[nicegirlflor]

"It's not a 1% discount! They just give 1% back to you. "

[soitlyobserty]

"It's not a 1% discount! They just give 1% back to you. "

A discount comes from the retailer at the point of sale. The 1% reward doesn't come that way.

[appleiphoneees]

So... If I put $1000 actual credit on my credit card, will they pay me 19.5% interest?

[zttrftwsq]

The money they charge the retailer.

We all indirectly pay for it anyway.

[Pynctyncroast]

Yes, Flubber. It's a promotion, paid for by the card issuer, to make their cards more attractive and to encourage people to use it. There's so much misinformation in this thread it's saddening.

[DianaDrk]

Another large benefit of credit cards is protection. I have heard of stories of companies accidentally charging multiple times for a service/etc. They fix the error, but sometimes not before your account gets overdrawn and gets penalized for purchases you made when you thought you had money in the account (which can be quite a bit).

A credit card just would not allow you to make the charge.

Additionally, credit cards call me/etc if they question a purchase. I have never had my bank do so.

Finally, when I have had a purchase on my credit card I didn't remember making, I called up the credit card company and they took it off.

JM

[konanoileaski]

Another large benefit of credit cards is protection. I have heard of stories of companies accidentally charging multiple times for a service/etc. They fix the error, but sometimes not before your account gets overdrawn and gets penalized for purchases you made when you thought you had money in the account (which can be quite a bit).

A credit card just would not allow you to make the charge.

Additionally, credit cards call me/etc if they question a purchase. I have never had my bank do so.

Finally, when I have had a purchase on my credit card I didn't remember making, I called up the credit card company and they took it off.

JM

Yes, yes, these are all ancillary reason for me to use a credit card, and I do use a credit card. What I was hoping to do was get all of these various and sundry benefits without actually being extended any credit.

[Tam04xa]

I think you're overthinking this.

[EvonsRorgon]

I think you're overthinking this.

Kuci is full of ****. Rewards come from the card issuer and are considered a cost of marketing. I don't see why Kuci thinks it important to discuss anything else anymore than say, saying that we (or others) indirectly pay for any company's marketing, is important. It's like duh, but that's not really important to say.

[Mister.levitra]

Um, AS, where do you suppose those funds for marketing come from?

Um, HC, where do you suppose those funds for marketing come from with any other company on the face of the planet?

Kuci is making no new revelation that income is used for marketing.

Why he thinks that is important to point out with respect to credit card companies, I have no idea.

[opergolon]

I guess Al thinks any 1% reduction in price is a form of marketing because it encourages people to buy what you're selling.

[Wxrxnhar]

Because it shows up as a negative number on the website.

[zilsolley3]

I use my credit card because it gives me security on my purchases, it gives me bonuses, and it gives me 30 days of time to pay it without interest. I don't see any reason why I should use my debit card (essentially the same card) that gives none of these benefits.

Just have to pay what I spent every time. I guess that why it's not too good for everyone with no control, but if you can control yourself, I figure it's the best way to go.

[disappointment2]

It's negative, I've had a positive balance on my credit card, when I paid off the full amount on the same day the automated minimum payment went out, so the card was £5.35 in credit or something.

Because it shows up as a negative number on the website.

Assets vs. Liabilities.

Albie, both checking account and your credit card with credit balance on it are bank's liabilities. Overdrawn credit card is an asset and is an active account different from the primary card account. Credit balance is almost always rendered as positive to the customer for the sake of simplicity. Negative amount is usually your debt. If I overdraw my checking account and my credit card, why should the former show up as negative and the latter as positive balance?
Actually, the online banking system I use never shows a negative balance on my credit card, because 0 there means I've used up all of my overdraft limit.