Credit and Credit Cards

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#1 Posted by LexLas (7245 posts) -

How do you do with Credit ? Do you have good credit ? Do you like Credit cards in general ? Me, i dislike them, wish i only had one. But when you have a partner/wife/other in your life, at times you have to do stuff you don't like. Like own many credit cards. I have good credit, but not great, pay many of them monthly, it seems like as soon as they go down, i go purchase something, and bring them back up. I pay them off some years, and for Christmas time, they go way back up. At times i believe Holidays are made up, just so you get stuck on credit. Or else everyone who knows me, will get a block of wood for Christmas. I wonder what would happen if that is all i gave out for Xmas time, lol ..

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#2 Edited by Curlyfrii87 (15045 posts) -

Life rule #1 - Never spend more that what you make... even on credit cards!

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#3 Posted by XilePrincess (13130 posts) -

Credit cards are only evil if you're an idiot, or in the case of a gigantic emergency that causes a domino effect in your life (I'm talking about being in an accident, then losing your job because you can't work, then being disabled, etc etc etc not "I need the new XBOX One RIGHT NOW!!11!!").

I have a credit card. I'm using it mostly to buy gas and build my credit. I get 7c/litre back to spend at the grocery store when I buy it at the gas station owned by that store, or points towards groceries everywhere else. Everything gets paid off as soon as I get my bill, and I don't spend more than I make, ever, because I'm not an idiot. Credit cards are not free money.

You do realize you don't HAVE to spend beyond your means for the holidays, right? That's not an excuse, "oh the holidays are made for making people go into debt". No, you're just being stupid and spending more than you can afford. Instead of spending a ton of money, send some baked goods and a card to acquaintances and extended family. You don't need to blow a ton of money on EVERYONE in your life.

Save money during the year in small increments ($5 or $10 per week, make lunch at home or skip the drive thru coffee one or two days a week) and put it away for the holidays. Or start buying gifts throughout the year, and start looking for next year when the after-Christmas markdowns are on.

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#4 Posted by lamprey263 (34425 posts) -

I'm wondering if there's a way to boost one's credit at a cheaper way of just using a credit card as intended.

Say for instance you set up some phony businesses with low merchant fees and low percentage per charge for utilizing credit cards. Now say you use your own credit cards to make purchases to your own merchants so you build up debt on the card, but then you get that money back (minus merchant fees) which you can use to pay off your credit cards. Could you use that to boost your credit rating? Maybe a great way to take advantage of rewards while you're at it? So say your merchant percentage is like say 3%, but you make charges on one of those 5% cash back cards? Could you also use this cycling method to generate actual revenue?

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#5 Posted by Master_Live (18815 posts) -

Remember kids stay within your limits.

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#6 Edited by Perfect_Blue (29946 posts) -

I'm a stupid **** when it comes to credit (don't ask) so now I only use my debit card.

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#7 Posted by Dogswithguns (11359 posts) -

@Aljosa23 said:

I'm a stupid **** when it comes to credit (don't ask) so now I only use my debit card.

Me too... having credit cards were a bad idea, they will ruin your life.

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#8 Edited by plageus900 (2325 posts) -

My credit is decent. It's around 735 depending on who you go through. My wife's is over 800. We share one credit card through our bank and then I have a credit line that I use for my computer equipment purchases. When at all possible, I pay up front and avoid using the credit card. If I want to make a large purchase on my credit card, I make sure I'm able to pay it off in a reasonable amount of time.

OP, your financial stability is more important than getting people things for Christmas and maxing out your credit cards. In the past, my wife and I only bought presents for each other and no one else because we were saving money and prepping for a move.

You control your own life and make your own decisions. Take control of your financial situation. Credit cards are a tool, not some evil weapon made to ruin your life.

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#9 Posted by Wilfred_Owen (20964 posts) -

I think it's good. I don't really worry about money. I don't owe money to any agency. But man, **** GTCs.

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#10 Edited by ferrari2001 (17760 posts) -

I have two credit cards and I use them both regularly and pay them both off as well. That mixed with me paying over the monthly requirement on my car payment each month has given me a really good credit rating. I can get a loan pretty much anywhere and for just about anything if necessary.

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#11 Posted by commander (14126 posts) -

Credit rules

I have like 5000$ credit

and i'm always like 2500$ in the red and have money on my savings account.

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#12 Edited by plageus900 (2325 posts) -

@Wilfred_Owen said:

I think it's good. I don't really worry about money. I don't owe money to any agency. But man, **** GTCs.

:D

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#13 Posted by Detroit222 (5371 posts) -

I have two. One a gas card, and one for everything else but I try to use the non-gas card as little as possible. If I don't have the cash, I usually don't buy.

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#14 Posted by korvus (10685 posts) -

Don't own/have never owned a credit card. My debit card works just fine.

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#15 Edited by LexLas (7245 posts) -

@korvus said:

Don't own/have never owned a credit card. My debit card works just fine.

Unfortunately it is important to have credit. Very hard to get things like a home, or car if you don't have some type of credit.

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#16 Posted by korvus (10685 posts) -

@LexLas: Is that an american thing? I have a house, my sister has a house, my parents have a house. None of us have credit cards =)

Avatar image for LexLas
#17 Posted by LexLas (7245 posts) -

@korvus said:

@LexLas: Is that an american thing? I have a house, my sister has a house, my parents have a house. None of us have credit cards =)

Unfortunately yes, its an American thing, lol Well unless you have straight cash to pay for everything

Avatar image for korvus
#18 Posted by korvus (10685 posts) -

@LexLas: That's crappy...Sorry that you guys have to go through that =/ That's a whole lot of extra stress than you'd need otherwise (unless you're really good with it, and judging by the replies here, most people aren't =P)

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#19 Posted by -Renegade (8340 posts) -

i have 3 credit cards that i pay on regularly. not sure what my credit score is. i only use credit now instead of debit because of the cash back. if you can find a good credit card with a good cash back program credit is the way to go for all purchases just make sure you are paying on it every week so you balance never gets to high.

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#20 Posted by Wilfred_Owen (20964 posts) -

@plageus900 said:

@Wilfred_Owen said:

I think it's good. I don't really worry about money. I don't owe money to any agency. But man, **** GTCs.

:D

One day, likely on my death bed, I'll figure out how DTS works.

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#21 Edited by certifieddata (46073 posts) -

I got my first credit card at 13 as an authorized user of one of my dads cards, always paid on time, never over the limit. Then as soon as I turned 18 I applied for my own and was approved on the spot for my good standing and almost three years later things are exactly the same.

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#22 Posted by Shmiity (6089 posts) -

Just live within your means. But credit cards can come handy if you have an emergency expense (medical/car) that you can't pay for in cash.

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#23 Posted by TTUalumni13 (839 posts) -

Nope, we do Dave Ramsey :P

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#24 Edited by TheFlush (5885 posts) -

I only use my credit card to buy things online from overseas countries. And I pay as soon as I get my bill.
I never need to borrow money, I have enough on my bank account.

General question for US people: don't you simply use your bank card to pay for goods at the store? I rarely have cash on me, so I always pay using PIN transactions. It's so much more convenient. How do you usually pay in the US?

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#26 Edited by Addict187 (963 posts) -

If you just use them to buy things you have to buy like gas, food and pay it off within the grace period. Don't fall for the 2-5% cash back crap with a $100 annual fee. All will be good. Mine has a $25,000 limit plus 1.5% cash back, no fee's. Never used over $2000 with it and they keep uping the limit. Have another for $10,000 but don't use it much. My credit score is 820

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#27 Edited by outworld222 (2856 posts) -

@TheFlush said:

I only use my credit card to buy things online from overseas countries. And I pay as soon as I get my bill.

I never need to borrow money, I have enough on my bank account.

General question for US people: don't you simply use your bank card to pay for goods at the store? I rarely have cash on me, so I always pay using PIN transactions. It's so much more convenient. How do you usually pay in the US?

Well, here are a couple of scenarios in the US:

1) You actually are purchasing something over the internet: It's best not to put your debit card info there...

2) Gas Stations

3) Large purchases: Those can be disputed with the CC company if something goes wrong with the purchase (faulty equipment)

4) Points. These actually can be fun, you actually get cash everytime you make a payment.

5) You build nice credit, to but a Car or a House like someone said.

6) Many more reasons are available, I assume.

Avatar image for TheFlush
#28 Posted by TheFlush (5885 posts) -

@outworld222 said:

@TheFlush said:

I only use my credit card to buy things online from overseas countries. And I pay as soon as I get my bill.

I never need to borrow money, I have enough on my bank account.

General question for US people: don't you simply use your bank card to pay for goods at the store? I rarely have cash on me, so I always pay using PIN transactions. It's so much more convenient. How do you usually pay in the US?

Well, here are a couple of scenarios in the US:

1) You actually are purchasing something over the internet: It's best not to put your debit card info there...

2) Gas Stations

3) Large purchases: Those can be disputed with the CC company if something goes wrong with the purchase (faulty equipment)

4) Points. These actually can be fun, you actually get cash everytime you make a payment.

5) You build nice credit, to but a Car or a House like someone said.

6) Many more reasons are available, I assume.

I have never been to the US so I don't know how it works.

But here in The Netherlands you use your regular bank card to make PIN transactions.

1. At the cash register of any store you swipe your regular bank card through the device.
2. You type in your 4 digit security code
3. The amount of money appears on the screen, you push ok
4. The amount is directly subtracted from your bank account.

So it's not a credit card and it's not a preloaded debit card either, it's just your bank card that's directly connected to your account.
Doesn't it work the same in the US?

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#29 Posted by outworld222 (2856 posts) -

@TheFlush: Exactly. That's the way it is done here too.

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#30 Posted by plageus900 (2325 posts) -

@Wilfred_Owen said:

@plageus900 said:

@Wilfred_Owen said:

I think it's good. I don't really worry about money. I don't owe money to any agency. But man, **** GTCs.

:D

One day, likely on my death bed, I'll figure out how DTS works.

It's gotta be the most convoluted system I've ever dealt with.

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#31 Posted by helwa1988 (2157 posts) -

I have a credit card but I always pay the bill at the end of the month. The problem with most people is that they always spend more than they have with their credit cards, which is how they wind up in debt.

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#32 Posted by lostrib (49999 posts) -

If you're going to use a credit card, make sure you pay it off in full at the end of each billing cycle

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#33 Posted by commonfate (13320 posts) -
@Wilfred_Owen said:

I think it's good. I don't really worry about money. I don't owe money to any agency. But man, **** GTCs.

I just got one recently. Zero intentions of ever using it.

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#34 Edited by ShepardCommandr (4825 posts) -

Always use cash.

I don't want any relationships with any bank.

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#35 Posted by spaceninja818 (425 posts) -

Honestly, stay away from credit. Use it only in case of an emergency. Or make minor purchases that you know for sure you'll be able to pay off at the end of the billing cycle.

I got my self into an $80,000+ debt when I was 21 years old. Thankfully, I was able to take care of it in time with help from my parents.

Credit companies are evil.

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#36 Posted by XilePrincess (13130 posts) -

@spaceninja818 said:

Honestly, stay away from credit. Use it only in case of an emergency. Or make minor purchases that you know for sure you'll be able to pay off at the end of the billing cycle.

I got my self into an $80,000+ debt when I was 21 years old. Thankfully, I was able to take care of it in time with help from my parents.

Credit companies are evil.

How did you manage to get 80k into debt at 21? The only fathomable situation I could see that happening in is if you're American and had no health insurance and had to put all your medical bills for something on credit.

Most of the time, people in such deep debt due to credit cards are just dumb, it has nothing to do with the companies being evil.

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#37 Edited by comp_atkins (34308 posts) -

@TheFlush said:

@outworld222 said:

@TheFlush said:

I only use my credit card to buy things online from overseas countries. And I pay as soon as I get my bill.

I never need to borrow money, I have enough on my bank account.

General question for US people: don't you simply use your bank card to pay for goods at the store? I rarely have cash on me, so I always pay using PIN transactions. It's so much more convenient. How do you usually pay in the US?

Well, here are a couple of scenarios in the US:

1) You actually are purchasing something over the internet: It's best not to put your debit card info there...

2) Gas Stations

3) Large purchases: Those can be disputed with the CC company if something goes wrong with the purchase (faulty equipment)

4) Points. These actually can be fun, you actually get cash everytime you make a payment.

5) You build nice credit, to but a Car or a House like someone said.

6) Many more reasons are available, I assume.

I have never been to the US so I don't know how it works.

But here in The Netherlands you use your regular bank card to make PIN transactions.

1. At the cash register of any store you swipe your regular bank card through the device.

2. You type in your 4 digit security code

3. The amount of money appears on the screen, you push ok

4. The amount is directly subtracted from your bank account.

So it's not a credit card and it's not a preloaded debit card either, it's just your bank card that's directly connected to your account.

Doesn't it work the same in the US?

that would be a bank or debit card in the us, not a credit card. debit cards are linked directly to your checking/savings accounts and the money is deducted at time of purchase. i guess you could have preloaded cards as well that are like cash but without actually carrying cash, but not linked to your accounts either.

anyway, my credit is very good. the wife and i do use our credit cards for most everyday purchases (gas, groceries, etc.. ) but just pay the balance at the end of each month so we're not accruing any interest payments. it's been helpful for us to build up a pretty good amount of airline / hotel points that we've been able to use for some trips. we're spending the money anyway, might as well get something in return.

Avatar image for TheFlush
#38 Edited by TheFlush (5885 posts) -

@comp_atkins said:

@TheFlush said:

@outworld222 said:

@TheFlush said:

I only use my credit card to buy things online from overseas countries. And I pay as soon as I get my bill.

I never need to borrow money, I have enough on my bank account.

General question for US people: don't you simply use your bank card to pay for goods at the store? I rarely have cash on me, so I always pay using PIN transactions. It's so much more convenient. How do you usually pay in the US?

Well, here are a couple of scenarios in the US:

1) You actually are purchasing something over the internet: It's best not to put your debit card info there...

2) Gas Stations

3) Large purchases: Those can be disputed with the CC company if something goes wrong with the purchase (faulty equipment)

4) Points. These actually can be fun, you actually get cash everytime you make a payment.

5) You build nice credit, to but a Car or a House like someone said.

6) Many more reasons are available, I assume.

I have never been to the US so I don't know how it works.

But here in The Netherlands you use your regular bank card to make PIN transactions.

1. At the cash register of any store you swipe your regular bank card through the device.

2. You type in your 4 digit security code

3. The amount of money appears on the screen, you push ok

4. The amount is directly subtracted from your bank account.

So it's not a credit card and it's not a preloaded debit card either, it's just your bank card that's directly connected to your account.

Doesn't it work the same in the US?

that would be a bank or debit card in the us, not a credit card. debit cards are linked directly to your checking/savings accounts and the money is deducted at time of purchase. i guess you could have preloaded cards as well that are like cash but without actually carrying cash, but not linked to your accounts either.

anyway, my credit is very good. the wife and i do use our credit cards for most everyday purchases (gas, groceries, etc.. ) but just pay the balance at the end of each month so we're not accruing any interest payments. it's been helpful for us to build up a pretty good amount of airline / hotel points that we've been able to use for some trips. we're spending the money anyway, might as well get something in return.

But why don't you just use your bank card for things like gas? Because by doing so, it gets deducted straight from your account and you don't have to pay extra interest.

Avatar image for BeardMaster
#39 Posted by BeardMaster (1686 posts) -

@Curlyfrii87 said:

Life rule #1 - Never spend more that what you make... even on credit cards!

what about a mortgage? yur rule is stupid.

Avatar image for comp_atkins
#40 Posted by comp_atkins (34308 posts) -

@TheFlush said:

@comp_atkins said:

@TheFlush said:

@outworld222 said:

@TheFlush said:

I only use my credit card to buy things online from overseas countries. And I pay as soon as I get my bill.

I never need to borrow money, I have enough on my bank account.

General question for US people: don't you simply use your bank card to pay for goods at the store? I rarely have cash on me, so I always pay using PIN transactions. It's so much more convenient. How do you usually pay in the US?

Well, here are a couple of scenarios in the US:

1) You actually are purchasing something over the internet: It's best not to put your debit card info there...

2) Gas Stations

3) Large purchases: Those can be disputed with the CC company if something goes wrong with the purchase (faulty equipment)

4) Points. These actually can be fun, you actually get cash everytime you make a payment.

5) You build nice credit, to but a Car or a House like someone said.

6) Many more reasons are available, I assume.

I have never been to the US so I don't know how it works.

But here in The Netherlands you use your regular bank card to make PIN transactions.

1. At the cash register of any store you swipe your regular bank card through the device.

2. You type in your 4 digit security code

3. The amount of money appears on the screen, you push ok

4. The amount is directly subtracted from your bank account.

So it's not a credit card and it's not a preloaded debit card either, it's just your bank card that's directly connected to your account.

Doesn't it work the same in the US?

that would be a bank or debit card in the us, not a credit card. debit cards are linked directly to your checking/savings accounts and the money is deducted at time of purchase. i guess you could have preloaded cards as well that are like cash but without actually carrying cash, but not linked to your accounts either.

anyway, my credit is very good. the wife and i do use our credit cards for most everyday purchases (gas, groceries, etc.. ) but just pay the balance at the end of each month so we're not accruing any interest payments. it's been helpful for us to build up a pretty good amount of airline / hotel points that we've been able to use for some trips. we're spending the money anyway, might as well get something in return.

But why don't you just use your bank card for things like gas? Because by doing so, it gets deducted straight from your account and you don't have to pay extra interest.

i used to use my debit card all the time for that. now i use credit cards since i get airline or hotel points ( depending on the credit card ) for purchases. as long as i pay off the balance of the card every month, i don't get charged any additional interest. also gives me the freedom to make the purchase regardless of the state of my checking account and then when i have to pay the cc bill a few weeks later, transfer money around if needed in order to pay the credit card.

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#41 Edited by PonchoTaco (3182 posts) -

My credit is very good for my age. Just leased my first care the other week and as long as I keep up on my payments, my credit will go higher.

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#42 Posted by k2theswiss (16599 posts) -

Your spending more then what you can afford is wrong way to go about anything....

Credit cards are great convenience and rewards for people who know how to use them correctly.

Avatar image for Curlyfrii87
#43 Posted by Curlyfrii87 (15045 posts) -

@BeardMaster said:

@Curlyfrii87 said:

Life rule #1 - Never spend more that what you make... even on credit cards!

what about a mortgage? yur rule is stupid.

It's not stupid actually. Unless you think saving money is stupid...

I never said that this life rule would be 100% debt free, however, this rule still applies to a mortgage.
If your mortgage is $1200 and your monthly income is $1000, then you won't own your house very long.

Life rule #1 - Still stands

Avatar image for XilePrincess
#44 Posted by XilePrincess (13130 posts) -

@BeardMaster said:

@Curlyfrii87 said:

Life rule #1 - Never spend more that what you make... even on credit cards!

what about a mortgage? yur rule is stupid.

Your reasoning is stupid. The rule still applies. If your mortgage payment is 1000 per month and your household income is 5k, you have 5k to work with per month to pay for everything you need, including your house payment. If you spend 6k in a month, you're spending more than you make. Don't do that.

A mortgage payment is the exact same thing as rent, you're just renting from the bank and not from the owner of the property. Very few people can afford to pay for a house or car in full all at once, so they get a loan from the bank and pay it back over time.

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#45 Posted by Sword-Demon (7007 posts) -

I have pretty good credit, though I very rarely use credit cards or loans. I prefer to know I have the money when I buy something

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#46 Posted by Qixote (10843 posts) -

As I recently discovered firsthand, you cannot function in society without credit. Well, not if you plan on ever getting a loan for anything, or winning the lottery. You may not need credit now. But when you have no credit history (or bad credit history) you may be in for a rude awakening in the future when you try to get a car or a house, even if you have a good paying job.

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#47 Edited by spaceninja818 (425 posts) -

@XilePrincess:

Well, at least I was smart enough to get myself out of it before it was too late. I guess I learned a lesson in one of those difficult subjects we call life.

And no, I'm not American in case you were wondering.

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#48 Edited by Bird_Killer (235 posts) -

If you're fiscally responsible, then using credit cards is like the world giving you a 1 - 5% discount on everything you purchase, scales quite well with inflation, and not taxable for most purposes. Not having to fight or argue against a bank or lender is an obvious plus.