Nonparticipation in a lie
I've always thought I'm above all circumstance, including the law if need be. Personal integrity is all there is.
On the other hand, I accept opportunism. When given a "free lunch", do I take it? Somtimes!
The whole modern financial system now revolved around a little number called a "Credit score". I don't understand how it is computed, mostly I know that "higher is better", and certain "virtueous" behavior (like borrowing and repaying what I borrowed) can raise and "viceful" behavior (like not following through on a promised payment) can lower it.
I also know that some virtueous behavior doesn't help. Living on savings doesn't do anything for my credit record. Giving to charity also offers nothing nothing.
I got my first credit card in college, but long never saw any use for it. Finally in the internet days I found it was sometimes convenient for internet transactions.
Anyway, overall I would say I think credit card companies are corrupt and unworthy of my participation.
Originally I remember turning down credit cards because they had annual fees. I didn't believe in "fees" for something I didn't need. Then so many silly people accumulated credit card debt that companies could afford to remove all the fees AND have a 30 day grace period to repay my accumulated debt.
How can you beat a free lunch? YET, I know my free lunch is paid for by others more foolish than me. The companies only care about me because they HOPE eventually I'll get over my head someday and they can earn back some of their postage from me at least!
Seriously not only do I get a free lunch as a no interest one month loan, but I get data on my credit history to make me look honest and responsible. IN FACT it was this credit history that allowed me to get a relatively low interest rate on my mortgage - which is a MUCH more serious form of debt than little monthly borrowing! Of course the house as collateral makes it less risky for lenders.
Overall I accept that credit card companies offer a valuable service, and they are relatively conservative. They give people low credit limits when they start, and increase it only when they're proven "virtuous".
Of course if they made no money, they wouldn't offer the service. I guess partly they make money through transaction fees. So when I use my credit card to buy something, there's a hidden charge paid to the credit card company.
Ideally I believe in transparency AND accountability. It would seem, my ideal credit card company would "help" by:
1) Charging me a yearly fee for administrative costs.
2) Charging me a transactional fee for administrative costs.
3) Ending the 30 day grace period, and charging interest starting the moment money is transferred from them and ending the moment they get my money.
4) Requiring "minimum payments" to repay all debt within 12 months, and "freezing" the card when the minimum is not paid on time.
5) Charging a "fair" interest rate.
6) No special deals for debt transfers, or special rates.
Under these terms I expect the result ultimately would be MUCH LESS credit card use, and MUCH LESS credit card debt.
Well this is just an outline of thoughts, incomplete, and largely unattractive. Still I'd seriously consider a card which would allow people to accumulate a credit history without making a deal with the devil.
I like to believe sometimes that I'm "paying my own way" through life. It's got some sort of karma points involved I'm sure.
Maybe there's something out there closer to what I want.
Anyway, I don't feel "addicted" to credit at all. I imagine I could go any 36 month period of your choosing without touching a credit card - sure annoying in ways, but survival.
On the other hand, I accept opportunism. When given a "free lunch", do I take it? Somtimes!
The whole modern financial system now revolved around a little number called a "Credit score". I don't understand how it is computed, mostly I know that "higher is better", and certain "virtueous" behavior (like borrowing and repaying what I borrowed) can raise and "viceful" behavior (like not following through on a promised payment) can lower it.
I also know that some virtueous behavior doesn't help. Living on savings doesn't do anything for my credit record. Giving to charity also offers nothing nothing.
I got my first credit card in college, but long never saw any use for it. Finally in the internet days I found it was sometimes convenient for internet transactions.
Anyway, overall I would say I think credit card companies are corrupt and unworthy of my participation.
Originally I remember turning down credit cards because they had annual fees. I didn't believe in "fees" for something I didn't need. Then so many silly people accumulated credit card debt that companies could afford to remove all the fees AND have a 30 day grace period to repay my accumulated debt.
How can you beat a free lunch? YET, I know my free lunch is paid for by others more foolish than me. The companies only care about me because they HOPE eventually I'll get over my head someday and they can earn back some of their postage from me at least!
Seriously not only do I get a free lunch as a no interest one month loan, but I get data on my credit history to make me look honest and responsible. IN FACT it was this credit history that allowed me to get a relatively low interest rate on my mortgage - which is a MUCH more serious form of debt than little monthly borrowing! Of course the house as collateral makes it less risky for lenders.
Overall I accept that credit card companies offer a valuable service, and they are relatively conservative. They give people low credit limits when they start, and increase it only when they're proven "virtuous".
Of course if they made no money, they wouldn't offer the service. I guess partly they make money through transaction fees. So when I use my credit card to buy something, there's a hidden charge paid to the credit card company.
Ideally I believe in transparency AND accountability. It would seem, my ideal credit card company would "help" by:
1) Charging me a yearly fee for administrative costs.
2) Charging me a transactional fee for administrative costs.
3) Ending the 30 day grace period, and charging interest starting the moment money is transferred from them and ending the moment they get my money.
4) Requiring "minimum payments" to repay all debt within 12 months, and "freezing" the card when the minimum is not paid on time.
5) Charging a "fair" interest rate.
6) No special deals for debt transfers, or special rates.
Under these terms I expect the result ultimately would be MUCH LESS credit card use, and MUCH LESS credit card debt.
Well this is just an outline of thoughts, incomplete, and largely unattractive. Still I'd seriously consider a card which would allow people to accumulate a credit history without making a deal with the devil.
I like to believe sometimes that I'm "paying my own way" through life. It's got some sort of karma points involved I'm sure.
Maybe there's something out there closer to what I want.
Anyway, I don't feel "addicted" to credit at all. I imagine I could go any 36 month period of your choosing without touching a credit card - sure annoying in ways, but survival.
posted by Ares Olympus at 7:32 PM
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