• TFO Winder
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    4 hours ago

    I don’t understand, why use credit cards if 25% interest rate is charged?

    • unmagical
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      4 hours ago

      The interest rate is charged if you don’t make your payments. Otherwise, you get rewards each time you spend which makes things a little cheaper.

      • davelA
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        3 hours ago

        The “rewards” come off the backs of poor people paying these usurious interest rates.

        • chilicheeselies@lemmy.world
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          3 hours ago

          They actually cone from the charges they push onto businesses to process the payments. The interest rates are just profit

          • MacN'Cheezus@lemmy.todayOP
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            2 hours ago

            You’re both right. The rewards are indeed mostly covered by the processing fees, but that means after covering infrastructure expenses etc., the banks are operating at a net loss (or breakeven at best), meaning they still have to fleece someone on their interest payments.