Disney Rewards Visa seems like a total crock.

[Firefly09]

OK, so I read the whole thread before deciding to jump in...

While it's commendable that the OP wants to warn others to look beyond the GC offers before signing up for a credit card, they did a lot of research for someone who is not interested in and does not use credit cards.

I feel like there is more story behind the initial post (as I'm sure others feel as well) such as the OP was looking into the card and was surprised by what they found or they know of someone who got burned by signing up for the freebie offer not knowing the consequences. just my 2 cents... might clarify why they posted in the first place...

 

[Tink-aholic]

I don't know how Bank of America got lumped into this, either. I love my BofA card! No annual fees, 0% for the first year (which doesn't matter because I pay it off every month anyway), $100 bonus to sign up and either 1% to 3% back on every purchase. I use it for EVERYTHING, from paying my cable bill to groceries to gas. When I have accumulated at least $300 in rewards (including the $100 they gave me to start) they will add on an additional 25% extra (so $300 becomes $375, $1000 becomes $1250, etc). And since my mortgage is with BofA, I can have this money added directly onto my mortgage principle.

 

[Disneyliscious]

OK, so I read the whole thread before deciding to jump in...

While it's commendable that the OP wants to warn others to look beyond the GC offers before signing up for a credit card, they did a lot of research for someone who is not interested in and does not use credit cards.

I feel like there is more story behind the initial post (as I'm sure others feel as well) such as the OP was looking into the card and was surprised by what they found or they know of someone who got burned by signing up for the freebie offer not knowing the consequences. just my 2 cents... might clarify why they posted in the first place...

Well lets see.....

*the card is talked about frequently here on the DIS
*the card seems to offer great rewards
*the card is a Disney themed card
*oh did I mention the card is talked about frequently on the DIS?

Of course I looked at the card and even considered it when I got it in the mail. Anyone would consider a $200 offer. As I stated in my first post, the RISK of the card is not worth the REWARD to me. And then I stated why.

It didn't take hours of research to open an envelope and read their "Pricing Information" page. In fact, it took all of 2 minutes.

Until this year I have never gotten DIsney offers of any kind. This year I have gotten 2 diff 40% off pins and now this card offer. After seeing so much talk about these things on the boards, I open them out of curiosity if nothing else.

You can relax now. The secret is out. The conspiracy theory is over. My cover is blown. The "more to the initial story" is all out in the open now.

I don't know how Bank of America got lumped into this, either. I love my BofA card! No annual fees, 0% for the first year (which doesn't matter because I pay it off every month anyway), $100 bonus to sign up and either 1% to 3% back on every purchase. I use it for EVERYTHING, from paying my cable bill to groceries to gas. When I have accumulated at least $300 in rewards (including the $100 they gave me to start) they will add on an additional 25% extra (so $300 becomes $375, $1000 becomes $1250, etc). And since my mortgage is with BofA, I can have this money added directly onto my mortgage principle.

It got lumped in because BoA is yet another bank who, if you have any other kind of account with them (loan, mortgage, etc) and you are 1 day late on ANY of those payments, your CC interest will go to the maximum rate. Whats more, is once you are late on ANY payment with BoA they can go in your checking account and pull out the funds to pay that bill, and if you have outstanding checks - tough. You agree to this when you open an account. Now I DO know someone that this happened to. It was my parents. They were offered to have the account closed and remain at the same interest rate or leave the account open and have a higher interest rate. Obviously they closed it and its nearly paid off now.

Having any kind of loan with a bank which carries your cc is not smart at all imo. Just because you (in general) have had success with a bank does not mean that they aren't crooked, or have a high complaint rate with others. I mean, come on.....there are people who SWEAR by PayPal (technically not a bank) and we all know how twisted of a venue that is. BoA, Chase, and Wells Fargo are in the news more than any other banks. They are also the largest banks. Having a good relationship with a bank should not make you blind to what "can" happen. A smart consumer always learns about the pros and cons of any establishment. Brushing off others experiences because it hasn't happened to you (yet) is foolish.

 

[KennesawNemo]

No sarcasm taken. I live on a farm and make my living off of it. Most people who buy livestock don't pay with a check so its always cash transactions unless its someone I know. If I do receive a check for something (and I do get rebate checks and stuff) then I deposit it and remove the money as soon as it clears the bank. I don't have a savings or lots of cash on hand but the money I do have is either in my purse, in a cookie jar, or in a safe in my home. Sounds pretty 1920'ish I know, but it works for me. I just refuse to pay money I don't need to pay if I can find a way around it. If I need a debit card, I use a Wal-Mart prepaid card. I only use it when I need it and it costs me less ($3 a month) than a bank would for a checking account (debit card). As far as checks, I haven't written a check in years. When we paid the deposit on our FL rental for our trip the guy didn't take online payments so I bought a $.49 money order and sent it to him. With postage it was under $1 and I can't remember the last time Ive bought a money order before that.

Sometimes we have to pay fees (even me). Thats just life. But if I can find a way to not pay it then its money well saved for Disney. Every year I dont pay $9.00 a month for a checking account is another free park ticket at Disney.

My lifestyle is not the norm, it is not recommended for most, and it isn't perfect or even financially smart but its "me" and Im ok with that.

Makes sense to me. Thank you!

 

[Tink-aholic]

Well lets see.....

*the card is talked about frequently here on the DIS
*the card seems to offer great rewards
*the card is a Disney themed card
*oh did I mention the card is talked about frequently on the DIS?

Of course I looked at the card and even considered it when I got it in the mail. Anyone would consider a $200 offer. As I stated in my first post, the RISK of the card is not worth the REWARD to me. And then I stated why.

It didn't take hours of research to open an envelope and read their "Pricing Information" page. In fact, it took all of 2 minutes.

Until this year I have never gotten DIsney offers of any kind. This year I have gotten 2 diff 40% off pins and now this card offer. After seeing so much talk about these things on the boards, I open them out of curiosity if nothing else.

You can relax now. The secret is out. The conspiracy theory is over. My cover is blown. The "more to the initial story" is all out in the open now.




It got lumped in because BoA is yet another bank who, if you have any other kind of account with them (loan, mortgage, etc) and you are 1 day late on ANY of those payments, your CC interest will go to the maximum rate. Whats more, is once you are late on ANY payment with BoA they can go in your checking account and pull out the funds to pay that bill, and if you have outstanding checks - tough. You agree to this when you open an account. Now I DO know someone that this happened to. It was my parents. They were offered to have the account closed and remain at the same interest rate or leave the account open and have a higher interest rate. Obviously they closed it and its nearly paid off now.

Having any kind of loan with a bank which carries your cc is not smart at all imo. Just because you (in general) have had success with a bank does not mean that they aren't crooked, or have a high complaint rate with others. I mean, come on.....there are people who SWEAR by PayPal (technically not a bank) and we all know how twisted of a venue that is. BoA, Chase, and Wells Fargo are in the news more than any other banks. They are also the largest banks. Having a good relationship with a bank should not make you blind to what "can" happen. A smart consumer always learns about the pros and cons of any establishment. Brushing off others experiences because it hasn't happened to you (yet) is foolish.

I'm a fool because I use Bank of America's free rewards to pay down my mortgage faster? I am using the system they set up and play by their rules. I don't pay late, so the late payment fee isn't a problem. And the interest rate (which right now is 0%) doesn't make a difference to me because I pay it off every month. Let them raise it to 100%. I don't care.

So...what "can" the big bad bank do to me? As long as I follow the rules and continue to pay my bill in full, on time, then Bank of America can continue to give me free money. That's all.

Yep, seems pretty foolish to me.

 

[Disneyliscious]

I'm a fool because I use Bank of America's free rewards to pay down my mortgage faster? I am using the system they set up and play by their rules. I don't pay late, so the late payment fee isn't a problem. And the interest rate (which right now is 0%) doesn't make a difference to me because I pay it off every month. Let them raise it to 100%. I don't care.

So...what "can" the big bad bank do to me? As long as I follow the rules and continue to pay my bill in full, on time, then Bank of America can continue to give me free money. That's all.

Yep, seems pretty foolish to me.

What is foolish is the mentality that you are immune to paying a late fee. No one is immune to it. The system works for you right now, but there are many possibilities that could prevent that from being the case.

Even if you have a large savings to "pay off the balance" it doesn't mean that another emergency wont wipe out that savings before you would need to pay off your cc balance. Life happens and usually when it rains, it pours.

If you think that your job is secure right now and that money in the bank will keep you from ever paying a late fee, yes that is foolish. While its good to save, nothing in this life is guaranteed. Anything can happen and those who are blind to that fact are left with their mouth on the floor from the dis-belief that things go sour. Ten years ago I wouldn't have said this. But this isn't ten years ago.

No one knows if anything like this will ever happen to you, or me, or our neighbor next door. Telling yourself that it will never happen to you is, as I said earlier, foolish.

 

[indimom]

I also mentioned this in my first post. In fact, I gave an example.

*Some* of us here at the DIS don't have savings accounts (or LOTS of savings accounts as some have mentioned) with thousands of dollars sitting in them so that we could pay off a balance if an income was lost.

I don't have thousands in petty cash either, but I still use my card monthly. I pay my regular bills through it, and pay them off out of my checking account monthly. It's an extra step, but it simplifies the bill-paying process (writing one check to Chase vs. multiple checks to multiple businesses) and doesn't cost me anything.

*Some* of us here at the DIS live paycheck to paycheck and can't pay the balance in full each month.

I had this problem in the past, but as I said, we learned our lesson years ago. We now only charge what we know we can pay off. If there would be an income change, we would then have to eliminate some of the bills we put on the card like Netflix or Weight Watchers. I certainly do not have unlimited funds, I've just learned how to use my available funds and carefully use credit cards too./B]

*Some* of us here at the DIS may have to make a late payment every now and then.

Its life. Its reality. It happens.

Of course it does. No one has argued that point. And that is why people need to watch their credit card usage very, very carefully to avoid these risks.

For those who are not magical creatures with bounds of money in savings accounts, for those who know its just human to have to be late on a bill sometimes, for those who don't or can't pay your balance in full each month like SO many people here do .....my original post was for you, in case you were never one to read the fine print. I wanted to bring to attention the huge risk involved with this "reward".

I can understand that. When the recent interest-rate changes went into affect and banks were sending out notice after notice about closing accounts or facing higher interest rates, my friend was throwing these information mailings away unopened. I had to explain this all to her because she was carrying a balance, and her husband had lost his job, and they were heading into dangerous territory. She had no idea her rates were about to go up dramatically.

For the others, my questions have been answered now. You can go back to licking your thumbs and counting your stacks of hundred dollar bills that you have in your savings accounts. I have no doubt that some people here are great at saving money and really do have a nice nest egg savings. However, I also know that there are plenty of "Desperate Housewives" here who like us "internet people" to think they have this and that. If that statement offends you, maybe you should ask yourself why. If it doesn't offend you, then you are secure in what you have without needing internet approval. I admire that.

No stacks of hundred here. That's WHY I track my spending and WHY I use the card to pay my bills. It's a way for us to earn some extra cash for our very limited trips to Disney (two trips in 15 years of marriage). Not everyone who "disagreed" with your assessment is rich. I Wish!

In the end, the rewards Visa is still a crock for me and mine. Some of you have commented that you didnt know what the big deal was about and just seemed flabbergasted that I felt this way about the card. Here is the fact: Some people choose to get it because it works for them. Some people do not choose to get it because it doesn't work for them. Doesn't really need any more explaining than that. Hopefully someone was made aware of the steep fees with this card (again, for those in the minority of the minority here who don't pay balances in full each month) and will at least give a 2nd thought before getting this particular card.

Hopefully they will give a 2nd thought to getting ANY card. They all have steep fees and interest rates for those who carry a balance. And, yes, I've been there, done that in my youth. The way I work the system today was a learned process. I don't want to think about the money I wasted the first three or four years of my marriage. Utterly depressing.

$200 is a steep gift that is used to lure in folks who sometimes shouldn't get a card. Its JUST as much the banks fault as the consumers. When getting a credit card, there are 2 parties involved (sometimes more) but the bank is an equal holder of responsibility. People seem to forget that as its easier to point the finger to the little man. Banks want you to be late. They make millions that way. Those of you who pay your balances in full (and I think its great for those who do) will eventually see changes as more people become aware of their financial status and become smarter with money.

Of course it's a lure. Just like the low monthly payments for satelite when you first sign up. Just like the 10% off at Target when you sign up for their card. Just like the free phone when you sign up for a monthly plan. Just like the free toaster my mom got for opening her first checking account back in the day. They want your money and they know the odds of making more off of you are in their favor. This is nothing new. I am well aware that Chase is hoping I will pay late or charge more than I can afford.

My sister has been paying down her account steadily for over two years. Now that she is reaching the end, she has been getting the credit card "checks" in the mail EVERY WEEK. She mentioned this to me just last week, wondering Why? It makes perfect sense to me. Because the bank sees the writing on the wall, her interest-paying days are ending and they want to get her back in the game. Luckily, she also learned her lesson and has no plans on going back.

But 0% interest will not be around much longer. Mark my word.

As others have said, this is quite probable if and when more Americans get their financial ducks in a row. No doubt about it. And if/when it happens to me, I will happily cut up all my cards and go back to just using my Debit Card. I'm not in love with the CC, it's just a means to an end. In the meantime, I'll play the game, earn my rewards, and enjoy the perks.

 

[indimom]

What is foolish is the mentality that you are immune to paying a late fee. No one is immune to it. The system works for you right now, but there are many possibilities that could prevent that from being the case.

Even if you have a large savings to "pay off the balance" it doesn't mean that another emergency wont wipe out that savings before you would need to pay off your cc balance. Life happens and usually when it rains, it pours.

If you think that your job is secure right now and that money in the bank will keep you from ever paying a late fee, yes that is foolish. While its good to save, nothing in this life is guaranteed. Anything can happen and those who are blind to that fact are left with their mouth on the floor from the dis-belief that things go sour. Ten years ago I wouldn't have said this. But this isn't ten years ago.

No one knows if anything like this will ever happen to you, or me, or our neighbor next door. Telling yourself that it will never happen to you is, as I said earlier, foolish.

I agree, nothing in life is guarranteed. But I don't feel that using a credit card to pay my monthly bills is the biggest risk I could take. There are much more risky financial decisions I could make.

 

[Disneyliscious]

I agree, nothing in life is guarranteed. But I don't feel that using a credit card to pay my monthly bills is the biggest risk I could take. There are much more risky financial decisions I could make.

I totally agree with that. God knows Im not one to be giving financial advice because I don't even deal with banks for one. I just really hate to see it when people are blind to the fact that there may come a day when a late fee has to be paid and it all snowballs from there. To see someone say that it couldn't happen to them just boggles my mind.

 

[Tink-aholic]

What is foolish is the mentality that you are immune to paying a late fee. No one is immune to it. The system works for you right now, but there are many possibilities that could prevent that from being the case.

Even if you have a large savings to "pay off the balance" it doesn't mean that another emergency wont wipe out that savings before you would need to pay off your cc balance. Life happens and usually when it rains, it pours.

If you think that your job is secure right now and that money in the bank will keep you from ever paying a late fee, yes that is foolish. While its good to save, nothing in this life is guaranteed. Anything can happen and those who are blind to that fact are left with their mouth on the floor from the dis-belief that things go sour. Ten years ago I wouldn't have said this. But this isn't ten years ago.

No one knows if anything like this will ever happen to you, or me, or our neighbor next door. Telling yourself that it will never happen to you is, as I said earlier, foolish.

Wow. Just wow. I won't criticize how you live, because you have a right to live any way you see fit. Yet you insult my choices? I am ever the optimist and hope that maybe you meant to choose different, less personally attacking words to describe me. Until you say otherwise, I will believe the best of you and trust that you meant to write nicer things.

Just so you know, it doesn't take "large savings" to pay off one's cards every month. I am just using the money that I would normally use during the month anyway. So, if I would normally spend $60 on gas, instead of cash, I put it on the card and send my "cash" to the credit card company. It is really just all of my monthly expenses, rolled into one place. I don't spend any more than I would with cash.

As for my personal situation, the current financial experts recommend beyond the six-month liquid emergency fund now -- many are suggesting a year or more. If something were to happen to my (union, so not likely) job, I have expenses for more than three years liquid. But I am a single mother and sole support for my son, so I can't depend on anyone else to help.

Like you, OP, I have no debt other than my mortgage. No car loan. No cc debt. I am insured to the hilt. I am currently paying off my mortgage as fast as I can, in addition to paying a month ahead. So, except for the fact that I use several banks and I use credit cards for rewards, we aren't that different from each other.

The only parting thing I will say is that people can have different opinions and live different ways...but it doesn't make anyone that does things different from you "wrong". It just makes diversity.

 

[bonoriffic]

What is foolish is the mentality that you are immune to paying a late fee. No one is immune to it. The system works for you right now, but there are many possibilities that could prevent that from being the case.

Even if you have a large savings to "pay off the balance" it doesn't mean that another emergency wont wipe out that savings before you would need to pay off your cc balance. Life happens and usually when it rains, it pours.

Your logic makes no sense. So the options are:

A) Have a credit card, and pay it off monthly. Then suddenly an emergency happens. This somehow wipes out my savings. Apparently the emergency was the several hundred thousand dollar kind. Now another emergency hits, I use my credit card, and now I have to pay interest. Oh no... I've finally become a victim of the credit card system. They got me.

B) Live on a farm and only use cash, and happily mock those who use credit cards. Oh no, that same emergency hits. There goes your under the mattress savings. Now another emergency hits... Uh oh... the cookie jar is empty. No more money. Whatever the emergency is, you can't pay it. I hope it wasn't an operation, because now you are dead. But at least you didn't get sucked in to paying 19% interest!

 

[Disneyliscious]

Your logic makes no sense. So the options are:

A) Have a credit card, and pay it off monthly. Then suddenly an emergency happens. This somehow wipes out my savings. Apparently the emergency was the several hundred thousand dollar kind. Now another emergency hits, I use my credit card, and now I have to pay interest. Oh no... I've finally become a victim of the credit card system. They got me.

B) Live on a farm and only use cash, and happily mock those who use credit cards. Oh no, that same emergency hits. There goes your under the mattress savings. Now another emergency hits... Uh oh... the cookie jar is empty. No more money. Whatever the emergency is, you can't pay it. I hope it wasn't an operation, because now you are dead. But at least you didn't get sucked in to paying 19% interest!

Let me clarify your comprehension problems.

A) This can and does happen every day to people, even the several hundred thousand dollar kind. I mean, if your spouse or family member was given a life threatening diagnosis that only an expensive operation (not covered by insurance) could try to help, would you give up your savings to save their life or keep your money and wish them well on their way out? If you chose to give up your savings for the operation and your cc changed the rules the next day.....what would you have to pay off the balance with? Thus, in a situation like this (which could happen to any of us) would mean you will be paying interest and possible late fees. Is this the end of the world? No. But Im pointing out that no one is immune to paying interest or fees. No one. And while this will not happen to everyone, it does happen to some....and your lucky number for bad luck could be next.

B) I have stated before (and even in this thread that my own way of life is not for everyone and isn't the smartest financially. I do not mock people for using credit cards. I comment on the reality of things to those who say they will never pay a late fee.

The option is to live as financially smart as you can, while being realistic that things can and do happen. None of us should be creating a false sense of security for ourselves.

Saying you (in general) will never pay interest or late fees because you have a savings, a secure job, or whatever is saying something that you just don't know.

 

[nowellsl]

Reward cards never have been and never will be a good deal if you carry a balance! All of the ones I have charge a high interest rate if you carry a balance. They have to do that to make up for what they pay out in rewards! They absolutely tell you that in the fine print! Anyone who signs up for something and doesn't read the fine print is just asking for trouble! So lucky for you OP, you knew enough to do that!

I have a friend that doesn't use banks, she doesn't trust them. Every payday she drives around town and pays her bills in person. Hey, to each their own! I don't have any desire to use my time that way

Everyone handles their finances in their own way, who's to say what is right or wrong. I have a daughter who can't handle having a credit card, or a debit card. She really shouldn't have cash either She just has zero impulse control!! She's had to get very creative in handling her finances It's still a work in progress!

 

[bonoriffic]

Let me clarify your comprehension problems.

We get your position, credit cards are evil. You also seem to think that sooner or later, everyone will fall victim to them. There is no scenario you can dream up (within the bounds of reality) were I would ever pay interest on a credit card. None.

The only possible scenario would involve all my money emptying my bank accounts the day before my credit card bill was due (with that speed boat I just bought on there), and everyone in my family was unemployed, receiving no unemployment, and any item of value I had was also destroyed simultaneously. If that all happened, then I guess I would owe some interest on my credit card.

The bottom line is this. If you only put on your credit card what you already have in cash, you have nothing to gain by not using a credit card. I will live your life for 1 year. Identical. What you buy, I buy. What you do, I do. Identical. Except you use cash and I'll use a credit card. What will happen in 1 year? I'll have more money than you from my rewards credit card.

Enjoy looking down on us.

 

[Sinderelly]

I agree with you, here. But there are plenty of credit cards, mortgage terms, checking accounts, etc. that work for some people and not for others. It doesn't make them all a "crock" deserving of the angry smilie. If it doesn't fit with your financial plan, don't get it.

Facts:

The Chase Disney Visa charges no annual fee.
The Chase Disney Visa allows cardholders to get 0% interest on Disney vacation packages for 6 months.
The Chase Disney Visa allows cardholders to earn a 1% rebate that can be used for Disney purchases. Sometimes, bonus offers are available, but you may or may not receive them and you may or may not benefit from them.
Disney Visa holders currently receive discounts and special offers that people who are not cardholders are not entitled to. That is subject to change at any time.

Like any other credit card I have seen, the bank will charge you if you pay late, go over your limit, or fail to pay off your balance each month. These rates may be exorbitant and are spelled out in the cardholder agreement. If you can't pay any card off in full each month, the interest you pay will be more than any rewards you earn.

Any rewards card is generally not a good idea if you can't pay off the balance.

..and the cards are so cute! I have the Toy Story one.

 

[RachaelA]

We get your position, credit cards are evil. You also seem to think that sooner or later, everyone will fall victim to them. There is no scenario you can dream up (within the bounds of reality) were I would ever pay interest on a credit card. None.

The only possible scenario would involve all my money emptying my bank accounts the day before my credit card bill was due (with that speed boat I just bought on there), and everyone in my family was unemployed, receiving no unemployment, and any item of value I had was also destroyed simultaneously. If that all happened, then I guess I would owe some interest on my credit card.

The bottom line is this. If you only put on your credit card what you already have in cash, you have nothing to gain by not using a credit card. I will live your life for 1 year. Identical. What you buy, I buy. What you do, I do. Identical. Except you use cash and I'll use a credit card. What will happen in 1 year? I'll have more money than you from my rewards credit card.

Enjoy looking down on us.

Agree with all of this. And paying a little bit of interest at one time or another isn't the end of the world. I probably never will pay any (or have a late fee), but if I did its not like I would be going on and on about how evil credit card companies are.

 

[MaleficentRN]

I don't spend what I don't have.
If I get a $1000 paycheck, I can charge up to $1000, use my paycheck to pay that $1000 off and get $10 from Disney. I've used no savings, payed no fees or interest.
I don't worry about having a late payment if I get laid off next week because I have already paid for this week this week. If I get no paycheck next week then nothing goes on the charge card next week.

 

[riley2008]

I don't spend what I don't have.
If I get a $1000 paycheck, I can charge up to $1000, use my paycheck to pay that $1000 off and get $10 from Disney. I've used no savings, payed no fees or interest.
I don't worry about having a late payment if I get laid off next week because I have already paid for this week this week. If I get no paycheck next week then nothing goes on the charge card next week.

(I would have thought OP was my FIL, but he believes computers and the internet are corrupt too - so he'll have none of this. Well, that and he keeps his $$ in a safe and an old tupperware container in the freezer, not a cookie jar. Not sure what he'll do if the place ever catches on fire. "Fireproof" safes fail more times than not. Now that he doesn't believe [and his son is a firefighter])

 

[allison443]

Let me clarify your comprehension problems.

A) This can and does happen every day to people, even the several hundred thousand dollar kind. I mean, if your spouse or family member was given a life threatening diagnosis that only an expensive operation (not covered by insurance) could try to help, would you give up your savings to save their life or keep your money and wish them well on their way out? If you chose to give up your savings for the operation and your cc changed the rules the next day.....what would you have to pay off the balance with? Thus, in a situation like this (which could happen to any of us) would mean you will be paying interest and possible late fees. Is this the end of the world? No. But Im pointing out that no one is immune to paying interest or fees. No one. And while this will not happen to everyone, it does happen to some....and your lucky number for bad luck could be next.

B) I have stated before (and even in this thread that my own way of life is not for everyone and isn't the smartest financially. I do not mock people for using credit cards. I comment on the reality of things to those who say they will never pay a late fee.

The option is to live as financially smart as you can, while being realistic that things can and do happen. None of us should be creating a false sense of security for ourselves.

Saying you (in general) will never pay interest or late fees because you have a savings, a secure job, or whatever is saying something that you just don't know.

In your scenario (A), I have savings I can use to help my family member live, but unfortunately I have to pay interest. If a person has no credit card but also no savings, then their family member will die. Which would you rather?

I would use my savings and pay interest to get life saving surgery for a family member. What would you do?

 

[DawnM]

Not being able to pay for some hypothetical surgery you can't afford for a loved one is a problem for those who use CC and those who only use cash.

Do you have the $100,000 in cash saved up? If you don't, what would YOU do? Would you sign to take a loan out and pay payments or would you tell the person you can't help because you only have a couple of thousand (or whatever) saved in cash.

I am really not following your logic in these scenarios you are giving.

I do have a CC....I ONLY charge what I know is ALREADY in the bank for me to pay it off with. Period.

There is no "security" attached to my credit card. It is a means to pay for something right now that I prefer not to carry cash around for.

Dawn

Let me clarify your comprehension problems.

A) This can and does happen every day to people, even the several hundred thousand dollar kind. I mean, if your spouse or family member was given a life threatening diagnosis that only an expensive operation (not covered by insurance) could try to help, would you give up your savings to save their life or keep your money and wish them well on their way out? If you chose to give up your savings for the operation and your cc changed the rules the next day.....what would you have to pay off the balance with? Thus, in a situation like this (which could happen to any of us) would mean you will be paying interest and possible late fees. Is this the end of the world? No. But Im pointing out that no one is immune to paying interest or fees. No one. And while this will not happen to everyone, it does happen to some....and your lucky number for bad luck could be next.

B) I have stated before (and even in this thread that my own way of life is not for everyone and isn't the smartest financially. I do not mock people for using credit cards. I comment on the reality of things to those who say they will never pay a late fee.

The option is to live as financially smart as you can, while being realistic that things can and do happen. None of us should be creating a false sense of security for ourselves.

Saying you (in general) will never pay interest or late fees because you have a savings, a secure job, or whatever is saying something that you just don't know.