Credit vs. Charge Card

For just about anything you want to get off your chest about credit cards.
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Floppster
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Credit vs. Charge Card

Postby Floppster » Wed Oct 01, 2008 8:00 pm

Why are there so many people building up everything on credit cards ? Aren't they afraid ? Why aren't there more companies offering charge instead of credit cards ? Will the charge card be the end result of the credit card crisis ?

What do you think ?
Intellectuals solve problems. Geniuses prevent them.
- Albert Einstein 1879-1955


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Mogul of Pineapples
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Postby Mogul of Pineapples » Wed Oct 01, 2008 9:31 pm

There's three reasons for this going on.

First of all charge card limits are not reported on your credit file. We actually have more incentie to use credit cards instead of charge cards in order to better our credit score. No wonder we're in a mess.

Second reason is Americans like buying stuff they can't afford. They always tell themselves they will pay it off at the end of the billing cycle. Then it turns into two billing cycles, three, and so on.

Third reason is there's more money to be made with credit cards. The only revenue on charge cards are the transaction fees. Amex is a card issuer so they make money off the transaction fees and interest. A bank of financial institution would have no real reason to issue a charge card because most of the money would be going to Visa or MC for transaction fees and the bank would only get a small cut of that.

I do agree we need charge cards to become more popular again. If that's the only way for Americans to keep their spending in line then I'm all for it!
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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Cucumber
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Postby Cucumber » Wed Oct 01, 2008 10:54 pm

hmm let me think here.

Loan money and make interest OR don't loan money and make interest.

:rolleyes:

If I was a CC issuer I wouldn't give out charge cards either. More money to be made with interest!
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Floppster
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Postby Floppster » Sun Oct 19, 2008 11:08 am

Well at the end I think charge cards are the better way to control your own spending. It has to be paid off..... that's the great thing about it
Intellectuals solve problems. Geniuses prevent them.
- Albert Einstein 1879-1955



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