cowboy said "Pay as you go, son, pay as you go." There were times that politicians stole that and used it in campaigns, but not lately.
Don't buy things you don't currently have enough money in your account to pay for.
If you're starting to wrack up credit card debt, re-read that first sentence every day.
Not exactly as easy as that. You literally have large part of society that will not allow you to enter them or use their services, unless you have credit history, even if you don’t want to use credit. So it becomes a chicken or egg. You don’t want to be in debt, but you need to prove that you have been in that in order to access debt, otherwise you can’t access anything. The entire scam of credit cards is it makes a systemic problem. Feel like an individual failing. When it’s not.
@@conors4430 There are a lot of credit card companies that won't give you one without a credit score, but there are still some that will give one to you with bad or even no credit. You can also be given access as an "authorized signer" to be given a credit card on your parent's account (with their permission obviously), even when you're still a teenager. Yes, a lot of these options aren't as fancy and don't have as many perks. The point is you have to start somewhere and there are options that don't involve crippling debt.
But that's the problem with a lot of today's youth - a lack of patience. They don't want to start from the bottom. They want it now. When I got my first job after college, it was a burn-out job that most people only lasted a year or two in. The money was really good, but a lot of people spent like they were going to be earning that amount forever. I bought my parent's old junk car and saved. I can't tell you how many of my colleagues went out right away and bought a fancy new car with a loan they could barely afford to make the payments for. A year or two later, they're out on the job hunt with no income, no savings, and 4-5 years left of car payments they could barely make when they still had a really good paying job.
I get that there are outliers - there are people who have really bad luck in life that causes financial strife that was unavoidable, like major medical expenses. But in my experience, the VAST majority of people with financial problems all started from putting things on credit that they couldn't actually afford. People who wanted that giant flatscreen TV right now, or who need to go out and get the fanciest new version of the phone every year on a $100+/month plan when there are phones out there that cost as little as $10/month, or going out to restaurants 9-10 times a month. In the vast majority of cases, it's a lack of accountability for poor planning and lack of patience. Sometimes, you just have to save your money, buy the cheaper phone, cheaper TV, live in the cheaper apartment, and save your money until you can actually afford something better. But no one wants to do that. Why cut back today for a better future when you could have it now? Then - surprise! You're in debt!
@@conors4430That's your problem right there. Using credit to pay for purchases that you already have the cash for is not debt. It just adds an extra step in the process. However, that's what cashback benefits are great for. You pay for everything with credit, which gets paid off entirely every month & you receive a small compensation for being responsible.
Go paperless because we know you won't read emails 🤦♀️🤦♀️🤦♀️🤦♀️🤦♀️
Who let Dave Ramsey write a Cracked segment
Favorite line, "Why use grouse paper covered with pictures of dead guys when you can use my square piece of dinosaur card with numbers on them"? Looool!
I use cash. I carry cash. I love cash. But there have been many times where I was treated like I was poor because I don't have credit cards. Great feeling to know a working man with cash is considered poor or undesirable in this World. Lol.
It's also great to know that people think they themselves are rich because they borrow the banks' money.
Faizan Ali how were you able to establish credit? Unless you are rich and bought everything outright such as house and car.
You don't need to be rich to be able to buy a house and car in full. You just need to know how to handle money responsibly.
SinonMercer by living with your parents to save the money?
Yes. That's why people should start when they are old enough to get a job.
I disagree with the entire concept of credit, but since our social constructs have made it so difficult to live without having a credit card I do have one. I do not however understand how people go into debt with them. I only use my card to pay for a limited amount of things each month, which I then pay off at the end of every month. I have never had to pay interest on what I owe my credit company, and I actual enjoy the cash back because I use it for my debit card since I pay off what I buy I do not have to use it paying off the card so it actually is just free money. I just do not understand how the average american as they say can owe over 10,000 dollar; why would you just keep buying stuff you cant afford forever.
dakota Nobriga
'cause people be stupid!
That is all.
Why do you not use you debit card for everything instead of the card you have to pay the money back? It can do the same things.
My debit card doesn't offer cash back, whereas my credit card does. Since I pay off the credit card every month it never accrues interest and actually just earns me free money, while helping build my credit score. So by using my credit card for only a limited amount of goods that I was going to buy anyway, I am saving money without doing anything extra.
Yeah, I don't get it either. I use my creditcard more as a secondary debitcard, just because some shops/companies only accept creditcard.
Debit cards don't give you credit, which you kinda need in order to buy a car, house, or really anything real expensive and adult.
And yes. Stupid people are stupid, but it doesn't help that you could be working 80 hours a week at 3 different jobs all at minimum wage and still barely be able to feed your family. (Not me but a woman I ran into one night at a Burger King)
"Want to have money without having money?" That was the perfect way to open this video 😅
They key to a good score is multiple LOW cards with low usage that you pay off in the same month like a debit card.
Me 8 months ago: "What? I can't get a car with no credit?! Why do I have to purposely put myself in debt, then get out of it to show I'm good? Why is having no credit history bad if it means I never had to borrow money?!"
I use my credit card in replacement of my debit card. I only spend money I already have. Its as simple as that.
Are you stupid? Its like trying to get a job with no experience
Yo Yo That stupid credit score bs only applies to the US. You can buy anything you like and be in debt in where in the world without a credit history. Your comment is stupid af.
Not having a history of debt shows that you financially manage yourself well enough to never have been in debt in the first place.
That has no similarity to getting a job with no experience. Are you stupid, Yo Yo?
I agree. But then again, I have always saved up money and payed cash for my cars as well. Never owned a new car, the newest I've had was 7 years old when I purchased it. I am currently saving up for a replacement in a few years, and I think I might actually get a pretty new one then :-)
Look at it from their point of view. If you have never had credit, they have no idea how you are going to handle it. Are you going to go crazy, or pay everything back on time? They have no idea. Never being in debt doesn't mean you can handle credit correctly.
I have like 15 credit cards and I'm debt free--besides the mortgage. All cards have zero balance every month. I only use them to buy things that I would buy with my debit card or to pay bills.
The trick is pay your balance monthly.
Yes... people need to know how to use a credit and know how it works. Videos like this makes people scared not using it 4 their own benefit.
@@josepholague925 Agree. I traveled with credit card points all over the place. I just sign up for the sign up bonus and take advantage.
You drive up the cost of everything for everybody. And are subject to hacking and you will have to straighten it out. Merchants fees equipment rental and service fees. Jack up prices.
@@intercityrailpal I rather deal with credit card fraud than debit card fraud. Do you know how hard it is to get charges reversed with your bank vs your credit card company. Night and day. Plus, with a credit card, if you have fraud, you don't have your money directly taken out. It's the credit card company. With your debit, they can drain your account and you have to wait to get in reversed.
How does a credit card drive up costs?
15? Holy fuck. I have three of them and I think that those are too many. I pay them off every month too. CREDIT CARDS ARE GOOD BUT ONLY FOR RESPONSIBLE PEOPLE.
"This is going to sound a little bit crimey." mhmmmm
I use a debit card to buy things online, do they not exist in America? Or did they just choose to ignore their existence?
Kiljaz Ink oh ok, I wonder why didn't they bring that up in the video.
Because Debit cards are actually somewhat honest already
Drew Daniel all the more reason to mention them here as an alternative.
Debit card honest!!!?? Lol.
If you call intentionally redistributing transactions to increase overdraft fees, and charging you/making it difficult to access what belongs to you. There is nothing more dishonest than arbitrarily inserting yourself and charging/restricting a person from accessing what rightfully belongs to them.
Upcycle Electronics I don't get any of that from my debit card, maybe should change bank.
"This is gonna get pretty technical and pretty crimey.." lmao
When he said "pretty crimey", I lost it! 😂😂
This video made me want to get rid of my credit cards, paid 2 off only 1 too go
Good job! AND you will look "Trustworthy" for a long time too!
I haven't had a credit card in.. 10 years? This last one here somehow never got canceled, but doesn't have interest on it. I just buy small stuff to "Keep me looking okay" on paper.
Dustinl796 Videos why did you get the second and 3 card? To pay off the first or an adventure? Or a new car tell me a good story please
Just pay them down to $10 then only use them once a month to make a small purchase and pay then immediately pay it back down to $10 again you'll inevitably need a line a credit eventually. You have to play their game so play only as much as you have to on your terms to your advantage.
I just use them for gas and use auto payment.
If you use auto payments, it's like using a debit card. Never neglect paying your credit cards in full every month. If you do that, you're stupid and should cancel them.
But most people should be able to set up auto payments and not over spend. Plus, you get rewards benefits that debit cards don't give. It's just that for some reason, people can't.
This is Epic. RUclips thought is would be appropriate to play a credit card ad at the end of this video.
Really? Using AdBlock Plus here...
Credit cards are op when you choose the right ones and use them correctly
Jesus christ Ron from Parks and Rec was smart to use gold instead of everything else.
I want to see Dave Ramsey’s reaction to this. I imagine he’d be on the floor laughing.
Love this channel and have been looking at it for some years now , And the sarcasm that Roger uses to get his message across is magnificent 👍👍👍👍👍👍👍
I've used credit cards for over a decade, and I haven't paid a dime in interest. Furthermore, I get cash back bonuses, free concierge services, special insurance discounts, cheap airfare and hotel rates, and other perks. The trick is to pay your bill in full and on time every month. Responsibility begets reward.
Andrew Curley so treat a credit card as a debit card
in germany nobody uses them and we cant understand why every American seems to have 3 of them.
Zombiepull Germany is awesome! 😀👍
Zombiepull I use a debit card. Actual money I earn goes into that card and I can spend my money. Not the banks money. Not every American has a credit card. Debit cards exist.
Zombiepull, I dont have one. My dad came from Germany & Im American so heres one for you. Why do all Germans hate themselves because of Hitler now even though they were never apart of the 3rd riche & are now attempting cultural suicide by muslim invasion? See how that works?
dolofonos, thats bull shit. George Soros, Rothschild, Rockefeller, Sinclair, Bush's, Sadia Arabia (who buys our debt,called petrol dollar or USD). Need to watch some of my stuff on government & politics or conspiracy theory list.
dolofonos, apparently. Hard to tell in such a short commentary. An much different than in person where you cant tell by tone. But shure as hell can tell I did my research. Any who...whatever.
Just like everything else, it's about self control...and getting those travel points...
This video should be called "Why Credit Cards are a Scam if You Use them Incorrectly."
If you can help it, you should never spend money you don't have. A credit card should be nothing more than a convenience to gain access to your money (or the money you will have by the time your statement comes due) in a way that doesn't leave a quarter, a dime, a nickel and 3 pennies in your pocket after each purchase.
Plus, credit cards give you cash back, so if you pay off your statement each month you're actually making money by using it instead of cash.
Tracking your finances is part of being an adult. So yea, if you use a credit card incorrectly, you could end up paying massive amounts of money on things you don't need and interest.
Just like if you use a gun incorrectly, you can blow your brains out.
Just like how people used to use check incorrectly and over-withdrawal and have to pay fees along with interest, but no one seems to remember that.
Cracked's audience seems to be of the Marxist variety, so things like personal responsibility and accountability are bad words, hence why credit cards are considered inherently bad.
Jonathan y
Joe From Cincinnati So sad many adults aren't able to do that!
It is so very far from being that simple, most don't have an option but to be fucked over by credit. Unfortunately pretty much everyone in the lower class and some in the middle outright can't do that because they don't make enough money to even survive without using loans, credit, and debt. Meanwhile the banks and credit companies are usually intentionally out to suck people dry through their debt schemes, confusing fine print fees, and actually betting on your failure while trying to make sure you do as many bankers and credit agencies have openly admitted to their shame.
Having a credit system in a nation is allowing the majority share holders of the currency to manipulate and take advantage of the financially disadvantaged while legalizing the equivalent of a pyramid scheme. Credit can be useful but it has severe consequences for the middle and lower class. Credit cards on the other hand are hardly useful and mostly just ruin millions of lives because they are designed to take advantage of anyone who's income wont stay stable forever when they inevitably get a problem.
Yeah credit and manipulating your debt can be great if your set for life or wealthy and lucky, but most people wind up having financial issues and credit agencies are waiting for that to take everything you've got. Credit cards are designed to privatize currency and put it in control of the banks instead of the government, which they have pretty much already seceded at.
For most of American history there was a huge battle against letting banks get so much control over the economy that they outweighed the governments power, but eventually corruption lead to money and banks getting into politics and controlling the system through lobbyists and endless sources of funding for political favors and deregulation.
President Jackson's final recorded worlds were in response to the question "What is your greatest achievement you're most proud of?", his response was "I killed the banks" as his main political agenda was to stop them from privatizing our currency. After his death corporate politicians sold out and let the banks get a controlling share of America, it's why we had to bail them out during the debt crises.
Credit cards are great. pay off the entire balance and stop buying things, if you cant pay it off. Stop blaming a piece of plastic
You know that every dollar bill is technically an IOU certificate. There is no hard value behind it like it used to be in the beginning. Money became a theoretical concept thus it is no different from plastic. The only major threat is the simplicity to charge more than you have. That however is a problem of lackluster education and discipline.
Bro u cant buy things with dollar bills if u dont have them. You can buy things if you have no money with a credit card
Dollar bills are delicious to eat, though, and make excellent winter clothing. Not to mention building material if you need to build a cabin out in the woods. Just like gold bars!
@@hazukichanx408 also you can snort coke through it
The difference is the liability. With a dollar it's the Federal Reserve, with the card it's you.
bro .. not even gonna lie i started binge watching these vids cause i thought they were just funny , now i'm depressed and can't trust the whole world lmao
Facts
If ignorance is bliss, then you're going through the opposite right now.
Honestly i'm so glad that i'm growing up in a time where I have free access to all this information so that I don't get caught up in these massive debt traps without knowing their true nature.
Look, I'm not that big on credit cards, but I have to defend them when people act like they're a scam, because these people are trying to avert personal responsibility.
First off, you will never pay a single cent in interest on a credit card, ever, if you simply pay back your balance each month. And the easy way to do that is to basically think of it as a debit card. If you have 5,000 dollars in the bank, you don't charge more than 5,000 dollars to your card. Only spend what you have. Responsibility. You won't pay interest and you'll actually reap the benefits of cash back, which could potentially be significant depending on what card you have.
Second off, do people realize you can get denied a credit card? Like the banks are not actually just handing them out willy nilly to everyone waiting to take their shit when they can't pay. That is not their intention at all. Actually some banks or companies are pretty stingy who they hand them out to, and will look at your credit score. If you have a bad score and a history of being unable to pay debt, you'll get denied, or if you do get approved they will limit your card at a significantly lower amount then if you had a good score.
They don't make their money by enslaving people with debt. Their primary income is the small fees vendors and merchants have to pay them when they make card transactions. And they have to charge interest to try to recoup their losses from people who never end up paying back.
Whew..! Though this presentation is hilarious.., it’s torturing the obvious that people still would chose to ignore. Very refreshing though. It made a lot of good chuckles for me.
My credit cards are always at $0
FeelsGoodMan
Jokes on most people, then. I always pay off in full and buy within my means. I utilize cash back and don't pay my credit company a single cent in interest since I've not racked up any.
A good practice, but easier said than done for some people.
There is also a psychological aspect to it. Really part of the same reason casinos use chips instead of cash, it creates an sort of illusion that you aren't really spending as much as you really are.
Of course you pay credit card companies. Any store that utilizes a card gets charged from the CC company, and they don't just absorb the cost, they pass that cost onto consumers by raising the price of goods. If CC didn't exist, everything would be ~5% cheaper. But enjoy your 1% cash back!
Chad Sweeney That's a bit pedantic. Most stores and businesses take credit, so it's not like it would be worth it to find companies that don't allow you to pay with a card. Even if you choose not to use your card most of the time, it's essentially necessary to have one, as credit history is important for large purchases. And its continued use of at least one is part of it, though you could technically just use it for a small amount of your purchases. It is difficult to know how much cash you'd even want. In the US, you have to pay a fee to use an ATM.
rachelle2227 I didn't make arguments for or against any of the things you just brought up, so your last comment was essentially a straw man argument. If you read my comment again carefully, I reiterated a point which was made in the video which you seemed to disregard in your "jokes on you" OP. And although you need a CC today to survive, it shouldn't be that hard for you to imagine a world without them. It wasn't too long ago when CCs didn't exist at all! If you feel CCs are essential that's your opinion, but I'd rather cheaper cost of goods and doing it "the old way".
Chad Sweeney right, because I viewed your points as pedantic. Sure I wasn't accurate in my initial comment, but that was a half humorous, somewhat serious initial comment. I then responded looking at it from a practical point of view. A world without credit may make it more difficult to get a house or loans, so it's not like it would necessarily be better.
I think Dave Ramsey absolutely loves this ad...lol
Almost sounds like he co-wrote it.
Graham Stephan hates it.
@@austinblackburn8095 FACTS
I've never owned a credit card, but I just got a super harsh lesson in why not having a credit score is a Very Bad Thing - I needed to find an apartment quickly and thank God I found a property manager that prefers no credit to bad credit because literally every place else I applied to turned me away because of my lack of credit history.
The lesson for me was to get one credit card and treat it like my bank debit card - don't overspend on too many things and keep the balance paid down to build my credit score. I'm still researching which card will fit my circumstances the best but I have the list whittled down to three that I really like.
I saw an add for a credit card company before youtube would let me watch this video.
I'm what's known in the Credit Card industry as a "deadbeat customer", in that I regularly pay off my card before I end up accruing interest.
Hey! Hey! We give you 3% cash back! That means your only paying 6% more than the sticker price after taxes.
Oh and...We call it "cash" because it disproportionately affects your psychology. It's what you really want, didn't have, and why you came to us for help.
You realize that the people paying cash are the ones that are losing right?
Everyone would be paying 6% more than sticker prices, with the people using credit cards receiving 3% back.
So if you're not using a credit card, you're losing the game.
Pay your credit card bills back and it's free money. Stores eat the service fee that the credit card company charges. The real losers are cash spenders and people who make impulse buys.
That's one example, most stores accept credit cards. People that use cash/debit are paying more, with no benefit.
You would be foolish to not use a credit card.
Monthly fee? What the hell is a monthly fee? There is no monthly fee, you are extremely uneducated on the topic of credit cards clearly.
Pretty simple, you buy something with a credit card, you pay off your balance, you pay NOTHING extra.
*****
That's an unbelievably short sighted view. Credit cards cost retailers 1.5-6% for merchant processor services. Your paying for these fees on every transaction. The retailer adds this into their margin calculations for every product sold. Most independently owned retailers will discount this percentage if you ask, upon paying in cash. Business owners are highly aware of this cost. Generally, the smaller the business the higher the percentage they have to pay. I've managed stores and sales where the credit card fees alone are hundreds of dollars on a single transaction. There is absolutely nothing free in life. Consumer goods would be much better quality and offered with more variety if there were not so many middle men taking a cut of the margins for doing nothing.
Funny how I got a ANZ credit card ad before the video started...
I am the type of person the credit card companies hate. I pay mine off every month and made over 1000$ in cash back and rewards in the past 6 months.
Here in Brazil the Credicard interest is (believe me) above 300%/year.💀
You guys don't have laws against usury?
@@jkxss yes, in theory!
@@jkxss Over here, laws do not really apply if you are a banker or a millionaire.
femto2 that’s extortion !
Remember this next time you see any type of advertising from a bank with the photo of a "happy" family playing with a golden retriever
Not true for me. I have 5 credit cards, never pay any annual fee or interest. Got thousand dollars cash back.
I told my wife the same things he said and she laughed at me and said how do I expect to get good credit unless I use a credit card. What a @$&# up system and I thought I was only one of the few to notice it! =(
Stupid wife you have there...?
If she doesn't overspend and pays it off completely after making a purchase it isn't a big deal. Some people do not have a grasp on their financial situation and will overspend.
I never had one I'm 60 cash is so easy here's your money I'll take my purchase done deal if you have to use credit you can't afford that item make sense I watch my friends go through hell and those same friends that go through hell mock me because I pay everything cash. Including my home. problem is instant gratification
So, here's the thing: If you've never paid back a loan in your life, how is a bank supposed to know that you'd pay back a loan if they gave you, say, a mortgage? A credit card is just that, after all: a loan. That's why getting a credit card helps you build credit. Your wife is right. Plus, it provides security. If you get ripped off somehow with a fraudulent transaction, just tell your credit card company the transaction is a fraud, and you won't have to pay it (after they do an investigation to make sure you're telling the truth). Also, if you get mugged or whatever, you won't lose a huge stack of cash you'd otherwise be carrying on you. In addition, despite the fact that it might make you a little more willing to spend at the point of sale, it makes budgeting a breeze because you can look at your statement and see exactly where all your money is going towards. Finally, they do provide that slight bit of security that if something goes really wrong in one particular month that wipes out all your savings, you can still get food.
If you're the kind of person that has no impulse control, can't pay off your balance in full, and doesn't want to spend a half-hour each month making sure that your transactions are all good, then a credit card is a terrible idea. Otherwise, they're a massive convenience that helps you to build credit.
When I was applying for a mortgage I found it odd that the bank suggested that I buy something with a credit card first. I guess they think that if I wait a month to pay them back for a $20 purchase that magically proves that I will someday pay them back the $150,000 that I want to borrow so that I can buy a condo.
The irony is one credit card related company advertising in this video 🤣
Life lesson. Credit cards are a financial death trap.
Unless you can pat it off before the interest hits
Or you could just, you know, pay it off each month and have absolutely none of these issues...
Just make sure you don't spend too much. You can build up your credit slowly, and not pile debt on yourself.
MatthewJoseph54
or not have a credit card at all
Agreed. As the video states, credit card companies count on consumers being lazy and inattentive. Paying off the bill each month avoids interest. Heck, you can even save money on your purchases if the card has a cash back incentive. Credit cards are beneficial to those who have discipline.
So basically the people who benefit from credit cards are people who don't need credit?
Well if that happend there would be no such thing as credit companies because everyone would be walking around with 800 credit scores😂
Credit cards are awesome if you know how to use them.
ZMan1471 I either buy something that appreciates in price faster than the APR, or I invest in something that generates revenue of some sort, again, at a greater rate than the APR, with my credit cards. It's been working pretty good for me for the last 20 years.
phazon25811 you shouldn’t be worrying about APR on credit cards, ideally you should pay them in full each month and not accrue any interest.
Yet majority of people who still "know" how to use them are still dumb enough to still screw it up.
I'll tell you how to use them, pay them on time, at first you may just have $1000 credit to start with but over time it will billed up to like 3000 to 5000. Then start another credit card, and so on. Get too 100,000 or more with multiple cards , max out all the cards in cash ,then you can take a vacation to Jamaica, Aruba or someplace like that.
Then screw them don't pay them! stay on vacation 7 years, maybe get a job towards the end of your vacation by then you blew through all the money. Then rinse and repeat.
awesome how? i dont know anyone who got rich using a credit card.
Had credit cards for 16 years. Never paid interest on them. I get at least 500$ in cashback in a year plus I get extended warranty on purchases which I used several times
U agent?
The fact I got a Wells Fargo ad just makes this funnier.
Credit cards are usefull ... when smart people use them. Thats why USA has a problem wiht credit cards xD
Jerry Man hahahaha
What you did there. I see it
Roger’s got new merch and shirts at his very own, very honest store. Check it out! the-cracked-dispensary.creator-spring.com/
Why does this comment only have 3 likes
@@Hemyab_ I saw you in a different video
@@takeoutant9839 your right!
You won’t believe it but MasterCard put a ad on this video trying to get someone to get a MasterCard.
And you have to use one of those evil, evil credit cards to get that merchandise.
There is nothing wrong with a credit card as long as you pay it off every month! If you don't, then they got you for the rest of your life. So, based on minimum payments, for example, that $500 TV you purchased on credit will cost you about $1500 when you are through paying it off!
yes, the ones who pay off their credit cards are of no interest to the CC providers, but they are after the rest of them, the 90% who don't. And.... in the end you lose. Why? CC debt will get written off eventually. So who's lost? An honest Joe who diligently pays off their balance, or a sloppy Joe, a $30K/year millionaire?
@@vicinvesta8349 Are you kidding me? What do you mean to write it off? The average Joe is going broke and will never be able to retire! Credit is poison to everyone!
@@vicinvesta8349Not true. The responsible card owners who pay their balance & accumulate no interest are providing the credit card providers with swipe fees because they use their card more often than someone stuck in debt paying interest. The profit from swipe fees scale a lot better than the interest does, especially because its a guaranteed repeat of revenue.
I used to have one of those 20 years ago, got it exclusively to make an internet purchase. No need for that nowadays. Payed a meal with it once as well. Threw it away afterwards, happily - and happy still.
est lesson I learned in life from my accounting class teacher. Credit Cards are made to substitue the feeling of loss spending money represents. The exacy same reason they use colorful poker chips at a casino...
Thank God I don't owe a single penny to Credit card companies. I pay it off completely before the due date and enjoy cash back
Me too. Thousands and thousands of airline points and many first class flights with only small co-pay.
Facts facts facts
LOL you people
I would love to have a credit card that blares out, "Ooga, ooga."
Or have basic financial literacy and be able to use a credit card correctly.
It's kinda like walking on a tightrope, you're fine, until you lose your balance.
Wade Rutherford The problem is no one is financially literate. Why things like credit, interest, future value of money, and taxes aren't mandatory in high school curriculum is beyond me.
Amazing how something so simple is so difficult for so many people.
James Goodin pyathroms theory and finding where X is more important. Why would I waste my time learning how credit cards, taxes, interest, and how to pay bills ( which applies to real life and will help) when I can learn pointless shit that won't help me at all. I prefer the pointless shit.
Jon Iwanyszyn The schools teach you to read. All this information is in the lending agreement you sign when you get the card, you don't need the school to hold your hand for every little thing in life.
If you insist on blaming others for your own ignorance then blame your parents. They should have taught you these basic life lessons.
Was 12K in debt and drowning in the interest. Swallowed my pride and moved home for a year and finally am out of the hole. Such a weight off my shoulders
Credit cards are bad, if you're irresponsible and only pay the minimum every bill.
Mateusz Ostrowski no, they're JUST bad. Pay cash, if you can't can't buy it with cash or a card connected to cash you can't afford it.
no theyre bad if youre irresponsible how else are you going to build credit what are you ten?
you literally just build credit so you can buy things you can't afford to accrue more debt.
say you built up credit by paying your credit card off in full, then you used that credit to buy a house, now you are just in more debt that you are just hoping you can pay off. if you lose your job, you lose your house but you keep the debt. it's a bad deal.
Mateusz Ostrowski
credit cards are just downright bad. you're throwing away your money if you have one.
Anthony
you can take out small loans and pay them back.
i have a credit score in the 700s and I've never had a credit cars. besides, credit = "i love debt" score
Best description of cash back I've ever heard:
"It's like you're digging yourself into a hole, and we throw in a handful of dirt to help you get out, but we only do that after you dig another 5 feet deeper."
Credit is a great tool if used responsibly. A 700+ credit score is worth its weight in gold.
Josh Bacon I really hope your trolling..
@@MichaelSmith-fh2nu are you dumb?
I was watching montel one day and seen an ad for those payday loans so I called and got one and the money was there the next day and I got more but never paid em back.
Its only a scam is you use them recklessly. If you’re smart with them they can help you out. Also they can help out alot in emergencies
It's basically a tax on being dumb. It's cruel and it costs us all in the long run.
M
Andrew Colvin how are all cc companies corrupt? All cc companies do is trust you with their money. You borrow money from them for whatever purpose that may be and you pay back the money with a fixed or variable interest over a period of time. Its that simple. No scam.
Most people aren't smart. That's why credit cards exist.
Whiy am i just now getting these gold mines recommended to me?
Just get a debit card.
Sack a Shit you can't earn credit with a debit card
Tyler Ireland and you don't need credit
SinonMercer yes you do.
No, you don't. All credit is just saying "hey i have debt, let me get into more debt please". You can just pay for everything in cash.
SinonMercer that's only if you use it irresponsibly. If you use it properly it says "I am reliable and I pay my bills on time." I highly recommend the use of credit responsibly. It can help your finances in so many ways if used properly.
Card with chips work basically everywhere outside of america
They dont work in america?
Credit scores are a really great thing if you always pay off your card. 2-3 years of building a perfect credit score will let you get any car off any lot for almost zero interest and better rates than anyone else would get. Although I rather use cash always if not for the credit score.
If you actually utilize credit cards correctly, they're great. Pay the balance off every month so you don't accrue interest. You also utilize the benefits a credit card offers (a lot of them have 1-2% cash back.) The best reason to have one is to avoid transaction fraud. Buying something online? Use a credit card as getting your money back from a scam is super easy. As to where a debit card is much harder resolving fraud and takes time because they have to start an investigation.
I sing it to my children everyday
Do not touch credit cards!
inerit that’s dumb. You shouldn’t do it. Credit cards are actually good if you treat it like a debit card. What you need to do is to teach your kids about finance and budgeting.
Why are credit cards good?
Say you spend 10k/ year in groceries.
You pay with cash, you earn $0 in back.
If you pay with credit card, you get 2% back, which is free $200. FREE
So it’s not that credit cards are evil, it’s that you suck at managing your finance
@@siyuanthesuper1 agree. My parents didn't have any credit cards and just now at 19 I'm getting my first one.
@@IlliaDoroshenko That's good. Im almost 23, just graduated college, and I have 5 credit cards open already. I get free air miles and cash back every year and it's great.
HeyRoger, I track every penny in and out and look at my monthly costs for food, car etc. I don't owe more than 10,000 in debt on a credit card. I never have except for a house or a car. Lucky me. I saved for my last car and paid it off immediately.