Why Banks Love Credit Card User?

[azree_mh]

There is one simple answer. They can get an easy money! Banking business is one of the most profitable business in the world because banks can easily ’steal’ your money regularly without you really notice about it. Your money, debt means their profits.

1. Credit Interest

Banks will charge you 1.5% monthly on the unpaid balance which means 18% per annum.

2. Late payment fee

This fee is payable when payments are late or there is non-payment or the amount paid is less than the previous month’s minimum amount due. It could be as high as 5% of the minimum payment due.

3. Cash advance fee

Either the banks charge you in term of percentage from the total advance fee or they impose you a minimum charge per transaction.

4. Apart from cash advance fee, you should aware that there is also 18% p.a interest that continues to be charged from the cash is disbursed until the full repayment is made.

5. Though you are the most disciplined card credit holder on the earth, the banks still get the money through a default charges such as processing fees for any transaction that you made to the shop.

I got this entry from Pakdi.net on Personal Financial Planning my friend
And because of this article, I really don't want to use credit card. Haha.

[indieover]

that is really hate to use credit card. many people who are expert in money don't really recommend credit cards. i have heard so many discussion on television show discouraging people to make purchase through credit cards.

[indieover]

of course they will really if we are going to get a credit card since they are really charging us with great interest in our purchase. and they love when people have delay in payments cause they will earn more by interest. they are not really interested if we pay them fast. that is how they earn easily.

[titaniumhijau]

Why? Its because its easy to use. Just need to sign only. You also can bring it anywhere and no need to bring your big money in your wallet right? Thats why many bank love credit card user.

[buaya]

Originally Posted by indieover

of course they will really if we are going to get a credit card since they are really charging us with great interest in our purchase. and they love when people have delay in payments cause they will earn more by interest. they are not really interested if we pay them fast. that is how they earn easily.

The interest only come if you do not pay up by the grace period, which is about 28 days - 31 days depending on the card issuers.

[markedzonne@yahoo.com]

It is the easiest way to pay for something you want to buy..bank offered lots of freebies and raffles that may also encourage you to used credit card ...

[indieover]

Originally Posted by markedzonne@yahoo.com

It is the easiest way to pay for something you want to buy..bank offered lots of freebies and raffles that may also encourage you to used credit card ...

yes they give lots of freebies. they are able to do that cause they are really earning so much in our purchase by our credit card. i have received a free gift card of Hazzen Dazz ice cream. the pint size.

[buaya]

Originally Posted by indieover

yes they give lots of freebies. they are able to do that cause they are really earning so much in our purchase by our credit card. i have received a free gift card of Hazzen Dazz ice cream. the pint size.

At least your country still has not degraded to the stage that banks are starting to offer 500 dollars limit credit card to those with poor credit background, non working people and student.

[Samanosuke_04]

But sooner or later, I think everyone will use credit cards.. haha, there's no way you'll make payment for something expensive in cash!! haha, It also help people who wants to buy something but they don't have money or their payday is a long way ahead.. credit cards is like instant cash, and there's no problem using credit card if you pay them monthly..

[titaniumhijau]

Originally Posted by buaya

The interest only come if you do not pay up by the grace period, which is about 28 days - 31 days depending on the card issuers.

So, we need to pay early before you need to pay that interest.

Originally Posted by markedzonne@yahoo.com

It is the easiest way to pay for something you want to buy..bank offered lots of freebies and raffles that may also encourage you to used credit card ...

I think many people love bank but we must not forget, bank also love credit card user..

Originally Posted by Samanosuke_04

But sooner or later, I think everyone will use credit cards.. haha, there's no way you'll make payment for something expensive in cash!! haha, It also help people who wants to buy something but they don't have money or their payday is a long way ahead.. credit cards is like instant cash, and there's no problem using credit card if you pay them monthly..

I need to agree. Credit card is important. Especially for IM like us..