.... we have 2 American credit cards which we use all the time and pay them off completely each month. This makes us "bad" customers as they can't earn off of us twice, once at the transaction phase where they get 3% (they even rake in roughly 1% off currency exchanges despite Chase declaring there would be no such a thing but it happens at VISA and not the Chase level) and again off servicing the debt. For us, we are not as profitable so are "punished" with lower credit ratings which are meaningless here. I laugh at the inability for us Americans to see where the banks have taken us. The same for mortgages or car loans.
That's a pretty broad brush, isn't it ("us Americans")?
Like many others here, by paying off the card in full each month, I'm earning rewards, and have an easier and more profitable time managing withdraws to cover my bills (I have the grace period to plan). It's win-win for me. Maybe outside of the fact that merchants must be increasing their prices to cover the transaction cost, but my rewards appear to be slightly greater than that (as the CC companies are making most of their money elsewhere, with interest and late fees that
others pay).
Looks like we see exactly "where the banks have taken us", and have beat them at that game. So I'll play.
Same with historically low mortgage rates, I'll play that game too. So far, I'm losing with the market downturn, but the long term odds are way on my side. It's a risk I was willing to take, no one is 'tricking me'.
edit/add: I just recalled, my DD has learned about the power of saving, and was able to pay cash for her new car a few years back. They offered a $500 incentive to take out a loan - I told her, do it, and pay it in full on the first payment. You are $500 ahead (minus maybe 1 month's interest), because having the cash puts you in control. Take advantage of it when you can.
Sure, those other people who pay CC interest and fees should wake up. And people should save for a rainy day, and a thousand other things. But there's not much I can do about that. So I play the cards that were dealt.
-ERD50