Cash vs Debit

[ZekeTheSneak]

Oh and no credit card for me but very good credit :) 20,000 dollar loan was a cakewalk

[ZekeTheSneak]

Cash all day, I can keep track of it easier. Just put 250 dallors worth of coins in a coinstar today as well...

[CrusherCurtis]

Damn I'm impressed with how many of guys actually track what your spending. I never do. If I did I probably go into a depression when I realize how much I spent.

[Rsully70sev]

i need to get a CC.

I've seen more and more people getting declined, banks used to hand them out like they had a pocket full of them. Not anymore. Shit, I got declined opening a Wells Fargo account with $15k+ and a documented job lol-but ZERO credit history. Just get a secured card, and with good use they make it a real CC in a decent amount of time.

Secured Card: You hand them $300, your spending limit is $300. After they see good use, they give you your $300 back, raise your limit and make it a real CC. Sometimes it's the only option. Start building credit early

[ak-]

i need to get a CC.

never overdraft my debit and i need to start building.
already belong to a credit union :P

You can also setup a credit card as the safety net for you checking account if you really have a problem with over drawing it. Over draft protection.

[rwh11385]

i need to get a CC.

never overdraft my debit and i need to start building.
already belong to a credit union :P

Get one. Put a subscription or something small on it. Keep your balance under 20% of the credit limit, regardless. Pay it off in full every month. (Since it's a fixed cost, always have that $ in the checking account, ready to do so)


Credit agencies see pay vs. not paid, not how much you racked up. It could be $8/month for Netflix and would be the same as $4000/month. (Binary on your report.)

[rwh11385]

I work in the auto industry, if we are selling to a tier 1 and heir credit isn't good we demand COD payment. I know this is different than a local store type location but still without credit they need to have a very very large amount of cash on hand. Otherwise with decent credit they can pay on standard terms which is typically after they are paid from the OEM. This isn't even a loan type situation just the way credit can impact working with your suppliers and the available terms.

I couldn't imagine not being able to do Net 30...

Purchasing would be an even bigger PITA.

[Jorgen]

A bank is not going to loan you anything for an upcoming business or even an established business unless you have personal equity to leverage the loan against.

It truly depends on the business. Having some credit does help but see above for anything other than a business credit card.

I work in the auto industry, if we are selling to a tier 1 and heir credit isn't good we demand COD payment. I know this is different than a local store type location but still without credit they need to have a very very large amount of cash on hand. Otherwise with decent credit they can pay on standard terms which is typically after they are paid from the OEM. This isn't even a loan type situation just the way credit can impact working with your suppliers and the available terms.

[Pantless Spency]

i need to get a CC.

never overdraft my debit and i need to start building.
already belong to a credit union :P

[MAXELHOFF]

scurvy

Sure fucking scurvy Minnesota winter.
Its done on the transaction, not on the card. Typically its two prices. Like a liquor store nearby will have a price but jack that price up 3% for credit. SO they would just swipe for the price+3% an the CC company is none the wiser.

http://www.greensbeverages.com/keg-atlanta.shtml

[brutus87]

What about a mixture of cash, debit, and CC?

[Turf1600]

But isn't it handy to be able to have that as an option? If you and Dave Ramsey keep telling all these kids that credit is stupid and evil, they won't ever have the option to buy their own home. It's fine and dandy if you want to only spend what is in the bank - that's good... but pretending like credit is something responsible adults cannot handle is silly. And so would be having the stubbornness about not having any debt (regardless of positive net worth), that someone would be deadset on renting rather than a mortgage. It's up to situation and location, but most people around here pay a small fraction for a house what others pay for rent in an apartment. (And you keep the principal!). You take for granted that you have a credit history... if kids don't build theirs they simply won't have the same opportunities available, or if they do - expensive ones.

If people can't handle having credit, they probably aren't great at saving cash and not spending it either. Sure, you only can buy what you have physical money available for, but what about all the bills you owe in life? It's not like avoiding credit magically makes all the other debts you collect for using utilities or services (cell phone, internet, etc.) go away. And paying deposits for cell phone service or internet or whatever if you don't have credit sucks (or so I would imagine). Having good credit makes it so you don't have to worry about that, and neither do the providers about you.

Are there people who are dumb about credit cards or new cars they can't afford or huge homes? Sure. But is that reason to write off credit altogether? No. If you don't have a strong credit history, borrowing is expensive - like people who are short on cash and the "unbanked" and pay 21% APR for check cashing places or at JD Byrider. Compared to that, people with debt payments at <25% of their income, saving a similar chunk, demonstrating delayed gratification for large purchases, and never carry a balance are golden. There's a difference between the sob stories of idiots and the large number of grown ups that utilize credit to their advantage.

I agree, but I'm just saying it's not for me. I guess I just prefer to keep things simple these days.

[rwh11385]

A house is the only thing I'd consider financing part of - but like I said, I'd have to put at least half down.

But isn't it handy to be able to have that as an option? If you and Dave Ramsey keep telling all these kids that credit is stupid and evil, they won't ever have the option to buy their own home. It's fine and dandy if you want to only spend what is in the bank - that's good... but pretending like credit is something responsible adults cannot handle is silly. And so would be having the stubbornness about not having any debt (regardless of positive net worth), that someone would be deadset on renting rather than a mortgage. It's up to situation and location, but most people around here pay a small fraction for a house what others pay for rent in an apartment. (And you keep the principal!). You take for granted that you have a credit history... if kids don't build theirs they simply won't have the same opportunities available, or if they do - expensive ones.

If people can't handle having credit, they probably aren't great at saving cash and not spending it either. Sure, you only can buy what you have physical money available for, but what about all the bills you owe in life? It's not like avoiding credit magically makes all the other debts you collect for using utilities or services (cell phone, internet, etc.) go away. And paying deposits for cell phone service or internet or whatever if you don't have credit sucks (or so I would imagine). Having good credit makes it so you don't have to worry about that, and neither do the providers about you.

Are there people who are dumb about credit cards or new cars they can't afford or huge homes? Sure. But is that reason to write off credit altogether? No. If you don't have a strong credit history, borrowing is expensive - like people who are short on cash and the "unbanked" and pay 21% APR for check cashing places or at JD Byrider. Compared to that, people with debt payments at <25% of their income, saving a similar chunk, demonstrating delayed gratification for large purchases, and never carry a balance are golden. There's a difference between the sob stories of idiots and the large number of grown ups that utilize credit to their advantage.

[Turf1600]

No, it's much better to speak in absolutes so that you can be condescending.

I'm just not going down that road again. I bought a house and have had new cars - I simply prefer to save cash and live modestly. If you think I'm being condescending I'm sorry - but credit is just not for me. You guys do you what you want - it's not going to hurt my feelings.

[Vedubin01]

What if you want to start a business,

A bank is not going to loan you anything for an upcoming business or even an established business unless you have personal equity to leverage the loan against.

run a business without credit is going to be a real pain.

It truly depends on the business. Having some credit does help but see above for anything other than a business credit card.