Cash vs Debit

[BobombETA]

i need to build my credit.

Don't laugh, but a great place to start is a Walmart credit card.

The reason?

A free monthly TransUnion FICO score.

This is a great way to see where you stand, and to watch your credit worthiness grow.

A FICO score is the one financial institutions use if you want a loan...

[giantkeeper]

Debit card over cash, cash over credit

[rwh11385]

What is this cash you speak of?

No, seriously, the most I have on me at any point is like $20. Why carry something that can be lost or stolen (and matter) when I have access to 1000x that on a plastic rectangle? And debit card issues can put a hold on your entire account = trouble if you every need to access to checking, and have just one. Plus, credit can give you 1-5% back in rewards.

But seriously, I get pissed off now if a vending machine doesn't have the RFID / NFC sensor, let just alone a swipe.

Quizzle also gives you free credit reports and scores (every six months?). Weird name, but Intuit = TurboTax people, aka it's their money management website to help feed people into financing their mortgages with Quicken Loans...

[rwh11385]

real talk though,
after i get a steady job out of college, i need to build my credit..

open up a college checking account with wells fargo.
no bs fees, and it's a clutch way to build credit when you a youngin w/ no scrilla. my credit score is on point and I'm still a teen

yo bro, a checking account doesn't build credit...


And my favorite checking accounts are with Schwab and ING Direct, plus whatever local brick and mortar you like. Chase has great ATM access, a credit union has good rates and friendly to young'n.

Still, you need to borrow money to establish a credit history.

[tonerrrr]

Here is what I've been doing lately:

• Since I'm salaried, I know what I'm making each pay period.

• I also know how much I need for bills and how much I want to save each pay period.

• Once my direct deposit hits I transfer whatever I'm going to save, leave whatever is needed for bills, and withdraw the rest as cash.

• For all intents and purposes my checking account is 'zeroed' at this point, but I leave $1000 in it as an emergency fund just in case. But i pretend it isn't there.

• I use the cash as a visual budget, I don't spend it unless I have to. Everything goes on an American Express, which is required to be paid in full each month.

• I keep the receipt from purchases and set aside enough cash to cover the expense, using the reciept as a divider between that cash and the rest of my spending money in my wallet.

• The reciepts are purged weekly and I deposit whatever I have set aside to cover AMEX charges. When the AMEX bill is due I always have enough to pay in full.

Using this method allows me to maintain a budget, have a regular savings schedule, earn points for money spent, and as a bonus I'm always carrying cash just in case.

It probably sounds excessive doing it this way, but it takes 2 minutes at the end of the day to figure out what you've spent and set aside cash accordingly.

Wut are you.

[Turf1600]

yo bro, a checking account doesn't build credit...


And my favorite checking accounts are with Schwab and ING Direct, plus whatever local brick and mortar you like. Chase has great ATM access, a credit union has good rates and friendly to young'n.

Still, you need to borrow money to establish a credit history.

Credit isn't necessary, though. I haven't used it in 4 years.

The argument for credit is circular logic. You need to borrow money to build a credit score so that you can... borrow money. Just don't borrow money and live below your means and you'll be in good shape.

[rwh11385]

Credit isn't necessary, though. I haven't used it in 4 years.

The argument for credit is circular logic. You need to bowwor money to build a credit score so that you can... borrow money. Just don't borrow money and live below your means and you'll be in good shape.

So never purchase anything that costs more than the value of your checking account... something crazy like a house.
Nor invest in your future income by borrowing money to gain the necessary education.



At least you can afford Dave Ramsey books without credit...

[Turf1600]

So never purchase anything that costs more than the value of your checking account... something crazy like a house.
Nor invest in your future income by borrowing money to gain the necessary education.



At least you can afford Dave Ramsey books without credit...

I knew you were waiting for me to post here. Buying something that you don't have the money for is just a bad idea. The next time I buy a house I will pay at least half down - if I ever buy a house again. As for investing - I invest regularly. I'll be in good shape come retirement.

[IronicBenzTech]

I've seen a article sayin that you tend to spend more using a credit card rather than cash..... I try to follow this guy Dave Ramsey's plan.... Look em up..... If CC's are your thing then don't bother... You'll hate em... Lol

[rwh11385]

I knew you were waiting for me to post here. Buying something that you don't have the money for is just a bad idea. The next time I buy a house I will pay at least half down - if I ever buy a house again. As for investing - I invest regularly. I'll be in good shape come retirement.

For those who don't care to (or can't) read, I said invest towards future income by borrowing to fund required education for that income... but a college degree isn't something you believe in either.

How are you going to buy the other half of the house?

[BobombETA]

Wut are you.

Someone who mismanaged money while in college and learned a lesson:

"Credit is a good servant but a terrible master."

[Turf1600]

For those who don't care to (or can't) read, I said invest towards future income by borrowing to fund required education for that income... but a college degree isn't something you believe in either.

How are you going to buy the other half of the house?

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.

[ak-]

C.R.E.A.M.

Just kidding, lol.

I budget myself bi-monthly(twice a month) and use my credit card for literally everything. I use my credit card as a debit card though, or at least pretend to. If I can't afford it, I won't buy it.

I track my expenses through my bank's mobile app and pay it off by transferring funds from my checking account to the credit card. If my checking account doesn't have funds to purchase what I want, I won't swipe my credit card. Or if it's out of my budget, knowing I need gasoline in a couple days, I won't swipe. So basically my CC ledger balance never exceeds what is in my CHK account. Always pay in full. Fuck interest.

I get paid every 2 weeks directly deposited to my checking account. I transfer a chunk that I will not touch into my savings and leave the rest in my checking account that is considered my spending money.

Mobil app ftw.

My CC is a cash rewards type of card. Since May, I've cashed out $140 in rewards from what my online statement says. Free money, haven't paid a dime of interest yet. Let the CC dance to your music, not the other way around!

Sometimes I get offers in the mail for new CC's that I'm pre-approved for like, "use $1000 in the first 3 months and get $100 in a promotional reward back."
I open/sign-up for the CC, swipe it at my dad's business a few times to accumulate $1000, he gives me back my $1000(minus the merchant service fee I owe him), and in about a month I get the $100 promotion. Then just don't use the card/close it later.

lawllll @ the system.

Debit cards suck because you have no protection from any theft.
Banks wont reimburse your empty checking account.

Your bank sucks then? Of course they protect you.

open up a college checking account with wells fargo.
no bs fees, and it's a clutch way to build credit when you a youngin w/ no scrilla. my credit score is on point and I'm still a teen

Checking accounts don't build credit

My bank has a phone app so whenever I'm curious on where my cash level is at I give it a check to see what other e30 parts I buy.

:up:

[Rsully70sev]

As mentioned, debit card's do not build credit.

I pay for everything on my credit card. Lunch, friend's lunch, parent's/brother's air plane tickets, etc. simply pocket the cash they give me, and pay off my credit card. That way it has frequent use- building trust with the bank, increasing my limit, and I have the means to pay it off. Working well for me so far.

I don't carry cash except when conducting business, but that money goes straight to Wells Fargo afterwards. Fun fact, although WF ATM's say they can handle 50 bills, they cannot. I put in 50x $100's (bad area of San Diego so I wanted to be quick) and it jammed the ATM, ate my money and spit out my card. LUCKILY someone was on top of their shit and it cleared the next day. I was nervous though lol, no receipt or anything.

[ak-]

As mentioned, debit card's do not build credit.

I pay for everything on my credit card. Lunch, friend's lunch, parent's/brother's air plane tickets, etc. simply pocket the cash they give me, and pay off my credit card. That way it has frequent use- building trust with the bank, increasing my limit, and I have the means to pay it off. Working well for me so far.

I don't carry cash except when conducting business, but that money goes straight to Wells Fargo afterwards. Fun fact, although WF ATM's say they can handle 50 bills, they cannot. I put in 50x $100's (bad area of San Diego so I wanted to be quick) and it jammed the ATM, ate my money and spit out my card. LUCKILY someone was on top of their shit and it cleared the next day. I was nervous though lol, no receipt or anything.

Hahaha. Banks have a proof department that fix things like that over the next business day. Even if you didn't inquire about the problem, your account would of been credited appropriately.

The ATM I was using once was flipping out and wasn't dispensing my money. So I tried a few more times to withdraw around $200 to no avail. Said whatever, and used the ATM next to it. "It said lolno, you reached your ATM limit." WTF. Log onto my mobile app and it says I withdrew $200 five times ahaha. Freaked out, Saturday afternoon, nothing I can really do. My account was credited the next business day.