Thank You For Irresponsible Credit Card Usage

By: Jeremy Biberdorf

April 23, 2012

Thank You For Irresponsible Credit Card Usage

There are many personal finance blogs that tell you to cut up your credit cards or exercise greater willpower with credit cards. While that may be good advice depending on your situation, I want to personally thank the countless people who are irresponsible with their credit card usage.

Without the huge profits that these people are generating for credit card issuers, we would all be paying annual fees and higher interest rates. Cash back rebates or airline miles would be virtually nonexistent. So from the bottom of my heart wallet, thank you!

Charging What You Cannot Afford

Amazingly many people treat their credit cards as an extended bank account. No money in the bank for those new shoes or dinner out with friends? No problem! Just charge it to your credit card!

The problem is that you can get carried away with this thinking. Suddenly you are financing the lifestyle you dream of. Then once you are used to that lifestyle, you want to maintain it even if it means racking up your credit card.

Before you know it, you have a credit card balance that you cannot pay off. With the high interest rates of credit cards, this can be disastrous.

Always Making The Minimum Payment

For some reason people seem to think that paying the minimum payment on a credit card is perfectly fine. Somehow they are able to ignore how much interest they will have to pay by only making the minimum payment.

The minimum payment isn’t designed to help you pay off your credit card balance though. It is set so low to encourage people to maintain a balance owed. The longer you take to pay off that balance, the more interest you are paying. You are essentially willingly paying a higher and higher price for whatever you charged to your credit card.

Making Late Payments

This is the irresponsible move that can really hurt you. Most credit card issuers will ding you with a hefty late payment fee if you can’t pay your dues for the month. Just by putting off that payment, you could be forced to pay a fee that is even higher than the monthly interest.

The potentially more damaging way it hurts you is by affecting your credit score. Each time you miss making a credit card payment on time, that gets reported to credit agencies, dropping your credit score. If you make a habit of this, it could really hurt, especially if you later try to get a loan or mortgage.

Getting Cash Advances

Some people may have thought they discovered a convenient feature of credit cards – the ability to get cash advances. This is just another trap setup by the card issuers though.

For this convenience, they usually charge a cash advance fee. Then on top of this, they charge a much higher interest on this credit card debt. There is almost always a better option than taking a cash loan out on your credit card.


When people make these kinds of mistakes they are basically paying for other cardholders’ cash back rebates and other rewards. So the responsible cardholders should really be thanking those people for these kinds of perks.

It is up to you whether you want to be paid to use a credit card or if you want to be one of the countless people who are paying for that privilege. I know what choice I’m making.

Have you personally made any of these credit card mistakes? Have you now harnessed the power of credit cards to use them to your advantage? Do you believe that responsible credit card usage will truly help your financial life?

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About the Author:

Jeremy Biberdorf is the founder of Modest Money. After working many years in the website marketing industry, he decided to take on blogging full time and also get his finances headed in the right direction. Also check out his contributions to and Benzinga.

92 thoughts on “Thank You For Irresponsible Credit Card Usage”

  1. Avatar

    I never thought about thanking people for using credit cards irresponsibly! You’re right though, people who do this are essentially funding the rewards programs we enjoy so much. I have to wonder whether or not I should feel guilty for this. But after all, they’re the ones financing a lifestyle they can’t afford (in most cases.)

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      No there is no need to feel guilty about other people’s mistakes. It’s not as if you are the one personally ripping them off on all these fees. While it would be nice if people were generally smarter with their money, their mistakes fund the system that rewards the responsible cardholders.

  2. Avatar

    Great post. However, only the people who are responsible will read and heed. People who abuse and use plastic are in such denial about it, this post is falling on deaf ears.

  3. Avatar
    Financial Conflict Coach

    I’ve made ALL the credit card mistakes- paying minimums only, cash advances, store cards, not making payments at all, using them to pay for consumables…ugh!

    Then I went to the other extreme- not using cards at all, saying cards are evil, etc.

    I’ve found a happy middle ground now- my happy place. I use rewards cards & pay off my balance in full every month.

    1. Avatar

      I’m the same way, although I skipped the extreme of avoiding credit cards completely. I made some mistakes in the past, but now I always pay off my balance in full. Since it’s easy expenses to avoid, it’s like making $20-30 each month just by avoiding that interest. Then add on the cash back rebates.

  4. Avatar

    Interesting twist lol. I prefer to stay with Perkstreet Debit Card rather than credit cards, however, I have paid a major role in being irresponsible in the past (years ago), so “Your Welcome” lol

    1. Avatar

      My personal thanks to you Jeremiah 🙂
      Yes for some a rewards debit card may be a better option while they practice their willpower. I find that credit cards just provide too many extra perks to avoid.

  5. Avatar

    The only mistake I can cop to making is charging things and thinking later. I especially did this when I was in university, thankfully my card only had a $500 credit limit so I couldn’t do too much damage.

    1. Avatar

      University can be the time when most people start making mistakes with their credit cards. They simply do not know enough about how the system works. You are lucky that you had a low limit. Sometimes young people are given much higher limits and then quickly max it out without thinking of the consequences.

    1. Avatar

      Yes those cash back bonuses are nice to have. Just for being responsible with our credit cards, we get a nice discount on all of our card purchases.

  6. Avatar

    I have thought this to myself once or twice. Thank you everyone else for making these companies so much money so I can enjoy my free rewards. Stay ahead of the curve people!

    1. Avatar

      It is crazy how much the credit card companies are profiting. When you think that they are making money from merchants on every transaction as well as from all the mistakes mentioned above, they really are raking it in. They have to be to be willing to pay people to use their cards.

  7. Avatar

    Hurray for irresponsible spenders. I almost used my cc to get a cash advance once but learned about the fees and higher interest so decided not to. In an economy where growth is driven by spending, going into debt to buy what people can’t otherwise afford (or need) is almost considered normal.

    1. Avatar

      I admit that I made the cash advance mistake a long time ago. So I guess you guys can be thanking my former self too. It is considered pretty normal to acquire consumer debt these days. Many times I’ve heard people say they’ll just charge it to their credit card since they don’t have the money. Rarely do they instead avoid the purchases altogether instead.

  8. Avatar

    Even moreso.. Irresponsible credit card companies are making the banks richer and richer. I do appreciate all of the perks offered, but the rewards points and such that are being tossed my way are surely a pittance when compared to what the banks are pocketing.

    I’ve always thought the late fee and interest hike penalties that CC companies off are just off-the-chart ridiculous. I am almost AFRAID to use a card that offers great rewards on the off-chance that I might misplace a bill or forget to pay it on time.

    1. Avatar

      I think many people are in your shoes Jefferson. They are too worried about making a mistake that they avoid using their credit cards altogether. Usually they are more worried about overspending though. Yes the banks and credit card companies are making a ton of money, but by being smart about it, you’re winning at their own game.

    2. Avatar
      TB at BlueCollarWorkman

      Don’t worry too much because if yo’ure a responsible credit card person and make a payment late ONCE, you can call and ask them to take away that late fee for the one time. And they do. Quite happily, actually. I’m not sure they’d let that slide a second time though.

      1. Avatar

        I actually had to do this recently. When I moved I missed one of my credit card statements. Unfortunately it was on my credit card that had a balance on a 0% balance transfer offer. Technically by missing a payment, the interest was supposed to jump back up. Luckily they let that slide. The bad part is that it still gets reported to the credit agencies as a late payment. That part is unavoidable.

  9. Avatar
    John | Married (with Debt)

    Unfortunately the world financial system requires more losers than winners to thrive. If you can make it to the winner column, you should be very thankful that others continue to lose.

    1. Avatar

      Yes there are far too many losers in the credit card game. Some lose especially bad and get buried by high interest debt that can take years to pay off. It sucks for those people, but they also feed the system to make it profitable for others. So without all those losers, we’d all be losing.

  10. Avatar
    Anthony Thompson

    It’s actually pretty generous of you to thank those who are irresponsible with their credit card usage, One point, I’d like to make in response is that not everybody, who gets themselves into trouble with credit card debt, does so simply because they wanted those new shoes or wanted to go out to dinner out with friends and couldn’t pay with cash? There’s a lot more to why people get into credit card debt that goes far beyond just wanting to get crazy with credit cards for the mere fun of it.

    1. Avatar

      I agree with you, though I wouldn’t have thought of it if you hadn’t brought it up. I knew one family that went through a hard time. When their kids got sick they didn’t have ins, but they wanted their babies to be healthy so they took them to the doc and just charged it. They’re living with that debt to this day. Nothing was even seriously wrong with their kids. And now they’re grown.

      1. Avatar

        Good point Anthony. While we naturally think of the typical over-spending credit card user, there are certainly people who resort to credit cards in actual emergencies. They are unfortunately paying into the system too. Really though, even within the emergency category, a lot of those people could have instead approached their bank for a loan or asked for help from friends or family.

        1. Avatar
          Tackling Our Debt

          I wanted to mention that I agree with Anthony, but do not agree with you Jeremy (sorry).

          But the point Anthony makes is key.

          Just because people have credit card debt does not mean they went on a spending spree for new shoes and cars and trips.

          And gettting a quick bank loan for a huge emergency only happens if you have collateral, which not everyone does, and getting help from family and friends, in my opinion is crossing the line.

          I would never want to owe a huge chunk of money to my father and definitely not to a friend.

          People need to walk a mile in the other guy’s shoes to understand why some people in dire situations end up turning to credit cards to fund their life.

          When someone has never been put into a dire situation, I don’t think they should be criticizing people for their debt load or grouping everyone with credit card debt into one bad group or one scenario.

          1. Avatar

            No need to apologize Sicorra. I’m not running some cult where people are forced to agree with everything I say.

            You’re right though. I shouldn’t paint everyone with the same brush. Everyone’s got their own unique circumstances that got them into their debt problems.

            I’m just fortunate enough to be able to get a loan from the bank if I were ever in financial trouble. Or if that didn’t work out, I have relatives that I would be comfortable turning to for help. I realize not everyone is so lucky.

            Still, I do believe that a lot of those people could’ve considered other options and just turned to credit cards as the easiest solution at the time. Some may have truly had no other choice, but sacrificing pride is usually an option they are just not willing to take.

  11. Avatar

    So true! I’d never thought of it that way. Plus, the more money they put in the banks pocket, the more taxes the banks have to pay, and more people banks can employ – really, spending money uselessly is great for the economy 😉

    1. Avatar

      I hadn’t thought of it on that level, but you’re right. It does ultimately feed more money into the ‘machine’ which gets cycled to other parts of society. So I guess I should be thanking them for that. It’s kinda like when I see someone pulled over for speeding. I subconsciously thank them for helping pay extra taxes.

  12. Avatar

    You’re welcome! I’m definitely not one of these people anymore but I was for a long time. Not only was it because I was buying things I couldn’t afford, but just sheer irresponsibility. For instance, one time I had savings in the bank and a huge balance on my credit card and instead of paying it off immediately, I was careless and ended up paying $100 in interest. Embarrassing!

    1. Avatar

      Thank you very much Little Frugalista! 🙂
      We appreciate your generous support to the credit card system. Those fees are the worst when you have the money to actually pay for it, but it somehow slips your mind. It’s like when I used to get the occasional overdraft charge on my checking account while I had plenty of money in my other account with the same bank.

  13. Avatar
    From Shopping to Saving

    I used to be one of those people who were paying for other people’s rewards. It is MUCH better to be the person reaping the rewards at the expense of others. This is why credit card companies probably hate me – because I pay everything in full each month and don’t get charged interest. It’s sad to think that others are paying for your rewards, but it’s reality and that’s how the economy works. It’s just like renting – people who rent are paying for those who have mortgages. Yet, that’s undeniably much better than being the person who only pays the min payment/pays late fees, etc.

    1. Avatar

      I’m sure the credit card companies don’t hate you if you were previously making these kinds of mistakes. They probably made a decent profit from you already and probably think that it’s just a matter of time before you go back to your old ways. You can stick it to them though and maintain responsible credit card habits and make up for those previous losses.

  14. Avatar

    I’m much more responsible with my credit cards now, as opposed to when I was in college. I can now use them wisely, pay them off every month and take advantage of their rewards without going overboard!

    1. Avatar

      Good to hear Aggie. It does take a mature mindset to properly practice responsible credit card usage. It makes me glad that I didn’t get a credit card right away in college. I could’ve easily slipped into bad habits earlier than I did.

    1. Avatar

      Unfortunately that is easier said than done for some people. It sounds simple enough, but once they get a credit card, they think they are free to spend to the limit with little repercussions.

  15. Avatar

    When I was younger (right out of college) I would buy things on my credit cards without having the money to pay for them. I wasn’t in the best frame of mind and the spending gave me a short-term pick me up. Luckily I realized this one day and changed my spending habits for the better.

    1. Avatar

      They really should make college students take some kind of online course before getting accepted for a credit card. It sounds like vast majority of college students with credit cards make some kind of mistakes. Of course, the credit card companies rely upon this fact of life. They see college students as a prime target to make a lot of money from.

  16. Avatar

    Nope, never made any of these mistakes – I’m just that awesome. :P. In all seriousness though, I’ve definitely known people who maintained a lifestyle they couldn’t afford, and were very sad when they finally buckled down to start paying the bill.

    1. Avatar

      Another one of the lucky few. Congrats. I’m sure you’re in the minority. And yes, the time when reality hits can be quite tough for those who do suddenly realize they have to pay back all that money they were charging. They can only live in denial for so long.

  17. Avatar

    Everything you mentioned above was exactly what I did when I got my first credit cards. Thank God my limits were low or I would have been in some serious trouble. Now I only use them for online purchases and then pay them off. You’re right though, without the irresponsible there would certainly be yearly credit card fees.

    1. Avatar

      Not only would there be annual fees, but we would probably also lose a lot of other perks such as rewards, warranty protection, travel insurance, etc. So we really have a lot to be thankful for. I use my credit card everywhere I can just to get all those perks. Thank goodness I don’t have to pay for those perks. Instead other people are paying for me.

  18. Avatar
    TB at BlueCollarWorkman

    It’s pretty rough, dude, but I too, thank credit card abusers. (And actually, I was one of them back in high school) But they sure do make a nice system for us who don’t abuse credit cards. Cash back deals, no annual fees, and everything, it’s great. 🙂

    1. Avatar

      Wow, back in high school? Someone got an early start to the credit card abuse. Usually people wait until college at least. I bet back then you were all too eager to flash the plastic and impress your friends.

  19. Avatar

    Thanks to all the irresponsible credit card users! I pay credit card bills down to zero every month. My credit score is nearly flawless. I pay zero interest. Credit card companies pay me bonuses from your interest and late charges. Don’t change, you’re the best. Mwah. xxxoox

    1. Avatar

      lol you sound very appreciative too 🙂
      I didn’t think of hugs and kisses for all those suckers….no offense meant if you are one. I was a sucker once too. Now I am nearly flawless with my credit card management too.

  20. Avatar

    To me, cash advances are the WORST! My boss does this every month when he goes to the casinos. I never understand how the top of his class, engineer and business owner can justify doing that and paying more than $100 in fees. I tried to talk to him about it a few times, but he feels he works hard (which he definitely does) so he doesn’t want to worry about it. It’s sad really.

    1. Avatar

      Wow, a cash advance every month? You’d think he’d know better and just bust out the debit card instead. Some people with too much money just don’t think twice about wasting money. The fact that he does this at a casino is rather ironic. Apparently he wants to lose even more money on those nights out.

  21. Avatar
    Christopher @ This That and The MBA

    I have been on the receiving end to the calls and letters from credit card companies before looking for their payment when I was in college. Those were the days when I was carefree and didnt really care. Now those days are gone, and my wife and I are aggressively paying down our debt. This was planned debt, but it is still CC debt. We have many rewards and miles from all this debt, but i would hate to be in a situation where we couldn’t make payments or didnt have enough money to cover the bills. That would be a terrible feeling. So all of you are welcome for my poor judgement earlier in life.

    1. Avatar

      I get both worlds. My wife has a fairly common name, and we get calls from collections agencies all the time from folks looking for someone by that name, but not with the same middle name or from other parts of the country. It really is a pain. But I do get some of the 1% back benefits too.

      1. Avatar

        That’s bullshit that they waste your time with collection calls just because of a common name. Luckily I’d never have that problem since my name is quite unique.

        Chris you’ll have to tell me more about the planned CC debt. It sounds like an interesting scenario. While I’m sure you did get a ton of rewards for that debt, it seems there must have been a better option. We don’t judge you for your past mistakes though. It seems that half of the personal finance niche is learning from past mistakes. No instead we thank you for your generosity for feeding the system.

    1. Avatar

      I would take that one step further and immediately pay off the balance in full each month. I do that even if it means I have to temporarily get some money from my line of credit. Fortunately I don’t have to resort to that often, but I’d rather be paying the low interest rates on that instead of the massive credit card interest.

  22. Avatar

    I’ve never thought of credit cards this way, but it’s so true! I’m guilty of making a late payment once. I went on vacation and forgot to pay my bill before hand. I definitely learned my lesson. I was hit with a $40 and I lost all my cash back rewards for the month.

    1. Avatar

      At least it only took 1 late payment to learn your lesson. Some people just don’t examine their bills close enough and make a habit of paying late. They don’t really appreciate how much that bad habit is costing them.

  23. Avatar
    The Happy Homeowner

    Ugh…I made a lot of these mistakes (thankfully I always paid on time though!) for too long. Luckily, I had a financial epiphany that got me on the straight & narrow. Now, I use my credit cards for convenience but seek out cash back and other perks for being a responsible credit user (paid off every single month no matter what, baby!!).

    1. Avatar

      It does usually take a sudden financial epiphany to correct our credit card management mistakes. Many people just don’t value their money enough when they are younger. Interest charges and late fees seem insignificant when you’re not thinking about saving for the future. When you do have that change in mindset though, you realize how foolish that kind of thinking is.

  24. Avatar
    Bethy @ Credit Karma

    You know, it’s funny, but in a way the same goes for gaining access to credit. In lots of ways, your overall credit health is based on how much more responsible you are compared to other borrowers. Be a healthier borrower, and you’ll reap the benefits by being able to gain access to more credit at better rates.

    1. Avatar

      For sure, your responsible credit card habits help you save money in the short term, but even more important is that it helps your credit history. That can be crucial when trying to secure a loan or mortgage. You don’t want to be stuck with a high interest rate just because you made some mistakes with your credit card. Those mistakes can come back to haunt you.

  25. Avatar

    Man, I never thought about it but you have to love these people as well as feel sorry for them. Truth be told they will always be around which pretty well ensures that we will continue to get a good deal from the credit card companies.

    I’ve always used a credit card but I’ve never put anything on it that I could not pay off in it’s entirety when it came to pay the bill. The best thing that ever happened was when they reduced reward points. From day one I paid everything possible with my credit card including bills, petrol, you name it. Sometimes I’d clock up $6000 in a month. But the way I figured it I had to spend that money anyway so why not make it work for me.

    Where people get caught out is when they purchase things they do not need and can’t afford to pay for it.

    Great post Jeremy.

    1. Avatar

      Exactly. I like this line: “I figured it I had to spend that money anyway so why not make it work for me”.

      That is my thinking too. Why not get something back from all the things you have to spend money on anyway? You’re just leaving money on the table when you insist on paying with cash or debit card.

  26. Avatar
    Robert @ The College Investor

    I never thought about how other people’s mistakes with credit cards were helping me to save and profit!

    1. Avatar

      Yes that money has to come from somewhere. Credit card companies aren’t rewarding people out of the kindness of their hearts. They know full well that other cardholders will more than make up for the small price of those rewards.

  27. Avatar
    Miss T @ Prairie Eco-Thrifter

    Interesting perspecitve. I too have never thought about it this way. You are so right. I actually use my airline rewards a ton. If I didn’t have those, holidays wouldn’t be nearly as frequent. I guess this an illustration of balancing the good with the bad.

    1. Avatar

      Well don’t think about the irresponsible credit card users too much when enjoying that next vacation. It’s unfortunate that they are losing so much money to credit card companies, but ultimately they are in control of their situation. Some may have limited choices, but there are a ton who do have other options.

    1. Avatar

      Thanks Joe. Most people don’t really appreciate where their credit card rewards or cash back rebates come from. It’s not really coming from the card issuers themselves. It is coming from all the people they rip off with high interest and miscellaneous fees.

  28. Avatar
    MaryAnne @ Parenting and Money

    That’s a good perspective to show people that they need to be smart with money. Like you said, either reap the credit card benefit or pay so that others can.

    1. Avatar

      There is also the third option of being too worried to use credit cards and not pay anything, but also reap no benefits. I think there is a rather large group of people who fit into that category. Or there are the responsible credit cards who just haven’t discovered the benefits of using some type of rewards credit card instead of their regular card.

  29. Avatar
    Paul @ Make Money Make Cents

    Love it! Very true. Thank you to all those allowing me to save about $400 (in rewards).

    Cash advances are the all time worst thing to do. Some companies require you to pay off the entire credit card balance in order to get rid of the cash advance (I hope that makes sense).

    1. Avatar

      Wow I didn’t even realize that part of cash advances. So basically it is the final part of the balance that gets paid off. Meanwhile you’re often paying 10% higher interest on that advance.

  30. Avatar

    Most credit card companies issuing rewards cards generate plenty of margin from the high usage of responsible cardholders. They design the cards to appeal to big spenders who charge regularly.

    Any card transaction has interchange fees paid by the merchant. The transaction processor, card association, and bank all take a cut.

    I used my rewards card to book my business travel for years. The expenses were high, I paid every bill on time using my expense reimbursement, and the card company made plenty on money on the interchange.

    People who are irresponsible generate huge losses for banks – they sometimes neglect to return the money.

    1. Avatar

      That’s true. A lot of people forget that there’s a fee charged at the point of sale which the merchant pays in the first instant. It’s also why budget supermarkets and the like don’t accept credit cards, at least all their prices can be 2.5-4% lower that way for the same margin.

      Two other things occurred to me:
      1.Perhaps there should be some legislation regarding the minimum payment on cards. If the minimum repayment was higher, perhaps fewer people would find themselves carrying full balances for so long, and then when something happens like an accident or job loss, (which is bound to happen at some point), this would lead to fewer people getting into trouble with debt so quickly.
      2. To get around the cash advance fees, you can always use a card to buy something for someone, and thenhave them give you the money for it.

      1. Avatar

        Awesome point Kevin. I actually didn’t think of that at all even though I know all about that merchant fee. Rewards cards do encourage people to use their card instead of cash. So that adds up to a lot more merchant fees. They obviously make a point of making the rewards lower than the merchant fees.

        Matt, that’s an interesting idea, but I wonder if higher minimum payments might lead to more missed payments which in turn leads to penalties and credit score black marks. It’s a delicate balance. Good idea of how to get around cash advance fees too. That idea could be used with something like a grocery store gift card.

  31. Avatar
    Credit Card Approval Center

    Jeremy.. great article! Very inventive. I never thought of thanking all the people who make my credit card rewards possible.

    My apologies to all of you paying so much interest month after month. I should definitely be more appreciative.. Thank You so much.

    Thank you for my new Coach handbag.. my free week at the Hilton on the Riverwalk in San Antonio.. dinners at PF Chang, Mortons, Ruth’s Chris, The Olive Garden.. and all the hundreds of other rewards I have enjoyed over the years.

    1. Avatar

      Well somebody needs to thank them for all the great rewards 🙂
      As someone else mentioned in the comments, it is also the merchants that we should be thanking. It is them who are paying fees on all transactions which makes it even more profitable for the credit card companies. They benefit a lot from having people use credit cards for purchases instead of cash.

  32. Avatar

    When it comes to the minimum payments you mentioned, most people have no idea that it can take over 30 years to pay off a credit card balance if they just pay the minimum. That assumes that they never use the card again.

    If more people knew this I think they would shy away from paying the minimum.

    1. Avatar

      I don’t know about the credit card regulations in the US, but here in Canada credit card statements now show how long it would take to pay it off with minimum payments. A lot of people do just assume that there is nothing at all wrong with paying the minimum.

  33. Avatar

    I have been trying to tell this to my girlfriend for months but every time I broach the issue, she ignores me and tells me to stop. Well here goes a good link and a second attempt!

    1. Avatar

      In some couples it is pretty difficult to approach subjects like this. Sometimes one side doesn’t want to feel judge and just blocks out anything that sounds like criticism.

  34. Avatar

    You’re welcome, Jeremy! I’m quite sure that back in the day we were responsible for rewarding you and others with thousands of rewards points. No more though – that gravy train has ended. I’m quite sure, however, that many others have risen up to take our place as your provider of free airline tickets and other fun stuff. 🙂

  35. Avatar
    Marguerite Tennier

    I grew up not poor – never lacked food and good clothes, but not rich. At 19, I bought a $100. piano from Eaton’s, on credit, to build my credit. (that was in 1965). Since then, I have used credit to my advantage – a car with 0% interest for 3 years – yes – paying with a credit card in a department store to get an extra 15% off – yes (and immediately use my debit card to pay that charge). I guess it is those people who live on credit who allow me to have those perks. Sad for them.

    1. Avatar

      I think in your case the headline should read, thank you for your responsible credit card usage, continue enjoying the perks! Its a wonderful example and lesson for anyone who would be using their credit cards irresponsibly!

  36. Avatar
    Christine @ ThePursuitofGreen

    I never thought of credit cards this way! I’ve always used them responsibly and love getting the cashback. In a way its sad that this system exists. A lot more people probably are hurt by credit card usage than benefit from it.

  37. Avatar

    Ironically, at the higher end of the credit scores, the credit scouring INCOURAGES irresponsible self-indulgence. My wife and I have ALWAYS paid all our bills on time and own our house in CASH and paid off our only mortgage about 33 years ago. Thus we should have a perfect credit score. But BECAUSE of our frugality, our score was LOWERED by about 100 points!

  38. Avatar

    We have been collecting 1% back on our card for years and years! We always pay in full each month. The card (not naming names) is basically losing money on us. They have even harassed us a bit by denying the card when we travel. This is for travel in the US! Also we travel to those same places a lot to visit family there, so it’s not anything unusual. We talked to them about it & they said we should notify them anytime we take a road trip around the country. Can you believe that?! We don’t and they have gotten better about it, but we still they they are trying to aggravate us enough so we’ll quit using the card. No chance!

  39. Avatar

    If it weren’t for irresponsible credit card holders (I have to admit I was one too), these credit card companies would be out of business. The fact is banking/financing companies make tons of money from fees and interest. To the bank/financing companies people who use the cards responsibly is a cost thus implementation of annual fees and reduction in perks/points is okay. Working in financial services industry I know analyst try to predict how many fees can be assessed, how much more can be made by slight changes to the programs and how can the cost to provide perks to responsible card holders be mitigated.

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    Thomas @ i need money ASAP!

    LOL. Thats a very unique way to look at it. It’s definitely the reason they’re willing (and able) to give such huge signup bonuses. That being said, credit card debt sucks, trust me. Sometimes minimum payments are a struggle.

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