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.
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.
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.
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 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.
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.
believe it or not, we don't "need" anything. that is only the spoiled brat in us trying to fill some temporary solution to an emptyness that does not exist.
I have eaten so much gold I crapped excellence - drtyfrnk29
Life is either a daring adventure or nothing at all!
Comments
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.
Let's just breathe...
I am myself like you somehow
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.
I have eaten so much gold I crapped excellence - drtyfrnk29
Life is either a daring adventure or nothing at all!