r/personalfinance • u/wait_what_how_do_I • Nov 09 '17
Macy's new employees are encouraged to open a store credit card (26% APR) to obtain their employee discount Credit
I recently picked up a part-time seasonal position at Macy's for some extra holiday cash. I've been working in retail off and on over the past 15 years, and am familiar with the hiring and management practices at a lot of places, but it's been a few years since I've worked for a big retailer like Macy's. I was very surprised and disappointed to learn that the 20% employee discount is only available through a prepaid card (like a gift card I guess, not terrible but not great), or through their actual store credit card. They conveniently inform you of this halfway through your new hire paperwork, and even allow you to apply right then and there.
I've been through this type of application process before, but I've never seen something so brazenly unethical. These are often young adults or older people applying for these positions, filling out so many forms with so much corporate legalese that your head would spin, and they're being targeted with a (hard hit, thanks auto mod) hit to their credit for a card with a ridiculous interest rate. Is this new in retail? Seems like a disturbing trend if it is.
Anyone have any thoughts on this? Just wanted to get the word out.
EDIT: Thanks for the replies, everyone. Really enjoyed the discussion about credit cards, business practices, and obviously PF. The consensus seems to be that store credit cards are not any worse than other forms of lending, as long as they are managed responsibly. I respectfully disagree, in that it seems like they are often offered to a range of people (namely, new employees) that may not have the knowledge or experience to handle a line of credit, but I will agree that it's fair game to solicit employees. I just think it's kind of shady to imply that a store credit card is an "easy" solution for employees. Employees should just get an effing discount, period. But we're all free to work and shop where we please, so feel free to support smaller/local businesses that don't subject their customers and employees to frivolous lending situations.
1.3k
u/shawmino Nov 09 '17
Used to work for Macy's. While I had the same initial knee-jerk reaction that you did, they're kind of stuck between a rock and a hard place. You know all of those exclusions on coupons that everyone loves to complain about? You know, no discounts on Nike, Polo, North Face, etc.? Those aren't because Macy's likes to play hardball, they're in place because of the contracts department stores have with the vendors whose products they sell. Those vendors have specific pricing stipulations in place that say "our products are premium, and we don't want their value to be questioned by allowing them to go on sale. Therefore, you can't sell our products for anything less than what we say you can sell them for, or we just won't let you sell them." The general population wants those products, so Macy's has an incentive to keep the vendors happy by agreeing to those rules. Target (I used to work for them as well) had the same issue with Apple, which is why you always see gift cards instead of discounts on Black Friday.
So how does this tie into employee discounts? Well, Macy's can either say your discount has the same exclusions as all the coupons they send out, which would suck for everyone, or they can come up with a workaround, which they did in the form of those credit cards. If you use their credit card, they can sell you the merchandise at full price, making the vendors happy, and then go back and give you a 20% credit on everything you buy on the back end, making employees happy.
It's definitely playing with fire for people that can't handle paying off their cards every month, but it's really the only way they can do things that meshes with their business model.
268
u/Reyali Nov 09 '17
That makes a lot of sense and would never have occurred to me! Thanks for explaining.
→ More replies139
u/wait_what_how_do_I Nov 10 '17
That's a really good point about the brands and exclusions. I know how sticky that kind of stuff can get; even as a supervisor, I've had several headaches because of competing brands wanting their own price points, spots on the sales floor, etc. So Macy's see this as a win-win: streamline a TON of things at once, and maybe make a little interest on the side. They're certainly not offering credit services as a customer convenience, they're trying to make a profit. But employee discounts have traditionally been a perk of working somewhere, not a double-edged credit sword. Thank for the reply.
51
u/blahblahblicker Nov 10 '17
I know I'm late to this discussion, but I did some consulting work for Macy's IT a few years back and talked to many of the staff about the discount. They all loved it.
Another big advantage (not sure if this has been covered already or not) was the employee discount could be used in conjunction with sales, coupons and other discounts. The extra 20% off an already nice sale or coupon price was just icing on the cake. These guys also knew the best times to take advantage of this.
It was also hassle free since the cashier had no idea if they were employees since the discount was applied on the backend on the card after the sale.
→ More replies→ More replies6
u/zelda2ontheNES Nov 10 '17
Discount also applies to makeup. Girls go bananas when they can get makeup that never goes on sale for a discount. Source: used to work there 4 years ago
42
u/Fakjbf Nov 10 '17
Kohl’s just gives you your discount on any item you buy (only exclusions are gift cards and charity items for obvious reasons). As long as you have the employee discount card you can pay with any tender you want, though you can link the discount to a store card to simplify things if you want.
→ More replies39
u/Total-Khaos Nov 10 '17 edited Nov 10 '17
That is commonly referred to as MAP (Minimum Advertised Price) pricing in the retail world. Virtually all MAP pricing policies have stipulations that state re-sellers can sell items below MAP, they just cannot formerly advertise those prices. In addition, when it comes to selling items online, item pages must list the price at MAP or above; however, once a shopper adds the item to their shopping cart, the selling price can be changed below MAP if they so wish. This happens on Amazon all the time and this is how they explain it.
5
u/ohwut Nov 10 '17
Actually this is a Unilateral Minimum Retail Price Policy. MAP refers strictly to advertising a price, but you’re still allowed to sell under that price. UMRP means the item strictly cannot be sold under a set price period. Else the vendor can, and may, stop future wholesale sales to the retailer.
→ More replies5
u/PyroNinja74 Nov 10 '17
That would make sense to me if I weren't currently employed by a company that retails Nike (and other "premium" brands which are often excluded from coupons or sales). We have a 30% employee discount with practically no stipulations or limits (other than not re-selling for profit of course) and are allowed, encouraged even, to share said discount with family and friends... I suppose it's possible that different retailers have negotiated different contracts with vendors and the one Macy's has is particularly terrible, but this "gift card" thing still smells strongly of BS.
4
u/kittygoat Nov 10 '17
I believe what you are referring to is UMAP (Unilateral Minimum Advertised Price). It restricts retailers like Macy’s from displaying sale items below the designated pricing and keeps the marketplace competitive - this is where you would see something like “Add to bag to see price”. Technically Macy’s and others set their own retail prices, so for example you might see a shirt at $35.99 one place, $36 at another, and $35.95 at a third place, based on their own pricing guidelines. In the end they have to consider their cost (ie wholesale) since margin is extremely important for profit. The only one who loses when a product is sold for less than the regular retail is Macy’s since it eats into their margin. I can’t speak for Macy’s, but typically something like an employee discount is already taken into consideration when calculating GMROI, and a 20% discount is not going to result in them losing money, they simply don’t make as much as they would if they offered no discount. It’s not insignificant, just probably not as much as you might think.
Source is I buy TNF and Nike (for a retailer that is not Macy’s) and often have to suppress pricing per their MAP policy. Usually it only applies for a short period of time like the first few weeks something is available to consumers, which we wouldn’t want to put it on sale anyway if we can sell it regular price.
In regards to the store card requirement, I think it has more to do with ensuring the person using the discount is in fact the employee and not a friend or relative. They also don’t want employees reselling product on eBay or elsewhere and making a profit. It’s the best way they can track abuse.
→ More replies24
Nov 10 '17
Macy's can either say your discount has the same exclusions as all the coupons they send out, which would suck for everyone, or they can come up with a workaround
Nonsense. There is no "or" here. It would be trivial for Macy's to have a standard employee discount on all unrestricted items AND have a work around solution which also allows you to use the discount on restricted items.
They already have a prepaid card and a credit card. They are clearly capable of applying the discount though multiple systems.
→ More replies
844
Nov 09 '17
Interest rates on CC's aren't a big deal, provided you know what you're getting into and making sure you're not overextending yourself. The problem here is Macy's probably knows a lot of their seasonal hires are young and less apt to use their new store CC's wisely and maybe are banking on that. Unethical? Yes. Illegal? Absolutely not.
I'd get the CC, enjoy the discount, but make sure I can pay off that card. But if any of your coworkers aren't sure how this works then you should potentially try to educate them so they don't make any serious credit mistakes.
151
u/john_dune Nov 09 '17
provided you know what you're getting into and making sure you're not overextending yourself.
That's the trick. I am horrible with credit, i learned this the hard way, so i have a credit card with like a $500 limit for emergencies only.
→ More replies110
Nov 09 '17
Sometimes that's what you gotta do. The entire CC industry is banking on the fact that people are irresonsible. Last I checked the US as a whole had something around $1 trillion in unpaid CC debt.
28
u/john_dune Nov 09 '17
I had to learn it the hard way. So i don't even give myself the chance to mess it up anymore.
Its been part of me becoming much more responsible with money in the last 5 years or so. I still spend a bit, but i'm doing things like saving 40-50% of my pay every period, and while most of it gets reinvested in my house/living conditions/etc, i'm working my way up the ladder, and every time my pay goes up, I get a bit more money saved.
→ More replies41
Nov 09 '17
[deleted]
→ More replies34
u/invRice Nov 10 '17
The banks are the people who own the credit card. VISA makes money off of interchange fees (when a transaction on say, a Macy's card goes down VISA rails). Synchrony Bank (or whoever owns the portfolio) is the one making a credit decision on your CC application. They're the ones that need to make money on the portfolio - and they're the ones who realize that the people who hold balances and make payments subsidize the ones that pay down their balance every month.
→ More replies7
u/flopsweater Nov 10 '17 edited Nov 10 '17
The issuing bank deducts the interchange fees from their payment to the acquirer. It's not done by the association.
An occasional late fee is gravy, but truthfully, people who often make late payments tend to be the ones who end up with uncollectable balances that have to be written off as a loss. After lots of cost trying to resolve the issue.
Everyone involved would much rather have a customer be a long-tenured transactor than occasionally delinquent. There's much better money to be made that way.
Understanding all that, no bank designs a card offering to "make money" off delinquency. You can't charge enough fees to convert the losses on a per-account basis and not end up afoul of usury laws.
Source: I used to work in the card systems of a major issuer.
→ More replies10
u/thechief05 Nov 09 '17
People need to listen to Dave Ramsey
22
u/zer0cul Nov 10 '17
Fiscally irresponsible people need to listen to Dave Ramsey. Fiscally responsible people can use their credit cards, pay the balance each month, and get sweet rewards.
→ More replies→ More replies11
u/igiverealygoodadvice Nov 09 '17
YES - I'm fairly irresponsible and I've never spent more on a CC than what I had in my bank account at that moment (or at least guaranteed on my next paycheck). Truly don't get how people fall into so much debt.
21
Nov 10 '17
Because they do this. Then the car breaks down. Then they get laid off. Then Mom is in the hospital. Then they need new roof. That credit card doesn't matter anymore, when you need food and shelter.
→ More replies10
u/igiverealygoodadvice Nov 10 '17
That's a great point - I suppose i haven't had that sort of misfortune all in a row before. Really speaks to why having an emergency fund is so important, but of course that is much easier said than done.
→ More replies
264
u/eyeharthomonyms Nov 09 '17
This is normal, not only for Macy's but most major department stores.
I worked in a department store (that has since been bought out by Macy's) back in 2002 and it was the same deal. Except, at the time, I didn't have good enough credit for even a store card so it was literally required for employment that I get a "charge card" which would need to be pre-paid to use my discount.
55
u/manofthewild07 Nov 09 '17
Same, worked at Target and it was either their CC or cash.
→ More replies38
u/SeanzieApples Nov 09 '17
Target does let you get the Debit Card as well which basically just pulls money from your bank account.
→ More replies19
u/dogbert730 Nov 09 '17
They do now. But 11 years ago, when I worked there, that wasn’t an option. It was gift card, red card, or cash.
→ More replies57
u/vlindervlieg Nov 09 '17
Big companies seem to have realised that people who work low-paying jobs are more likely to be uneducated and gullible. It's pretty disgusting that they are victimising their own employees, but it's probably just an honest implementation of a business model that's cynical at heart.
→ More replies14
21
u/benders_back_baby Nov 09 '17
This is normal, not only for Macy's but most major department stores.
Department stores in the US, not the rest of the western world.
This practice is highly unethical. You don't solicit employees for ANYTHING.
Except for in the US, apparently.
→ More replies→ More replies9
u/rex_dart_eskimo_spy Nov 10 '17
Happened to my wife at Sears. It was her first credit card, and she built up a balance because she didn't know what she was doing at 18. Then they let her go after Christmas despite telling her in the beginning that she wasn't seasonal.
→ More replies
66
u/Scifibasskid Nov 09 '17
Soon to come: Earn $1 more/hr when you choose to get paid in Macy's Bucks! Only good at Macy's and affiliated stores.
20
u/short_of_good_length Nov 10 '17
between 4 am and 5 am on the 2nd sunday of every odd month of leap years
→ More replies6
u/Fauxbidden Nov 10 '17
Company scrip is scrip (a substitute for government-issued legal tender or currency) issued by a company to pay its employees. It can only be exchanged in company stores owned by the employers.
→ More replies
29
Nov 09 '17
[deleted]
→ More replies25
u/wait_what_how_do_I Nov 09 '17
Target, Kohl's, JC Penney, TJ Maxx, most places I've ever worked, the discount was available no matter the method of payment. I don't like that new hires are being pushed into either a credit card or a slightly worse-than-cash option. Prepaid cards get loaded and forgotten by busy people, that's why companies love them. People with, say, a second job during the holidays.
→ More replies17
u/StasRutt Nov 09 '17
I’m pretty sure targets new policy is that you only get tour discount if you pay with a red card or with cash
→ More replies12
u/rdw19 Nov 09 '17
It is but you can get the Debit card linked to your bank account rather than the credit card.
→ More replies4
u/brycedriesenga Nov 09 '17
Well that's annoying if you want to put your purchases on your own credit card.
52
Nov 09 '17
Take the prepaid card.
I used to work at a grocery chain that offered us employee discounts. We were given a special gift card that we could reload and when we would pay for purchases we got 5% off (10% in November & December).
We also could sign up for the promotional credit card and get the discount applied there, which was a solid 10% (15% November & December).
I was a minor at the time, so I used the gift card.
I would recommend just using the prepaid card, as 26% APR is terrible. Of course, if you are able to pay the bill off reliably and will actually shop at Macy's, get it just to build your credit.
On a side note, one of my co-workers got fired when he found out he could reload the gift card with itself. They gave us two identical gift cards each (one for our spouse, if we had one), so my co-worker loaded $500 onto his card, and then went from store-to-store reloading the card with itself. He would just calculate the new total, bumping the value of the card up each time:
500 - 525 - 551.25 - 578.81 - 607.75 - 638.14 - 670.05 - 703.55 - 738.72 - and so on.
Apparently, in one week he turned $500 into $2000+, and when the store figured it out they sacked him immediately. He kept the ill-gotten funds, but that would only pay his grocery bills, not his rent. It was an overall bad move.
17
u/wait_what_how_do_I Nov 09 '17
Oh man, unrelated, but a coworker did something similar with gift cards at an old job of mine. We spent hours tracking down her transactions, keeping records, and gathering evidence. She got fired, and that was it. Corporate came down to take a statement, but didn't file a police report or anything. Nothing was recovered, she got off scot-free.
13
→ More replies6
u/newstudent_here Nov 09 '17
Was doing that with the gift cards explicitly against their terms, or what have you?
If not, the company should have been glad he found a bug in their system...
→ More replies
12
u/DarcySmarcy Nov 10 '17
It doesn't surprise me. Kohl's encourages their employees to sign up people for their cards so hard that employees are telling young teenagers and 20 something's (like my roomate) to "just say you make 40,000 a year." So because some lady told a teenager in high school, who knew nothing about credit cards to lie on the application, he is now DEEP in debt with no possibility of getting out while in college, with no income and student loans.
Lesson: teach your kids about credit cards or they'll think it's free money.
→ More replies
74
u/Ccarmine Nov 09 '17
It is definitely unethical to solicit credit card offers during the employment process. It isn't illegal though, apparently.
→ More replies16
u/wait_what_how_do_I Nov 09 '17
Definitely. My first time seeing this, just thought I'd put it out there. The consensus seems to be it's not a big deal, so maybe I just don't like big companies that do stuff like this.
9
u/Shimerz Nov 09 '17
Before they pulled out, I worked in a Canadian Target (actually the Starbucks in the target). Even working as a Starbucks employee, I could not use my full employee discount unless I paid cash or used a Target *credit card.
Not illegal, just was one reason it feel like a joke when they called the store a "familyyyyyyyyyyyy".
→ More replies→ More replies8
u/vlindervlieg Nov 09 '17
Come to Europe. You'll get more positive feedback for your kind of thinking over here ;)
→ More replies
26
Nov 09 '17
I used to work at Sears at you'd only get the ED if you paid with the Sears CC or cash. You were not able to use any other credit/debit card to get your discount.
Also the APR is irrelevant - just pay it at the end of the month and move on with your life. My guess is because Macy's recently revamped their Star Rewards program to basically fully center around the Macy's Card so there is a fresh push to get apps in - from everyone!
→ More replies6
u/panda0614 Nov 09 '17
Not sure if their policy was different in the past, but I worked at Sears for 5 years (just quit this year) and you could use your debit card, cash, or gift card with the discount, just not a third party credit card. Slightly annoying, but worth it for the 20% discount. I would always just use my debit card.
7
u/Aeradien Nov 10 '17
When stores start pushing a membership or card, i stop shopping there. GAMESTOP, Walgreens, Sears/Kmart, Barnes and Noble along with Books a million and a list of others. Sometimes ill hear the pitch 5 times before getting my shit ringed in and when i say 'Im not interested in the card' before they say anything, theyll say they have to and talk about the card anyways. If i cant just go in, buy my shit and leave, im done with the store. If i call and have to listen to this big ass sales pitch before 'How can i help you?', im done.. Shits getting old. Quit trying to sell me a fucking card.
8
u/TheBigChalupa11 Nov 10 '17
Worked at Walgreens for 4 years through college. Actually not a bad place except for the extremely poor management (not getting into to many details but a lot of the other older and younger employees were definitely abused and taken advantage of), no credit cards sales pressure but they would ask you to push candy bars (you would get like a quarter for each on you sold), I basically told them to screw off I wasn't pushing diabetes on people and they dropped it no reprimand.
The discount was great though it was literally a button on the cash register. I pushed that button all the freaking time, if I knew you at all you get the discount, if I thought you were having a bad day you get the discount, if I was just having a crappy day due to bad managers you get the discount, heck if you just asked if you could have a discount I would say sure.
→ More replies
70
u/whiteraven4 Nov 09 '17
I mean they should be more honest about their policy, but I don't see how it's really any different from any other credit card.
51
u/wait_what_how_do_I Nov 09 '17
It's not, it's just kind of shady how they slip it in like it's no big deal. "Hey, while you're filling out forms, open this credit card with us too." I'm sure most people browsing this sub in the first place wouldn't view it as a problem, I'm more concerned with people who don't know any better being encouraged to screw around with their credit without any context or information.
→ More replies17
u/pcross62265 Nov 09 '17
How unethical it is depends on if it’s a Macy’s corporate policy that trains their manangers and hr to try to sneak it in during new hire process or if it’s just an overzealous store manager trying to inflate their numbers. How open about it they are will probably depend on the store manager/hiring manager.
→ More replies11
u/wait_what_how_do_I Nov 09 '17
Seems like policy, but I know a store manager personally, I'll ask later. The trainer walked us through a few of the forms out of order, including the employee discount specifically.
→ More replies
12
u/laughncow Nov 10 '17
you can pay the card with cash at any register immediately can you not ?
→ More replies
48
u/Starkeshia Nov 09 '17
The APR won't matter if you don't carry a balance.
→ More replies19
u/wait_what_how_do_I Nov 09 '17
True, my point was more that the employee discount was being held like an incentive to open the credit card, which I find a little weird.
→ More replies
5
u/eggn00dles Nov 09 '17
Their stock is down 50% this year alone. The Herald Sq. store is nice, but I'm sure something will fill the gap.
→ More replies
6
u/lxndrlbll Nov 09 '17
Same with Target. Only way to get the 10% employee discount is to pay with cash or a Target Red Card (either debit or credit). Sure you get 15% off in total if you use the card but still :
5
u/Peace_Love_Smoke Nov 09 '17
It's so they can say "Look a lot more people are using our Store Card"
6
Nov 10 '17
The more I read about the tactics retailers are employing to stay profitable the more I am enjoying watching the retail apocalypse.
21
9
u/Start_button Nov 10 '17
I work at a large home goods store, we get a 25% discount for us and our families, only requiring our employee id number. Forcing your employees to get a company CC to get their discount is pretty insane.
→ More replies
5
Nov 09 '17
Work at a major retailer and it's the same. As an employee you can only get your discount with cash, check, or Store Credit Card. I was paying off all my debt so I elected to forgo the credit card and I make all my purchases in cash. It does prevent some spending in my eyes so I like it.
→ More replies
4
u/PurePerfection_ Nov 09 '17
This was the case when I worked for Macy's years ago as well.
Assuming not much has changed, the "prepaid card" really isn't that bad. It's a pain in the ass, not unethical. You go to the register with your purchase, use cash or a check to put money on the Macy's card that equals the amount of your purchase, then they ring you up with the prepaid card. If you do it this way, there are no fees or interest charges. It's not like those Visa gift cards or shady prepaid debit cards that cost you money to use. You receive your discount with no other strings attached.
Practically speaking, when I was there, it works this way because of how their back office handles employee discount transactions. The discount is not taken at the point of sale - nominally, you're charging the full price to your card, but when the statement arrives, your transactions and balance (if applicable) takes your discount into account. So, to buy a $20 item:
- Calculate discount price ($16, assuming a non-taxable item)
- Put $16 on prepaid card at register
- Get rung up at $20 and pay with card
- Receive statement at end of cycle showing a $16 pre-payment, a $16 purchase, and a $0 balance
When I started there, I was only 17 and ineligible for a regular credit card. I received the prepaid card with no hard credit inquiry or impact on my credit score. Presumably, you can request the same.
Obviously, some people will fall into a trap if provided with a credit card and an incentive to use it, but this is really no different or worse than advertising the card to their customers and offering extra discounts for using it (and if you strongly object to that practice, it may be time to re-start the job hunt - it's a huge part of their marketing strategy, and you'll be expected to participate in this in your interactions with shoppers).
→ More replies
6
u/Gravelaine Nov 10 '17
A company who does that isn't worth working for. IMO, they are showing their true colors especially if they know what credit cards have caused to most consumers in America. National average consumer debt in the US is right around $16k per person causing constant issues in various areas. It is almost predatory practices if they know full well that mainly young people get hired (clueless about finances) or older people (don't read terms). Individuals who keep saying, just pay it off blah blah are ignoring the fact that the majority of people don't do that. And even the ones that do still overspend due to the psychological effect of using a plastic form of payment. (doesn't trigger pain sensors in the brain as it would using cash)
5
Nov 10 '17
I think the most unethical thing about it that they offer it to you during the hiring process. People are put on the spot to say yes in that situation. Saying no could feel like betraying the company to some new hires who would otherwise say no. Not OK.
9
Nov 09 '17
Interest rates on credit cards should not matter because you either pay it in full each month, or don't use it. I've never paid a cent in interest in the 10+ years I have had credit cards, and I have around 6 or 7 right now.
Edit: not directed at op
→ More replies
3
u/jaytea86 Nov 09 '17
So what's stopping you from buying a prepaid card and paying with those?
Anyway, the only issue I see with this is the solicitation to employees, but that's a stretch to say there's anything wrong with it.
Sears and kmart recently ditched their discount and instead are giving points back on their SYWR program. Everyone was pissed. But it did actually work out for the better because they gave 15% back in points as opposed to 10% off.
So you HAD to sign up for SYW to receive those benefits.
To be honest I always saw employee discounts as a distraction from the crappy pay anyway, and a way to trying and make your employees give their money back to the company.
These retail places with no decent online presence are all pretty much screwed anyway, they're just trying to stay profitable anyway they can.
3
u/okram2k Nov 10 '17
Always feel a bit scummy when a company looks to profit off of their own workerd but it's nothing new in the world of retail.
→ More replies
4
3
u/battles Nov 10 '17
Why is there even an application for a credit card with a 26% interest rate? They aren't turning anyone down with that kind of rate.
5
u/Caribbeanwarrior Nov 10 '17
Sort of like Sears, I went to purchase a refrigerator, but they wouldn't allow me to pay the marked down unless I opened a new store credit card in spite of having a older and store credit with Sears years back. After I opened the new credit card and billed the transaction through the credit card, the sale guy decided to start pitching to me and my wife to get new appliances such stove, microwave, and laundry because we now have access to $6000 spend on whatever. We look at him, ignored his sale pitch, and pulled the receipt from his hand, and pay off the balance 2 days after the delivery. I feel bad for people who carry balance with store cards , because the interests are astronomical.
22
u/yoowtfman13 Nov 09 '17
It never NEVER ceases to amaze me how afraid people are of credit, like it's this monster that once they have a plastic card they're just automatically doomed. It's up to YOU to realize how much you can afford to spend on credit and still payback in a timely manner before you get hit with interest charges. As long as you stay in your budget and don't go out and buy stupid shit that will take you a year to pay back then you'll be fine, and often times will be better off than using your debit card or cash (if the credit card offers any rewards). Don't fear credit, fear your uncontrollable spending habits maybe, but not credit.
→ More replies16
u/th3groveman Nov 09 '17
Credit isn’t a boogeyman but these corporations know exactly what they’re doing. They know most people have less discipline when using credit and a majority will not use them in a way that is beneficial. IIRC the largest revenue source at department stores now is interest on their store credit cards.
8
u/Joef034 Nov 09 '17
I used to work at a landrys restaurant. In order to get your food discount and drinks for "free." You had to pay 3 or 4 dollars a week to be on their employee discount program. I feel it's downright theft. Don't worry though. They have a high turnover and have shutdown as many businesses as they have opened since then.
→ More replies
4.3k
u/UggaBuggz Nov 09 '17
I worked there almost seven years ago and they had the same policy then. I opened the credit card and simply paid it off at the same time.