Is it true that you lose money with credit cards?

[Anonymous]

[zeitgeist057]

You CAN lose money, but it's easily avoidable by paying your balance in full each month. By simply doing this, you avoid paying any interest or late feed, and you actually GAIN a little bit with a lot of cards which reward you with 1%-5% (or sometimes more) of what you spend in the form of cash back or points which can be redeemed for goods or services.

It's very bad money management to lose money with credit cards. The interest rates are quite high, so if you want/need to borrow money that you can't pay back right away, a credit card is one of the worst options to choose.

[Lliam]

🎯🎯🎯

[Fireguy17]

Only if you don't pay them off in full every month. Then yes, the interest they charge is obscene.
Otherwise get a card that you get something you will use, like money off for gas, I've gotten all sorts of stuff a free cruise, gas, money back, airline tickets, money off of a new car,, whatever you want there is a card with bennies for you, but it is only worth it if you pay the bill in full every month, or you will loose your ass.

[Kelley1]

Only when the price is higher. Some examples. The government and precious metal dealers will charge a premium if paid with a credit card. Large purchases will be higher if you pay with a credit card such as buying a house, a car or paying your college tuition.

[Sour-rose]

Yeah, if you use it for EVERYTHING. But if you use it rarely as possible... you could still lose it because some asshole got your credit card details. :D

[BoopBoopBeep]

No I make a ton of money off the airline miles I earn. I pay the balance in full every month so there is no interest, and the annual fees I pay are far less than the additional value I get out of the card from other benefits that come with them like travel credit or CLEAR/Global Entry/Lounge access, making the annual fees essentially zero of plus to me.

[rigmarole]

You always lose money when you spend it regardless of how you go about it... That said if you were going to spend the money either way, if pay your bill in full at the end of the month there is no interest added. Technically you are getting 30 days of float that enables you to collect a month of interest before you pay your bills. If you allow a balance to build, then the interest is a killer.

[lightbulb27]

yes in various ways, but it's a business and that's the idea... you can figure out how much by looking at the income of the credit card processor companies.

Bank billpay as well is free... hahahah... or so you think! Jesus H... can anyone even think anymore? People are paying a lot for such services, but it just isn't advertised.

[Lliam]

If you don't pay off the balance each month, you get charged interest, which is like throwing money away.

But if you have a "cash back" credit card or one that has other benefits like Sky Miles, you can actually profit as long as you always pay off the balance each month and avoid interest.

[Anonymous]

Only if you're an idiot and don't pay the balance each month.

For me, I make money on mine because I always pay the full balance, and I accumulate rewards points I can use to buy stuff.

Consumers/byuers don't pay for credit cards, vendors/sellers do.

[Dinklex3]

?

Only if you don’t pay them off and don’t know how to use them.

I was afraid of them for years, then I realized I was missing out and received quite a bit of benefits and deals.

[OddBeMe]

Pretty much. But like a mortgage you’re buying time. So if you have the full frame in mind, you can get stuff you otherwise wouldn’t be able to.

And of course there are perks of no interest for a year. Which is how we furnished our first home. But still you have to read the fine print.

[electromagnetic]

Not necessarily lose money but interest rates will murder you if you don’t know basic money management.

[rosemilk]

yes... there is interest on the payments. which is extra money tacked on because you borrowed money.

[HelpfulWoman]

not necessarily. but you need to have a strict set up of paying what you spend pretty much asap each time, otherwise its a waste of time

[ProbablyClueless]

Most people lose money on them. The trick is to find credit cards with good rewards programs and pay them off quickly.

[exitseven]

It is possible. Some places give a discount if you pay cash. If you do not pay the balance at the end of the month you get charged interest.

[douride2]

Not if you pay them off in full when the bill comes in.

[Snakeyes7]

If you don't pay them off before interest gets added to it.

[jamesgoldman]

Generally but if you pay it off every month you don't do badly and of course if you know how you can make money with them

[JacobJordan]

Presuming you don't pay it off regularly yes

[FenixG45]

Well, you DON'T make money! EVER! NO matter what they say!

[Paris13]

Well, Yes, Interest They Tack on. xx

[Redstang88]

If you don’t keep up with them yes

[Pterodon]

Yes because of the interest

[Minahh]

Basically yeah