Cancelling credit cards

[mrsleeve]

There is no need to have a credit card regardless of how financially "aware" you think you may be. Take mr. sleeve for example...No job and 4 cards with a balance on each one. If mrsleeve misses a payment or goes over his limit he gets slapped with fees and a high interest rate up to 31.99% Then his minimum payment goes up, he sinks and ends up calling me for help.

I

Well dude for one thing I am no where near my limits on any card, I have about 30k left if I were to run them all up. 3 are less than 1k and one is 2300@ 4.9% for the life of the loan (balance transferred last fall) . I am just fine, all of my cards I have had for well over 5 years, and have never missed a payment.

I have work but it just has not kicked off yet, shit has been slow to get rolling this spring, thank you Obama and the banks

[mattdk318i]

No credit cars here. I complain sometimes. But im happy i dont have debt, outside of bills

[2002maniac]

You only pay interest if you don't pay your bill in full every month. I love freeloading off my credit card companies. Cash back is king.

[artoo93]

You don't need credit cards or a "I LOVE DEBT" score!! There are many places out there that will loan money for major purchases like a house buy doing what is called "Manual" lending. These places do not look at credit scores for your ability to pay loans. Yes, at the moment I have credit cards but as we pay them off, I have been cancelling them. After they are all paid, I will NEVER, NEVER have another one!!! I can give you an example that will blow your mind: When I bought my first house 10 years ago, I was making about $40k a year. My wife and I had about $12k in debt between my credit cards and her school loans. Somehow we had a better "credit score" than the president of one of the airlines based out of Indianapolis that was making over 6 figures a year and had a company credit card in his name that he spent $5-6k a month on and paid off at the end of every month. Long story short, the only way to have a credit score is to be in debt!!! I hate owing anyone money!!!!! My current home was purchased with no credit check/score check. My lender gave me the option and I still got a great rate when we bought our home over 2 years ago. I'm looking into refinancing right now to a lower rate and there will be no loans based on my "I LOVE DEBT score". If you want some more examples of how this all works, check out www.daveramsey.com. He lives and breathes by no credit, doesn't have a credit score (hasn't used any kind of credit cards or loans in over 10 years so his is less than ZERO) and teaches people how to avoid the credit trap. In fact, he made millions based on credit and when the market took a downturn he lost everything. He recovered by not using credit and has made his fortune back and more. The whole cash back line is crap also. You have to spend your money to get what 1-2% back??? What kind of savings plan is that?? How many millionaires out there have made their millions by getting "cash back"??? On average, you spend more money when you use credit rather than paying cash and you could make more in a savings account than you "earn" on cash back. Think about it.

[Charlie]

Oh jesus fucking christ.

Dave Ramsey-philes are worse than AA members.

-Charlie

[Hallen]

The simple truth is that the whole credit rating system is hosed and is only advantageous to the credit score companies. There is no way to get a positive adjustment to your account without getting more available credit ( a credit card with a higher limit, or a mortgage, etc) if you don't already have debt that you are paying off. If you have huge income, no debt, and no bad credit history, you will have a lousy "credit score" unfortunately, most banks and other organizations that offer credit only look at your score. They don't really give a shit about your payment history, how long you have been with a bank, how much cash you have in savings and checking accounts, the assets that you own, or any of that. They don't give a shit about who you are because all that you are rolls up neatly into that stupid credit score. It's a horrible system and if it were feasible to opt out of it, I would.

But just try to travel on nothing but cash and a debit card. It is more accepted now than before, but still not everywhere. Credit cards are required for certain types of transactions. I am not going to carry wads of cash with me either. So, I use my debit card form most everything, and I use paypal for a lot of online stuff, but I have my one credit card for emergencies, travel, and other larger purchases. I never, ever carry a balance. It's all about discipline and treating a credit card statement like a bill that you pay at the end of the month with the rest of your bills. If I buy something big with my credit card, when I get home, I transfer money from my savings to the card and pay it off right then. I always have the money in the bank when I buy with the CC. It's just a tool to use and like any tool, it can cut you if you use it wrong. Use it right, and you are fine.

So, Holmes, if you want to live in main stream society, keep at least on CC and use it wisely like I do. It will help your credit score and will make things easier for you. But, if you want to go complete cash, it's possible, but a lot harder in the long term.

[rwh11385]

Having a worthless major and working part time at a pizza place is the root of your living above your means.

Don't cancel a credit card, it's bad for your credit. Keep it in a drawer somewhere if you can't use self-control. Use it once in a while to buy a soda so they don't close the account.

The benefit of good credit is low, low interest rates - which saves thousands upon thousands of dollars when you buy a house. Closing that other card now puts you even further away from that possibility.

You only pay interest if you don't pay your bill in full every month. I love freeloading off my credit card companies. Cash back is king.

It's true. My friend has a ton in CC debt and pays like 18-19% interest, INSANE! And I have zero, pay it off in full every month - and because of my credit would only pay 9% if I didn't. They cater to my demands like bumping total available credit on my CCs to six figures so that my utilization would be less than 20% across the board. And Chase is sending me another $250 check just for using a credit card.

[h0lmes]

Thanks for the advice guys. On another forum someone suggested that I set some of my bills to autopay to my credit card and then cut up the card. I think I am going to go this route instead of getting rid of the card altogether.

[Van Westervelt]

Thanks for the advice guys. On another forum someone suggested that I set some of my bills to autopay to my credit card and then cut up the card. I think I am going to go this route instead of getting rid of the card altogether.

x2

It makes life a little easier too, as you dont have all these random due dates of bills throughout the month. You get a statement, see that its paid, and file it. You then make one sole payment, paying off the CC each month.