Your stance on Credit Cards

[Lost In Xanadu]

I know some people use them responsibly, some use them recklessly, some completely hate them and refuse to use them....

 

I made sure my son got one the moment he was able. I told him to use it whenever he gets gas and things like that. I find having a credit card and paying it off every month a great way to build credit. My parents did the same for me, and that allowed me to build my credit over time. By the time we went to buy a house, my rating was over 800.

 

I think they are a great tool when used responsibly. Once you let the card control you, you're in trouble.

[LyndseyG]

I've never owned one.

[Lost In Xanadu]

I've never owned one.

 

I don't own one either, but I use a few :)

[Maverick]

I have a couple that I hope to pay off by the end of the year, and then use one for gas, to be paid off every month.

 

The thing that gets me is how just about everything you do with a credit card can reflect negatively on your credit report, including carrying a zero balance.

[thesweetscience]

I know some people use them responsibly, some use them recklessly, some completely hate them and refuse to use them....

 

I made sure my son got one the moment he was able. I told him to use it whenever he gets gas and things like that. I find having a credit card and paying it off every month a great way to build credit. My parents did the same for me, and that allowed me to build my credit over time. By the time we went to buy a house, my rating was over 800.

 

I think they are a great tool when used responsibly. Once you let the card control you, you're in trouble.

I agree, as long as you can be a disciplined shopper they are great.. They are more convenient than cash and often have rewards associated with their use.

 

In the hands of someone who doesn't know how to budget or be disciplined with their spending though, they are dangerous.

 

I have used them for 20 years and I have never carried a balance on any of them. I use them as cash but no more than I can afford to pay in a month.

[thesweetscience]

I have a couple that I hope to pay off by the end of the year, and then use one for gas, to be paid off every month.

 

The thing that gets me is how just about everything you do with a credit card can reflect negatively on your credit report, including carrying a zero balance.

Not everything you do reflects negatively on your credit.

[Maverick]

I have a couple that I hope to pay off by the end of the year, and then use one for gas, to be paid off every month.

 

The thing that gets me is how just about everything you do with a credit card can reflect negatively on your credit report, including carrying a zero balance.

Not everything you do reflects negatively on your credit.

"Just about everything"

[Mr. Not]

You got it all down in the OP. I've had a card for 3 years and only been in debt once for about a day, and by 2 dollars, silly rash miscalculation on my part... Transferred money from my savings in pronto and got out.

 

I currently pay for food, transit, and school with it... I can see where it will get harder when there's more payments to regulate.

Edited May 29, 2013 by Mr. IsNot

[LyndseyG]

I've never owned one.

 

I don't own one either, but I use a few :)

 

:D

 

Though I've been offered one loads of times by my bank.

[tx_rush]

pay off the balance everymonth and theyre good. I use mine on autopay for a few of my utilities, then have it autodraft from my bank account every month to pay the balance of the credit card. It looks good for my credit even though i dont even think about it. I actually am not posative where the physical card is at this moment, probably in some drawer

 

I dont have great self discipline, but at the same time recognize my own weaknesses. I dont even carry my debit card around, my local branch of my bank is right down the street, so If i need to get some cash I can, but I find that if I have cash in my pocket or debit card I am more likely to impulse buy

[thesweetscience]

I have a couple that I hope to pay off by the end of the year, and then use one for gas, to be paid off every month.

 

The thing that gets me is how just about everything you do with a credit card can reflect negatively on your credit report, including carrying a zero balance.

Not everything you do reflects negatively on your credit.

"Just about everything"

Not really. If you handle them right they can help you.

 

1. Don't have too many. 2 of any combination (visa, mastercard, amex, etc) are plenty. Even if you aren't using them lenders are wary if you have the means to go out a charge like crazy. Even a cards with 5k limits are bad if you have 10 of them. Companies see you as having eh ability to go out and charge 50 grand.

2. Keep your spending limits low. The credit card companies love to tell you that they raised your limit. Kindly call them and tell them to put it back and leave it alone. Again lenders don't like it if you have the ability to go out and charge 50 grand over the weekend.

3. Don't max them out. If the limit is 5 grand. don't carry more than half that.

4. Always make your payments on time or pay off entirely every month. Even if you pay them off every month it still shows up on a credit report with a balance and that it is a revolving account in good standing.

 

If you do these things, credit cards will not hurt your credit. If you can't do these things then credit cards would probably only get you in trouble anyway and you are better off without them.

[Tombstone Mountain]

I've never owned one.

That is something I cannot imagine...you are truly very disciplined and wise

[Lost In Xanadu]

I've never owned one.

 

I don't own one either, but I use a few :)

 

:D

 

Though I've been offered one loads of times by my bank.

 

I was just joking - "own" meaning to purchase. I didn't purchase any of them, I applied and they were given to me.

 

I will not use one with an annual fee. I have an Am Ex Blue (no annual fee) and Discover. Also have a debit card tied to my checking account.

[Lost In Xanadu]

I've never owned one.

That is something I cannot imagine...you are truly very disciplined and wise

 

Wise? Why? Having a credit card does not make you unwise. If used responsibly, it's a great way to manage expenses and improve your credit. I would rather make 1 or 2 payments to my CCs than carry around cash or write checks every time I hit the grocery store or buy gas. Plus I get cash back from Discover, and my AmEx earns rewards.

 

May be wise for people with no discipline....

[thesweetscience]

I've never owned one.

That is something I cannot imagine...you are truly very disciplined and wise

 

Wise? Why? Having a credit card does not make you unwise. If used responsibly, it's a great way to manage expenses and improve your credit. I would rather make 1 or 2 payments to my CCs than carry around cash or write checks every time I hit the grocery store or buy gas. Plus I get cash back from Discover, and my AmEx earns rewards.

 

May be wise for people with no discipline....

You do it just like I do. I get $400-$500 back from Discover every year. I just credit it to my account. I carry a visa issued by my bank which I use when traveling or in the event that a retailer does not take Discover. It is just so much easier than using cash.

[bigman208]

I have a credit card, and I'm sad to say, have a pretty large balance on it. Living in my own making barely more than minimum wage in Ontario is not an easy thing to do, so in times of need its quite useful. I'm not an idiot about the large balance, I realize this can affect my credit rating pretty substantially, but I ALWAYS put money on it at least every month, or whenever else I can. However, when I have no money to buy any groceries, I'd much rather use the VISA than not eat at all. My car will be fully paid off come the end of July, so my plan is to put the payments I normally would on my car, onto my credit card, and then have it paid off by the beginning of next year.

[Lost In Xanadu]

I have a credit card, and I'm sad to say, have a pretty large balance on it. Living in my own making barely more than minimum wage in Ontario is not an easy thing to do, so in times of need its quite useful. I'm not an idiot about the large balance, I realize this can affect my credit rating pretty substantially, but I ALWAYS put money on it at least every month, or whenever else I can. However, when I have no money to buy any groceries, I'd much rather use the VISA than not eat at all. My car will be fully paid off come the end of July, so my plan is to put the payments I normally would on my car, onto my credit card, and then have it paid off by the beginning of next year.

 

Carrying a balance does not really hurt you... missing payments will. I think we all have been there. I had a pretty good balance for a while when I was laid off for a few months, and my credit never tumbled very much.

[thesweetscience]

I have a credit card, and I'm sad to say, have a pretty large balance on it. Living in my own making barely more than minimum wage in Ontario is not an easy thing to do, so in times of need its quite useful. I'm not an idiot about the large balance, I realize this can affect my credit rating pretty substantially, but I ALWAYS put money on it at least every month, or whenever else I can. However, when I have no money to buy any groceries, I'd much rather use the VISA than not eat at all. My car will be fully paid off come the end of July, so my plan is to put the payments I normally would on my car, onto my credit card, and then have it paid off by the beginning of next year.

You have the right idea about getting it paid down and a credit card can certainly help if your are in a pinch. While you are working to get it under control might I suggest doing a balance transfer to a card that 0% for 6 months, 1 year, etc. Having that balance draw no interest would go a long way in helping you get it paid off and CC companies are always running offers like that to get people to use their cards.

[rushfanNlv]

Trying to get out from under a couple of cards right now and after I am done, I won’t get another credit card. However he way the OP described using credit is an excellent suggestion if one has the discipline.

[Maverick]

I have a couple that I hope to pay off by the end of the year, and then use one for gas, to be paid off every month.

 

The thing that gets me is how just about everything you do with a credit card can reflect negatively on your credit report, including carrying a zero balance.

Not everything you do reflects negatively on your credit.

"Just about everything"

Not really. If you handle them right they can help you.

 

1. Don't have too many. 2 of any combination (visa, mastercard, amex, etc) are plenty. Even if you aren't using them lenders are wary if you have the means to go out a charge like crazy. Even a cards with 5k limits are bad if you have 10 of them. Companies see you as having eh ability to go out and charge 50 grand.

2. Keep your spending limits low. The credit card companies love to tell you that they raised your limit. Kindly call them and tell them to put it back and leave it alone. Again lenders don't like it if you have the ability to go out and charge 50 grand over the weekend.

3. Don't max them out. If the limit is 5 grand. don't carry more than half that.

4. Always make your payments on time or pay off entirely every month. Even if you pay them off every month it still shows up on a credit report with a balance and that it is a revolving account in good standing.

 

If you do these things, credit cards will not hurt your credit. If you can't do these things then credit cards would probably only get you in trouble anyway and you are better off without them.

 

Yes, of course those things are good. But there are many more things you can do that will ding your credit score, even things you think might be helping it.

 

1) carrying a zero balance

2) opening a new account

3) closing an account

4) having someone do a credit check on you

 

You get the idea. There certainly are ways to handle your credit that will help you get and maintain a good credit score, but they aren't always the things you might think they are.

[thesweetscience]

I have a couple that I hope to pay off by the end of the year, and then use one for gas, to be paid off every month.

 

The thing that gets me is how just about everything you do with a credit card can reflect negatively on your credit report, including carrying a zero balance.

Not everything you do reflects negatively on your credit.

"Just about everything"

Not really. If you handle them right they can help you.

 

1. Don't have too many. 2 of any combination (visa, mastercard, amex, etc) are plenty. Even if you aren't using them lenders are wary if you have the means to go out a charge like crazy. Even a cards with 5k limits are bad if you have 10 of them. Companies see you as having eh ability to go out and charge 50 grand.

2. Keep your spending limits low. The credit card companies love to tell you that they raised your limit. Kindly call them and tell them to put it back and leave it alone. Again lenders don't like it if you have the ability to go out and charge 50 grand over the weekend.

3. Don't max them out. If the limit is 5 grand. don't carry more than half that.

4. Always make your payments on time or pay off entirely every month. Even if you pay them off every month it still shows up on a credit report with a balance and that it is a revolving account in good standing.

 

If you do these things, credit cards will not hurt your credit. If you can't do these things then credit cards would probably only get you in trouble anyway and you are better off without them.

 

Yes, of course those things are good. But there are many more things you can do that will ding your credit score, even things you think might be helping it.

 

1) carrying a zero balance

2) opening a new account

3) closing an account

4) having someone do a credit check on you

 

You get the idea. There certainly are ways to handle your credit that will help you get and maintain a good credit score, but they aren't always the things you might think they are.

That list wouldn't affect your credit score a noticeable amount unless you did each of them on a level of insanity. I have 800 plus credit scores and I have opened and closed many accounts and carried zero balances on at least one credit card for months at a time many times over the years.

[USB Connector]

I've got one. I think it's great. I use quicken to manually track me expenses to make sure everything's always in order and that I stay within budget. Got pickpocketed once, lost $20 cash and the time it took me to call my credit card company and go to CAAQ for a new copy of my driver's license. Even if you don't plan on ever using it having one builds credit. 20 bills of $0 still means 20 bills paid on time, which the banks will love if you apply for a loan or something.

[Lost In Xanadu]

I have a couple that I hope to pay off by the end of the year, and then use one for gas, to be paid off every month.

 

The thing that gets me is how just about everything you do with a credit card can reflect negatively on your credit report, including carrying a zero balance.

Not everything you do reflects negatively on your credit.

"Just about everything"

Not really. If you handle them right they can help you.

 

1. Don't have too many. 2 of any combination (visa, mastercard, amex, etc) are plenty. Even if you aren't using them lenders are wary if you have the means to go out a charge like crazy. Even a cards with 5k limits are bad if you have 10 of them. Companies see you as having eh ability to go out and charge 50 grand.

2. Keep your spending limits low. The credit card companies love to tell you that they raised your limit. Kindly call them and tell them to put it back and leave it alone. Again lenders don't like it if you have the ability to go out and charge 50 grand over the weekend.

3. Don't max them out. If the limit is 5 grand. don't carry more than half that.

4. Always make your payments on time or pay off entirely every month. Even if you pay them off every month it still shows up on a credit report with a balance and that it is a revolving account in good standing.

 

If you do these things, credit cards will not hurt your credit. If you can't do these things then credit cards would probably only get you in trouble anyway and you are better off without them.

 

Yes, of course those things are good. But there are many more things you can do that will ding your credit score, even things you think might be helping it.

 

1) carrying a zero balance

2) opening a new account

3) closing an account

4) having someone do a credit check on you

 

You get the idea. There certainly are ways to handle your credit that will help you get and maintain a good credit score, but they aren't always the things you might think they are.

That list wouldn't affect your credit score a noticeable amount unless you did each of them on a level of insanity. I have 800 plus credit scores and I have opened and closed many accounts and carried zero balances on at least one credit card for months at a time many times over the years.

Having a card continuously open for a long time also helps. If you open and close card and only have them for short periods of time, that can definitely hurt you. I've had both my cards for nearly 20 years....

[thesweetscience]

I have a couple that I hope to pay off by the end of the year, and then use one for gas, to be paid off every month.

 

The thing that gets me is how just about everything you do with a credit card can reflect negatively on your credit report, including carrying a zero balance.

Not everything you do reflects negatively on your credit.

"Just about everything"

Not really. If you handle them right they can help you.

 

1. Don't have too many. 2 of any combination (visa, mastercard, amex, etc) are plenty. Even if you aren't using them lenders are wary if you have the means to go out a charge like crazy. Even a cards with 5k limits are bad if you have 10 of them. Companies see you as having eh ability to go out and charge 50 grand.

2. Keep your spending limits low. The credit card companies love to tell you that they raised your limit. Kindly call them and tell them to put it back and leave it alone. Again lenders don't like it if you have the ability to go out and charge 50 grand over the weekend.

3. Don't max them out. If the limit is 5 grand. don't carry more than half that.

4. Always make your payments on time or pay off entirely every month. Even if you pay them off every month it still shows up on a credit report with a balance and that it is a revolving account in good standing.

 

If you do these things, credit cards will not hurt your credit. If you can't do these things then credit cards would probably only get you in trouble anyway and you are better off without them.

 

Yes, of course those things are good. But there are many more things you can do that will ding your credit score, even things you think might be helping it.

 

1) carrying a zero balance

2) opening a new account

3) closing an account

4) having someone do a credit check on you

 

You get the idea. There certainly are ways to handle your credit that will help you get and maintain a good credit score, but they aren't always the things you might think they are.

That list wouldn't affect your credit score a noticeable amount unless you did each of them on a level of insanity. I have 800 plus credit scores and I have opened and closed many accounts and carried zero balances on at least one credit card for months at a time many times over the years.

Having a card continuously open for a long time also helps. If you open and close card and only have them for short periods of time, that can definitely hurt you. I've had both my cards for nearly 20 years....

I will admit that I have had my two main cards for years. I am not afraid to open a card at a retailer to get some type of deal only to close it after making the payment. I don't do that often though.

[J2112YYZ]

I've never owned one.

 

Me neither. I do have a debit card from my bank though but it's not quite the same thing. I like it because when I buy something i'm using my own money to pay for stuff and don't have to worry about paying for it later. It also helps me to budget better the amount in my account that way I don't ever get too low on cash.