It has no relation to paying interest, only to making transactions with the credit card.

turkey99 15 hours ago | parent | next [-]

If you use a credit card, but can’t pay it immediately then you pay interest. It’s a trap the less wealthy fall into.

koolba 15 hours ago | parent | next [-]

Spending money on don’t have with no financial repercussions is known as the elusive “infinity money hack”. Which clearly does not exist.

Of course there’s going to be a a cost to spending beyond your means.

vasco 15 hours ago | parent | prev | next [-]

Yes that is true, and what I said is also true.

	▲	15 hours ago \| parent [-]
		[deleted]

iso1631 15 hours ago | parent | prev [-]

Or you could simply not pay on the credit card, and avoid the trap?

	▲	jubilanti 15 hours ago \| parent \| next [-]
		The point is they make a lot of their money from people who don't, paying 20% APR -- the 'whales' in this consumer industry aren't the richest people, unlike retail, gaming, travel, etc.
	▲	snarf21 15 hours ago \| parent \| prev [-]
		Not everyone always has the money not to.

kybernetikos 15 hours ago | parent | prev | next [-]

The relationship is that the service and rewards you get are subsidised by generally poorer people who mess up their financial planning.

	▲	vasco 15 hours ago \| parent [-]
		Rewards are paid out for transactions, not interest paid, that's all. Otherwise poor people failing payments would get more rewards than the rich which don't. The dynamics would be completely different.

nutjob2 15 hours ago | parent | prev [-]

This isn't correct, rewards and benefits are not 100% funded by interchange fees. They wouldn't be possible without many customers paying interest.