Understand how the credit program excludes the poorest.
You’ve probably heard about credit card programs. Many companies and banks use this service for those who purchase a credit card from a financial institution. In general, it means that the more a person uses the card, the more points are accumulated and, in the future, these points can be exchanged for cash, travel or another available option, but what should be an advantage is often a hindrance, an obstacle that hinders the financial life.
It’s because the points program implicitly transfers money to millionaires’ accounts, card company owners, so the user doesn’t earn anything, it only generates more money for the companies and what would be a prize or bonus is not actually a gift, but rather an illusion of repayment. So, this type of program does not help the poorest, who end up spending more and generating loans. In this article, you will better understand how this scheme works.
As stated before, many card companies opt for different forms of credit programs, but the most common is cash redemption after a certain score. What a lot of people don’t know is that this refund is fake and, in the end, they spend a lot more money than they get back, so it creates the false feeling of bonus, but it’s not actually helping the cardholder, it’s just reinforcing compulsive shopping behavior and making the rich more rich.
Another option that is becoming common is the credit program that gives the card user the possibility to travel, but which is still a fraudulent scheme. The reason for accusing the fraud is that the user cannot choose the destination of origin or the time he wants to travel, so the company stipulates a deadline for the redemption of the prize and it is usually during working time, that is, the redemption of tickets rarely happens at times when people travel, which is between Christmas and New Year.
Many card companies are diversifying rewards from point redemptions, so options like wines, books, appliances and cell phones are appearing more often in the highscore catalog, but again the scheme remains fraudulent, the reward may change, but the structure of the points program remains the same, which means more spending for the poorest and more money for the richest.
To get the younger generation’s attention to encourage spending on cards, companies are teaming up with streaming platforms, thus generating a scoring scheme that can be redeemed across music, movie and series platforms. Basically, the person gets a discount on the monthly fees on these platforms or a limited time to use the services for free, but in reality it is not free, this only happens because the user spent more than he should have on credit cards and receives a false bonus.
Understand that it is possible to earn much more saving than impulsively using the credit card, the money that would be received at the end of each score is not even half of what users spend per month, so if people spent conscientiously and organized, they wouldn’t have to resort to a fake scoring program, because at the end of the month there would be money left to invest in a trip with the date and destination of their choice.
So always choose to organize your expenses, be in control of your money so you don’t need to resort to options that are not so reliable or that in some way helped to form the debt situation. The only person who can give you a bonus or refund is yourself, choosing to have a more balanced financial life, respecting your spending limits and maintaining good credit in the market, without debts or creditors.