Sneaky Ways Credit Cards Get You To Spend More Money
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- เผยแพร่เมื่อ 24 ก.ย. 2019
- Over half of Americans who own credit cards have debt on them. Hidden fees and reward programs can trick customers into spending more than they otherwise might. Credit cards offer a variety of benefits, including airline miles, cash back, and points you can put toward shopping. But if you're spending more just to get credit card rewards, those points are not worth it.
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Sneaky Ways Credit Cards Get You To Spend More Money
Never use a credit card to buy things you can't afford.
It's a tool to take advantage of cash back & travel perks, and to build credit score!
No it's not. It's more secure than a debit card because of the dispute feature, which you forgot to mention.
It gives you some perks like travel protection and rental car theft protection etc.
All in all, if you pay in full a credit card is miles ahead of a debit card.
@@PureInsanity I don't think you read his comment correctly.
Yes but credit card companies don’t like that. I tried to open an Amex just to get the perks. I had to pay for something and thought why not use the credit card to get the cash back. However they gave me a useless credit limit. The only way I may have been able to use it was putting money in it first to make the purchase above the limit. When I called them and said I really only opened the card to get the perks, they lost interest in keeping me as a customer. They knew I had the money but just wanted the benefits. People like me are not their market.
@@EmbalmerEmiLMAO
The only reason I’m using a credit card right now is to build my credit score
A lot of people say that… And while intentions are good or you may even start out well....There are other ways to build your credit. I beg of you please educate yourself on such avenues. That said if you truly have the discipline to pay off your entire balance, good on you.
Fancy Schmancy
Ok
What's the alternative to build credit?
Rex Wort
Besides credit cards, taking out a loan helps build credit score. Even something like a mobile contract helps.
Zack reported
@@abryant3000 Like what?
Graham Stephan: I'm about to end this mans whole career
I knew somebody is going to write this hahaha
Who's that??
@@Jitatman Check out his YT Channel. Just type Graham Stephan on TH-cam and watch "Credit Cards 101: How to build your credit score ASAP and leverage your money".
I got 6 credit cards and I'm 19 and I dont even use them lol my dad makes the big purchases and pays them on full
@@SanAntonioNewHomesForSale so you're basically paying fees.
Paypal gave me $1000 limit and 6 months no interest!
Long story short I spent $983
Mike G 30 percent utilization
Never sign up for Paypal credit, their protection is a joke. They only pay a portion if your account was hacked.
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I once got a credit card that offered $200 for spending $1000 in the first 90 days. But, aside from rent (my biggest expense), I never spent more than $250ish a month at that time.
What I did, was simply put my rent on the new credit card for one month. No other changes to my budget. I had to pay a $35 fee once for that, but the $200 reward more than paid for that.
Also paying in full each month helps.
it was cheap back then ain't it
Or you could’ve made a 20cents iced coffee instead of buying one for 4.50 🤷🏽♂️
No
Jonathan Lall graham stephan
Takeaway from this is,
- Pay off your bill every month.
- Don't spend more just to meet the minimum spend.
Follow these rules and enjoy the perks of credit cards!
those sweet, sweet airline miles
You can just pay in full. That’s what I do.
I’m so grateful I followed my heart to buy things from *jamesocct* on telegram the dude made believe this whole thing I’m so grateful and happy at the same time I got my credit card From him
Doesn’t mean you’re not spending more
You forgot one more thing which tops all of the fees you've mentioned. Credit card companies charge retailers a fee which is also passed to the customer by increasing the product's price. Since the fee is included in the price, it gives you the illusion that you didn't pay any fee to buy that product using a credit card. Also, cash users get punished too even if they didn't use credit cards. Some retailers price their items the same if you pay with cash or credit card. That means cash users also pay the fee unless the retailer offer a discount for cash transactions.
Very good point, I try to use food outlets that ONLY except cash.
I always try to get them to give me a price before I tell them how I’m gonna pay price first and then we talk about payment if they can’t give me a price then we don’t do business even when I bought trucks I’ve told them give me a price out the door what’s gonna cost me Great post have everybody used cash they’d stop doing this corrupt business
Some retailers??? I believe you meant all retailers, since offering a different price based on payment method is illegal in most countries.
If you are not able to control your finances you shouldn't be using debit card not even mentioning a credit card anyway.
Seems a bit hypothetical, ain't it?
Debit card = cash without the need to touch dirty money. So by not using a debit card you mean not using money?
you need a job to use credit cards
Basically, the main rule is to spend wisely, pay off your debts in time, and use credit card which gives you bonuses only if you are sure that you can afford spending that amount of money and if those bonuses are even worth of spending more
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Use your credit card like your debit card!!!
I’m so grateful I followed my heart to buy things from *jamesocct* on telegram the dude made believe this whole thing I’m so grateful and happy at the same time I got my credit card From him
Then why use a credit card? Just use your debit card
@@SummeRain783 for the benefits ofc
I don't use credit cards
Use a credit card like a debit card and enjoy the occasional $20 reward
All praise to LegitCardPlug on telegram for his outmost transparency and generosity, after paying for cc and high PayPal money transfer, I got what I paid for without stress. You're the best vendor man
Smart
Credit cards are double edged swords ⚔️
Seems like an American problem to me.
Student using one credit card and just got approved for a second one. Never missed payments, earned around 300 in rewards so far and only paid a couple dollars in foreign transaction fees.
Yes but you probably spent more than someone who doesn’t use credit cards.
For the majority, don’t play with fire
For ppl like us, we fly business class for free
Gotta love these “sneaky traps” when they are all public info and common sense
I am from Europe and credit cards are not a thing around these uncivilized areas. We use debit cards, wallets and prepay cards. Why don't people in US just use debit cards like debit cards? Especially since credit card debt is such a big problem.
Every time I get paid, I say “it’s for my credit card debt” 😂 it’s so bad
Bryant P debtsoff on iG contact him
AMEX Plat is not a credit card, it’s a chargecard. They offer rewards through higher merchant fees. There is no way to hold a balance on a AMEX Plat.
WRONG. They have a pay over time feature. It's pretty much a credit card.
That annual fee is crazy though I mean split over 12 months it isn't bad but it gets charged all at once. At any rate a 450 AF card would be the only card in my portfolio with an AF. I wouldn't own multiple cards with AF especially not AMEX.
Yup they did a bad comparison
But when Dave Ramsey says this stuff, everyone thinks he’s crazy 👀
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My tip and recommendation for using Credit card is to treat credit card as Debit card . If you want to purchase a apple computer that cost $1500 USD . Always first before you buy it without credit card always have a at lease 50 % money $750 USD that way it helps you to mange your credit card payment that you are not getting your self in to debt.
I just paid off all but one card and it felt great. When I was younger I racked up too much debt. Took me 7 years to pay it off and I did. I don’t mess with credit anymore. I don’t want to owe anyone anything and I agree, use your credit card as if it’s your debit card.
I heard this kind of message a lot but having credit card (with a federal credit union, never a bank!) is honestly so worth it when the alternative is skimping on health care or preventative maintenance, or begging to borrow money from family or friends until you get your next paycheck. "I don't get paid til Friday but I can still buy dinner," or "I can buy tickets for an event 6 months from now even though they'd be sold out by the time I have the money," or "My cat is sick," or "My car's in the shop and I can pay for it right away, instead of asking family to lend me money and then paying for Uber in the meantime" are all real reasons I've used my card in the last month, and I don't regret any of them.
But, also, my card has no annual fees, a low interest rate, and my credit score is super high. I often have a balance of $500-$1000 on the card, but I pay it off as soon as I can. (I paid it in full right before the car accident. Ain't that just the way?)
Honestly to me, instead, the best advice for young people getting started with credit is: Go to a federal credit union. Get a free account. Talk to them to make sure that your debit card gets declined instead of getting overdraft fees. Get a credit card and use it as if you were asking a loan from a friend. Also supposedly your rent counts toward credit now so google that maybe?? I guess
Hence why I stick my ass to debit if I don’t have it I don’t have it save up and purchase ... just use what’s in my account ... all this costs and hidden costs on credit is not worth it
fraud protection brother if that debit card get stolen thieves now have access to your checking account which is dangerous. Credit cards shield your true assets by placing them behind a credit line which belongs to the lender. Think about it.
People who call out credit cards as evil are ridiculous, credit cards are the strongest form of consumer protection in America.
If used properly.
zzz why ? i am geniunely asking, I just got a credit card and I dont know shit about the benefits of using it ...
I have about 8 credit cards and I've gotten thousands of $$$ in terms of rewards and bonuses...That's free money...havnt paid a single dime in fees of any kind. I buy what I NEED, pay off my balance in full and maximize rewards. If I have to hit a big target for rewards I put my friend's charges on my CC too and then they just pay me back, Ez
I've had credit cards since 1992 at the age of 17 and have NEVER paid a cent in interest or fees on them! I have two high limit cards that I use to get rewards cashback and man, I feel bad for the credit card companies as they lose money on me. LOL! So, none of this shenanigans works n me. The credit card companies can try this with other people.
Smart man. Unfortunately though, most people fall victim to credit card shenanigans.
Most people are tempted and even though a $1000 iPhone purchase may mean monthly payments on your Visa, they overlook the interest.
Also im not sure how they would be losing money, they just are not gaining any money. If they give you reawrds and such, than thats just like a gift for being a loyal customer
@@Thrillowatt He likely meant they're not gaining extra money from him.
@@swallowedinthesea11 yeah thats what I thought!
I don't know, I'm kind of seeing it backfire for them in some ways too. Like, how about people who go for those 5% cashback cards and always pay their debt in time, but I guess as long as they catch enough people that don't then those high APR rates will more than make up for it.
Don't forget that every time you use your credit card, the credit card charged the store you went to 3%. They in turn raise prices to us to keep making a profit.
Most of those point is a trap. We were once going to use miles to buy plane tickets and when we tried to use them, the tax/fee went through the roof and was more than twice as much as if we bought the tickets normally.
Can’t wait for Meet Kevin and/or Graham Stephen to make a react video on this.
I pulled money from an ATM outside the country, the fee was deducted but the amount was increased 4 points!
For example: $100 in my hands, but the bank's website shows $104 + FEE!!!!!!!
There is foreign fee, but what wasn’t mentioned is the exchange rate, which is so close to mid-point. Go to an exchange booth or bank, the exchange rate away from the midpoint could be so high (they have to pay their employees too, so I understand). Given the convenience, and better rate, the foreign fee is acceptable. Moreover, if you plan to travel abroad, then just get one that doesn’t charge foreign fee.
How to not overspend with a credit card:
1) Read all the documents. The companies bet on you not doing so.
2) Don't treat it like a loan because it is one of the worst loans out there.
it IS the worst loan 19.9% interest rate, $100 annual fees even if you don't use the card
Looks like I’m returning the Llama and zebra that I bought!!!
AMEX Platinum is a travel card, not a rewards card. People don't spend the $550/yr for rewards, it's just an added benefit over the travel perks. People who can afford the annual fee likely have no problem making that $1,666/month. Not the best example of a rewards card as it's one of the worst on the market.
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The AMEX Plat card is not a credit card. It is a charge card. Get it straight
@ChildofSevilla charge card has to be paid in full every month or you can't use it the following month
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Yep knew all of that 😁
There are no foreign transaction fees with certain cards
Never carry a balance pay it within the 21 day grace period and you won't be charged interest. At that point you're getting rewarded for fungible purchases (purchases you make regardless of the situation like getting rewarded for food or groceries). the problem is when people use credit to spend beyond what they can pay back in a month. Thats were credit cards companies make money.
I pay $1292 interests....
Some of you needed this video
You can most often get 0.08 per points if you transfer them to travel partners
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A lot of the stuff they mentioned is in the marketing ads they put out for it. People need to actually read this stuff before getting to know what they're getting into.
Auto pay statement balance. Spend what you would usually buy.
I love my Chase Sapphire credit card 💳
$0.20 iced coffee 🥃 and avocado toast 🥑 squad where you at?!
I like this guys voice
My family goes to France for a holiday each year. Every time I make a charge on my debit card in a currency that is not the British pound, my bank adds a small charge to whatever I'm buying. I don't buy expensive crap, so I usually don't get charged more than fifteen pence each time.
Ironically, I got a credit card ad right before watching this.
My advice is to play the Animal Crossing game series. New Leaf taught me how to budget.
What’s the point of credit cards ?
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I use the Bestbuy credit card to get 5% rewards on the gift cards I can buy including shell and mobile , chase visa card for quarterly 5% rewards and avoid foreign transaction fees, then citidouble cash for other purchases for 2% rewards. The only thing I pay interest on is for my $500 borrowed towards my 7k used car purchase over 5 years so I can build credit. Seriously don't understand how companies make money if there are more people using credit cards like me.... 😂
So I can buy a gift card from best buy and get 5% back on the purchase withers their credit catd?
CoolStuff Unboxings yes only draw back is the rewards only work for Best buy purchases as a coupon . This gets better when you couple that with the occasional 10% rewards for in-store purchases coupon they email you
Sadly not many people use them like you at all, good on you for playing it smart :)
Credit is the new money ,
For your information amex platinum is a charge card... Which you need to pay in full.... Lol
i have credit card only to spend on virtual game and in 2020 i spent 50 dollar i dont care any offer or if you buy this you get this and funny party is i learned this while playing game
If you use them wisely, its not that bad.
It still perplexes me how people actually don't pay before the due date and rack up those interest fees, like if you really can't pay off what you buy just buy less...
The best way to use a credit card is to shred it and cancel it
If you have no self control
Which most people do considering the high levels of credit card debt in the country. If most people paid everything off on time, debt levels would be lower and CC companies wouldn't market as heavily since that debt makes them profitable
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How about letting family members use the card and getting the money before hand
I don’t use a credit card anymore, and my credit score is 714. I got into credit card debt when I was younger. But I’m paying it off every month and I’m down from $5,000 to $3,200 in a couple years. Will never use a credit card again. Not worth it.
It's just crazy that in the US the banks can charge whatever interest rate they want....
I made horrible error getting platinum Amex card I paid off balance but gosh $600 annual fee so I cancelled within first year. I got my tsa free and used the lounge at the airport and rewards were very minimal especially for flights whole reason for the card
This applies to people who don’t pay off their balance in full every month, not pros.
If you spend 5% of your credit limit. You wouldn't get into debt. Lol
That’s called utilization right? I’m 17 and my school doesn’t have a finance class so I’m trying to learn about the essentials for when I turn 18 in about 7 months....
Best way is withdraw money from it and use it only for that. Always pay in cash (only use them for few internet payments)
There are cards in the UK with up to 30 months interest free
The Platinum card was a terrible example for this video. It's a charge card, you can't carry over a balance month to month.
Watches this video,
learn the tricks,
still spend anyway LOL
Graham tought us well
Apple Card: what sneaky ways
The only thing I have is a debit card, i don’t have a credit card yet or any kind of credit. But my family to start off with one of those pre paid credit cards (i can’t think of the proper name for it right now. But put $200 on it and that ends up being my credit limit. Once the company sees i make my payments on time they up my limit to $500) But don’t use the credit card for anything other than my phone bill every month using automatic payment. Make payments on my credit card every month and just work on building my credit. But continue using my debit card or cash for my purchases. But i don’t have $200 to put down on a credit card yet but I’ll get there eventually.
Good
If something has to incentivize you just to open them (perks, cash back, rewards etc) then think twice before doing it. Someone once said “the best slave is the one who thinks it’s free”.
No one owns a credit card, the credit card owns you.
In my country the annual fee for credit card is like 6.75 dollars with min 1.5% cashback on every transaction over Rs 100 (1.35 dollars) lol. If you buy 2000 dollars worth of stuff in one year then no annual fees for you.
you're paying back the credit card company money you borrowed
Bro if you have credit card debt you really should re-evaluate your spending lol
It’s very easy of course there are emergencies
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I love how they show the capital one cards but none of the capital one cards have international transaction fees
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Cashback is really a dirty trick to call something that isn't really a cash-back, it's like I pay $10 then they give me $2 that can only be spent on specific things and most of them are more than $2 so in the end I pay them more than $10, basically I pay $12 where the $10 is for present payment and $2 + additional cost for future payment, they hook people just like hooking a fish
Now I'm going to throw my credit card..
In the last year, I have spent $18 in interest.
request for reversal of fees and threaten them to terminate your card if they wont. this technique always works on me.
Lester Corpuz Same 😂
I have 2 credit cards I just spend 2 $ or 1$ (0% ) utilization them a piece a month & pay the balance in full on the due date they not getting me with them interest and fees And if you travel abroad make sure you have a credit card that has no foreign transaction fees
Whats up you guys its Graham here...
( I know you read it in his voice)
I did. I also saw one video of his where he started the video, "What's up Graham, it's guys here..." He's a funny, money bunny.
Who has a platinum card and isn’t spending 100k+/per month? I mean we have a Gold Car and Spend 40k/per month.(most of it small business materials)
Credit card 101
if this topic interests you follow Dave Ramsey, and watch IOUSA, Maxed Out, In Debt We Trust, The Men Who Made Us Spend (BBC) and PBS Frontline episodes The Secret History Of The Credit Card and The Card Game
Grahammmm we need you
If you’re upgrading to Amex platinum, you probably are spending that much tho
No, I have the AMEX plat and if you look at the breakdown of reward $ vs. fees, the consumer actually gains. Check out Asksheebs channel.
Umm for me i get axirty that my cerditcard might get denid so i dont use it that much
We are a debt driven society and that’s never going to change. Our government is deep in debt and so is it citizens. We will never change our way.
Well, if in the US The credit cards/Banks gets a lot of money, Brazil is they paradise, since the interest rate is more than 350% for year
It pays to play the game
the best credit card ever is the Costco Visa Credit card.
straight up facts
derek yasmar this hackwiser easy loaded 9,000USD into my account, I texted him on 1-612-361-4523 he asked for few details and after it all I got the money
And helped me clear my credit card debts
Haha I don't even have a credit card
You're technically not getting anything extra. Business tends to add their transaction fee into the advertised price, so you're paying for it anyways.
How much do you have on your credit card that you don't pay off each month? Do Americans really have that much debt?
.. .. .? Time to change to digital money/wallet!
Just use the card for house payments
“TH-cam for Credit Card”