Frank Abagnale: “Catch Me If You Can” – Talks at Google [video] • Hacker News Board

Re: Frank Abagnale: “Catch Me If You Can” – Talks at Google [video]

#51

Post by abritinthebay » Tue, Nov 28, 2017, 7:17 PM UTC

ryanwaggoner wrote: post #33

barrkel wrote: post #27

Earlier quoted context omitted.

Credit cards are more like a delayed bill than debt, if you pay off the amount in full every month (and I don't know why you wouldn't, credit cards are a poor way to borrow money).

And yet, most credit card users do NOT pay off the amount in full. Why do you think banks push these cards so hard?

And that means that they, in turn, could be a credit risk. Which is what was being talked about.

Although it has to be said a running balance is not actually a direct credit risk. It doesn't make financial sense, as you're racking up interest fees, but if you are safely managing your payments (no late ones) and your credit usage (a percentage of what your total available credit lines are) then it's not a bad thing for your credit score.

Not that I would recommend it of course.

Re: Frank Abagnale: “Catch Me If You Can” – Talks at Google [video]

#52

Post by shoover » Thu, Nov 30, 2017, 1:57 AM UTC

dagw wrote: post #48

ec109685 wrote: post #21

Earlier quoted context omitted.

You can immediately pay off your credit card balance if you so desire and credit cards (at least American ones) don't charge interest initially. So if you automatically have your credit card debit from your checking account each month there is literally no cost to you to use a credit card and only upside. The merchant is already pricing in credit card fees into their prices, so you should go with the payment instrume…

there is literally no cost to you to use a credit card I don't know what it's like in the US, but at least in Sweden basically all credit cards have an annual fee.

Mostly no annual fee in the US, or if there is a fee you are getting some worthwhile rewards or benefits out of the deal.

Re: Frank Abagnale: “Catch Me If You Can” – Talks at Google [video]

#53

Post by barrkel » Thu, Nov 30, 2017, 3:20 AM UTC

ryanwaggoner wrote: post #33

barrkel wrote: post #27

Earlier quoted context omitted.

Credit cards are more like a delayed bill than debt, if you pay off the amount in full every month (and I don't know why you wouldn't, credit cards are a poor way to borrow money).

And yet, most credit card users do NOT pay off the amount in full. Why do you think banks push these cards so hard?

Don't they? Everyone I know does, who I've talked to about it.

Seems a bit like Trump supporters.

Re: Frank Abagnale: “Catch Me If You Can” – Talks at Google [video]

#54

Post by barrkel » Thu, Nov 30, 2017, 3:20 AM UTC

dragonwriter wrote: post #29

barrkel wrote: post #27

Earlier quoted context omitted.

Credit cards are more like a delayed bill than debt, if you pay off the amount in full every month (and I don't know why you wouldn't, credit cards are a poor way to borrow money).

A delayed bill is a debt, so it's impossible for something to be more like a delayed bill than debt. They are also often the best method consumers have to borrow money for many purposes.

A debt has interest; a delayed bill doesn't. An interest-free loan is literally free money (the difference between net present value of future repayments and current value, which will be higher); I always take 0% finance if it's on offer.

(The only exception would be in a deflationary environment.)