My son getting credit card advertisements in the mail

[TomC]

I have already put you on ignore for a long time

Yeah, you've been censoring yourself for a long time.

I barely remember the first time you proclaimed "I prefer not to discuss anything TomC says. I've put him on <ignore>."
You've censored yourself so many times I don't really keep track any more. I don't understand why people censor themselves on places like IIDB. But I know you do.

I assume it's because you want to keep your ideological bubble as pure as you can. Feel free to continue, it's what I expect.
Tom

 

[Cheerful Charlie]

When your cat starts recieving credit card offers, we will know things are going to far.

Don't laugh. This has actually happened.

My Cat Got a Better Credit Card Offer Than Me

Most people start to receive their first credit card mailings when they turn 18. But sometimes these offers are a little out of the ordinary, arriving for people who are far too young, or family members that aren't even human.

abcnews.go.com

 

[Jimmy Higgins]

I have already put you on ignore for a long time

Yeah, you've been censoring yourself for a long time.

I barely remember the first time you proclaimed "I prefer not to discuss anything TomC says. I've put him on <ignore>."
You've censored yourself so many times I don't really keep track any more. I don't understand why people censor themselves on places like IIDB. But I know you do.

I assume it's because you want to keep your ideological bubble as pure as you can. Feel free to continue, it's what I expect.
Tom

We aren't even at post 50 and it is it dumpster fire mode? Your first post blames the OP'er. And then you start shitting on how awful it is for people not to think like you do.

 

[TomC]

We aren't even at post 50 and it is it dumpster fire mode?

If people who prefer their internetz ideologically pure would just keep the posts that they prefer not to know about on <ignore> we wouldn't be having this problem.
Tom

 

[lostone]

My son is 14. I have lost count on how many ads he has received in the mail for credit cards. Things like "Start your credit history now!"

This latest one has a picture that some jackass in the Marketing department of the credit card company thought was cool to target younger people:
View attachment 42221

I've seen a similar argument in some of the oil price threads to the question I will now ask.

Suppose all the credit card companies are sending these ads to minors early, getting them thinking about these things too young and it results in bigger profits.

Now particular company X hasn't yet started sending their ads to minors. Should they just not do it and take the loss, giving up valuable business to all the other credit card companies?

My wife gets them, too, and she's been dead for over five years. My MIL also gets them, and she's been dead over 20 years, since 2000. Anything for a buck, I guess.

 

[bilby]

I don't see how giving credit cards to minors (especially a 14 year old) would be a benefit to the credit card companies. The vast majority of kids have no credit score, no credit history, no source of reliable income and little knowledge of how credit actually works. Just a bad, bad risk overall.

It's really not a bad risk at all. The interest rates on credit cards are so high, that even customers who ultimately don't pay back all that they owe (by absconding or declaring bankruptcy) will almost certainly first pay back far more than the credit card issuer's total costs.

The customer's liability increases at 20% or more per annum; The card issuer is borrowing at less than 5%, even today, and a year ago was borrowing at maybe 0.1%.

Even if the customer is successful in evading repayments after a few months of trying and failing to meet their demands, the chances are that the card issuer will make a profit. And for those customers who have parents who can bail them out, the profits are huge. Particularly if it happens multiple times. Which it often does for the children of wealthy families.

And if the customer doesn't abscond, go bankrupt, or get bailed out by a wealthy relative, the risk isn't bad at all.

14 year old borrowers with zero or near zero income transmute in just ten short years into 24 year old workers, who long ago paid back (far more than) what they originally borrowed, and are still donating a large fraction of every paycheque to the credit card company. That's a massive money-spinner, that is well worth the small cost of the tiny number of people who successfully avoid paying back as much as they originally borrowed.

 

[Oleg]

And for those customers who have parents who can bail them out, the profits are huge. Particularly if it happens multiple times. Which it often does for the children of wealthy families.

Contracts with minors are usually void and unenforceable. So the parent would have to sign onto the card and be liable for non-payment.

 

[Don2 (Don1 Revised)]

Should they just not do it and take the loss, giving up valuable business to all the other credit card companies?

Nah. They should aggressively vilify the other Companies who are taking advantage of The Chilluns. Make a loud and solemn promise to restrict their offers to those 18 and over, and boast about their righteousness.
NEVER give up the field to The Enemy!!

I had not though of that...reminds me of some of PT Barnum's strategies...like "our salmon is guaranteed not to turn pink." I think this would work in the short-term, but I am not sure about longer. Other companies may copycat some of the message, but not do anything differently than before, like "Here at Overlord Credit we take an ethical approach to business. We only allow your older children to get a credit card with your say so..." it could start getting confusing for consumers. Maybe.

 

[Don2 (Don1 Revised)]

I wonder sometimes what life with no debt will feel like, and if I will ever experience it.

Oh, to never need a loan, and to never borrow again.

To not be owned by anyone or anything in this world but those I bind myself to with mutual, personal consent and to know freedom.

To be truly unshackled and unbound from all, with an open path forward towards my dreams.

Maybe that means finally getting to go back to school.

Maybe that means doing the research I want.

I have only ever had small debt, except for the student loan. And that is smallish now.

Credit cards are a trap. Perhaps the real test if someone is "poor" is that their debt increases faster than their assets...

Personally, I am debt free. I payed my mortgage off years ago. I double and triple payed each month, same with financing cars. Other times, I bought cars outright, no financing. I was not good for the banks because I did not pay a lot of interest. When I was paying my mortgage, they constantly switched me to other banks. I believe it's because they realized they were getting a raw deal.

I don't use credit cards and never owned one. I completely agree they are a trap. I realize I am atypical, but I refuse to get one on principle. I realize that is a privileged view, not everyone can entertain who are just trying to survive.

But I don't feel financially secure at all. I feel less secure and free (your word). Most of that has to do with the steep rise in costs relative to my investments and thinking about how I will survive years from now. Future state of cost of food, energy, healthcare, and my son's college are very scary thoughts.

 

[Elixir]

I wonder sometimes what life with no debt will feel like, and if I will ever experience it.

Oh, to never need a loan, and to never borrow again.

To not be owned by anyone or anything in this world but those I bind myself to with mutual, personal consent and to know freedom.

To be truly unshackled and unbound from all, with an open path forward towards my dreams.

Maybe that means finally getting to go back to school.

Maybe that means doing the research I want.

I have only ever had small debt, except for the student loan. And that is smallish now.

Credit cards are a trap. Perhaps the real test if someone is "poor" is that their debt increases faster than their assets...

Personally, I am debt free. I payed my mortgage off years ago. I double and triple payed each month, same with financing cars. Other times, I bought cars outright, no financing. I was not good for the banks because I did not pay a lot of interest. When I was paying my mortgage, they constantly switched me to other banks. I believe it's because they realized they were getting a raw deal.

I don't use credit cards and never owned one. I completely agree they are a trap. I realize I am atypical, but I refuse to get one on principle. I realize that is a privileged view, not everyone can entertain who are just trying to survive.

But I don't feel financially secure at all. I feel less secure and free (your word). Most of that has to do with the steep rise in costs relative to my investments and thinking about how I will survive years from now. Future state of cost of food, energy, healthcare, and my son's college are very scary thoughts.

Philosophically I'm in the same place, having always been debt-averse. I use credit cards for almost everything, but they're tied to a single account that I keep flush, so they're paid off in full every month. I don't pay their interest fees, but happily collect the 6% discount on groceries and 3% on gas offered by my AMEX card, and have a Visa that has great discounts on other stuff. So there's good reason to use them. All vehicles, home - everything is paid off in full, I have zero debt and my main worry is the same as yours: will I outlive my investments? On one hand, the older I get the less likely I'll run out of money. But then, the older I get the less the money is worth. The saving grace is that I live a very simple lifestyle - little to no eating in restaurants, very little travel... main expenses are related to animals and lately, home heating.
Que sera, sera.

 

[Harry Bosch]

I wonder sometimes what life with no debt will feel like, and if I will ever experience it.

Oh, to never need a loan, and to never borrow again.

To not be owned by anyone or anything in this world but those I bind myself to with mutual, personal consent and to know freedom.

To be truly unshackled and unbound from all, with an open path forward towards my dreams.

Maybe that means finally getting to go back to school.

Maybe that means doing the research I want.

I have only ever had small debt, except for the student loan. And that is smallish now.

Credit cards are a trap. Perhaps the real test if someone is "poor" is that their debt increases faster than their assets...

Personally, I am debt free. I payed my mortgage off years ago. I double and triple payed each month, same with financing cars. Other times, I bought cars outright, no financing. I was not good for the banks because I did not pay a lot of interest. When I was paying my mortgage, they constantly switched me to other banks. I believe it's because they realized they were getting a raw deal.

I don't use credit cards and never owned one. I completely agree they are a trap. I realize I am atypical, but I refuse to get one on principle. I realize that is a privileged view, not everyone can entertain who are just trying to survive.

But I don't feel financially secure at all. I feel less secure and free (your word). Most of that has to do with the steep rise in costs relative to my investments and thinking about how I will survive years from now. Future state of cost of food, energy, healthcare, and my son's college are very scary thoughts.

Philosophically I'm in the same place, having always been debt-averse. I use credit cards for almost everything, but they're tied to a single account that I keep flush, so they're paid off in full every month. I don't pay their interest fees, but happily collect the 6% discount on groceries and 3% on gas offered by my AMEX card, and have a Visa that has great discounts on other stuff. So there's good reason to use them. All vehicles, home - everything is paid off in full, I have zero debt and my main worry is the same as yours: will I outlive my investments? On one hand, the older I get the less likely I'll run out of money. But then, the older I get the less the money is worth. The saving grace is that I live a very simple lifestyle - little to no eating in restaurants, very little travel... main expenses are related to animals and lately, home heating.
Que sera, sera.

We're very similar. I have zero consumer debt. Owe about a $1million in company debt. I'm in the process of selling. I have enough in portfolio to about equal my current salary (estimating 3% withdraw rate). Selling company will add to this. Not counting on SSN. But yea, will 3% withdraw be conservative enough to last? I have a good salary now, and zero debt. However, similar to Don, kids going to college. First is in. Due to my salary, my daughter doesn't quality for much. Out of state tuition. $39k a year for us. I'm not borrowing anymore. But two more kids to go. Next three or four years will be tough. But then after that - will get better. My again, my advice is to seek a portfolio that will payout distributions at about 3% withdraw rate (traditional is 4%), that will equal your current salary. Get out of debt. Only count on SSN as funny money if you get it.

 

[Politesse]

Credit cards will die alongside the last generation that used them, and they know it. I don't think any amount of marketing is going to make plastic cards more appealing than digital money transfers.

 

[Loren Pechtel]

Credit cards are a trap. Perhaps the real test if someone is "poor" is that their debt increases faster than their assets...

They don't have to be a trap. It's how you use them that decides if they are a trap or not.

 

[Elixir]

. I don't think any amount of marketing is going to make plastic cards more appealing than digital money transfers.

6% off groceries is pretty significant. Can EFTs do that?

 

[Loren Pechtel]

I remember getting a credit card in college, because of the convenience of being able to order things like tickets over the phone. I remember having to take a long trips just to get tickets to Yes and The Who when paying with cash. This is right before bank cards became a thing.

These days a bank card is all one needs, especially a minor! They can do anything with it... assuming the have the money.

If a bank card is compromised it's more of a hassle. I will not use bank cards for that reason.

 

[Jimmy Higgins]

I remember getting a credit card in college, because of the convenience of being able to order things like tickets over the phone. I remember having to take a long trips just to get tickets to Yes and The Who when paying with cash. This is right before bank cards became a thing.

These days a bank card is all one needs, especially a minor! They can do anything with it... assuming the have the money.

If a bank card is compromised it's more of a hassle. I will not use bank cards for that reason.

If it meant two hours on a train, I'd have gone with the bank card!

 

[Politesse]

. I don't think any amount of marketing is going to make plastic cards more appealing than digital money transfers.

6% off groceries is pretty significant. Can EFTs do that?

Not Zoomer reasoning.

 

[Loren Pechtel]

When your cat starts recieving credit card offers, we will know things are going to far.

Don't laugh. This has actually happened.

My Cat Got a Better Credit Card Offer Than Me

Most people start to receive their first credit card mailings when they turn 18. But sometimes these offers are a little out of the ordinary, arriving for people who are far too young, or family members that aren't even human.

abcnews.go.com

I figured that's why you mentioned it. I was aware of the cat that got offers.

However, I think this explains why 14 year olds are getting offers--the banks don't know they're 14. They would prefer to send out offers to some who aren't eligible than miss sending them to some who are eligible. The credit companies simply see someone without credit and are trying to get in on the ground floor, they know the cats and the kids and the dead people aren't going to do anything with the offers so the loss is only the cost of sending it.

 

[Loren Pechtel]

Philosophically I'm in the same place, having always been debt-averse. I use credit cards for almost everything, but they're tied to a single account that I keep flush, so they're paid off in full every month. I don't pay their interest fees, but happily collect the 6% discount on groceries and 3% on gas offered by my AMEX card, and have a Visa that has great discounts on other stuff. So there's good reason to use them. All vehicles, home - everything is paid off in full, I have zero debt and my main worry is the same as yours: will I outlive my investments? On one hand, the older I get the less likely I'll run out of money. But then, the older I get the less the money is worth. The saving grace is that I live a very simple lifestyle - little to no eating in restaurants, very little travel... main expenses are related to animals and lately, home heating.
Que sera, sera.

Exactly. The last debt was retired long ago, credit cards are for the convenience and the rewards. Who gives 6% on groceries??

 

[thebeave]

My only credit card is a Home Depot ProXtra card for contractors that gives "perks" awards for spending with them. I pay the card off every month, and the vast majority of the purchases are all reimbursed by my clients. I just recently cashed in some ProXtra reward perks for over $300 in power tools, and still have more perks to spend. Am on a Lowe's reward program too, but I spend much less with them. So, this credit card is a win for me.