Comments on: The Secret History of the Credit Card (repeat) http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/ personal finance that makes cents Sun, 12 Oct 2008 14:51:02 +0000 http://wordpress.org/?v=2.5.1 By: Stephen http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-135231 Stephen Thu, 05 Jun 2008 21:32:20 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-135231 Really good stuff...old beyond belief (for a blog) and I doubt anyone will read this but here's a longer history of debt in america: http://www.ihatedebt.com/ALookatDebt/TheHistoryofDebtinAmerica/ Really good stuff…old beyond belief (for a blog) and I doubt anyone will read this but here’s a longer history of debt in america:
http://www.ihatedebt.com/ALookatDebt/TheHistoryofDebtinAmerica/

]]> By: beanspants1 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-29875 beanspants1 Fri, 15 Dec 2006 21:59:43 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-29875 But the show’s panel of citizens didn’t really understand how credit cards work. They were ignorant of their credit scores, for example. \ I take issue with this: i don't know my credit score, and i know how credit cards work. if you don't carry a balance, then your credit score -- in relation to your credit cards -- is irrelevant. Also, credit cards can ding your credit report for other loans, but again, if you don't carry a balance, they can't help you with your credit cards. if you do carry a balance, then your interest rate is written right there on your statement. you can increase your rate or decrease your rate, and get some idea of your credit score. so that's a totally false dichotomy. In terms of your overall loan picture, where credit cards fit is a piece, but the FrontLine piece wasn't about home loans and car loans and credit cards in relation to other debt instruments. As such, as you can probably imagine, i didn't think much of the FrontLine piece. and honestly, i'd say the credit reporting industries are much worse than the credit card companies. try getting the formula for your Fico score and what you can do to improve it at a mathematical level -- you will fail. even more shady - the difference in default rate between a 600 and 800 is next to nothing -- only around 2%. So F/I adjusts their formula to make small changes seem like more than they are -- like that other great data aggregator/deceiver of consumer data - Consumer Reports -- to make their product seem much more worthwhile than it is. At least credit card companies are upfront about their evil. if your credit score changes, does F/I send you something in the mail to tell you? But the show’s panel of citizens didn’t really understand how credit cards work. They were ignorant of their credit scores, for example.
\

I take issue with this: i don’t know my credit score, and i know how credit cards work.

if you don’t carry a balance, then your credit score — in relation to your credit cards — is irrelevant. Also, credit cards can ding your credit report for other loans, but again, if you don’t carry a balance, they can’t help you with your credit cards. if you do carry a balance, then your interest rate is written right there on your statement. you can increase your rate or decrease your rate, and get some idea of your credit score.

so that’s a totally false dichotomy. In terms of your overall loan picture, where credit cards fit is a piece, but the FrontLine piece wasn’t about home loans and car loans and credit cards in relation to other debt instruments. As such, as you can probably imagine, i didn’t think much of the FrontLine piece.

and honestly, i’d say the credit reporting industries are much worse than the credit card companies. try getting the formula for your Fico score and what you can do to improve it at a mathematical level — you will fail. even more shady - the difference in default rate between a 600 and 800 is next to nothing — only around 2%. So F/I adjusts their formula to make small changes seem like more than they are — like that other great data aggregator/deceiver of consumer data - Consumer Reports — to make their product seem much more worthwhile than it is.

At least credit card companies are upfront about their evil. if your credit score changes, does F/I send you something in the mail to tell you?

]]> By: Help Us Help Ourselves #1 at Faux Real Tho! http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-24132 Help Us Help Ourselves #1 at Faux Real Tho! Sun, 03 Dec 2006 03:30:51 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-24132 [...] A new find in my feeds, Get Rich Slowly, a collection of resources on how to save and spend your money. If you have absolutely no idea what having (or ruining your) credit with a credit card means, start here. I’ve never had a credit card, and this doesn’t make me want one. [...] [...] A new find in my feeds, Get Rich Slowly, a collection of resources on how to save and spend your money. If you have absolutely no idea what having (or ruining your) credit with a credit card means, start here. I’ve never had a credit card, and this doesn’t make me want one. [...]

]]> By: James Kew http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-23204 James Kew Thu, 30 Nov 2006 18:35:25 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-23204 And here's a no-registration-required link to the NYT story Marc recommended: http://www.nytimes.com/2004/11/21/business/21cards-web.html?ex=1258866000&en=ed0e2f006270965c&ei=5090&partner=rssuserland (NYT Link Generator: http://nytimes.blogspace.com/genlink) And here’s a no-registration-required link to the NYT story Marc recommended:

http://www.nytimes.com/2004/11/21/business/21cards-web.html?ex=1258866000&en=ed0e2f006270965c&ei=5090&partner=rssuserland

(NYT Link Generator: http://nytimes.blogspace.com/genlink)

]]> By: Nikki http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22896 Nikki Thu, 30 Nov 2006 05:40:32 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22896 Having had the unfortunate experience of working for a credit card company, I can tell you that the documentary, while fascinating, didn't even scratch the surface of the tactics used. Never having had a late fee and always paying your bill off in time is not something to be proud of in the credit card world, all it means is that you are being watched more closely than any other card holder. Any mis-step, even if its no fault of your own, and your rate will skyrocket. If you're savvy and can work the system you can end up with some great deal on miles and points, but it takes a lot of careful management and planning. The bottom line is that if you don't have enough to pay cash, you don't have enough to use a credit card. Having had the unfortunate experience of working for a credit card company, I can tell you that the documentary, while fascinating, didn’t even scratch the surface of the tactics used.

Never having had a late fee and always paying your bill off in time is not something to be proud of in the credit card world, all it means is that you are being watched more closely than any other card holder. Any mis-step, even if its no fault of your own, and your rate will skyrocket.

If you’re savvy and can work the system you can end up with some great deal on miles and points, but it takes a lot of careful management and planning. The bottom line is that if you don’t have enough to pay cash, you don’t have enough to use a credit card.

]]> By: Melsky http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22839 Melsky Wed, 29 Nov 2006 23:14:07 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22839 It makes me happy that my husband and I have paid off our credit cards. I think the credit card industry should be regulated a lot more. It makes me happy that my husband and I have paid off our credit cards.

I think the credit card industry should be regulated a lot more.

]]> By: moneymonk http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22814 moneymonk Wed, 29 Nov 2006 21:16:00 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22814 I also saw that documentary on PBS earlier this year. It is amazing how credit cards companies make their money. I myself do not own a credit and after watching that piece. I may not never apply for one. Credit cards give you permission to live above your means! I also saw that documentary on PBS earlier this year.

It is amazing how credit cards companies make their money.

I myself do not own a credit and after watching that piece. I may not never apply for one.

Credit cards give you permission to live above your means!

]]> By: Growth in Value http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22805 Growth in Value Wed, 29 Nov 2006 20:34:30 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22805 What an interesting program! Thanks for the heads up. Always good to have more ammo when I unload on the evils of credit card companies to my endebted friends. What an interesting program!

Thanks for the heads up. Always good to have more ammo when I unload on the evils of credit card companies to my endebted friends.

]]> By: Mapgirl’s Fiscal Challenge / Articles I liked this week http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22800 Mapgirl’s Fiscal Challenge / Articles I liked this week Wed, 29 Nov 2006 20:17:42 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22800 [...] I don’t have a TV, but JD at Get Rich Slowly recommends a PBS Frontline special on the Secret History of Credit Cards. I think I’m going to try the free download available. He’s got the links for it in his post. [...] [...] I don’t have a TV, but JD at Get Rich Slowly recommends a PBS Frontline special on the Secret History of Credit Cards. I think I’m going to try the free download available. He’s got the links for it in his post. [...]

]]> By: mapgirl http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22798 mapgirl Wed, 29 Nov 2006 20:11:00 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22798 I think it's pretty evil to delay posting a customer's payment to their credit account. That's not a widely accepted accounting practice. More usual practice is to post things immediately so that each day is a true picture of the balance sheet, rather than inflate your assets by delaying the payment posting to an account. (Actually that might be inflating it twice, one for the customer balance and second for the cash balance.) It's flat out deceptive, and you'd sure as hell ought to be questioned on it by an independent auditor if you were a business. I think it’s pretty evil to delay posting a customer’s payment to their credit account. That’s not a widely accepted accounting practice. More usual practice is to post things immediately so that each day is a true picture of the balance sheet, rather than inflate your assets by delaying the payment posting to an account. (Actually that might be inflating it twice, one for the customer balance and second for the cash balance.) It’s flat out deceptive, and you’d sure as hell ought to be questioned on it by an independent auditor if you were a business.

]]> By: Money Smart Life :: What was the World Like Before Credit Cards? http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22700 Money Smart Life :: What was the World Like Before Credit Cards? Wed, 29 Nov 2006 06:55:38 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22700 [...] Coming from Generation X, credit cards have always been a part of my personal finance world and life in general. I was reading about The Secret History of the Credit Card over at Get Rich Slowly and started to think about all the ways the credit card has changed our world, for better and for worse. [...] [...] Coming from Generation X, credit cards have always been a part of my personal finance world and life in general. I was reading about The Secret History of the Credit Card over at Get Rich Slowly and started to think about all the ways the credit card has changed our world, for better and for worse. [...]

]]> By: kronos http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22698 kronos Wed, 29 Nov 2006 06:20:41 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22698 if the streaming video doesn't work too well, you can always check out the flash version here: http://video.google.com/videoplay?docid=-5417695091889596000&q=The+Secret+History+of+the+Credit+Card if the streaming video doesn’t work too well, you can always check out the flash version here:
http://video.google.com/videoplay?docid=-5417695091889596000&q=The+Secret+History+of+the+Credit+Card

]]> By: J.D. http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22620 J.D. Wed, 29 Nov 2006 02:52:27 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22620 Ah, yes. I took a lot of flak for calling Kahr when I originally posted this. In the nearly six months since I first wrote that, I'll admit that my viewpoint has changed. Evil probably isn't the correct word, but opportunistic and immoral aren't far from the mark. Ah, yes. I took a lot of flak for calling Kahr when I originally posted this. In the nearly six months since I first wrote that, I’ll admit that my viewpoint has changed. Evil probably isn’t the correct word, but opportunistic and immoral aren’t far from the mark.

]]> By: icup http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22619 icup Wed, 29 Nov 2006 02:50:27 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22619 "From what I’ve seen and read, I believe Kahr is truly an evil man, single-handedly responsible for a lot of the credit trouble Americans face." No, Americans living beyond their means are responsible for 100% of the credit trouble Americans face. Kahr simply exploited that desire. I have had credit since 1994 and have *never* had to suffer late fees. Largely because I pay my bills before the due date and have never tried to float a check. “From what I’ve seen and read, I believe Kahr is truly an evil man, single-handedly responsible for a lot of the credit trouble Americans face.”

No, Americans living beyond their means are responsible for 100% of the credit trouble Americans face. Kahr simply exploited that desire.

I have had credit since 1994 and have *never* had to suffer late fees. Largely because I pay my bills before the due date and have never tried to float a check.

]]> By: Rob http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22555 Rob Tue, 28 Nov 2006 23:14:19 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22555 So, I'm reading this article and finding out how credit cards are designed to increase the fees, penalties and interest charges. I get to the end and what do I find? An ad for a discover card! So, I’m reading this article and finding out how credit cards are designed to increase the fees, penalties and interest charges. I get to the end and what do I find? An ad for a discover card!

]]> By: Scholz http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22548 Scholz Tue, 28 Nov 2006 23:05:26 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22548 Another documentary on the credit card industry is In Debt We Trust http://indebtwetrust.com/ It is based on the book Credit Card Nation by Robert Manning. Another documentary on the credit card industry is In Debt We Trust
http://indebtwetrust.com/
It is based on the book Credit Card Nation by Robert Manning.

]]> By: Marc Hedlund http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22484 Marc Hedlund Tue, 28 Nov 2006 21:25:16 +0000 http://www.getrichslowly.org/blog/2006/11/28/the-secret-history-of-the-credit-card-repeat/#comment-22484 This is a great show, and well worth watching (it was one of the inspirations for Wesabe). Also worth checking out is the accompanying NY Times piece on the subject: http://www.nytimes.com/2004/11/21/business/21cards-web.html This is a great show, and well worth watching (it was one of the inspirations for Wesabe). Also worth checking out is the accompanying NY Times piece on the subject:

http://www.nytimes.com/2004/11/21/business/21cards-web.html

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