Credit Cards

[jk90029]

There are numerous financial advisors running around telling people to not use credit cards. Pay off your cards and use cash only.

Credit card is a lot more than we think. It is NOT just for money (interest), but lifetime purchase and visit record of the customer.

If some CC company sell all the purchase record to whoever need your valuable lifetime info (such as debt collector), then the price might be huge.

For example, if I like to get all the data for your life, then I may pay couple of thousand dollars to CC companies. (or even more)
Suppose I am a collector and you are a debtor.

The bigger the selling price of your info, the more you lose (ripped off) to the buyer.

 

[Sig]

Credit card is a lot more than we think. It is NOT just for money (interest), but lifetime purchase and visit record of the customer.

If some CC company sell all the purchase record to whoever need your valuable lifetime info (such as debt collector), then the price might be huge.

For example, if I like to get all the data for your life, then I may pay couple of thousand dollars to CC companies. (or even more)
Suppose I am a collector and you are a debtor.

The bigger the selling price of your info, the more you lose (ripped off) to the buyer.

Where could I as a business go to purchase this data? I work pretty extensively with pulling credit reports and credit scores and have never heard of the ability to pull lifetime, or any, purchase info.

 

[chartman]

Credit card is a lot more than we think. It is NOT just for money (interest), but lifetime purchase and visit record of the customer.

If some CC company sell all the purchase record to whoever need your valuable lifetime info (such as debt collector), then the price might be huge.

For example, if I like to get all the data for your life, then I may pay couple of thousand dollars to CC companies. (or even more)
Suppose I am a collector and you are a debtor.

The bigger the selling price of your info, the more you lose (ripped off) to the buyer.

The most important data is the card stores, especially grocery stores, use to record every item you purchase. They know more about you and your life style by this data, and there are no laws concerning their usage.

 

[Sig]

The most important data is the card stores, especially grocery stores, use to record every item you purchase. They know more about you and your life style by this data, and there are no laws concerning their usage.

Just to be clear you're talking about loyalty cards, not credit cards? The loyalty cards where you explicitly give the store access to your buying habits in exchange for discounts or rewards? This should neither be a surprise or generate any outrage, the users of those cards simply entered into a contractual relationship that benefited them and the store.

 

[jk90029]

Just to be clear you're talking about loyalty cards, not credit cards? The loyalty cards where you explicitly give the store access to your buying habits in exchange for discounts or rewards? This should neither be a surprise or generate any outrage, the users of those cards simply entered into a contractual relationship that benefited them and the store.

In other words, if you are not loyalty member who is willing to allow for store to sell your purchase data, then you have to pay extra 1%~2% money FROM YOUR POCKET. Probably the extra 2% might be same as the money that store can earn from who wish to know your purchase behavior.

Someone like to eat pork while some like chicken.

 

[jk90029]

there are no laws concerning their usage.

In capitalism, most are free to do UNLESS there is STRICT PROHIBITION by written law.
Therefore that is free to use.

I am waiting for any formal written verdict or judgement from the court concerning this question.
If there exists, then please show me.

 

[systematictrader]

Oh, and this line is rich!



So you are saying that people who pay cash are actually paying higher prices to cover the extra expense of people who pay with credit and have to pay merchant fees? Wouldn't it make more sense for the business to simply write-off the merchant fees as a business expense and keep prices lower?

write off doesnt make it free

 

[systematictrader]

Context is everything: credit-cards are one of the most expensive ways of borrowing money.

unless u do it with the 0% interest rate promotion for 12-18 months, then its the cheapest way to borrow

 

[jk90029]

unless u do it with the 0% interest rate promotion for 12-18 months, then its the cheapest way to borrow

Suppose annual living expense to pay with CC is 30K. And as above 0% borrowing for 12 months. Then with current interest of 1%, your gain is roughly $300.

Compare this $300 with your exposure of purchasing and behavior.
Someone may lose more money (by showing his inside) for the latter.

 

[systematictrader]

Suppose annual living expense to pay with CC is 30K. And as above 0% borrowing for 12 months. Then with current interest of 1%, your gain is roughly $300.

Compare this $300 with your exposure of purchasing and behavior.
Someone may lose more money (by showing his inside) for the latter.

i agree and disagree, cuz this is a very dependent argument on the person,

i agree with the gain and the loss and the purchasing behavior, yes some people exposure to purchasing and over spending is bad but thats personal problem

i disagree cuz ur gain can be higher than the 1% u imply

lastly i disagree again cuz u can borrow against the future, for example, if u believe in ur self and simply in the fact u can get a job and make money in the future, it wouldnt hurt to borrow at the 0% and pay back later,

also u can always borrow to invest in todays opportunity that might not be there later, u might lose sure, but the lesson might be worth it, if u lose the assumption is u will have the money to pay back later, or roll it into another 18mos no interest