Quote:
Originally Posted by Window
A credit card does not charge you interest unless you let the charge sit there for 30 days - if you purchase something with a credit card then immediately pay that amount back onto the credit card no interest accrues, you get points, cashback whatever AND you get a better exchange rate if the card is through a bank.
My card is currently 1 point above current exchange instead of paypal's 4-5 points.
You have a bank account that you store funds with right? so what is Paypal doing that a bank account is not? Credit Cards are accepted internationally are they not?
I am not seeing how Paypal is so much better than a credit card when you're losing money with Paypal whereas with a credit card you can reap a butt load of benefits and avoid Paypal's awful exchange rates.
I, routinely, have no interest accrued on my card and rack up about 400 in cash back by years end by using my card in this manner.
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That sounds great, you're using the system for you rather than letting it use you.
The problem with your scenario is that most people these days tend to treat Credit Cards as bank cards. They use them for everything and anything and never have enough to pay off the bill come the 30 days are up.
That's why the Credit Card companies are making profits. If they weren't, they wouldn't exist.
It's easy to say, use it responsibly, pay it off every month and reap the benefits. I have lived and experienced the bad side of Credit Cards, I do not like them anymore, nor would I want one unless I could be sure of myself and I know myself far too well, therefore I choose not to use such a tool. Well that is to say I do not own a Credit Card any longer and would be extremely leery of getting one again. At this time when I buy items off of Amazon I tend to pay back my parents for the use of their card.
As far as Paypal is concerned, I maintain an account for online shopping purposes where accepted, which is beginning to become most places any regular Credit Card is used online. I also use it because it's easier to get paid for selling stuff compared to wasting time waiting for a money order in the mail.
For this type of service fees are to be expected, that's just how it is. Paypal needs to make some kind of money for providing this service.
Just like Credit Cards I suppose, however the interest rates are not favorable. Not in the long run at any rate.
