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I like the article. It discourages people from MS.
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The problem is not that the article is amatueristic and sophomoric, as it clearly is since people intelligent and energetic enough to do manufactured spending are capable of calculating that paying 15% interest is not worth it if the MS earnings on a 5% rebate card is around 3.5% or so after fees and gas (and anyone floating a balance probably has a 0% teaser rate card). The problem is that the more mainstream articles that float around, the sooner that the credit card companies, the issuers of prepaid cards, a very big box retailer, some smaller retailers, and perhaps even the regulators in the government's financial system move to shut it down. And let's face it, it would not be very hard to shut it down. Although we probably should not spell those steps out, lest the writer from Yahoo, who probably got all of her information from FT and FW, will have her next idea for an article.
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Originally Posted by tpeflyer
(Post 21580510)
I've got a better connection. Us MS-ers (or is it AOR-ers?) are guilty of polluting the planet because we fly too much! And, and, if airlines got rid of the different classes, everyone would be equal and more people would fit on the planes. It's all MS' fault!
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i quite like that the article makes no sense. hopefully it cautions people away from these types of activities, leaving opportunities open for me.
ETA, i don't have many posts here, but am a fairly long-time member on FW. |
Originally Posted by jayfi1976
(Post 21580681)
on the other hand thew CC companies need to make money to afford customers like us :)
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i feel so enlightened after reading that
/rolleyes |
Originally Posted by cashback
(Post 21579861)
Idk, I kind of agree with the writer. A lot of people are not smart and fall easily into debt. If you carry credit card debt, you are more likely to be sloppy with your MS, and create more debt. I'd say its safe to say that the vast majority of the people on here don't carry CC debt, but I could always be wrong...
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Originally Posted by aradisc
(Post 21582201)
I mean, aren't we still making a profit for the CC companies even if we don't carry a balance? With the exception of Chase-issued GCs, the 3% or so they get from the merchant is nothing to sneeze at. Plus we're much, much less of a default risk.
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Originally Posted by cashback
(Post 21582681)
There is no way the merchant has to pay 3% swipe fee on VR/GCs. I mean I could be wrong, but that'd be a huge loss for the store. I wouldn't see why any place would allow VR/GC purchases with CC if they have to pay a full swipe fee...
- "card itself"/activation fee - $4.95 (+-$1-2) - "debit load" - $500 The latter might transacted differently in Visa network, lower fees if any... |
Originally Posted by pier11
(Post 21582808)
Visa GC purchase for example consists of two parts:
- "card itself"/activation fee - $4.95 (+-$1-2) - "debit load" - $500 The latter might transacted differently in Visa network, lower fees if any... |
Originally Posted by dangw20
(Post 21580096)
Quote:
Originally Posted by PaulMSN But the caution is not specific to MS. The writer could more logically connect it to not buying that fancy sound system or as a caution not to use a CC at all. I agree 100%. The warning from the writer is not specific to MF at all. It's specific to any rewards credit card. Take the Citi Forward card for example that offers 5 points/dollar (5% cashback if redeemed for certain rewards) at restaurants, among other places. Some people mightend up spending more at restaurants just to get the extra rewards (thinking 'I'm going to eat something anyway, might as well go to a restaurant'), but here's a simple example that shows this is a terrible idea. We all know it's cheaper to eat food from the grocery versus food at a restaurant: Restaurant Deli sandwich and drink at local cafe = $10 5x bonus points = 50 points or $.50 Net Cost = $10 - $.50 = $9.50 Grocery Deli sandwich and drink at grocery = $8 1x bonus points = 8 points or $.08 Net Cost = $8 - $.08 = $7.92 Result Even though you got 525% ((50-8)/8) more points in this oversimplified example, you saved 17% ((9.50-7.92)/9.50) by eating food from the grocery instead of a restaurant even after you take into account the rewards points. I know this is an oversimplified example but I think it makes it obvious that you should think twice before blindly spending money just because of the credit card rewards. Now, if that's NOT true, if you end up spending more than you save (on interest, or junk you don't need, or whatever), then you should rethink what you're doing. Juggling dozens of cards with different bonus categories isn't for everyone, but fortunately we also have flat 2% CB cards like the FIA. |
Originally Posted by Andy2
(Post 21580772)
The problem is not that the article is amatueristic and sophomoric, as it clearly is since people intelligent and energetic enough to do manufactured spending are capable of calculating that paying 15% interest is not worth it if the MS earnings on a 5% rebate card is around 3.5% or so after fees and gas (and anyone floating a balance probably has a 0% teaser rate card).
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I would think we in the MS crowd are among the top paper and plastic recyclers just as we were among the top metal recyclers in the days of the mint.:D
Originally Posted by eloraculo
(Post 21580803)
Yes, please be green recycle your GC and VR.
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STOP this MS!
Debt can be beneficial sometimes. Mortgage debt has a lot of pluses. In fact it rewards you when you do not pay it off. CC debt is just bad.
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Originally Posted by AlohaDaveKennedy
(Post 21583280)
I would think we in the MS crowd are among the top paper and plastic recyclers just as we were among the top metal recyclers in the days of the mint.:D
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