Will the banks ever learn
By Bytemi
@Bytemi (1553)
United States
March 9, 2009 7:56am CST
So I applied for the new Motley Fool credit card because I really love the design and I think it says a lot about me. I was approved for the card and I received it this weekend.
When I called to activate the card the lady that I spoke too informed me that I qualify for no interest no payments until March 2010 so she encouraged me to go and use as much of the credit line as I can because it won't cost me anything.
Isn't that how we got into this mess to begin with? People using credit and over extending themselves? I could be wrong, but encouraging me to take on as much debit as I can in todays market seems a little stupid, do they not want to get their money back.
What do you think?
1 person likes this
3 responses
@coffeebreak (17797)
• United States
9 Mar 09
Yep, that's part of it... people spending money they don't have and making a debt they can't pay for....
Good for you if you didn't do it... although if there are no payments and no interest charged until 2010 - that means, once it expires, they will add in all the interest it would have incurred for the last year and that would increase your balance and then the interest would start at like 13%. THey are doing that hoping you'll forget and then in a year they can get all that "back" interest and up the amount they get repaid.
What I'd do, if this is the case. I'd take the full credit limit out. Bank it in a savings account and since no payments are needed, just let it sit there and collect interest. One or two months before the expiration date of when they will start charging interst and you have to make payments... just pay the entire balance off... that way, you have used their money to earn a little bit for yourself - no expense to you, nothing out of your pocket, nothing out of your budget. LIterally free money earned.
This is.. afterall.. what they are doing to you! You dont' think they are going to let you have all that money for 12 onths for free do you?!?! They will add the 12 months interest to the balance. Turn around is fair play, they are just hoping that you are not smart enough to see how the cow eats the cabbage and they can get you when you least expect it!
2 people like this
@playapal (894)
• United States
9 Mar 09
I am really surprised that they would have said that with the economy the way it is now days. You're right, maybe they don't want their money back! I have totally quit using credit cards, I have't used one in 6 years. If I need to purchase something online or buy airplane tickets I use my debit card. This way if I don't have the money, I can't buy it. It really keeps me out of trouble and for the first time in my life I can say that everything I have is paid for outright.
2 people like this
@benny128 (3615)
•
9 Mar 09
stay away from credit cards you dont need them
all your doing is giving the banks more money. The economy in my opinion wasnt caused by the banks it was caused by people taking out what they couldnt afford the banks did encourage it but any business would encourage people to use their services.
So stay away from them total nightmare
1 person likes this
@Bytemi (1553)
• United States
9 Mar 09
I understand what you are saying, but the banks do have to claim some liablity for this situation. When I bought my first house I was told that I could afford a $400,000 house. I knew better I bought a $180,000 house and struggled to make the payments. The banks set people up to fail and I don't understand why.
@benny128 (3615)
•
9 Mar 09
the bank's are business's they want your money plain and simple same as any business on the high street or online they will encourage you to spend and spend and spend.
They do take some of the responsibility agreed, but people have a choice to either over stretch themselves or to be sensible like you did with your house purchase.
Theres a great example here in the n/e uk, a woman bought a million pound house not far from where I live, got a mortage on it sports car etc etc now she had over stretched herself she is now bankrupt and the house went for auction and sold for half its value.
People live for the day when you should be living for tomorrow, the banks are there to make money from your money.
Just my personal opinion,
1 person likes this
