Credit card companies and their advice

It is popular belief that no corporation, no matter how altruistic or well-meaning, ever gives out good advice that might even be completely contrary to their financial interests. Cigarette manufacturers often release anti-smoking ads, only to face much ridicule while casinos that advice gamblers on how to face up to and beat their addictions only receive scorn and derision for their acts. It is quite possible though that some of these companies are not really displaying any degree of hypocrisy or mere lip service when they offer up these messages. The skepticism and wariness is entirely understandable, but there’s no reason to doubt that it’s not well-intentioned.

Clearly, each company’s main obligation is towards its shareholders and consequently its own bottom line. The question of moral turpitude or right and wrong doesn’t even begin to come into it; it is, as they say, nothing personal. They just do what makes perfect business sense. And as entities, these companies exist within a social fish bowl where they, like every other entity, are judged for their actions and their contribution to society. The idea is to show that they are responsible corporate citizens and that they care, that they are genuinely concerned about the society they live in. It’s not hard to come up with a message that shows they care but will eventually fail because of this skepticism. The point is to show that said companies care, and this is where credit card companies step into the picture.

Credit card debt is a serious issue for millions and millions of people and we all read often about how some get caught in the spiral of debt, unable to pay off their debts and how interest piles on interest once you do not pay your principal amount. Penalties, fees and interest start to gnaw away at their income until they are a slave to the card as opposed to it being the other way around. From a purely calculative perspective, there is no reason a credit card company should help you break free of these shackles. However, remember that if you do stand to lose credit card companies will lose out as credit card debt is unsecured debt, meaning they lose as much as you do.

And so, by way of offering financial advice, credit card companies do offer guidelines on financial advice. Mind you, most of this will be decent advice, but not the sort of advice you might consider the best advice in any given situation. Pick a card, any card; Visa, Mastercard, American Express and they all do have some guidelines or the other but it’s more grudging admission than well-intentioned. Be wary of whose advice you take, even if it is free.