AWvsCBsteeeerike3 wrote: I guess you're asking about when you're paying less than you're putting on there and eventually have no more credit on your card and can't really afford to pay it off.....yeah, that would probably be bad. But, again, I would think you'd see these companies dropping people's credits if they expected that to happen. Maybe they're just not very bright.
I was thinking about this the other day, even when people are just making min payments and spending more then they pay how does the 3% that the CC charges the business figure in that?
I always assumed they were separate.
If you spend $1000 at the store, the CC company gets $30. You, in turn, owe the CC company $1000 + whatever interest you may accumulate as you repay it....If you're making the min. payments, it may take a while and cost you a lot in interest. Assuming you do finally pay it off, this would be the best case scenario for CC companies.
Yes this is the best case, im just wondering where that $30 factors in. If someone just continually makes min payments eventually there wont be money to loan, what were seeing now, yes if there is money to borrow at 4% and then loan at 10% your making money but if you cant borrow at 4% you have nothing to loan. Anyway thats my ramble.
On another note when i got out of college i got a car loan for a brand new truck. I didnt figure id quilify because of no credit only to find out that i had great credit. Id had student loans starting 5 years prior and haddnt missed or been late on a payment for 5 years, makes no since that thats how it showed up because my first payment on that loan from 5 years ago wasnt due till 6 months after i graduated.
The merchant making the sale and using the credit card to receive payment pays the fee out of the gross sale amount. Fees are usually around 2% of gross sales for Mastercard and Visa. The consumer is not charged anything. The merchant benefits because he/she is largely insulated from any credit risk (buyer defaults) on the sale. It is also nice not having to have lots of cash in the store, which can be a temptation to some.
Thanks for the replies Leroy and Arthur. My bank has a separate mortgage division which is why I was curious about it's health, although I have no indication that it's near trouble. I was just thinking of keeping $40-60 on hand, but I guess I won't worry about it. I'm afraid I'd be more likely to spend it if I had it in cash, anyway.
Have you all started doing anything differently these past couple weeks?
I have. I just opened up a savings account and am going to start putting a certain percentage of my paychecks in there. I'm going to stop going out and drinking my ass off at bars as much (probably go back to getting drunk at home and then going out). I'm cutting back to only eating out once or twice a week from five to six times. I'll probably stop travelling as much as well. I cancelled my personal cell phone and made a few other cutbacks. I really want to have some money saved up that when the market starts to rebound I can throw into it.....then start my own venture capitalist company after I make money on that. Anybody want in? I kid, I kid.
The merchant making the sale and using the credit card to receive payment pays the fee out of the gross sale amount. Fees are usually around 2% of gross sales for Mastercard and Visa. The consumer is not charged anything. The merchant benefits because he/she is largely insulated from any credit risk (buyer defaults) on the sale. It is also nice not having to have lots of cash in the store, which can be a temptation to some.
It also brings you more business, because so few people carry cash or their checkbooks anymore for purchases over, say, $20.
I kid, I kid.
