Why Credit Cards SUCK for Everybody
Vložit
- čas přidán 7. 03. 2023
- Today, for many people around the world, the credit card is the most common form of payment they use on a daily basis. And we all know how dangerous these cards can be in terms of racking up debt, but turns out there’s a whole other side to credit cards that might just be costing you a lot more money than you realize.
Subscribe to Future Proof!
/ @futureprooftv
Follow Future Proof Health:
/ @futureproofhealth
Stay updated on our socials
Instagram: / futureprooftv
Facebook: / futureprooftv
TikTok: / futureprooftv
Reddit: / futureproof
For further reading, check out the sources for this video here:
docs.google.com/document/d/e/...
Script: Holly Maley
Editor: Lalit Kumar + Kirsten Stanley
Project Manager: Lurana McClure Rodríguez
Host: Levi Hildebrand
Want to work with Future Proof? Reach out to FutureProof@thecreatoratelier.com
Suggestions? Hate mail? Get in touch with the project manager, Lu: contact@befutureproof.ca
In Argentina we use them to "beat" inflation, as we say it. With 100% (±) of annual inflation, buying something in 12, 18 or 24 payments without interest, is not only the only way to pay for expensive things with our salaries, but a way to actually pay less in some situations. Some payments i am currently paying are almost ridiculously low considering the product i got.
Thats insane 🥲
But for example, the different variants of the "ahora" plan (this is the name of the government plan to buy products in monthly installments with reduced interest) do have interest and it is quite low compared to inflation. If you keep your money in the bank using fixed-term deposits and buy the products you want using this payment system, you always win because of the high interest rate that the central bank has at the moment. You can check that the "ahora" system does not have any "without interest" option right now and I will explain why.
The interest-free system was practically killed by the high interest rate of the central bank. You get more money with fixed-term deposits but also higher commissions on your credit card, mortgage or bank credit. So it is very expensive to finance that, even for the state. Only a few places offer interest-free monthly payments, but sometimes that is because they add it to the base price of the product or because they have agreements with the different card providers.
I know this because I worked in retail for quite a while. And one thing I hate is the fee the company pays for each credit card transaction and the time to get that money, which can take more than two weeks (depending on the fee you want to pay).
This is a wild comment. I think so many people just think that credit is "money I'll pay later" but this is a whole different situation. Thanks for sharing this. 🙏🏻
Front running inflation with lower credit card interest rates? That is some serious pain and insanity.
Same case in the Philippines
It's easier to reverse the payment if you're using a credit card compared to a debit card or cash. Especially if involved in unauthorized transactions.
That's definitely true, the safety element is one we didn't dive into but is important to note. Thanks for bringing that to the conversation!!
@@FutureProofTV Just imagine your own money (debit card) was used in an online purchase without your permission or scammed for short. That's a big pain in the ass hahah
This makes sense for online shopping where things can get risky. But if you have the cash and you're buying groceries at a mom and pop shop, why are you using a credit card? Schools usually refuse credit cards to pay for tuition.
I heard in Venezuela and Lebanon they have been weighing grams gold/silver instead of their cash. Do you know anyone doing this in your country?
@@estycki Because I hate using cash.
"Don't spend money you don't have"
Big time !
It's so simple yet so many people don't understand that very basic concept.
Champagne taste with mauby pocket, as we say in T&T
I smarted up real quick. As soon my credit cards added up to a $400 monthly payment. I had more than one credit card. Got one at age 18 after High School. As soon I figure out I was paying $400 a month. I instantly cut up all my credit cards. Didn't even saved one of them. I start paying off my credit cards. At age 36 I was completely debt free. I never apply for a credit card ever again. I'm 60 now and still paying everything in cash. Funny that my credit score is N/A. But not using credit this will happen. I thing it shown up as N/A after 20 years not using credit.
''i do have it, i do spend it, i get $ back.
I used to believe that I was a really good financially-sound teenager. I now have like 2k in credit card debt as a college student, and hopefully I'll be able to pay it off this summer. I definitely learned my lesson to stay on top of it from here on.
Cut it up and never use a credit card again. It'll make your life better.
I’m in the exact same boat but I’m in 4K deep 😂
@@Steve-Utah wrong idea.
Figure out what you are spending on and create a budget. Stick with it and make sure you spend less than what you make. Then use your credit card to get rewards. I get around $500 every year without paying interest by just sticking to a budget. People who pay cash get a big fat 0. People who use debit pay the banks.
@@fedvvvv YNAB is great too for this! Just started using it and it's great. Students get a free year as well!
I unfortunately maxed out my credit card twice over the first year or two of having it.
Thankfully, I was able to pay it off completely, and now all I do with it is buy gas or groceries and immediately pay it off that same evening.
It was such a bad feeling having debt looming over me, felt like I was drowning, and it wasn't even that much money. I feel for people who have like 30k debt on various cards.
Glad you found your way out of that trap, it's so easy to feel like that's what everybody is doing and keep digging yourself deeper. Paying it off as you go is keyyyy
I did the same as you, maxim my credit card and paying just above minimum for almost 10 years... Until I decided to stop, I made savings and created an emergency fund. Now I use the card as before, for almost everything, except cash, but I pay it in full automatically [with the bank's app help] from the emergency fund every month. Then I fill again the fund. I haven't paid interest in over 4 years now, the card is also free, no taxes whatsoever, and it feels so good to finally beat the bank
to help you with that situation, You could try to scale back with a card that allows you to do auto pay then set the option "4-5 days before due date" also pay the FULL amount and NOT the minimum amount. only utilize roughly 20-40% of the credit limit. Thinking that you only have 300 dollars to use with credit limit of 1000 dollars.
why do you pay it off the same evening?? isnt that bad?
@@teddyjohnson284 no? why would that be bad? The only bad thing about it is NOT paying your credit card and accruing the ludicrous interest rates.
I’ll forever use a credit card over a debit card or cash. I travel often and haven’t had to pay for plane tickets in over ten years with the rewards my credit card offers. I always pay the total monthly amount, so I don’t pay interest.
I never use my debit card anywhere. I've known too many people who have used their debit card at the wrong atm or gas station and had their bank accounts emptied. They never get that money back and then have all kinds of isssues paying their bills. I'm sorry for the small businesses, but maybe I'd like everybody who uses a credit card to try and prevent theft from your store. I would have no issue showing my ID, and I have no issue paying a little extra to use a card over cash.
Paying that monthly amount as you go is definitely the way to do it, stoked you've managed to make the rewards system work so well in your favour!
@@NotACat2237 agreed. If my credit card gets compromised, the money in my bank is unaffected. I write SEE ID on the back of my cards where you normally sign so they ask me for my ID.
@@FutureProofTV thank you! Avoiding paying interest is definitely the key.
Everyone else paid for your flights via fees. I’m not saying I dont do it but nothing is free.
It's funny the exact people who could benefit from credit cards are the only ones financially responsible enough to never get a credit card
That makes no sense. My credit scores are in the mid 800s and I use a credit card that I pay off every month. The card company gives me cash back, not rewards.
I’m financially responsible and I have a credit card that benefits me. QED
Complete nonsense. There's nothing irresponsible about using credit cards. I have well over a dozen credit cards, and I've never paid a single cent in fees or interest.
You need to build credit to buy houses and such, credit cards can help with that.
I definitely benefit from my credit card. It's also basically the only way I pay for anything, but yes knowing how to not spend outside your means is imperative. This of course is easier the more you make, and that's really the rub.
I swear yes I have 20 K in cash and my credit card limt is 7K I don’t even neeed it but I do to build credit my score is 747
Us credit card nerds see it like this. Card companies have cornered businesses and forced them to accept their cards through sheer number of card holders
Credit card companies take a cut of the money for the convenience of accepting cards. Businesses raise prices as a result.
Certain credit cards give you a bit of that money to incentivize you continuing to use the card. Business are now trapped in a toxic relationship with credit cards.
If you have good control on your spending you are less affected by the price increase because you got “rewards” from the big bag credit card company. If you aren’t good with your spending then sadly you’re left holding the bag.
except some businesses just add a credit card surcharge instead
In the EU debit cards are used for payments a lot, and there's a maximum card fee, which is about 0.5%
That savvy user he mentioned…that’s me. I use a credit card for the vast majority of my spending…spending that I would do anyway, not extra…and I get money back for using someone else’s cash.
I really don't understand how people can get in trouble for this. If you can't afford something, you don't buy it and that's it.
that's me as well. So the only downside of CC for me is that vendors have already up their prices to cover the service fees CC charge them.
I use the benefits to travel. I’m fine with this system.
Preach! This video was straight dumb imo, correct me if I’m wrong please. Credit cards are to one’s own benefit if/when used correctly!
@@fredoswego I agree most small business in my community have secretly or explicitly raised their prices to cover the CC transaction fee. Especially restaurants after COVID when the CC companies increased the transaction fees.
Some stores show the lower price of cash so that consumers can make informed decisions about payment methods
Although card companies charge a fee to businesses, taking cash isn't free either. They have to pay an employee to count it and prepare it to be banked, pay insurance in case it is stolen while on the premises, pay to have someone transport it to the bank and pay the bank to process cash deposits. Some businesses here (UK) are going card only because they don't want the hassle and costs of dealing with cash.
Great point I haven't even considered that
Here in the US, some National Park entrance stations no longer accept cash because it turned out it was more expensive to handle it than it was bringing in, due to may of the reasons you mention above (and due to the remote locations of some of the parks)
I own three restaurants here in the US and I’d much rather have cashless restaurants. For one money is filthy to handle and I hate wasting my time counting it or having someone count it and having to bring it to the bank. I’d have to have a lot less security from theft….it’s too easy (especially for bartenders to steal) with cash floating around. I’d probably pay less in insurance. The merchant fees I can just factor in the cost of things which would make things more consistent. Much better than trying to figure out shrinkage. The only business owners I know who want cash are likely cooking the books. How nice would it be if everyone paid their fair share in taxes?
Exactly this. It’s actually quite costly to handle cash, alongside the risk of having physical cash in store. It’s almost always cheaper to just accept credit cards overall.
The US credit card market seems to be what this video is more about; Europe/UK have low interchange caps so really the credit company don’t get much back comparatively.
@@martin4819as soon as cash ceases to exist you'll probably start paying taxes on every transaction, even like paying a friend for helping you. No thanks. While credit cards are the most convenient, I still think that keeping cash around is a win long term. It at the very least limits government tyranny
This whole credit thing you guys do in the US always feels so weird to me! I’m French and I don't think I've ever known anyone who ever bought stuff using credit except for a car or a house in my almost 30 years of existence. I mean, we do have credit cards, and I've seen ads for TVs or computers that you can buy in 3, 5, 10 payments, but I don't think it's really in our culture to buy things we don't have money for. So when I hear y’all do that for clothes or makeup, and that wild things such as credit scores and rewards for paying things using credit exist as well as student debt that follows you for a lifetime, I can't help but feel that we don't live in the same world. It all feels like fiction to me!
ye usually it’s poorer and younger americans who use their credit card like that. I’m 21, in school, and use my Amex like a debit card and get tons of deals.
i think that's the main issue. People think that credit cards are free money. I have one and explicitly use it without spending more than I have.
Well, you also have socialized survival needs like healthcare, education, childcare, elder care, disability care and so on, labor laws that ensure you at least have a reasonable chance of making enough money to pay for your rent and other necessary bills. So you have the money you need to cover at least your basic costs of living and some comforts, and a vastly reduced level of health-damaging toxic stress (which is basically the natural condition of people living in the US)
In America, you're expected to pay for all or most of that out of pocket (depending on how "lucky" you get), in a country where a broken bone, athletic injury, pregnancy or overnight stay in the hospital can cost you a year's salary. And you're often expected to pay for all of that on a minimum wage that hasn't gone up since the 70s and is currently in many areas ≤ 50% the wage you actually need to cover even the bare minimum cost of living, and far less in some areas. Which means more toxic stress, more living beyond your means to try and afford a place more central to the two jobs you need to make it work or so you don't need a second car (or kill the one you have with constant driving), more childcare costs, more healthcare costs for stress- and work-related injuries, higher risk of ending up at retirement age without enough money to live on, etc. Not to mention all of this becomes substantially more expensive without a credit card - you can't reserve a hotel without one, many apartment rentals require you to clear a credit-rating check to even apply (and buying a care or home absolutely does), a poor credit score can increase the cost of your (mandatory) car insurance you need to drive to work, you have to buy in-person only and not online where things are cheaper, and so on.
So yeah. In a late-stage capitalist hellscape, a credit card is both the damnation and the savior of the populace, and often necessary for actual survival.
From Europe too, seems like credit card culture is dead in here. While loans are quite popular to buy things like phone car or home, never heard someone getting credit card just to buy clothes or gas lmao
@@sonipitts I truly feel for you all, I promise you... You guys live in a dystopian universe, it's really sad...
I grew up raised by a single mom who couldn't work due to health issues or simply couldn't find work for very long periods of time, so believe me when I say I realise more than the average French person how much I owe to our social system.
The USA is such a "young" country that it didn't have time to go through all the changes we went through in Europe, including the various revolts and revolutions (in which more than one entitled rich person lost their head) that happened and eventually led to all these rights. But these came at a heavy price, lots of blood, sweat and tears were shed by previous generations for us to have what we have now.
Unfortunately, struggling Americans have yet to fight and claim the right to a decent life where they don't have to sell the soul of their first born and a kidney just to stay alive. And in the Holy Land of Capitalism, it's hard to see anything like this happening any time soon.
But I do hope someday, you all get there. Get to a point where credit isn't the only way to afford your weekly groceries or where calling an ambulance doesn't end up being a bigger source of worry than the one that necessitated said ambulance in the first place.
I live in the UK now, so while it's nowhere near as awful as what I imagine life is in the US, I can feel the huge differences (both negative and positive) it makes to live in a place where capitalism is so important.
Hopefully people wake up both here and where you are and realise that living in comfort, dignity and financial security is a right, *not* a privilege.
I think in Europe, in general, we are educated to spend just what you own. This gives us a less consumerism approach to buy stuff, and be more debt free. It's shocking for me to purchase anything with a credit card. Personally, I've never used a credit card, I've never even owned one. The only credit I have, is my house mortgage.
For about 20 years, I have been getting between a few hundred dollars to a few thousand dollars each year in cash rewards. Additionally, I have not, once, paid for the annual fee, interest fee, late fee, or any other fees, because I pay off the full balance each month. Furthermore, I am quite frugal and have great financial discipline; I do not purchase extra things that I do not want to purchase to begin with.
@@T.S.000Unfortunately there are a lot of people which aren't so disciplined.
I wouldn't be surprised if one day a bubble loke in 2008 pops and all of a sudden things gonna go south for alot of people
Some credit cards give 4% back on groceries and any recurring bills you put on them, and some amount back on other things.
It creates a record, which can be useful. Some have automatic insurance on flights and rental vehicles, and more.
Many can be used internationally, for a fee, which can be convenient if you suddenly have to go to another country for whatever reason.
The truly infuriating thing about credit cards in the US today is that you almost have to have one. For example, if you want to rent an apartment, they want to look at your credit score before they allow you to do so. It's difficult to impossible build credit - good or bad - without a credit card when you are just stepping out on your own. Ditto re: any kind of loan. Even utility companies will look at your credit score.
You should check out a self credit builder account. My gf has no card and still went from a 520-730
@@sanshinobi3664exactly. If people would just work, save up, and not have to rely on debt, problem solved. But of course, not everyone is willing to sacrifice their lifestyle to do it
Check out manual underwriting.
Yeah and depending on the reporting agency the landlord uses your starting score before any cards is anywhere from 600ish to 660. And of course the credit check lowers that score.
There are ways to make your rent go towards your credit but you have to get past that initial credit check or have a guarantor
I’ve rented four separate apartments in seven years and never had my score checked. It’s a bit of a myth. Some do, some don’t. You need to check into it.
If you're financially responsible, credit cards make life better. There are winners and losers in everything
that's a big if. someone who's already vulnerable will only struggle more with credit cards especially with how aggressively they're pushed at us
I totally agree 👍, I use credit cards to build and protect my money 💰
The point is that small businesses which overall provide better service and prices - are the losers.
did you not watch the video or...?
That's not very socialist of you :(
I live in a country where credit cards are quite unpopular, almost all of us use debit. This is fascinating to me as I barely even knew what a credit card was before watching this!
Here in the U.S. there are businesses that will not accept debit cards for payment and there are significant penalties if your debit card is used fraudulently. Also, credit cards usually double the length of product warranties as well as cost the merchant less than credit cards. The while system is kind of messed up.
@@memathewsEvery product sold in the eu has 2 years warranty, debit cards are the norm, also you guys pay to withdraw money from atm s we dont.
@@weird-guy Yes, the EU uses debit cards the way the US uses credit cards. Whether we in the US pay for ATM use is dependent on the particular bank, the bank I use does not charge for ATM use and had a large network with other banks that also do not charge for ATM use, but that is not universal in the US.
Also, the EU has much stronger security on debit sand credit cards than the US has. Most purchases here in the US are approved with a signature and do not require a PIN. E banks complain that it is too difficult to switch their systems from a signature to a secure PIN.
But a major block to higher debit card use in the US is the card use account has no protection against fraudulent card use, the bank has no responsibility if someone uses our card information to access our account and withdraw all three money. The maximum loss on a credit card is $50, which makes a credit card much safer to use.
Debit is worse way to buy things.
Let me guess... Germany?
One item you didn't touch on is that many businesses incorporate the credit card fee into their product price so the consumer is paying that fee and anyone who pays with debit or cash is paying more because of it.
Most people I know that own/use credit cards are the most financially informed and could tell you benefits on a granular level.
I hate having credit card debt. But having two to pay my utility bills when I was out of work and not eligible for unemployment was how I was able to pay my rent.
And unfortunately, I still have to use them to make it to my next paycheck. 😞
I’m so glad you did a video on this. I didn’t realize any of this until I became a business owner. These fees are even higher for small businesses because they don’t have anywhere near the negotiating power of large businesses.
Gotta love the fakeout on the game ad LMAO
Hahahahaha like imagine
Whoa I'm impressed you're talking about this, I've been complaining about these transaction fees for years, and I also tell people even Walmart is pissed off. As consumers we don't care because we don't see how the banks are nibbling away at the businesses.
Levi legit yelled about this for 5 minutes and the writers were like..."ok yeah dude you don't need to convince us lol"
@@FutureProofTV you guys almost word for word gave the same lecture I have been giving to my friend, family and small business clients for years 😆 now I can just send this to people instead of saying it myself. We're in Canada, they announced on the news that businesses are now allowed to pass the fees on to the customer, everyone was whining but I've been saying GOOD who do you think has been paying for all your "POINTS"
Yeah, lately I've been making an effort to use debit or cash when shopping at locally owned and smaller stores. Hadn't realized until I did the math just how much money they were losing on cc transactions.
That being said, I'm not gonna cry over megacorp supermarkets or big chain stores, especially since a lot of them have negotiated deals with the credit card companies and may even offer more points for spending there.
the CC companies made it illegal to charge a transaction fee to the customer, so it had to be incorporated in the cost of the good 'hidden away' from the view of the customer. The customer has no idea using a CC is actually costing them. besides Gas prices having a Cash price and CC price in the US I suppose. In canada VISA lost a recent lawsuit meaning now businesses CAN charge a fee. CC are so ubiquitous, especially for paying bills online. These days costs of goods and services have these fees built in to the sticker price already. Prices didn't drop and then a fee charged for those who pay with CC. Prices stayed the same and the big businesses - a national wide telco Telus - just added an additional fee to bolster their bottom line. Small Businesses haven't tried this because they can't risk loosing business charging a fee for CC use, even if they lowered the sticker price to reflect the saving.
Walmart isn't pissed off, they just want to pocket as much money for themselves. They squeeze all vendors as much as possible. The only place I actually think it's passed onto the customer is Costco.
@@Kebersox I think people are missing the point of the "percentage" - if you raise your prices the payment gateway gets even more money, you raise it again and they get even more money etc. Before the online shopping boom, these were a small amount of the transactions and then they took over as the majority as consumers were encouraged to use their CC for everything by introducing points, free stuff and then what, CC companies suck even more money out of the economy. There are appropriate uses for CCs but we've been manipulated to use it for EVERYTHING.
Credit card companies are great at using psychological tricks to get people to spend more money. Don’t use a CC if your goal is to meet reward points rather than just using it for whatever you were gonna spend money on anyway.
As a small business owner, I provide my clients the ability to pay by the method of their choice, but because I pay a transaction fee of ~3%, I ask them to consider debit or e-transfer in which case I offer that amount in discount from their payment. It's ridiculous how much the fees add up.
Which e-transfer platform?
@@omthesmwgroup Wave and Stripe.
@@ChristianBehnke how much is the transaction fee with Wave and Stripe? Isn't it almost 2%?
@@omthesmwgroup 2.9, which is why I said ~3.
@@ChristianBehnke companies can work on a 1% transaction fee too, but they will not do it as they want to suck as much blood as possible from the business owners and people. Soon, a platform will have only a 0.5-1% transaction fee. Will that b profitable for business owners?
In Europe credit cards pretty unpopular and it's a good thing, we take money seriously, we don't like debt, we borrow only when there is no other choice, but even in that case we look for the cheapest solution and think ahead.
First, if you take money seriously, you have credit card because it allows more efficient money management. Second, what you said isn't even remotely true. Majority of people in the largest European countries own credit cards.
Owning a card is different from using one regularly.
@@siets7303 Using card regularly is different from borrowing money beyond interest-free grace period.
@@BuggiEUSince there is no credit score system here i literally see no reason to get a credit card personally. There’s no need to borrow money from anyone if you keep a decent amount of money in savings and plan your finances in ahead. I don’t order anything from sketchy online stores or fly regularly and when i travel i’d rather just buy a travel insurance of my choosing, they’re ridicilously cheap anyway. I just find using a debit card easier and simpler, i don’t like to think about my money too much 😅
@@matilda2895 The reason is you can put your money on savings account or other investment and let it earn interest while you’re paying with bank money for free. Credit card is the easiest way to pay for stuff in the world.
Having no credit history
until my 30's was hilarious (was a bartender, bouncer and piercer, mostly cash) you get treated like a criminal or hobo.
@@amandak.4246 I think it's the inherent contradiction of credit ratings: The most financially responsible person has /no/ credit rating because they never spend beyond their means, but having no credit rating means they can't get credit if they do need it.
@@vylbird8014That’s not true. There are people have excellent credit ratings and are also very financially responsible.
@@vylbird8014No? Financially responsible people have good credit scores and no debt lol, people who are irresponsible shouldn’t have cards
I know your comment is a year old but I'm 20 without a credit history and yeah, a lot of people look at me weird for not having a credit card....I've even been pressured to get one for my job and I said no!
I feel like if you watched a 10 minute video on the benefits of credit cards the only thing you would agree on is that it hurts small businesses. Other than that all the points rely on you not being responsible or even understanding what you’ve signed up for which If that’s the case then yea stay away from credit cards I guess.
Where I live it was so hard to buy something if you didn't have cash in hand as most places didn't accept cards (neither debit nor credit), only supermarkets, some restaurants, and gas stations accepted these cards, but a couple of years ago the government created a system that is free for people to transfer money instantly to one another for free and now I hardly ever use paper money as most places accept it. We normally say bad things about the government, but this is one thing that they did right.
Where do you live?
Brasil?
The sponsor bit was the first time I’ve gasped in shock at a CZcams video in a long time - well done! 😂
In the Netherlands, almost everyone pays with debit cards. Credit card are only used for sketchy online payments because of the insurance. It is a really good system, and the banks take no cut at all from payments within the EU. The only thing you pay for is your bank account, which is like 45 dollar a year.
Merchants still pay fees.
In Norway, we also use debit cards a lot, but I choose to use my credit card for the 1% cashback and free use. We also receive interest from the bank, so the fee is effectively negative. However I got really confused when I went to the Netherlands and learned that the Dutch concept of a debit card was different from Norway and the rest of Europe.
Being dual military we get our annual fees waiver for Amex and chase waived. Having 2 platinums, 2 gold, and 2 chase sapphires has been saving us over 3k a year with credits and points. I never swipe if I don’t have the money and I haven’t paid for flights, hotels and vacations in 4 years. We do pay cash for small businesses and some even give us a discount for paying cash.
I hate the credit concept. Never owned a credit card, never borrowed any money, never been in overdraft, but the sad reality like you said is that you need it in order to build that damn credit score.
You don't need a credit score. Don't borrow money.
I pretty much pay off all the debts right after I get paid. I do get a lot more items, but with the installment programs so I have a constant line of credit. I've never had to make a payment. But I definitely have to be very disciplined because I can see how easy it is to have it get out of hand.
I am one of those consumers who has one credit from all banks in my country. This helps me get those discounts that are bank specific. Also the interest free 12 months loans are something too good to ignore. I cam literally park the whole amount in my bank and pay through my card which will get deducted in installments over a year while I earn interest on that money.
Credit cards could be the gateway for increasing debt. They say they won’t recommend you use a credit card. Chances are, you’re always gonna end up over spending.
So easy to treat it like a lil treat rather than a serious tool for your finances!
You'll only overspend if you're irresponsible.
>Chances are, you’re always gonna end up over spending
Consider the fact that the person sweeping the card is you. Have you tried not overspending?
People say this a lot but I really don't get it. I mean, if you're overspending, you are the one who's choosing to overspend. It's your fault.
Good motion BadManDurkio, I appreciate the glitch game. Right on point, people need you out here keep showing love to your people may you be blessed in everything that you do ..
My card just gets me 5% back on Amazon when I need to order something and protects me from fraudulent charges.
I'm paying cash whenever possible. It limits impulse purchases if you first need to go to an ATM. Also I think it's important that at least some people pay cash to prevent it from being abolished. No cash could be one step closer to a dystopian future
Impulse purchases are not caused by credit cards. They're caused by your mind.
@@Woolong-ql1jh yeah but if you commit to cash only, you'll have to limit yourself
@@PlutoniumDGOne time I used only cash for a year or two. I didn’t even have a bank account. Then for several years, I used a debit card for most purchases. Now for the past several years I’ve been using a credit card for most purchases. I don’t think there has been any impact whatsoever on how I spend. Whether I use only cash, only debit, or only credit, my spending is the same. It’s not that way for everyone (perhaps even most people), but for me, it is.
@@PlutoniumDG If that's what yoiu need, then do it. But realize that you are paying for processing fees in the form of higher prices whether you use a card or not. Staying out of debt is more important that saving money on swipe fees, but it's unambiguously better to lower your effective costs.
Thanks for making this video. As an european, I am not familiar with the topic, since I don't know anybody who owns a credit card. When we really need to fraction a payment in order to buy something we don't currently have money for, there may be options to do it at the same store. For example, we paid my dental treatment that way, with a signed contract manifesting we were owing 150€ a month. Sometimes technology and cars related industries offer the option as well, without the need of asking for a mortgage! It's very convenient.
I have a sapphire, freedom and freedom unlimited. The sapphire has a yearly fee of about $100. The amount of points that I get back on the cards can stack together and when I redeem them on the sapphire is well over the yearly fee and allows me to book my airline tickets for my vacations with points. That being said I dont carry a balance from month to month or else this would not be worth it.
I always tell my friends and family, credit cards CAN be really good if you really benefit from the rewards and extras they offer. BUT to do that you really have to have a very specific lifestyle, fortunately I have that lifestyle so I do get the benefits, but changing how you buy and what you buy only to accomodate to be able to get those benefits most of the time with most of the people ends up being more expensive to them than if they continued their life as normal.
Another thing worth noting, especially since so many of these cards offer higher rewards for restaurant purchases, is tips. It is standard practice (in the US, at least) for restaurants to withhold 3% when paying servers their credit card tips in order to make up for merchant fees charged on those tips. Most software systems that restaurants might use are even pre-programmed to do this.
Another reason why tips are hellish. Better be paying staff liveable wages
@@LuisgiXD we shouldn't be pretending that getting rid of tipping culture will make servers more money lol
@@LightPink They get paid a WAGE by the employer, it's not my responsibility to feel sorry for them because they don't earn enough.
If they don't feel satisfied with the income , find other work.
It's manipulative to "pass" on the companys' cost of doing business further on to consumers.
This has gone on long enough!
Work, get paid, go home, simple as that.
Whenever a restaurant charges me 3% or whatever extra for using a credit card I just deduct it from the tip. So 20% becomes 17%. These servers aren’t declaring half their tips most times and subsequently paying their fair in taxes anyways. Employers in most states can pay servers less than minimum wage. I’m already subsidizing their cheap labor with a tip, now they want me to subsidize merchant fees? For me one or the other is going to give but it won’t be me. Interesting about employers withholding 3%…..I guess they are doing the same thing as me in a roundabout way
So restaurants screwing over their employees. There's a big surprise.
“The rest of us normal people have REAL interests”.
*laughs in business/first class*
In 2022, I redeemed 700k UR with PYB on my CSR, but hey... only us "Credit Card Nerds" understand how much money that is.
Why can't you just say you redeemed $7,000 from Pay Yourself Back on your Chase Sapphire Reserve card instead of throwing around random acronyms? It takes a minute to find this information, so I don't think you qualify as a "credit card nerd" either, just someone who searched up the best card for traveling, and then stopped travelling because of Covid.@@alfredhewitt3761
As someone who had nearly 10 credit cards I learned the hard way of the debt cycle; I'd pay off a card only to "rack" it up again a year later. I'm on a debt repayment plan that required me to cancel all cards with a balance with the benefits of reduced interest and one payment. I've seen interest rates continue to increase and sometimes I laugh when I see an offer for a 30% cc offer. The only advice I have is don't spend to fill a void (which I did), be conscious of how many cards you have (the less the better) and be conscious of how much debt will trap you for years.
I love my card and the rewards are pretty unrestricted but cashback and some of the other points rewards are awful. Understanding the card and how it fits your spending and lifestyle is great advice!
My dad was like "get your self a bunch of credit cards so that you can get a high credit score."
5 years later, I've got around $6,000 of debt spread over 4 credit cards.
And my dad is still telling me I should get more credit cards. Yeah no, I'll be closing at least 2 of those I already have as soon as I pay them off. So far as much as I'm concerned, a credit card is only good for online shopping.
That's you being supid.
Hot take for sure. I buy a lot from small businesses and I would rather them just charge me more to cover the fee. Also, my credit card rewards are dollars. I didn't realize it was normal to do points.
There's literally no reason not to use a credit card assuming you don't carry a balance. All the rewards, credits, perks, and protections are just free profit at that point
@Future Proof. Merchants increase price because of credit card but the consumers who use credit card get it back through rewards. so basically money from debit card consumers goes to the smart credit card consumers. In terms of not defaulting on the payment bills, just use the auto payment option. Considering the safety and credit score, its a must.
Credit cards are terrible if you rely on it to supplement a low income. In those cases they are as dirty as a pay day loan.
Sadly i know some people that used their credit cards when they really dont have the income to pay it off and trapped into paying the rediculous minimum payment of $25 a month and wonder how their debt ballooned….
Ironically Apple makes one of the most consumer friendly credit cards. No fees, no points, no restrictions on where you need to buy from to get 2% cash back. And they do a good job of explaining how much of your payment goes to interest if you don’t fully pay off the balance at the end of the month. It also has other features to show breakdowns of spending. Pretty good card for people getting started on building credit
All credit card companies have to do that. Personally I find that 2% back quite low.
That 2% is for select things with Apple Pay if I remember correctly, it’s not a very good card but just starting out it’s not bad at all
@@williampeterson3498 2% for everything except physical stripe/chip purchases
One thing I’ve noticed is retail stores like electronic shops or clothing stores are the most manipulative when it comes to credit card “deals”. They influence your buying decisions most even if you don’t need their products.
Great job, keep it up, proud of you.
Here in Mexico the fees are negotiated globally by the central bank with the banks. In Credit cards there is a limit of 1.91% and in debit cards it is 1.15% up to 13 pesos in fees (less than 1 usd). I have a credit card with no anual fees that gives me back 2 % back. So as long as I pay on time I am golden
Is this true in any other countries, I wonder 🤔
I'm in Nicaragua. The fee is higher than Mexico, I think is 3% and is not capped. But there are cards with no point cap and no fees. Even the ones with fees, you just call the bank and tell them to revert it or cancel the card. Almost always they will revert it because there's not that many people with credit cards and want to keep the customer
If you spend within your means and pay off the balance every month than a credit card is a very useful financial tool. I like to use mine on gift cards or small things but changing things up to help pay for travel in the future.
For about 20 years, I have been getting between a few hundred dollars to a few thousand dollars each year in cash rewards. Additionally, I have not, once, paid for the annual fee, interest fee, late fee, or any other fees, because I pay off the full balance each month. Furthermore, I am quite frugal and have financial discipline; I do not purchase extra things that I do not want to purchase to begin with.
@@T.S.000how are you avoiding the annual fee if it’s not a $0 annual fee card?
@@sean1334 : I avoid it by not getting the card with annual fee to begin with.
@@sean1334 Depending on the company and card, they will often waive the fee if you call and ask, are never late, and use the card frequently. There are lots of good cash-back cards with no annual fee as well. The fee cards usually have some other benefits associated with them that can quite often offset the fee if you use those benefits. I do have a high-fee travel card, BUT I use the benefits becaue I do travel a lot for work (and pleasure), and easily get the value back.
I really enjoy your channel. Great content
Bruh, I get all you’re saying. But unfortunately, modern credit system wins out. I won’t miss out on building my credit score, keeping liquidity until end of cycle payment, risking it carrying cash & making refunds more complicated just because Visa & co figured out how to be rent seekers. I sympathize but it is what it is. The inconvenience & hugger cash risk wins out 🤷🏽♂️.
I’m even willing (& have) paid the merchant fee when requested because it still offers value for me. I pay my cards off in full every month & i treat them as debit cards in that if i don’t have money for it i don’t charge it. Simple. Not giving that up to be a do gooder. You’ll need to come up w/ a better options for folks like me.
I liked this one...I use a PC Mastercard, which has rewards by percentage of amount spent rather than points. (I usually get about 1k worth of free groceries every year) I load it with my budget amount at the beginning of the month, and then treat it like a debit card, checking the balance as I go. Never paid any of that exorbitant interest, so I guess I am considered a "responsible user". ...But You got to me with the portion of the video that said my rewards come on the backs of the less responsible users...like that poor single mom or struggling out of work guy is the one paying for my free groceries. Ugh, not sure I want to be a part of that system. Got some thinking to do.
Sure, the credit card company's rip off the retailers, but cash is also very expensive to bank. Small quantities mean a trip to the bank, often by car, time, risk of theft. Lots of cash means a special collection, that's not cheap! So, 1.5% card fee, is not that bad really. Handling money of any kind will cost you for sure.
Credit system is definitely evil with no clear manual how to succeed. I paid off my $700 credit debt and FICO score went down.
Wow 😮 I had no idea.
Thanks for this video 👍🏻
A credit card is a good thing for major purchases like appliances and/or electronics because it can double or otherwise extend your warranty. Even better if you can still pay that major purchase off all at once. Check your card’s terms of service for details. Many years ago I had an MP3 player die on me, after the manufacturer’s one year warranty, but my credit card gave me a two-year warranty for free. So I got the entire purchase price back and bought my first iPod, the iPod Mini.
Love that the adverts in the middle of this for me were from Visa/Amazon pushing credit cards and cash back offers.
😂😂😂
im not from the states, but i do have noticed many signs at stores/businesses on TV shows or movies saying they don't accept Amex. I did have some suspection that it's maybe about fees, or maybe other benefits/complicated rules. Nice to finally know the reason behind this! 10:16
Glad to see I already follow all the tips in this video, have few cards, and generally use debit 😎
My bank swapped to Mastercard. Visa was charging even them too much.
Yeah I was really hesitant with owning a CC at first but if you're really mindful about it, at least for me and where I live (Costa Rica), there's not much problem:
- Most of them have 0 fees, not even an annual one, leaving the user with the sole responsibility of not spending more that what you can actually pay off month by month
- Here it's by LAW that you have to take in cards for purchases. To mitigate this I often use credit for big stores like Walmart and rely on cash or direct bank transfers to smaller sites
>but if you're really mindful about it
Have you thought about where the credit card points come from? About how people are enslaved by the interest lates when they can't make the payments?
@steve, im not with you on that one chief, and maybe because im not in the States. But you can survive without a CC in LATAM, so no one is obligating you to take a CC and get drowned into debt.
The mechanic I go to gives a 4% discount to anyone paying with cash. Maybe the charge from credit card companies for using their card is why
I went to a hotel when i was 18 with a girl and they refused to accept cash or my debit card lol. In the end, I gave a random stranger $300 after they paid for my night at the hotel. Ended up giving the guy $50+ in profit.
I use a few credit cards. I never max it out and always pay it in full.
I get cashback, reward points, special deals AND my credit score goes up.
Plus not using credit cards is like leaving money on the side
Except every time I choose credit / debit at checkout the price is always higher. That’s where your “points” come from.
And I don’t live in a shithole country that needs a “credit score”. If anything not owning a card is better for your credit report.
It’s not leaving money on the table, it’s the illusion of leaving money on the table when the entire time that money dropped out of your wallet as loose change.
Now I do plan on getting a credit card since I have a small business. Perhaps using it for business expenses would be much more beneficial than personal.
@lieutenanteclipse9975 what country do you live in that passes on the cost to the consumer? I live in a developing country and only a few business pass on the cost to the consumer
@@johnsamuel1999 most developed country and franchised retail stores will tell you "oh there will be a 3% credit card fee" when you checkout, and many online retailers (even aliexpress) charges extra depending on the payment method.
So credit card is best for bills that doesn't charge that extra processing fee.
Great video. People get roped into spending money they don't have with the allure of plastic. When you pay with cash, you see the pain leave your wallet. Not to mention all the scams and nonsense that comes with using plastic
Amazon announced they'd stop accepting Visa credit cards in the UK last year until an 11th hour deal was stuck.
We use the canadian tire triangle Mastercard. We spend a lot of money as a family of 6, points accumulate fast and can be redeemed at canadian tire for all those stupid annoying expenses like a car battery or snow shovel or at sports expert for sports equipment or snow suits for the kids. It works well for us but i'm also annoyed that we can accumulate points faster because we meet their income requirements for a "black" card. I'll take it but i can't believe they can upfront reward wealth that way.
I use my credit card as a debit card with extra steps. I don't spend more than I have in my bank account and I collect those sweet rewards. Also my credit score is over 800.
6:50 You're right: while credit card companies don't charge consumers per purchase: they do charge businesses. Amex has the highest fee charged to businesses: which is one of the reasons many places do not take them for payments. In addition: credit card companies WILL negotiate these fees with larger corporations (think walmart, target, amazon, gap, verizon etc etc etc) because they have such large businesses: and they can make a lot of money by allowing the payment service to their consumers. MEANWHILE SMALL BUSINESSES WHO ARE ALREADY GETTING RAZOR THIN PROFITS NEED TO PAY 4 DOLLARS PER TRANSACTION!!! Credit cards have the power to severely damage small businesses and help conglomerates in this way.
Oh, hah: you got there 🙂👍
4 dollars per transaction??? Isn't that a bit extreme? I mean many times I buy stuff worth less than 4 dollars, how will they pay 4 dollars in fees?
Some developers were begging their "customers" to pirate their games instead of buying from key reseller G2A. A lot of the keys being sold on G2A were "bought" using stolen credit cards. The developers that sold keys to the thieves for resale were getting whacked by charge backs.
Minor correction - MasterCard and Visa backed Debit cards do provide the same fraud protection as a credit card, provided the debit card is ran as a credit card(skip the PIN entry at the point of sale).
I wish we lived in a more cash-driven society. Cash gives me much less anxiety than a credit card does, and I'm not even in debt
I wish the exact opposite, to live in a cash-free society. I hate cash, it's dirty, smelly, passed from thousands of hands....Plus the coins, they are heavy and uncomfortable... A card is much easier to use, + all transactions are stored electronically,. so they're easy to import into budged applications.
So annoying carrying it around vs a credit card especially the small round metal ones like wtf? Yes I have one of those big bulky coin holders. My friends make fun of me for having it.
@@amandak.4246 The funny thing is that the wisdom I've always heard is that it's scarier to spend the cash because you're literally seeing the money go versus swiping your card where you still have the card after you swipe it.
It has it's own problems. It's expensive for shops to deal with. A routine secure transport, risk of robbery. The inevitable employee theft from the register. Retail sector prefers electronic payments now because of those reasons. Also because people spend more. First Name above pointed out the reason: Even if a person knows rationally that money is money regardless if physical or electronic, it still feels more 'real' when handing over something physical that you own. Electronic payments are more abstract, and psychologically easier.
Use credit cards and save your cash 💵 it’s better that way
I have over 11 credit cards and I travel for free using my credit card points :), I always pay my balance in full
You are the 1% my friend. Enjoy your plane ride 🙋🏻♂️
Same here. Maybe not over 11, but I'm sure I will at one point. Free 1st class & hotel stays is the way to go!
If you consider getting a credit card but don't want to worry about points or care about maximizing rewards, just get a 2% cash back card like the Citi Double Cash.
I will say the mortgage industry is changing. Both fannie and Freddie now consider rent payments when determining loan applications as well are looking into alternatives to FICO credit scores
One of the main reasons I, as an EU citizen, could not live in the US or Canada is this dystopian abomination called Credit Score. Other countries have schemes with similar names, but not much comes close to this "you HAVE TO have debt, otherwise everything will be more expensive, or even unavailable for you" nightmare. In most countries, if you never had debt is as good as repaying it on time: the point is that you never failed your obligations, regardless of how you managed to do that, you are trustworthy. Introducing a system where you can't rent stuff because you could always afford to pay for your consumption up front (and not consuming more than you could afford), and that is somehow shady, is just flat-out ridiculous.
Not really. It means you never had any confirmed obligations to verify if you are trustworthy. Same way as owning a car and not crashing it earns you insurance discounts and not crashing a car because you never had one doesn't.
I see your point but I've never had that and I have great credit so you don't have to have debt to build your credit.
@@BuggiEU
But you didn't live off thin air, did you? You made all of your daily business without every going negative. In Europe, that's the ideal way to handle things.
A better comparison would be always parking the car in the right spot vs always reliably getting it towed and paying off the fine like clockwork. Sure, it would be WORSE if you wouldn't pay the fine, but why even go through this nonsense to begin with just to prove you can pay?
credit score exist in europe to but is't as inportant as in usa
U can built a good credit score in the US without having to go into debt. In fact credit cards are the only way to do so if u pay off in full every month, as loans and mortgages are the only other way. I have several CC (use for different points schemes) and have about 80k of a credit line. Of course if I actually charged $80,000 I’d be in some real trouble!! Especially if I’m paying 20% interest on that borrowed money. CC can be a death trap for this reason that a lot of people here in the US fall into.
4:48 bu this point of the video, i have to give thanks for your educational content, now i will ensure that i read the fine print on credit cards!
Here the EU country I live in I was thought that debit cards are for all the usual payments and credit cards aren’t necessary and are most likely only helpful if you go to a different country where they don’t accept euros and you can’t find a way to use a debit card… and this video really confuses me😅 with the points and why a credit score for a debit card ? Or did I hear that wrong?😅 any help please 😅😂
You earn points for the money you spend and can exchange them for rewards. Credit cards in your country for sure have some programs like Mastercard Priceless Specials or airline miles. Also, using credit card is much more convenient than debit.
There are points cards and cards that just straight up give you a percentage of cash you spend back, I use the latter cause they are just simpler and I don't have to think about it. In the US at least, if you have your card stolen there are very little protections for you using a debit card and you just have to hope the bank feels like getting you your money back, but with a credit card it never was your money so the security is much more robust and the response time is usually faster than a debit card.
Credit score is a separate thing, debit cards won't build your credit score, which is why many people use the credit cards in the first place, because using them and paying them off (even for very small things) will raise your score which makes borrowing for a house or something later on cheaper.
I only ever use a credit card for the fraud protection and credit score reasons, and I just pay it off every month so there is no interest. Here in the US the fees for using credit cards are usually built into prices anyway, so by not using them you are basically throwing money away. A lot of cards here have no annual fee and give you a percentage of your spending back, so I just use those and pay it off with my bank account after spending, and every so often I get $25+ back in statement credit directly.
Really the only disadvantage is if you can't pay it off, but if you just treat it like cash I don't see much downside to it. Most credit cards you can also set to automatically pay it off as you use it to make it even easier. Some people can't handle the concept of being able to use more money than they actually have which is OK but for me I will never not use a credit card because the upsides are just too big.
Whats stupid is your credit score gets punished for only having 1 credit card, for having more than 3, for applying for a credit card, for closing a credit card, for having 0 balance, for spending 10% of your credit line.....It's damn if you do, damned if you don't. I've had many times where I've lost as much as 20 points for 0 reason. It's riddiculous.
So happy I no longer have CC, if I need / want something online, I order it thru a service or someone and just pay them. Some cases I have to pay them a fee, which I honestly don't mind. It still works out cheaper in the long run (no hidden fees, interest etc)
13:27 The credit card issuers are also frequently the banks who use credit scores. Source: I worked at a bank.
On the other hand, accepting cash has associated costs. It must be transported to and from the bank. You either pay an employee or have a cash truck hired. Employees may not be safe in some cases. The more cash it is, the higher the risks of loss and safety to employees. You'll need more insurance.
Plus all the admin cost of the person who goes to the bank having to count the money, wait for the bank to count the money, etc. It's always annoying seeing these complaints of how much the credit card companies charge with no objective comparison of how much it costs to collect, count, secure and deposit cash. I'm pretty sure armoured cars aren't free.
@@CaptainKremmen But are merchant fees actually cheaper than doing everything with cash or debit?
Credit cards are really important imo. They teach you financial restraint and responsibility, can be an added layer of protection with fraud, and the points definitely make you a little money if you’re responsible.
If you’re irresponsible and get into cc debt, it’s not the fault of a credit card. It’s your own fault for not being responsible!
The first time I arrived in the USA for a business trip, I was overwhelmed is the Credit Card (CC) being used everywhere. Yes, I have my CC but my default limit is $250 in my bank account. I have a hard time just depositing for a hotel since most of them are 100 to 300 depending on the hotel's star. Yes, I have also a debit card but I kind of not use it because it is direct to my savings, since I do not really trust foreign transactions. The reason I hate the CC even if you paid full in at the end of the month, there is a paid-for cc service for my bank.
10:19 I happened to be shopping in a small newly opened second hand clothing store at the exact moment when the owner realized how much the merchant fee would be on credit card purchases made at her business. It was such a large percentage (probably 3 percent) that her store was doomed to make make much less profit than she hand planned. The store went out of business after a couple of months.
I have a capital one venture card that I use day-to- day for gas and groceries, and after like 6 months of use I was able to book a round trip flight and 2 days at a hotel on points alone. Maybe I’m missing something or I’m a special case but that seems like a good deal to me. Thoughts?
Credit Cards work fine if you’re financially literate and don’t treat it like free money when you don’t have it. Too many idiots signing up for cards and getting themselves into massive debt. I also have the same card as you and I am able to take advantage of the rewards.
the thing is they make so much money in fees that when they gave you the vacation they had made way more money off the businesses you used the card at.
my question is, how much spending do you do? i don't come close to racking up enough points to travel :(
@@Kebersox To be fair, I got myself into credit card debt in college - during a time I didn’t have as much financial knowledge or the income to support what I needed. Now that I have a good income and job, I use my credit cards for most of my purchases and the way I stay ahead of any possible holes is by paying doing payments weekly. I’ll pay off what I spent for the week. By doing this I’m able to take advantage of rewards and points.
If you are fortunate enough to be able to afford it, paying off every month and keeping your spending under control, it IS worth it, but unfortunately a lot of people get caught up in the convenience and the credit cards still win in the end.
CC should really only be used like cash, to get rewards, not to afford something you actually can't.
Has very little to do with being fortunate, and almost everything to do with how you handle your finances.
Watching this from Germany, where most credit cards are charge cards, rewards cards are barely even existing, fees are limited by the EU and credit scores are determined in other (though not much better) ways :D
This was quite informative. Didn’t know these companies had predatory tactics devised on merchants too.
I always wondered why some restaurants were cash-only (and although I wish they would have a sign out front so I don't have to scrounge my wallet) it totally makes sense that the ma and pop diner that's been there for several decades wouldn't want to fork over a portion of their sales to a credit card company
This feels like a “Levi is looking for things to be mad at” video. We live in a society that still has and uses cash. So if we’re all choosing credit cards as a better option. Both buyers and sellers. No one is being forced here and everyone is receiving benefits.
As we point out in the video though, it's not really a choice in a lot of cases if people want to build their credit score. Additionally, a lot of people get credit cards because it's the norm, not because they thought about it particularly. We're just trying to show people that there's layers to this stuff. 👍🏻👍🏻
@@FutureProofTV Hi, Levi. Apologies if my comment was too sharp. I think credit cards provide a lot of value. That value comes at a cost. But we’re all agreeing to those costs to get those values. I, for one, would not want to live in the pre-credit card world.
Now a fun research project would be to look at how credit card companies value accounts. You can do this looking at valuations when banks merge. Last time I looked this up, the value of an account was around the average balance. So the card company expects their total profit from your account to be about what your average balance is.
Credit card companies and banks rely on the fact that most people don’t take the time to read and understand the fine details of having a credit card. Plus a vast majority of people don’t have basic financial literacy in the USA, or start relying too heavily on spending money they don’t have.
How about Visa/Master Pre-paid cards?
Are they any better than CC since they deliver the same idea?
I use Visa Pre-paid card because they have less annual fees than the CC, and, I use them to never force myself borrow and be in debt.
I only pay for what I need.
Still, I feel the bank is fooling me somehow, and the rewards I earn are not given for me for free.
I've found that more often then not, just straight cash back is the best deal. You don't have to play gymnastics just to squeeze out the best value for your points and well, you can use your rewards on anything
I have been using a credit card since college, if you actually are the type of person to look at your bank statements and track your spending and be financially responsible you can benefit a lot from it. If you're not please dont get one. And credit churning(look at the fine print of every card you get) is something I do. I like to treat it as a side hustle and it makes me money😉