Give Deadbeats Credit …

“The only reason a great many American families don’t own an elephant is that they have never been offered an elephant for a dollar down and easy weekly payments.”

-Mad Magazine

Today we’re pressured from nearly all angles to sign up for easy credit so we can purchase everything from elephants to electronics. Need a new credit card? Just check your mailbox, or the nearest billboard, banner ad, TV commercial, newspaper ad, etc. In fact, I long ago opted out of receiving credit offers and I still get dozens weekly!

But really, how can you refuse? After all, you’re probably already pre-approved for a 0% introductory interest rate, low APR thereafter, 1-5% cash back on all purchases, acceptance in more than 150 countries, and a free Hannah Montana bobblehead (limit two per customer). And if you don’t like the default card they send, don’t worry, you can get blue, gold, green, platinum, or even upload your own image online! There will also be numerous other ways they distract you from caring about the contract terms you just signed.

Just remember, no matter what options you choose, the lender has a single goal in mind – to help you rack up as much debt as possible. And if you dare to pay off your credit card balance in full every month and avoid interest charges, you’re no good to them! They’ll consider you a deadbeat and talk trash about you in their company meetings (ok, I made that last part up – but it could happen). Why wouldn’t they want you to earn points, rewards, frequent flyer miles, gift cards, etc.-at no cost to you?

So, is there a silver lining to all this? Well, it just so happens that here at Finicity we offer personal financial software tools which enable you to make informed spending decisions by “pre-spending” your income before you go out and make your purchases. So whether you spend from cash or a debit/credit card, as long as you’re spending within your envelope balances you won’t overspend, period! So. spend within your income and join the ranks of successful “deadbeats” today!

For another interesting angle on credit cards, see this story from PBS:

Nick Lashley, Customer Support Operations