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Credit Cards

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  • Pegu said:

    I'll probably just end up getting the student one my bank offers.

    Also a good idea.
  • If you can, get your parents to get you a credit card co-signed by them as young as possible. I had one at 14. Thus, my credit history goes waaaay back.
  • I egt free credit score & report through creditkarma.com (Transunion) & creditsesame.com (Experian). You can also use Quizzle for Equifax.

    I use the Blue Cash Preferred Amex for grocery, travel, & gas, and the Amazon Chase Visa for everything else. I piggybacked Philip onto my cards since he didn't have a credit history, and my parents had piggybacked me into theirs. This also makes it easier to share expenses.

    At this point, I'm thinking about switching to the Sallie Mae Mastercard, since it offers 5% back on gas, groceries, and Amazon, up to a certain monthly limit, and it has similar CB to the Blue Cash, without the fee.
  • One thing I wasn't aware of until recently was the idea of hard and soft credit inquiries.
  • I had the foresight to know that I could not be trusted with a credit card, I saw it for the indentured servitude that it has the potential to be, and I refused to get a credit card until my parents and then fiancé(now wife) browbeat me into getting on. Now I'm in debt to the tune of $15k+ and not all of it is because of irresponsible spending(some is) but most is emergencies or things like buying carpet from home depot. Before credit cards, I could save up for anything I wanted in very short order, now I can't save a dime.

    I knew myself and the nature of what the credit card companies provide, to know that I didn't want it. And now I'm suffering the results of caving in on what I knew could and likely would happen.
  • I had the foresight to know that I could not be trusted with a credit card, I saw it for the indentured servitude that it has the potential to be, and I refused to get a credit card until my parents and then fiancé(now wife) browbeat me into getting on. Now I'm in debt to the tune of $15k+ and not all of it is because of irresponsible spending(some is) but most is emergencies or things like buying carpet from home depot. Before credit cards, I could save up for anything I wanted in very short order, now I can't save a dime.

    I knew myself and the nature of what the credit card companies provide, to know that I didn't want it. And now I'm suffering the results of caving in on what I knew could and likely would happen.

    If you had legitimate emergencies, then you had no choice. Carpet seems pretty essential if your floors isn't suitable for walking on while bare.
  • If there is no fee associated with owning whatever credit card you're actually hurting yourself by not just having it and throwing it in a drawer somewhere. If you ever get a loan from a bank for anything you'll be totally fucked if you don't have some credit history.
  • MATATAT said:

    If there is no fee associated with owning whatever credit card you're actually hurting yourself by not just having it and throwing it in a drawer somewhere. If you ever get a loan from a bank for anything you'll be totally fucked if you don't have some credit history.

    That's true. One thing people look at is "oldest line of credit." Just getting a credit card very early and never using it still means you have a very old line of credit.
  • I talked to a guy at the bank not too long ago for a car loan (ended up going with the dealers credit service since the rates were slightly cheaper). But I was talking to him about not having many credit cards and he was like well actually I would suggest having like two or three, preferably another one with some different bank. You're usually limited in a loan by your credit history and how much "credit" you have. Usually when they look at this they generally see how much total credit you have. So you have access to higher amounts for a loan from a bank if you have a lot of cumulative credit. You don't need to use these cards or anything. You just need to have them so they show up on a credit score.
  • Eh, I'm still closing out two of my cards once I have them paid off and sticking with the cashback card.
  • Eh, I'm still closing out two of my cards once I have them paid off and sticking with the cashback card.

    Closing them is bad. Just keep them around and never use them.
  • Apreche said:

    Eh, I'm still closing out two of my cards once I have them paid off and sticking with the cashback card.

    Closing them is bad. Just keep them around and never use them.
    Too tempting. Plus I think the oldest one has an annual fee and fuck that noise.
  • Freeze them in a literal block of ice. Or hide them in your basement. Or chop them up, but leave them open.
  • Apreche said:

    Eh, I'm still closing out two of my cards once I have them paid off and sticking with the cashback card.

    Closing them is bad. Just keep them around and never use them.
    Too tempting. Plus I think the oldest one has an annual fee and fuck that noise.
    Oh yeah, if there is a fee, fuck that.

    Also, what the fuck is up with people and temptation? I have like 2 or three credit cards in my drawer that are old and unused, but open. You don't see me going around buying nonsense. No 4K monitors up in here. If you're an adult, you should be able to control your own actions.
  • Apreche said:

    I had the foresight to know that I could not be trusted with a credit card, I saw it for the indentured servitude that it has the potential to be, and I refused to get a credit card until my parents and then fiancé(now wife) browbeat me into getting on. Now I'm in debt to the tune of $15k+ and not all of it is because of irresponsible spending(some is) but most is emergencies or things like buying carpet from home depot. Before credit cards, I could save up for anything I wanted in very short order, now I can't save a dime.

    I knew myself and the nature of what the credit card companies provide, to know that I didn't want it. And now I'm suffering the results of caving in on what I knew could and likely would happen.

    If you had legitimate emergencies, then you had no choice. Carpet seems pretty essential if your floors isn't suitable for walking on while bare.
    Yeah, brakes on the car, wife's wisdom teeth(and root canals), daughter's ear surgery, etc; but also enough occasional small purchases that at the time seemed insignificant and ultimately built up to something significant.

    I knew before ever going into it that credit was not for me, and I failed to heed my own warnings. I've spent enough in interest that I could have had enough to actually invest in real assets.
  • Apreche said:

    I had the foresight to know that I could not be trusted with a credit card, I saw it for the indentured servitude that it has the potential to be, and I refused to get a credit card until my parents and then fiancé(now wife) browbeat me into getting on. Now I'm in debt to the tune of $15k+ and not all of it is because of irresponsible spending(some is) but most is emergencies or things like buying carpet from home depot. Before credit cards, I could save up for anything I wanted in very short order, now I can't save a dime.

    I knew myself and the nature of what the credit card companies provide, to know that I didn't want it. And now I'm suffering the results of caving in on what I knew could and likely would happen.

    If you had legitimate emergencies, then you had no choice. Carpet seems pretty essential if your floors isn't suitable for walking on while bare.
    Yeah, brakes on the car, wife's wisdom teeth(and root canals), daughter's ear surgery, etc; but also enough occasional small purchases that at the time seemed insignificant and ultimately built up to something significant.

    I knew before ever going into it that credit was not for me, and I failed to heed my own warnings. I've spent enough in interest that I could have had enough to actually invest in real assets.
    Those all seems like legit expenses. Using a credit card and having debt was the right choice. Much better than dying or not being able to drive a car since the brakes don't work.
  • I'm at the point in my life where I'm done taking out big loans. Shit, hopefully any loans, but the craziest of emergencies could strike, so never say never.

    In any case, I'm now playing the "sign up for a credit card for a year, just for the initial benefits, and then cancel" game. My American Express is unbeatable. It is the old version of Blue Cash that they have not offered in years (very low cash back amounts initially, then after $6,500 in transactions during a year, it bumps to 1% back on all, and 5% back for grocery stores, gas pumps, and drug stores.

    I didn't have a rewards Visa, so when a store didn't take Amex, I was missing out by using my stupid check card. Now I keep a rotation of two rewards Visas. United one got me a free flight to PAX South last year (now cancelled). Best Buy one got me $250 back on my fridge this year. Chase Cash Back card I just got had a $225 sign-up cash back offer.

    Important Note: If you ever get hit by an annual fee, you can call and cancel the card during the current statement month, and the fee will be waived.
  • edited August 2015
    Apreche said:

    Also, what the fuck is up with people and temptation? I have like 2 or three credit cards in my drawer that are old and unused, but open. You don't see me going around buying nonsense. No 4K monitors up in here. If you're an adult, you should be able to control your own actions.

    Remember those studies about people who can delay gratification being significantly more successful later in life. That's pretty much what some of the people have trouble with. To my knowledge it can be taught (but generally isn't) but a vast amount of people do not have this trait and thus need to be removed from temptation.
    Post edited by Cremlian on
  • Cremlian said:

    Apreche said:

    Also, what the fuck is up with people and temptation? I have like 2 or three credit cards in my drawer that are old and unused, but open. You don't see me going around buying nonsense. No 4K monitors up in here. If you're an adult, you should be able to control your own actions.

    Remember those studies about people who can delay gratification being significantly more successful later in life. That's pretty much what some of the people have trouble with. To my knowledge it can be taught (but generally isn't) but a vast amount of people do not have this trait and thus need to be removed from temptation.
    I can't imagine what that's like. You go into a store and you can't physically prevent yourself from buying something you want? How can you maintain the belief in your own free will at that point?
  • Also of course people who don't have a budget or don't make much more than what they need to cover monthly expenses run into problems very quickly when emergencies occur or even if they only spurge on themselves occasionally.

    //Very fortunate and privileged to be upper middle class
  • edited August 2015
    Cremlian said:

    Also of course people who don't have a budget or don't make much more than what they need to cover monthly expenses run into problems very quickly when emergencies occur or even if they only spurge on themselves occasionally.

    //Very fortunate and privileged to be upper middle class

    In that case, it's not a problem, though. Just take the debt you have to, and don't worry about it. Who cares if some number in a bank's database is big or small? Life is more important.
    Post edited by Apreche on
  • I've never budgeted, even when I was extremely poor in college.

    I'd go to the grocery store and buy the bare minimum I could get by on. Even when I was desperately hungry, I never used the credit cards for such extravagances as food.
  • Another option is the HAVE the credit card, but treat it exactly like a debit card. Budget it like it's a direct line to your checking account. Just use it solely as a buffer between the world and your wallet, and never ever ever ever ever ever use it for anything beyond that budget.
  • Start on Day 1 with 1 month's salary as buffer in a checking account. Let a second month's worth of paychecks roll in. Pay off all your credit cards at the end of the month. Transfer any remaining money above 1 month's salary over to savings/investment accounts. Do you have less than 1 month's salary in your checking account after paying all the credit cards? Oh no, YOU DONE FUCKED UP! Pay closer attention next month and fix that shit.
  • Those all seems like legit expenses. Using a credit card and having debt was the right choice. Much better than dying or not being able to drive a car since the brakes don't work.
    Those may have been legit expenses, but without credit, I could have handled almost all of them out of pocket. And like I mentioned before I did use it for "extravagances" like food, a tank of gas here and there to get to work when the cost skyrocketed but my pay did not, overall a slow accumulation of debt whether or not a large portion of it was legit it still was something that I knew going in that I shouldn't be trusted with it.

    Honestly there is only one form of debt that I truly do feel is "good" debt, and that is debt that helps generate income. If I'm purchasing something that can generate income then that is debt I am comfortable with.
  • If you could have paid for those expenses out of pocket, why didn't you pay off the credit balance in full at the end of the month?
  • Apreche said:

    If you could have paid for those expenses out of pocket, why didn't you pay off the credit balance in full at the end of the month?

    And that's why I don't trust myself with credit.
  • edited August 2015
    I only ever use my bank credit card for larger purchases and I now use my Amazon credit card for all my Amazon purchases then just pay it off at the end of the month. But I don't really buy more or less than I would normally from Amazon, I just also want the points (aka free money) that I can get by using it.

    Some people at my work have these elaborate schemes for accruing shitloads of flyer miles and points from their credit cards but they seem like way too risky and too much work for some of them.
    Post edited by MATATAT on
  • MATATAT said:

    I only ever use my bank credit card for larger purchases and I now use my Amazon credit card for all my Amazon purchases then just pay it off at the end of the month. But I don't really buy more or less than I would normally from Amazon, I just also want the points (aka free money) that I can get by using it.

    Some people at my work have these elaborate schemes for accruing shitloads of flyer miles and points from their credit cards but they seem like way too risky and too much work for some of them.

    Most banks allow you to setup another account to payoff your credit card a day before the payment is due. This is the way I've used it in the past.

    Last thing I got for free was a coffee been grinder, but an Amazon card would be good. Might switch pack to saving money on airfares.

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