Credit cards are a tool of the DEVIL!!

The Stugots

BinFrog wrote:

It came up for me when I got my car in '02. Before that I only had a DC/CC combo card. I still got the car just fine, but the sales person told me I really needed a credit card if I wanted to buy another car or house at some point. I have had a CC now for like 7 years and never have a bigger balance than I can pay off. With CC's, as long as you are smart and know your limits then they are just fine. They get a bad rep, but 95% of the time it's the owner's fault. Sure, things happen and people get into trouble. But when people have over $10K in debt, and then you realize they just bought a new plasma tv, playstation III, home theater setup and 2 new sofas...well...

This is the best advice so far. Particularly when you look towards applying for a mortgage or another significant loan, someone with no credit can be seen as risky as someone with bad credit. I had a friend who moved to the US in her late 20s, made 140K a year but couldn't buy a home right away since she had no credit history.

Use your CC every so often, even if its for a small amount and pay the balance immediately. I have one card that is solely used for a couple small recurring payments totalling under $100/month. In my mind its working just like a debit card since I pay it every month, but meanwhile it's building a regular history of timely payments.

Debit cards also have some significant disadvantages to CCs. Most debit cards are protected against theft similar to a CC, but with debit card theft your checking account is without the funds until the matter is resolved. A bogus $1000 CC charge is just without the available credit and will likely never affect you, but the same issue with a debit card could cause problems since it's missing from your available funds.

Similarly many hotels now will put a hold on funds when you use them to book a room. Doesn't mean much for a CC holder to have a few hundred held against their credit, but it does when its missing from your available checking balance.

Fahka

Rip them to shreds unless you are just incredibly wealthy! Even in that case... they are designed to make you fail.. rip them up!

The sooner people realize it, the sooner we can end this credit charade

mickeyrat

Heineken Helen wrote:

BinFrog wrote:

It came up for me when I got my car in '02. Before that I only had a DC/CC combo card. I still got the car just fine, but the sales person told me I really needed a credit card if I wanted to buy another car or house at some point. I have had a CC now for like 7 years and never have a bigger balance than I can pay off. With CC's, as long as you are smart and know your limits then they are just fine. They get a bad rep, but 95% of the time it's the owner's fault. Sure, things happen and people get into trouble. But when people have over $10K in debt, and then you realize they just bought a new plasma tv, playstation III, home theater setup and 2 new sofas...well...

I think the important phrase being 'as long as you are smart and know your limits'. Not everybody is... and i think it takes quite a few young people a while to get used to the credit thing... they don't train you on this kinda thing.

And some of these companies are targeting freshman college students. Helps perpetuate the gotta have it now culture we live in here in the US.

Heineken Helen

mickeyrat wrote:

Heineken Helen wrote:

BinFrog wrote:

It came up for me when I got my car in '02. Before that I only had a DC/CC combo card. I still got the car just fine, but the sales person told me I really needed a credit card if I wanted to buy another car or house at some point. I have had a CC now for like 7 years and never have a bigger balance than I can pay off. With CC's, as long as you are smart and know your limits then they are just fine. They get a bad rep, but 95% of the time it's the owner's fault. Sure, things happen and people get into trouble. But when people have over $10K in debt, and then you realize they just bought a new plasma tv, playstation III, home theater setup and 2 new sofas...well...

I think the important phrase being 'as long as you are smart and know your limits'. Not everybody is... and i think it takes quite a few young people a while to get used to the credit thing... they don't train you on this kinda thing.

And some of these companies are targeting freshman college students. Helps perpetuate the gotta have it now culture we live in here in the US.

Oh agreed! They don't make money from clever people so that's no good to them... but as long as responsible people keep saying 'well once you're responsible, it's great', people will still fall for it. Credit is what got us into the problem we're in today... so no, it's NOT a good thing.

Hinn

I'd like to have a discussion with this in person with Helen, just to see if she'll blow up.

dunkman

Indian Summer wrote:

I love it how YOU were the one being irresponsible, yet you blame the Credit Card companies. CC's are a great tool when used responsibly. I pay everything with my Southwest Visa card, and pay the entire balance off each month, this earns me about three - four free round trip flights per year.

The only ppl who think CC's are evil are those who can't manage money or stick to a budget. You agreed to their terms before you signed up.

i have to agree with this guy... the op has stated he was late with payments... imagine if the OP had his own business and people paid late every time.. wouldnt you get annoyed as well?

credit cards are actually highly useful things when in the right hands. and in the UK you dont need one to get a mortgage... thats a US thing... and highly weird if you ask me... banks give you a better credit rating if you HAVE a credit card? thats just stupid. in the UK if you can manage without one then the bank looks at that and sees you can handle your money.

also, credit cards provide 'insurance' against online purchases as well as in shops obviously... debit cards don't... we had family members who had booked a holiday with their credit card and that company went bust... so the CC company refunded them the money... debit card or cash wouldnt have.

use it properly and its a highly useful and reassuring method of payment. use it badly and you'll get fucked by debt....

PearlOfAGirl

:twisted: :twisted: Exactly!!!! :twisted: :evil:

South of Seattle

I wouldn't go into debt if I lived in Lithuania :twisted:

http://www.kptv.com/money/18494864/detail.html#-

pjhawks

if you have a 2nd card do a balance transfer from one to the other. you usually can get a really low transfer rate for 6 months. if you can pay off the original amount in that 6 month period you will save a ton on the interest rate.

thunderDAN

I hate to be a Dad, but if you have a balance on your credit card and you pay your bill on the first day of your statement, it will save you alot of money in the long run. It's not like a cable bill where you if you pay the day you get it it's the same as if you pay it 2 weeks late. Obviously, no balance and paying it off each month is the best situation, but if you pay the day of your statement it will save you money

soulsinging

The Stugots wrote:

BinFrog wrote:

It came up for me when I got my car in '02. Before that I only had a DC/CC combo card. I still got the car just fine, but the sales person told me I really needed a credit card if I wanted to buy another car or house at some point. I have had a CC now for like 7 years and never have a bigger balance than I can pay off. With CC's, as long as you are smart and know your limits then they are just fine. They get a bad rep, but 95% of the time it's the owner's fault. Sure, things happen and people get into trouble. But when people have over $10K in debt, and then you realize they just bought a new plasma tv, playstation III, home theater setup and 2 new sofas...well...

This is the best advice so far. Particularly when you look towards applying for a mortgage or another significant loan, someone with no credit can be seen as risky as someone with bad credit. I had a friend who moved to the US in her late 20s, made 140K a year but couldn't buy a home right away since she had no credit history.

I agree that most credit card trouble is the owner's fault, but I think it's a crock of shit the way the whole credit rating system works. It's a system built to perpetuate itself and to set up future victims. You can't get anything without good credit and you can't get credit unless you get one of their cards. They lose money on responsible buyers, which is why you get no credit for using a check card and only spend what you have.

This is one industry in need of serious regulation.

That said, it's tough to really take the OP's side when by their own admission they missed multiple payments in less than a year.

rival.

i use mine sparingly. i usually just stick to my debit card. but whatever is on my CC bill every month, gets paid off in one shot... i never carry a balance forward.

Rygar

singularity wrote:

i use mine sparingly. i usually just stick to my debit card. but whatever is on my CC bill every month, gets paid off in one shot... i never carry a balance forward.

Same here, although I use a credit card for the daily stuff all month - gas, groceries, etc, and just pay it off on pay day. I also have an usually low rate (on one of the three), but it doesn't matter cause I always pay it off.

decides2dream

i love credit cards. they are a financial tool and nothing else if you use them properly. i do not have a plethora of cards, i only use one with any regularity and we rack up points for free air travel on any airline at any time, we pay our bill in full each month so it's like an interest-free loan each month. yes...you must be disciplined with it....you must pay your bills on time...but it is a TOOL, and a GREAT tool if you choose to make it so. we have in the past used them thru stores and such to get a 20% discount on a purchase and/or 12 months interest free, etc.....but when that period ends, pay in full, never use it again or cancel the card. i see no purpose in having a lot of credit cards, using a lot of cards simulataneously. THAt i think is asking for trouble, and just such a hassle....why keep track of so much? anyhooo....love my credit cards. extremely handy and yes, can actually save you a lot of money when used well.

Rygar

decides2dream wrote:

i love credit cards. they are a financial tool and nothing else if you use them properly. i do not have a plethora of cards, i only use one with any regularity and we rack up points for free air travel on any airline at any time, we pay our bill in full each month so it's like an interest-free loan each month. yes...you must be disciplined with it....you must pay your bills on time...but it is a TOOL, and a GREAT tool if you choose to make it so. we have in the past used them thru stores and such to get a 20% discount on a purchase and/or 12 months interest free, etc.....but when that period ends, pay in full, never use it again or cancel the card. i see no purpose in having a lot of credit cards, using a lot of cards simulataneously. THAt i think is asking for trouble, and just such a hassle....why keep track of so much? anyhooo....love my credit cards. extremely handy and yes, can actually save you a lot of money when used well.

I have 3 but only use 1 regularly due to the low interest rate it has. The other two are just there, and used for purchases I want an extended warranty for (providing I can pay said purchase off quickly), since the low interest card does not provide that warranty service. It does have the Montreal Canadiens logo on it, which makes it the bestest card ever rolled out.

Whizbang

mca47 wrote:

South of Seattle wrote:

I just got a letter yesterday from Chase bank since they swallowed up WAMU. Now my interest rate is 26%. :evil:

I have a lot of credit but it's pretty much spotless and Chase also knocked my APR up about 7 points in the last 2 months.

Good thing I have such a high credit score...only to have banks fuck with my APR either way.


Bottom line: Pay your credit cards off and only use them if you are on the verge of death or you absolutely have to.

Remember too - if you don't have the cash to pay for it now, you won't have the cash to pay the credit card bill later either. I totally understand using them to book travel plans as how are you going to pay cash on line (unless you use a debit card)? However, have the money saved for travelling first, purchase on line with credit then pay it off asap.

Don't get me wrong, I have some cc debt myself but am paying extra. If I want to buy something, I pay cash (or debit) and that amount cuts into the extra I usually pay on the cc. It will be good to have it paid off and as someone said, PJ tours will sting a lot less! Live in the cash world and you seem to have so much more.