The credit-card model is spinning out of control. I have a good income and decent credit. So I have a credit card that gives me 2-3% cash back on everything, low or zero fees, and tons of other bonus perks (various kinds of insurance, airport lounges, whatever).
So I should be excited right? Well, not really. The 2% cash back barely makes up for the 2% that MC/Visa take out of the middle in the first place! So the goods I buy cost more than they should and I get a "kickback" on the backend.
And if you're someone without access to great cards, then you still pay the same price in stores but you get no cash back, high APR, low credit limits, and crazy late fees.
So I should be excited right? Well, not really. The 2% cash back barely makes up for the 2% that MC/Visa take out of the middle in the first place! So the goods I buy cost more than they should and I get a "kickback" on the backend.
And if you're someone without access to great cards, then you still pay the same price in stores but you get no cash back, high APR, low credit limits, and crazy late fees.
It's regressive taxation.