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  • SmileDocHill

    Grandmaster
    Rating - 100%
    61   0   0
    Mar 26, 2009
    6,182
    113
    Westfield
    Is the use of a CC that is paid off every month “cash” by DR’s definition?
    No also because (from another perspective on this conversation) cc's don't just make their money from the interest you pay on the balance. Example: you buy $100 of goods from a store, the store gets $98.50 to $96.50 of that as paid in full but as far as you are concerned the balance with the cc co. is $100. That revenue stream doesn't involve any overhead like billing, communications, collections, and generally dealing with people for the cc co.

    If you never pay interest to cc co's they are still making their main money source. You are healthier paying it off every cycle but you are by no means "screwing them over" by doing so.
    Now, playing the game well with discipline and using 0% balance transfers, if it is actually that and not a 1 time transfer fee with 0% accruing interest, then you have the potential of literally using their services without their profiting.
    I have zero motivation to see a company not profit, but at the same time, if they are a necessary evil to use, it's good to know how it works.
     

    Ingomike

    Top Hand
    Rating - 100%
    6   0   0
    May 26, 2018
    29,119
    113
    North Central
    No also because (from another perspective on this conversation) cc's don't just make their money from the interest you pay on the balance. Example: you buy $100 of goods from a store, the store gets $98.50 to $96.50 of that as paid in full but as far as you are concerned the balance with the cc co. is $100. That revenue stream doesn't involve any overhead like billing, communications, collections, and generally dealing with people for the cc co.

    If you never pay interest to cc co's they are still making their main money source. You are healthier paying it off every cycle but you are by no means "screwing them over" by doing so.
    Now, playing the game well with discipline and using 0% balance transfers, if it is actually that and not a 1 time transfer fee with 0% accruing interest, then you have the potential of literally using their services without their profiting.
    I have zero motivation to see a company not profit, but at the same time, if they are a necessary evil to use, it's good to know how it works.
    Unfortunately we have like three threads discussing similar topics.

    I know I am not ”beating” the banks.

    As you say, the CC costs are built in at most places, so I just get what I can back.

    If I get a discount for cash I will take that first.
     
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