Popular credit advice that's nonsense

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Vattené
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Re: Popular credit advice that's nonsense

Postby Vattené » Thu Oct 01, 2015 11:16 am

I'd speculate it's likelier to be an issue for the type of person with a Double Cash that thinks it's worthwhile to apply for the QS to have an off-category Visa "just in case" a merchant doesn't take MC.

I actively try to not let rewards impact my spending, but it is difficult to know for sure. It doesn't have to be a conscious thought like "I might as well swing through a drive through because I'll get 5% cash back with my Discover anyway." It is much more subtle than that. The fact that I earn rewards on all credit card spending is always in the back of my mind (particularly because I am somewhat active in a group of people that enjoys discussing credit card rewards). It doesn't take much to increase one's spending by 2% or so, which would negate any rewards earned.

For me, I'm actually more aware of my spending because I carefully track what I have outstanding on credit cards in real time. Before I was using credit cards for rewards (and trying to be more careful about my finances in general), I would use a debit card for everything. I wouldn't think twice about swiping it because I knew I had plenty of money in the bank to cover it. It's certainly better that I don't have THAT attitude now, but would I be spending less if rewards were never in the picture? Again, it's hard to know for sure.
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kdm31091
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Re: Popular credit advice that's nonsense

Postby kdm31091 » Thu Oct 01, 2015 12:39 pm

Vattené wrote:How much do you think having all of these specialized cards impacts their spending, too? Going out to a restaurant because you have a special card for it (not that it is a conscious decision, more an influence on behavior) may get you 3% back on what you spent, but if you're spending more you're not gaining anything at the end of the day.


Sadly, it's obvious that some people fall victim to that mindset. I have no doubt that they purposely eat out more for that 3% reward, which is completely backwards logic.

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CarefulBuilder14
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Re: Popular credit advice that's nonsense

Postby CarefulBuilder14 » Thu Oct 01, 2015 11:10 pm

Vermonster wrote:Ohh but then you're shopping at Kohls and in order to get the big discounts you have to use their card. (Sidenote, Kohls did an amazing job setting up their business plan. People spend ridiculous amounts of money because they think they are saving so much.) Now your 2% is only applied to $25k.

I do dislike Kohls and other stores that rely on the false appearance of savings. That seems to include most department stores.

I guess they stay in business because some people do like to choose from 100 different options for a product. I'm happy to go to Costco and trust (generally with success) that the 5 available options are comparable to the best of the 100 at Kohls, but at better prices.
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Vattené
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Re: Popular credit advice that's nonsense

Postby Vattené » Fri Oct 02, 2015 7:03 am

Never pay full retail price for clothes/accessories/shoes unless (possibly) it's a luxury brand.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Vermonster
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Re: Popular credit advice that's nonsense

Postby Vermonster » Fri Oct 02, 2015 9:09 am

Vattené wrote:Never pay full retail price for clothes/accessories/shoes unless (possibly) it's a luxury brand.


I'm going to be a bit of a debbie-downer and say that when you buy on sale you are always buying at full price. MSRP, or "full retail price" is 100% marketing to make you feel like you get a better deal when things go on sale. But department stores always plan on selling at the sale price.

Look at Kohl's. At any given time at least half of the store is on sale for 20% or more. Plus they give cardholders a chance for an extra 15%, 20% or 30% off. So on average you can get a $100 item for $60. Kohl's probably only needs to sell the item for $50 to make a profit. The same thing happens at Macy's, JCP, L&T, ect. In fact, the more "luxury" the item is, the higher the initial markup, so the greater the sale can be. Very, very rarely will a department store sell at a loss.
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Vattené
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Re: Popular credit advice that's nonsense

Postby Vattené » Fri Oct 02, 2015 12:01 pm

I think we're saying the same thing. Paying "full price," or MSRP, is a rip off because sales and discounts are so frequent. If you're paying MSRP, you're overpaying.

There are luxury brands that generally don't discount their goods because doing so and letting customers "get a deal" is perceived as devaluing the brand. If you're willing to buy a luxury brand you're already willing to pay a premium. You can get Dolce & Gabbana on sale both from department stores and directly from the company. By contrast, I've paid full price for Louis Vuitton because - as far as I know - it's rarely if ever put "on sale."
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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Re: Popular credit advice that's nonsense

Postby Nixon » Thu Oct 22, 2015 8:56 pm

Vattené wrote:I think we're saying the same thing. Paying "full price," or MSRP, is a rip off because sales and discounts are so frequent. If you're paying MSRP, you're overpaying.

There are luxury brands that generally don't discount their goods because doing so and letting customers "get a deal" is perceived as devaluing the brand. If you're willing to buy a luxury brand you're already willing to pay a premium. You can get Dolce & Gabbana on sale both from department stores and directly from the company. By contrast, I've paid full price for Louis Vuitton because - as far as I know - it's rarely if ever put "on sale."


It's always on sale in Hong Kong. ;)
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Re: Popular credit advice that's nonsense

Postby Nixon » Thu Oct 22, 2015 11:40 pm

So getting back on topic (Not really!)

It seems MF is alive and well with resident straightjacket candidate Laura (Pizza1), sparking up a thread about how she is pissed about Synch not upgrading her Sam's card......

I love some of the responses (Kev, again, you show WAY too much restraint) And naturally am cringing at some of the same old coddling BS. It really solidifies the fact that I just don't belong there and never did. The number of times I had to hold back was easily half my posts there. Wow. :ppp

http://ficoforums.myfico.com/t5/Smorgas ... -p/4287698
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CarefulBuilder14
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Re: Popular credit advice that's nonsense

Postby CarefulBuilder14 » Fri Oct 23, 2015 1:24 am

Nixon wrote:So getting back on topic (Not really!)

It seems MF is alive and well with resident straightjacket candidate Laura (Pizza1), sparking up a thread about how she is pissed about Synch not upgrading her Sam's card......

I love some of the responses (Kev, again, you show WAY too much restraint) And naturally am cringing at some of the same old coddling BS. It really solidifies the fact that I just don't belong there and never did. The number of times I had to hold back was easily half my posts there. Wow. :ppp

http://ficoforums.myfico.com/t5/Smorgas ... -p/4287698

I posted my Hyatt results in the Approval section, and was happy to see all the congrats messages.

I then looked at other threads in that section, and saw that $500 store cards get the same congratulatory messages (verbatim) from the same people - even when the applicants would be better off gardening. Definitely counterproductive coddling.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
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Letting new accounts cool off since May
Really not sure what I'll add next or when

Vermonster
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Re: Popular credit advice that's nonsense

Postby Vermonster » Fri Oct 23, 2015 8:40 am

Pizza is quite the storyteller. Having $200k+ credit limit almost 2 years post BK reeks of BS. Add in that she is pissed about a minor change to a Sam's Club card and I really start to question everything, including the BK.

But this is my favorite quote that completely sums up MF
It most definitely is bad business practice to misquote or mislead people into thinking they'll be getting one thing and get another. For example, I went on a 1 day mini vacay get away, they advertised a 40" TV in room, tv was 32...did I complain? heck yeah...got a $50 credit for the 'misleading' information on there site.
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