I love Credix Cards

[kylebes1]

Yea right. Sliced them up and paid them off!

[Mike325]

I don't even want to get involved with credit cards. Seems like if you miss one payment or it's late, you need to pay like twice the cost. And the interest, screw that.

[Jand3rson]

Yea right. Sliced them up and paid them off!

Good for you. The only credit I have is my credit account at the furniture store where I bought my couches and my new washer/dryer. Not having to spend 4 hours at the laundromat with all the freaks FTW. I also have a loan for my wife's car, but that's about it. Credit cards are nothing but the most well organized scam in history. They're specifically targeted at people who they know will spend a ton of money they don't have, and only make the minimum payment every month, not to mention the ridiculous interest rates. They're great for people who actually pay their balances and don't rack up tons of interest, but the majority of the population doesn't use them that way, and they're making the banks rich. If you have to get one, which it's good to have at least one for emergencies or travelling, get one through your personal bank or credit union.

[nkell09]

I just pay every month and budget accordingly.

I think of my credit card just as my bank account.... If I don't have it in the bank, then I don't have it to spend.

[benDASHDASH]

I just pay every month and budget accordingly.

I think of my credit card just as my bank account.... If I don't have it in the bank, then I don't have it to spend.

x2

i just use it like cash, for everything.

[erik325i]

I don't even want to get involved with credit cards.

That's fine if you have no self control and abuse your card...

I have three or four credit cards, and use them to pay for everything. I rarely have any cash on me. Every month they get paid off, and I pay no interest rate. My credit score is rediculously high too.

If you are responsible, credit cards are very useful.

-Erik

[kylebes1]

It is ok to have one, I think. But cash is king with everything I do, so screw plastic.

[RobertK]

Self control or not... There have been documented cases in the news where credit card companies hook people by purposely applying payments to an account late, even if sent in on time, so they can jack interest. If you read the fine print they can basically jack your interest for whatever reason they want.

Plus no matter how responsible you are studies show that people spend 18%-20% more when using credit than if they were spending cash or debit. So as far as I'm concerned a debit card / check card is much better than a credit card because it removes the risk of getting raped by interest and most Visa check cards are starting to offer the same rewards (cash back) that credit cards do = double bonus.

Of course.. Cash is always king.. (or in my case debit.)

[Jand3rson]

That's fine if you have no self control and abuse your card...

I have three or four credit cards, and use them to pay for everything. I rarely have any cash on me. Every month they get paid off, and I pay no interest rate. My credit score is rediculously high too.

If you are responsible, credit cards are very useful.

-Erik

This is very true.

I use cash and my debit card for everything. If I can't afford something, I won't buy it. If it's something big that I need, I'll borrow the money from my family or get a credit account at the store, like with my furniture.

[erik325i]

No matter how responsible you are studies show that people spend 18%-20% more when using credit than if they were spending cash or debit.

So, you are saying that crdeit cards have a magical power that makes me spend more against my will? :rofl:
Sure, some people go out of control when given credit, but saying that you will spend more with a credit card no matter how responsible you are, is BS.

If you are racking up credit card debt, it is because you were not being responsible.
Trying to blame the credit cards is just childish.

-Erik

[FredK]

I say, don't be afraid of a credit card. Use self-restraint. Do you think Superman goes around using his x-ray vision to look at every chick on the street naked? No. Every dude? Yes. OK, I digress.

A credit rating will come in handy for your future. Employers, banks, and even landlords will and can research this information to make an informed decision about you.

[RobertK]

So, you are saying that crdeit cards have a magical power that makes me spend more against my will? :rofl:
Sure, some people go out of control when given credit, but saying that you will spend more with a credit card no matter how responsible you are, is BS.

If you are racking up credit card debt, it is because you were not being responsible.
Trying to blame the credit cards is just childish.

-Erik

Racking up credit has nothing to do with it. Overspending is overspending even if you pay the card off each month. Cash has a greater proven mental effect when making purchases than plastic does thus the temptation to easily overspend.

Consumer Reports found that even responsible credit card users spent 18% more when using a credit card to make purchases, up to 25% more when buying food & groceries, and up to 36% more when eating out (thus the reason every fast food chain is now excepting them). Why do you think so many businesses are now so quick to issue their own branded credit cards?

Do you really think by being responsible credit card holder you are beating a multi-billion dollar company at their own game? :rofl:

BTW.. I've seen people who are 100% responsible have bad things happen to them that caused them to NOT be able to pay off their CC. Living off a credit card is a bad idea. No different then living paycheck to paycheck.

A credit rating will come in handy for your future. Employers, banks, and even landlords will and can research this information to make an informed decision about you.

I don't buy into the FICO score myth. I have a low credit score because I refuse to borrow money and it's never kept me from doing anything or buying anything. I will tell you what I do have... money... in savings.. lots of it. The only thing I plan to borrow money for is a house and contrary to popular belief you do not need a credit score to buy a house.

[Jand3rson]

He's got a point. Your average person with a credit card (not saying you, Erik), is more likely to buy a few more things and spend more when paying with a credit card. Think about it, if John or Susie is going out shopping, and they only brought $100 in cash with them, they can only spend $100. But say they went with their credit card and told themselves they were only going to spend $100, it's very easy to happen upon that one more item that would only be another $30. Your average person is going to say, "what the hell, it's on the credit card", and go ahead and spend that extra $30. That same trend continues in other areas of commerce like Ritalin listed, such as grocery stores and restaraunts.

I'm not saying any of this applies to you Erik, you're absolutely right about personal financial responsibility being the main factor in having a credit card. But the point that Ritalin is making is very valid, that the average person with a credit card excercises very little if any self control with a credit card. The mentality of buy it now, pay later is a very addictive one. The problem is that people can't seem to get the very simple concept of "If you don't have the money, don't buy it" through their heads. And that is exactly how credit card companies make BILLIONS every year. They get all these people who don't have any concept of financial responsibility racking up tens of thousands in credit card debt, and these people think that by paying the minimum balance every month, that they're doing ok. But what they're really doing is paying twice as much for the items they bought as they originally would have, and paying billions every year in interest alone. Most of the people that have large amounts of credit card debt and are scraping along by paying the minimum balance don't even realize that they're not even making a dent in the actual principal balance.

[RobertK]

The thing to avoid is the "I'll pay for everything this month on my credit card and then when my paycheck gets here I will pay off the bill" financial mentality.

The biggest problems I've seen with people who use this method is:

[1.] They think they are the first sophisticated person to ever come up with this idea and everyone else not using credit cards is financially unsophisticated. (Can you tell I've talked to a lot of people like this?)

[2.] They forget to factor in risk and because they are overspending they have no money for savings thus 1 major life emergency forces them to ruin their credit or claim bankruptcy.

I've seen this happen to 2 people close to me.. both were responsible people who didn't indulge that much. They just were poorly prepared for risk because they lived paycheck to paycheck they were spending with a "best case scenerio" attitude. Problem is that life happens to everyone and when it rains it poors.

I'm not saying credit cards are the devil but what I do suggest is living 1-2 months ahead and keeping an emergency fund of about 6 months of expenses tucked back. Try to purchase everything you can with cash.. because cash has a better mental effect of seperating the wants from the needs. Cash also tends to yield better deals when bargain shopping.

[b*saint]

Maxed out another 9 grand for school on one of my cc. I hate those little pieces of shit.