Credit Card Basics

[Almost There]

Credit cards also provide purchase protection you don't get with cash or a debit card.

Well, yes and no!

Seriously, read the fine print on your service agreement.

I did and my US charge card only provides protection if I make the purchase in my 'home state' or within 100 miles of home, Yes you read it right...

If you go looking for it, I found mine almost at the end of the agreement under a paragraph entitled 'Your Rights if you are dissatisfied with your credit card purchases'.

Since home is more than a 100 miles from any US border the protection feature won't do me a whole lot of good now will it.

 

[B and C]

I have American Excess Green and I cant find any references to purchases made near home or excluding online purchases.  I guess it just depends on who issued the card.

 

[SoulRaven]

I don't want credit cards and the way I see it is if i'm saving money on rent or a mortgage then I don't need em if i'm socking that money away every month and not touching it!!

My primary use of them is to save money. 5% cash back can be really nice. But, to each their own

I once encountered someone who was convinced that since I was living in a van with no rent that it automatically means I could easily be squirreling away lots of money each month. I to explain how that's only the case if you have a decent income and thus are living well below your means, but I don't think he ever got it.

I have American Excess Green and I cant find any references to purchases made near home or excluding online purchases.  I guess it just depends on who issued the card.

From what  gather American Express is one of the best card out there in terms of returns. They also provide extended warranties on items purchased with heir cards, at least on mine. Haven't used it yet but  can see that being handy.

 

[Canine]

I don't want credit cards and the way I see it is if i'm saving money on rent or a mortgage then I don't need em if i'm socking that money away every month and not touching it!!

What would you do if you broke down and needed $1000 on a Sunday? Would you use a debit card? I don't want to get too deep into what you do with your money because that is personal information that you may not want on the Internet. However, large expenses fall upon us from time to time. Do you ride on luck? Or maybe you have a rich uncle that can bail you out in times of need. I'm not saying that is a bad thing, but if we can learn methods that can keep us above water without using a credit card, then that is a good thing to know.

 

[B and C]

Credit cards are a tool.  Paid off each month and NEVER carry a balance is the proper way.  Like most tools, if used improperly can cause grief.

 

[GrantRobertson]

Credit cards are a tool.  Paid off each month and NEVER carry a balance is the proper way.  Like most tools, if used improperly can cause grief.

I haven't had a credit card since about 1990. However, I have read that they don't like it if you never carry a balance and never pay them interest. The article said that you will actually get a better credit rating if you carry a small balance and pay regularly. Essentially, you are buying a good credit rating.

 

[Almost There]

I haven't had a credit card since about 1990. However, I have read that they don't like it if you never carry a balance and never pay them interest. The article said that you will actually get a better credit rating if you carry a small balance and pay regularly. Essentially, you are buying a good credit rating.

One of my cards actually rewards me for paying the balance in full on time each month with a lower interest rate.

I'm not sure but I think the idea of needing to carry a small balance to 'buy' a better credit rating is an old wives' tale.

 

[Optimistic Paranoid]

I haven't had a credit card since about 1990. However, I have read that they don't like it if you never carry a balance and never pay them interest. The article said that you will actually get a better credit rating if you carry a small balance and pay regularly. Essentially, you are buying a good credit rating.

Don't think so, Grant.  I've been paying the balance off for years now, and when I recently took out a car loan, discovered that my FICO score was 815.

Regards
John

 

[Canine]

I haven't had a credit card since about 1990. However, I have read that they don't like it if you never carry a balance and never pay them interest. The article said that you will actually get a better credit rating if you carry a small balance and pay regularly. Essentially, you are buying a good credit rating.

That is a common misconception. Keeping a balance does nothing for your credit score. A charge card will give you just as good of a credit score as a credit card. As long as you pay on time with the minimum payment, you are good to go.

 

[darude]

My primary use of them is to save money. 5% cash back can be really nice. But, to each their own

I once encountered someone who was convinced that since I was living in a van with no rent that it automatically means I could easily be squirreling away lots of money each month. I to explain how that's only the case if you have a decent income and thus are living well below your means, but I don't think he ever got it.


From what  gather American Express is one of the best card out there in terms of returns. They also provide extended warranties on items purchased with heir cards, at least on mine. Haven't used it yet but  can see that being handy.

I would weigh  that cash back with what intrest rate your paying out to them. I do have a decent income so that helps out a lot but I also know that there's people out there struggling to. I always use a prepaid debit card so no one will get into my bank account

 

[darude]

What would you do if you broke down and needed $1000 on a Sunday? Would you use a debit card? I don't want to get too deep into what you do with your money because that is personal information that you may not want on the Internet. However, large expenses fall upon us from time to time. Do you ride on luck? Or maybe you have a rich uncle that can bail you out in times of need. I'm not saying that is a bad thing, but if we can learn methods that can keep us above water without using a credit card, then that is a good thing to know.

what would I do if I broke down and needed a 1000 bucks on a sunday. I use a prepay debit card that works just like a regular debit card and I keep about 2000.00 on it at all times I have never had any problems with it being accepted anywhere as it has the visa logo on it. I just take cash out of my bank account and put it on that card. as of now I do have a nice savings built up so that helps out a lot. I think it would be stupid to go mobile with no money saved up that's just a disaster waiting to happen!! I also know about the people that were forced into this lifestyle with rents keep going up and not to mention the mortgage crisis. I also understand that large expenses do fall on us from time to time it sucks but shit happens!!

and what happens if you can't make the CC payment :huh:

 

[SoulRaven]

I would weigh  that cash back with what intrest rate your paying out to them.

0% interest.

I almost never carry a balance. In 2 years of using credit cards I have only done so for two months due to multiple emergencies occurring at once.

This card is 0% APR the first 15 months and I get $100 cash bonus if I spend $1000 within the first three, in addition to cash back rewards. By purchasing a year of auto insurance at once I got a discount, which was only possible for me with a credit card, and added to a few more necessities that puts me over the $1000 and gets me $100 back, in addition to 1% or more cash back on all of it (depends on category). I'm planning Christmas gifts now and should be debt free again by the first of next year.

With a good credit score there's almost always going to be a 0% Apr offer out there, and sure it doesn't last forever but since I only carry a balance when absolutely necessary and then buckle down to pay it off ASAP it works for me.

Like I said, if your income is high enough that you can save and you can afford to pay the cost price for necessities, that's great! I can't, so I have to find creative ways to be able to afford things.

For anyone hunting up good resources on credit scores, I've found the MyFico forum super helpful. Many of those folks make a hobby out of seeing how high a score they can get, so they have a wealth of info there.

 

[Sameer]

I have been with Bank of America for 14 years. I have one credit card for 3 years....just in case. I have an emergency fund for the Van and Mr. Pico, my dog. Both have an account that the Bank transfers money in on my monthly payday. Two lessons I have learned...'It is not about the amount of income..it is about what you spend' and 'Don't sacrifice long term goals for short term pleasure'...works for me...
Having the card means I do not have to worry...no matter what happens..
I run on a monthly budget...if the money runs out then I am out of money...I do not borrow from my emergency fund or use the card. My emergency funds and card are for emergency only. My friends in this life live on a variety of incomes..they budget and do very well. You can do more with more...but you have to do less with less.

 

[SoulRaven]

I think it would be stupid to go mobile with no money saved up that's just a disaster waiting to happen!!!

...

and what happens if you can't make the CC payment :huh:

Some of us didn't have a choice. I've been severely disabled since before I was an adult, and chose van dwelling as a risky escape from intolerable abuse and neglect. $733/month is the most I've ever "made" in my entire life. It is difficult to live off of and very difficult to save with. I have no shame entering this lifestyle without savings; it is the hand I was dealt and I played it as best anyone could have.

The question of making payment is a good one, but it's never been a problem for me. First, I rarely carry a balance, which means on payday the first thing I do is pay off credit. This over a month before its actually due, since I also pay as much off throughout the month as I can. So, if I have a bad month, there is some cushion.

I have super bad memory, so I've set up autopay as 'safety nets'. The accounts I rarely use are set up to pay the balance in full, and the main account is set up to autopay minimum balance. I set this all up to occur as early in the month as possible, when there would be the most money in my account. I don't like to rely on autopay for credit balance, so this is just my backup system. Usually I'm paying off a balance long before I get the actual statement for it....and when I can't, I have time to tighten down my budget. Even then if I couldn't pay in full I'd still definitely be able to make minimum payment.

In short, I don't worry about it anymore.

 

[Sameer]

It is all about the ability to manage money...my good friend in this life gets $400 a month. Works as a camp host during the Summer...then collects unemployment for awhile. She recently upgraded from a Class C to a very nice auto and travel trailer. Many of my friends are doing well on $600 or around that amount.
Bitty is right when she said she took a risky venture into vandwelling. She is also has a lot of courage and guts. It is risky. With so many other easy ways to live. THIS is not the easiest way. I think it is the most adventurous and character building way to live.. You have to do everything right with no mistakes...one mistake and it is all over. With a little bit of money, in Arizona a person can have the good life with little expense. Southern Desert in the Winter/Cottonwood, AZ or Winslow Area in the Fall/Flagstaff in the Winter....600 miles a year....If you cannot afford this life then it is better to get assistance from some State agency and live the easy life...This is not the easiest choice for living. you have to be smart and resourceful.

 

[darude]

Some of us didn't have a choice. I've been severely disabled since before I was an adult, and chose van dwelling as a risky escape from intolerable abuse and neglect. $733/month is the most I've ever "made" in my entire life. It is difficult to live off of and very difficult to save with. I have no shame entering this lifestyle without savings; it is the hand I was dealt and I played it as best anyone could have.

The question of making payment is a good one, but it's never been a problem for me. First, I rarely carry a balance, which means on payday the first thing I do is pay off credit. This over a month before its actually due, since I also pay as much off throughout the month as I can. So, if I have a bad month, there is some cushion.

I have super bad memory, so I've set up autopay as 'safety nets'. The accounts I rarely use are set up to pay the balance in full, and the main account is set up to autopay minimum balance. I set this all up to occur as early in the month as possible, when there would be the most money in my account. I don't like to rely on autopay for credit balance, so this is just my backup system. Usually I'm paying off a balance long before I get the actual statement for it....and when I can't, I have time to tighten down my budget. Even then if I couldn't pay in full I'd still definitely be able to make minimum payment.

In short, I don't worry about it anymore.
Sorry to hear about your disability bitty you'll be in my prayers!! i know it's hard being on disability on what they give you to live on in short it sucks!! not calling anyone stupid but for me it's a personal choice not being in debt while being on the road as living on the road can be exspensive also. but it all comes down to how you manage your money!! if your a spend thrifty forget it someone won't last on the road one break down can cost em LOL. i agree with your system also about rarely carrying a balance and paying em off early!!

 

[Canine]

I've had money and I've been broke.Having money is way better.

 

[Iggy]

I had three credit cards that I felt were my last chance to survive if things got really bad. A total of $11,250 credit limit. I used them just enough to keep them active and paid them off each month. Well I didn't receive new cards for the two Capital One accounts. I called and asked why. The person on the phone said that they cancelled because of my credit score (some dings from a few years ago, when I was losing my house and business) and insufficient use. But I was welcome to reapply! There's no way I'd get them back unless I lied on my applications. Little savings, no steady job, living in a van. So I only have a $750 credit card left. When I was asked if I wanted to increase that, I said no. Because I'd have to fill out an application and likely would lose that card too, once they read the data.
So I have to really be careful not to get into a situation where I need credit!