Home > Credit Cards > 4 People Who Hate Credit Cards

Comments 0 Comments
Advertiser Disclosure


It’s easy for people to see the benefits of using a credit card. They offer the convenience of carrying around cash, while having protections against loss and theft. And rewards credit card holders can earn valuable points, miles or cash back when they use their cards to make ordinary purchases.

For merchants, credit cards offer a quick and easy way for customers to pay for their goods, and credit card payments are less vulnerable to fraud and theft than cash or checks. Furthermore, credit cards make it easier for customers to finance their purchases, which can increase sales.

Nevertheless, there are some people who simply hate credit cards.

1. Cab Drivers

Taxi cabs were one of the last places where you couldn’t use a credit card, and many cab drivers are not happy now that customers are increasingly using their plastic. In 2011, the Boston Globe reported that some cab drivers had to pay a 5% or 6% processing fee on credit card transactions, and then another $1.50 fee to withdraw cash from their accounts. (Though in Seattle, cab drivers were reportedly using their mobile phones to process payments with lower fees.)

2. Small Business Owners

Business owners certainly have a love-hate relationship with credit cards. Sure, they do save money when customers use credit cards, as handling cash and checks takes time and makes them more vulnerable to theft and fraud. On the other hand, they have to pay merchant fees that credit card networks charge them for processing credit card payments. Convenience store owners complain that the market for credit card merchant fees is uncompetitive, and that the payment networks are earning too much profit. Yet their protests might seem a bit hypocritical to those who just paid $5 for a quart of milk.

3. Credit Card Users Who Are in Debt

Convenience can be both the primary benefit and the main drawback of credit cards. Those who use credit cards simply as a method of payment avoid interest charges by paying each month’s statement balance in full and on-time. On the other hand, some cite the convenience of credit cards as part of the reason that they overspend and go into debt. Since credit card debt is unsecured, interest charges can be costly and cardholders can have trouble paying off their balance. In the end, those who struggle with debt end up hating credit cards and may need to stop using them to control their spending.

Credit card debt doesn’t just have short-term effects like interest charges either. Debt has a major impact on your credit scores. If you want to see how your credit card debt is affecting your credit, you can check two of your credit scores for free every month on Credit.com. You can also get your credit reports for free every year from AnnualCreditReport.com to check for mistakes or other problems that are hurting your credit.

4. People Who Don’t Know About the CARD Act

This landmark piece of consumer protection legislation ended many of the most unfair and deceptive practices of the credit card industry. In the past, credit card issuers practiced an insidious form of accounting called double-cycle billing, in which cardholders were essentially charged interest on purchases that they had already paid for. Cardholders were also subject to “universal default” clauses where they could have their interest rate raised because of problems with other accounts, even if they always paid their credit card bill on time.

For the most part, the CARD Act addressed these and other problems with the credit card industry. However, bad memories die hard, and many people still have a negative view of credit cards based on their experiences before the CARD Act.

More on Credit Cards:

Image: Creatas

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team