What My Problem Used to Be

[katharina]

Before I got rid of the debt, something really strange (and not real bright!) used to happen to me. Like if I wanted a new book or two... I'd decide to use the credit card at the bookstore. Great, no problem, right? But THEN I often thought "Ugh, that's only $8, that won't look so great charging such a small amount... I'd better choose MORE books so it doesn't look strange." :-o I'm so glad to have broken away from that credit cycle.

 

[mamab]

Congratulations for breaking out of the credit card snafu. We haven't had credit cards for over 2 years, and I don't miss them at all. I understand, though, about charging small amounts to a card. I hated to do the same thing. Unfortunately, I also ended up charging more instead making myself wait to get that item when I had cash.

 

[rubybug]

I also did that when I was younger. I fell into the credit card trap when I started college. We haven't had a credit card for five years now. I don't miss them either.

 

[Melos]

Well, back when I had credit cards I never charged more just because I thought it might look funny if I didn't. Some places do have credit card minimum purchases though. And I'd never want just $8.00 worth of books. My (our - exhusband and my) credit cards were used for needs and his wants.

I am planning on getting a small credit card again soon to start rebuilding my credit, but I have a definate handle on not overspending now, so I'm not worried about it.

 

[katharina]

I also did that when I was younger. I fell into the credit card trap when I started college. We haven't had a credit card for five years now. I don't miss them either.

I still have a card for convenience but it's paid off fully each month and it's been like that for a few years now... there's not been any problem at all.

 

[mamab]

I am planning on getting a small credit card again soon to start rebuilding my credit, but I have a definate handle on not overspending now, so I'm not worried about it.

You know, there are other ways to rebuild your credit without having to resort to getting a credit card, don't you?

One of the easiest ways is to purchase a small item (that you really need) on credit at a local store. Get the terms for AT LEAST 6 mnths, because anything less than that, they don't report to credit agencies. Then, make the payments and purchase the item without any missed or late payments. This will be reported as a completed transaction, will help to build your credit, and will most likely cost you less than getting back into the trap of credit cards. After you've finished paying off that item, wait a few months and do the same thing. It will build back up after time.

 

[taiarain]

It's ironic that you felt weird about making such a small purchase on a credit card because CC companies are now pushing to encourage small purchases (under ten dollars). I keep hoping it will fail because I don't want to see price increases beyond inflation.

 

[katharina]

It's ironic that you felt weird about making such a small purchase on a credit card because CC companies are now pushing to encourage small purchases (under ten dollars). I keep hoping it will fail because I don't want to see price increases beyond inflation.

Hmmm.... what would it benefit them to have smaller purchases? I'm not seeing where their reasoning is coming in.

 

[taiarain]

Transaction fees. Every time you swipe a credit card, the merchant accepting it pays a fee. CC companies get a cut of every swipe. Remember the old days when gas had a "cash discount"? That "discount" was actually intended to make CC users pony up their share of the transaction fee. CC companies won't allow that now.

It's part of the reason banks want customers to swipe their debit cards as credit instead of debit - the merchant eats the fee. They don't tell their customers that, though. They say things like, we'll give you points for swiping like a credit.

Edited because I didn't focus enough on the answer. lol The answer there is a combination of volume and untapped market. People don't like to swipe for a $5 coffee and donut or a pack of gum. There are literally millions of these transactions daily. It's a huge pot for them to get their hands into.

The CC companies are trying to lure you with promises of greater convenience and security. Watch for it. Promises about the security of not having to hand your card over because you can either swipe and not have to sign or you can just wave near a card reader at the gas station or 7-11 or McDonald's are designed to get you (general you) using the card.

I've ghostwritten quite a bit on this topic over the last year.

 

[katharina]

The CC companies are trying to lure you with promises of greater convenience and security. Watch for it. Promises about the security of not having to hand your card over because you can either swipe and not have to sign or you can just wave near a card reader at the gas station or 7-11 or McDonald's are designed to get you (general you) using the card.

Well, I happen to be pretty stubborn and someone wanting me to do something (or worse yet, trying to lure me!) is a pretty sure bet that I won't be doing it.