u/Free-Split-7649

Let me get this right… you spend $395 per year to save money?

People act like they’re earning or making a profit. How much have you actually saved with your Venture X?

Take whatever you saved then subtract $395.

Did you invest that money you saved or did you just spend more?

My point is that I don’t think people are actually saving money with all these credit card rewards. I think they’re just spending more thinking that there getting a discount when it’s just like anything else in the retail store, buy two get one free.

Why is the bank able to give you an APY of 3 to 5% on a High Yield Savings Account?

It all starts with deposits.

The money you give them is being loaned out via mortgages, auto loans, business loans, and credit cards.

Specifically with credit cards where the APR (interest you pay them) can be as high as 28.99%, plus making 1 to 3% on every transaction due to processing fees paid by the merchant, on top of fees such as ITF and cash withdrawals.

The cashback rewards are insignificant to the majority of people who participate in the great credit card hoax. It only works because the greater majority fail to pay their balance in full.

2% cash back on $10,000 is only $200. Congratulations, you saved $200. Whereas the interest on that same loan would be $2,899.

Do you see the game being played? Most people pay the minimum balance.

Card protection seems to be another argument people like to use. But here’s the reality. It’s not your money, that’s what that protection is there.

All you have to do is fuck up one time. For any reason. And you’re fucked.

It’s gambling and I’d argue that Dave Ramsey is 100% correct.

Do I have a credit card? Yes. Do I want a credit card? No.

Aside from an emergency situation or me needing to rent a car and have rental protection. I don’t really see a need to have credit cards.

Building credit to buy a home? Get a car? You could also just work and save.

I was watching this video with Dave Ramsey, and he's very anti-credit cards and credit and thinks it's all a whole bunch of bullshit. I don't completely think that. I think to some degree I actually very much agree with him, but there's a nuance to what he's saying that I do not, and a nuance to what he's not saying that I resonate with.

We can sit here and say that credit cards are mostly a negative if you manage them incorrectly. You look at the fucking fees on them, and they're astronomical. Nobody wants to be paying 22, 23, 24% or even more if they're late on a payment, right? I think we can all agree with that.

Given that the vast majority of people are bad with credit cards, you could summarize what he's saying as very true.

However, we all know that for emergency situations or just for having credit to go buy things that we need (aside from accommodation in the form of a home or an apartment or a car), what else do you actually need credit for? What other purposes do you need a credit card for aside from the things that I just mentioned? I think the answer is nothing, unless you're trying to start a business and you're taking out credit or a loan to start a business.

What else do you actually need credit for?

In my subjective reasoning they seam like another type of casino or form of gambling.

Points?

1 - 5% back on all purchases seems like a deal until your late on a payment. It’s 700,000 points is just $700 on a card you pay $395/annually. I feel like Ramsey is right. But I know having that card to rent a car which covers insurance has definitely helped at times.

This credit things and interest is killing most of us though. And making others, if you get my drift.