What's in your wallet? Is a question asked by capital one in almost every commercial they have aired over the last five years. They often advertise their 1.5% cash back compared to cards that only offer cash back and rewards based on certain purchases. However, many of these card companies have large amounts of customers becuase many consumers believe a credit score is a necessity.
Thesis: Credit scores and therefore credit cards are unnecessary to any consumer as manual underwriting serves a recommendation when taking a mogarte and despite many of these credit card companies offering rewards such items are often impossible to redeem making credit cards not only annoying but a liability.
One of the primary selling points in credit card marketing is there rewards points. Many times credit companies will try to position themselves above their competition through use of airline miles however nearly 17 trillion flyer miles were not redeemed last year according to NBC’s Today Show. Not only were these miles unredeemed they were expired off of their accounts. Meaning for most companies if you don’t use them you lose them. These often unredeemable require consumers to by submerged by debt to acquire. This makes travel miles worthless because the money
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Credit history and therefore credit scores are only a measure of the debt a person has. The FICO Score weighs debt levels, duration, type, new debt, and late payments. This supposedly a measure of how well a consumer may handle money and likelihood of repayment. However, a high credit score is often an indicator of a very opposite circumstance. In order for one to have a high credit score one incurs frequent and large amounts of debt. This often displays a consumer's mishandling of money as they often purchased items they didn’t have the money for through loans according to Dave