[quote]rainjack wrote:
I would cut the card up and send it back. Consumer debt is candy coated cancer. [/quote]
100% agreed.
check out www.daveramsey.com
research it
if you can’t pay cash for it, you can’t afford it (cept for a house).
oops, I see it’s already been posted, Dave Ramsey that is.
before CC’s people were able to function in society quite fine.
[quote]Professor X wrote:
Someone broke into my car two weeks ago to steal my tv. Things like that happen…no matter how much you try to avoid charging items randomly.[/quote]
while, this sounds extreme, why not go without tv for a little while till you save the cash?
I don’t even have a TV, so it is possible 
of course certain things like football it sucks for, but any TV shows I watch I either download or go to the web to stream it.
but it would also help to have some cash saved for an instance like that where you can dip into if need be, rather than charging it.
heck, this past special sale that Biotest was real test for me. I’ve cut up all CC’s, but still have access to my paypal’s buyer credit, I was really tempted to max it out and pay in full when due. But, I resisted and dipped into my savings, and then replenished it on my next paycheck.
just like trying to eat healthier, it takes a mindset shift.
[quote]jehovasfitness wrote:
before CC’s people were able to function in society quite fine.[/quote]
And they understood the notion of having a savings. Today people have no incentive to save because interest rates are so low and the dollar depreciates faster than one can save.
The mantra seems to be, “spend it before it becomes worthless.”
Go buy a really big home that you can’t afford, that’s what most people did. Oh and a Escalade. I mean hell, you make $25,000 a year, you deserve an occasional treat.
not directed at you OP.
[quote]btm62 wrote:
Dave Ramsey is great. Although when you get right down to it, its just common sense.
Debt=Slavery.
[/quote]
For realz. I’d love to go back seven years and throw those credit card offers in the garbage. Debt free is sexy.
[quote]Stronghold wrote:
I stopped using my debit card for most anything except atm withdrawals because its too damn easy to spend money when you arent watching it come out of your hand.
I dont ever plan on getting a credit card, and if I am thinking correctly, you can build credit simply by paying your bills on time and saving money.
I do know some people who buy their gas (and only gas) on a credit card and pay it off every single month simply to accumulate the frequent flier miles…but these people also budget their gas money at the beginning of the month and put it to the side so that it is there to pay off the card the minute the bill gets there.[/quote]
I held the same views until recently when the rather large move I made last summer required some extra cash that I didn’t have in hand at the time. I would say keep that mentality for as long as possible, but realize that eventually, life will probably demand that you have access to cash you may not have in the bank at the moment.
One way to do it, which will end up costing you some money, would be to purchase a car (preferably used), and finance a portion of the purchase price and make payments on it. To be conservative, don’t buy it unless you have the full price on hand - then put the pay-off balance in a high-interest online savings account. You’ll end up a point or two behind in terms of interest paid versus interest made, but it will definitely build your credit.
Don’t know about in the US but here in the UK…
Owning a home/mortgage increases your credit rating, credit cards do too as long as you A) pay them every month and B) USE THEM.
There are very clever equations used to calculate financial worth and many of them can be extremely subtle.
Here in the UK - without having some serious equity - Whatever your income is, make a note of it. Then use your credit card for EVERY purchase you make. Just make sure you don’t go over your income limit. When the credit card bill comes in, pay the lot off.
Once every few months, don’t pay the entire amount, leave 20% in there but put the money aside to pay it next month.
This shows movement in your finances and will increase your credit rating vastly in just a year or two.
Maybe i’m just old fashioned, but I still as yet have no credit card and have no intention of obtaining one. If I want to buy something, I’ll save up for it. I’d rather own my stuff outright than be leasing it as it devalues.
I watch my colleagues and friends waste money on stuff they dont need, just to end up owing money to the bank. I guess that’s the whole consumerism/materialism thing though, kinda relies on nutters buying stuff they can’t afford.
Buy some Biotest products off this site, DUH!
I always overpay my visa bill by some amount of dollars. I’m not sure if it helps.
If it were me planning a backpacking trip, I wouldn’t charge much on it at all… But I would recommend getting a speed pass at a gas station that’s linked to your credit card - then just stay on top of those charges each month! This method is also good for monitoring your gas expenditures.
wow…
I rarely carry cash on me unless I have a date or go to a bar. Or maybe there is some other circumstance which requires a physical manifestation of currency, like a trip or something.
I purchase everything on my credit card and pay it off in full every month. My gas, groceries, gym dues, etc. All of it goes on my card and at the end of the month i am able to tell how much I “cost”. If there was a way to put my rent on credit i would do that too…I should look into that.
I view it as the same thing as having my paychecks go in my checking account w/ direct deposit. I don’t have to see the money to know it exists. And I never have the urge to buy 50k worth of shit I don’t need. I guess i am just happy with what i have.
don’t charge what you can’t pay off immediately
Ask your parents if you can piggy back on one of their low interest credit cards that they would do the same thing with. Make you an autorized user on it, BUT make sure you don’t actually get your hands on it. As they pay it off month after month, your credit score builds.
Get a huge raise at work too.
[quote]jp_dubya wrote:
Ask your parents if you can piggy back on one of their low interest credit cards that they would do the same thing with. [/quote]
This could backfire too…
Parents are great source of support but I would still be very careful as negative credit is also shared.
[quote]Chickenmcnug wrote:
wow…
I rarely carry cash on me unless I have a date or go to a bar. Or maybe there is some other circumstance which requires a physical manifestation of currency, like a trip or something.
I purchase everything on my credit card and pay it off in full every month. My gas, groceries, gym dues, etc. All of it goes on my card and at the end of the month i am able to tell how much I “cost”. If there was a way to put my rent on credit i would do that too…I should look into that.
I view it as the same thing as having my paychecks go in my checking account w/ direct deposit. I don’t have to see the money to know it exists. And I never have the urge to buy 50k worth of shit I don’t need. I guess i am just happy with what i have.[/quote]
I always have cash and my debit card. We have not had a credit card in almost 2 years.
You can tell how much you cost by budgeting, and reviewing. You would be surprised how much money you can save by just paying attention to what you are spending.
What happens if you forget to pay your credit card bill? What happens if there is a medical emergency where you can’t pay your bill, or you have no job and no money with which to pay?
Cash is king.
[quote]tedro wrote:
I’m with Aleksandr on this one. I love credit cards. I use one for nearly all of my purchases, and pay it off in full every month. It’s biggest benefit is the convenience. I also just got another with 0% financing for a year. It allows me to remodel my kitchen and bathrooms now instead of waiting until I have the money saved to start. Of course, I know that I have the self discipline to set aside X dollars a month so that I can pay it off before the intro rate ends. I also have a significant savings account should an emergency come up.
I know everybody has their own opinions and risk tolerance, but I don’t have any problem having debt. Controlled debt can be an excellent tool to help any financial situation, if you have the self-discipline to keep it controlled.
To answer the OP’s question, you need to use the card regularly. Whether you pay it off in full every month doesn’t affect your score, as long as you make the minimum payment on time. Of course it is generally wise to pay it in full. You also want to make sure you don’t have the debt built up close to your credit limit, as this will hurt your score.
Just using it and making payments will get you a good score, but ultimately what is going to hurt you the most is a lack of credit history. The only way to fix this is to take out a loan or two and repay them. Don’t take out a loan just to help your history, just wait until you take out a mortgage or legitimately need a loan.
Having a good income and funding does not help your credit score, but it will make lenders more likely to give you money.[/quote]
I agree with this. I use credit cards for everything, right down to a $1 pack of gum. Pay off the cards in full every month. What I really like to do is get 0% cards for 12 months, charge all of my expenses, keep the money to pay it off in a high yield savings account (on-line) and make money off of my debt. Using other people’s money for less than you can make off of it is called leverage, the secret to true wealth. Have a little discipline, only purchase what you know you can afford, but put it on the card and use someone eles’s money to earn a little extra interest every month, pay the balance off every month unless it is 0% for any length of time.
[quote]tedro wrote:
I’m with Aleksandr on this one. I love credit cards. I use one for nearly all of my purchases, and pay it off in full every month. It’s biggest benefit is the convenience. I also just got another with 0% financing for a year. It allows me to remodel my kitchen and bathrooms now instead of waiting until I have the money saved to start. Of course, I know that I have the self discipline to set aside X dollars a month so that I can pay it off before the intro rate ends. I also have a significant savings account should an emergency come up.
I know everybody has their own opinions and risk tolerance, but I don’t have any problem having debt. Controlled debt can be an excellent tool to help any financial situation, if you have the self-discipline to keep it controlled.
To answer the OP’s question, you need to use the card regularly. Whether you pay it off in full every month doesn’t affect your score, as long as you make the minimum payment on time. Of course it is generally wise to pay it in full. You also want to make sure you don’t have the debt built up close to your credit limit, as this will hurt your score.
Just using it and making payments will get you a good score, but ultimately what is going to hurt you the most is a lack of credit history. The only way to fix this is to take out a loan or two and repay them. Don’t take out a loan just to help your history, just wait until you take out a mortgage or legitimately need a loan.
Having a good income and funding does not help your credit score, but it will make lenders more likely to give you money.[/quote]
I agree with this. I use credit cards for everything, right down to a $1 pack of gum. Pay off the cards in full every month. What I really like to do is get 0% cards for 12 months, charge all of my expenses, keep the money to pay it off in a high yield savings account (on-line) and make money off of my debt. Using other people’s money for less than you can make off of it is called leverage, the secret to true wealth. Have a little discipline, only purchase what you know you can afford, but put it on the card and use someone eles’s money to earn a little extra interest every month, pay the balance off every month unless it is 0% for any length of time.
[quote]tedro wrote:
I’m with Aleksandr on this one. I love credit cards. I use one for nearly all of my purchases, and pay it off in full every month. It’s biggest benefit is the convenience. I also just got another with 0% financing for a year. It allows me to remodel my kitchen and bathrooms now instead of waiting until I have the money saved to start. Of course, I know that I have the self discipline to set aside X dollars a month so that I can pay it off before the intro rate ends. I also have a significant savings account should an emergency come up.
I know everybody has their own opinions and risk tolerance, but I don’t have any problem having debt. Controlled debt can be an excellent tool to help any financial situation, if you have the self-discipline to keep it controlled.
To answer the OP’s question, you need to use the card regularly. Whether you pay it off in full every month doesn’t affect your score, as long as you make the minimum payment on time. Of course it is generally wise to pay it in full. You also want to make sure you don’t have the debt built up close to your credit limit, as this will hurt your score.
Just using it and making payments will get you a good score, but ultimately what is going to hurt you the most is a lack of credit history. The only way to fix this is to take out a loan or two and repay them. Don’t take out a loan just to help your history, just wait until you take out a mortgage or legitimately need a loan.
Having a good income and funding does not help your credit score, but it will make lenders more likely to give you money.[/quote]
I agree with this. I use credit cards for everything, right down to a $1 pack of gum. Pay off the cards in full every month. What I really like to do is get 0% cards for 12 months, charge all of my expenses, keep the money to pay it off in a high yield savings account (on-line) and make money off of my debt. Using other people’s money for less than you can make off of it is called leverage, the secret to true wealth. Have a little discipline, only purchase what you know you can afford, but put it on the card and use someone eles’s money to earn a little extra interest every month, pay the balance off every month unless it is 0% for any length of time.
[quote]rainjack wrote:
Chickenmcnug wrote:
wow…
I rarely carry cash on me unless I have a date or go to a bar. Or maybe there is some other circumstance which requires a physical manifestation of currency, like a trip or something.
I purchase everything on my credit card and pay it off in full every month. My gas, groceries, gym dues, etc. All of it goes on my card and at the end of the month i am able to tell how much I “cost”. If there was a way to put my rent on credit i would do that too…I should look into that.
I view it as the same thing as having my paychecks go in my checking account w/ direct deposit. I don’t have to see the money to know it exists. And I never have the urge to buy 50k worth of shit I don’t need. I guess i am just happy with what i have.
I always have cash and my debit card. We have not had a credit card in almost 2 years.
You can tell how much you cost by budgeting, and reviewing. You would be surprised how much money you can save by just paying attention to what you are spending.
What happens if you forget to pay your credit card bill? What happens if there is a medical emergency where you can’t pay your bill, or you have no job and no money with which to pay?
Cash is king. [/quote]
I never forget to pay the bill. Thats like saying, “what happens when you forget to pay your rent”. Who forgets that sort of thing?
In the case of a medical emergency I would wage whatever the best course of action would be as far as what bills to pay off. But that wouldn’t be a big deal. Because i use credit the same way as you use cash. If I didn’t buy my gas/food in credit, i would have bought it in cash regardless. And the money has already been set aside.
I guess the big thing is knowing how you deal with temptation. Its not an issue with me. I understand its a problem for a big portion of america though.