When it comes to choosing a credit card we try to find the best one to take advantage of. Every credit card user tries to find the best plastic with attractive features, the card with no fees and with a great number of rewards and other options.
There are a lot of stories about various financial problems caused by incorrect credit card usage. Such awful stories make you believe every word. But don’t you think that everything depends on you? There are a lot of successful examples of credit card usage. No annual fee credit cards or the plastics with enormous credit card perks. Do you think they come from nowhere?
Have you seen a lot of people who live a debt free life? Some people just dream about getting rid of debt but others take pains to avoid any problems. How is it possible?
Nowadays credit card market is full of profitable offers but unfortunately it’s not so easy to get them. If you are lucky and you have good credit history consequently you have a lot of opportunities. But it’s the dream appreciated by every lender.
But to think it over it’s not clear in what way the lenders profit from such eligible credit card holders. Let’s get to the bottom of such a situation. You have no annual fee, no interest rates, pay your bills on time and take the most of the card.
In addition to this your lender rewards you with some credit card perks for responsible credit card usage. Nobody thinks that credit lenders are so kind that they are ready to present you with various rewards for no reason.
It’s a well-known fact that credit card industry is among the most profitable in the USA. The largest portion of its revenue is from interest paid by consumers carrying their balance. To say nothing about annual fee that is $45 on the average.
Credit lenders profit from our mistakes. For instance you have forgotten to pay your balance on time. You are penalized with no less than $19 plus penalty interest rates you have to pay. Creditors profit greatly when you pay for the purchase with you credit card. They have about 2% from each dollar spent on the card.
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