|
|
Joined: Sep 2006
Posts: 1,711
Dawg Talker
|
Dawg Talker
Joined: Sep 2006
Posts: 1,711 |
Quote:
If people used it correctly, credit most certainly is better than cash. There are many reasons and if I find time later this evening, I'll hook you up.
lol...one things for sure....gm is smarter than me...lmao
were not disagreeing about all that much...i would like to hear the many reasons though...
imo, for day to day transactions, cash is the way to go...
i'm not arguing that cash can be lost or stolen...or that it can't be used to buy something off the internet...i'm simply saying that paying for something and owning it right there at that price, is alot less stressful, than charging it, and possibly getting behind on a creditcard....
i won't dispute you, and i know i've said this about 3 times, that using credit for the reward perks is great, as long as you don't get behind..even your gas example...you get behind one month at 10%, then you have to pay on time for the next 2 just to break even...this works if you have zero balance....
the credit companys are playing the odds...and they are winning...
lerner owns the browns, and you've paid down your 10 cards...to what did you say...around 10% usage?
now i don't know what the balances are, or the interest rates...(but for the sake of easy math....lol) i'll use 10% for the interest rate....and 5000 of balances.....thats about 483 bucks a year in interest, if you are paying the minimum payment of 3%....
so if it costs 40 bucks to fill up your tank, thats 480 a year....
so you are losing the cash to fill up your tank 12 times, and gambling that you can always pay on time to get 12 tanks back...
and i'm sure i'm being generous on the interest rates too....half them scumbag stores rob you blind....my score is around 750, but sams club will only give me an interest rate near 20%...good credit didn't get me anything...sears real high....best buy...real high....
Attitude is everything....FEAR THE ELF!!!
|
|
|
|
|
Joined: Oct 2006
Posts: 1,663
Dawg Talker
|
|
Dawg Talker
Joined: Oct 2006
Posts: 1,663 |
Store cards are always high. Always have been. Those are Charge cards, not credit cards. They are accomodating the public by giving them massive intro offers (same with the furniture stores with the No payments till 2012 ads btw). You are correct that they play the odds. The thing is, if people would just read the agreement they would understand that those balances need to be paid off.
Credit cards are different. They have a wide difference in interest rates that largely depends on your credit scores and payment history. My rate on the Capital one card I carry is 7.9% fixed. But I've also got a rewards card that is 11.99% with 5% rewards.
The trick is really simple. Pay your bills. If you can use your credit to your advantage it is a very good tool. But like anything, it takes discipline. Something many folks aren't willing to give. So they pay more in the long run.
KeysDawg
The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. - Carl Sagan
|
|
|
|
|
Joined: Mar 2007
Posts: 809
All Pro
|
|
All Pro
Joined: Mar 2007
Posts: 809 |
This is a rough break down of how a FICO score is weighted... there is also a slight impact on the number of hard credit score pulls done in the past 90 days.  Credit isnt even fully understood by people who are 'experts' in credit. GM credit cards can be good, lenders DO look at what types of credit you have... and having a couple well handled revolving unsecured lines for over two years is a huge plus. Jules, you do get hurt on your score anytime you have 8 or more credit cards you would be better off writing letters to a couple of the cards to have your limit extended and closing two or three of your 10 cards.
![[Linked Image]](http://www.dawgtalkers.net/uploads/captainphil/browns bills sig 5.jpg) When it gets cold and snows and the wind blows, you gotta be able to run the ball. - TR
|
|
|
|
|
Joined: Oct 2006
Posts: 1,663
Dawg Talker
|
|
Dawg Talker
Joined: Oct 2006
Posts: 1,663 |
This will be changing in 2009. The Fair Issac score will be adjusted and somethings will be better and some worse. But either way it's good to educate yourself in this stuff for anyone.
KeysDawg
The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. - Carl Sagan
|
|
|
|
|
Joined: Sep 2006
Posts: 11,367
Legend
|
|
Legend
Joined: Sep 2006
Posts: 11,367 |
Quote:
Jules, you do get hurt on your score anytime you have 8 or more credit cards you would be better off writing letters to a couple of the cards to have your limit extended and closing two or three of your 10 cards.
I only have three cards. 
|
|
|
|
|
Joined: Mar 2007
Posts: 809
All Pro
|
|
All Pro
Joined: Mar 2007
Posts: 809 |
[foot] my bad jules... [/mouth]
well didnt someone say they had 10 or did i misread the entire thread
When it gets cold and snows and the wind blows, you gotta be able to run the ball. - TR
|
|
|
|
|
Joined: Oct 2006
Posts: 1,663
Dawg Talker
|
|
Dawg Talker
Joined: Oct 2006
Posts: 1,663 |
Quote:
[foot] my bad jules... [/mouth]
well didnt someone say they had 10 or did i misread the entire thread
That would be Michelle. ;-)
KeysDawg
The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. - Carl Sagan
|
|
|
|
|
Joined: Sep 2006
Posts: 11,367
Legend
|
|
Legend
Joined: Sep 2006
Posts: 11,367 |
Quote:
[foot] my bad jules... [/mouth]
well didnt someone say they had 10 or did i misread the entire thread
Yeah, it was Michelle, we are used to people getting us confused on here. I was just giving you a hard time. 
I think 10 is way too many. 
|
|
|
|
|
Joined: Sep 2006
Posts: 1,711
Dawg Talker
|
|
Dawg Talker
Joined: Sep 2006
Posts: 1,711 |
Quote:
Store cards are always high. Always have been. Those are Charge cards, not credit cards. They are accomodating the public by giving them massive intro offers (same with the furniture stores with the No payments till 2012 ads btw). You are correct that they play the odds. The thing is, if people would just read the agreement they would understand that those balances need to be paid off.
well i'll admit that i didn't know the difference there...but from what i just read about charge and credit cards, they are definetly credit cards.....albiet for one store, but they don't have to be payed off at a certain time (like 30 days)
had a sears card....got rid of it because of the high interest...and i just love tools....
had a bestbuy card...got rid of that because i got it for an appliance, and then bought a bunch of other stuff....
almost everytime i've gotten a card, its been because i needed something.....then i kept the card, and ended up using it for other things....
both of those cards were around 20% interest...
now i've got one visa at around 10% and a sams club card, thats around 20%....the visa is probably near maxed, and the sams club gets paid off for most of the year....something always comes up though, and i end up with a balance....then i'm waiting for taxes back to pay them down...
imo, your standard of living always ends up going down with credit cards.....minimum payments get higher....you have less cash in your paycheck...so you charge more....
Attitude is everything....FEAR THE ELF!!!
|
|
|
|
|
Joined: Oct 2006
Posts: 1,663
Dawg Talker
|
|
Dawg Talker
Joined: Oct 2006
Posts: 1,663 |
I understand your point, but I have to point out that you may want to rethink what you are charging. Personally, I don't charge anything that I don't have the cash to pay off with, or unless it's a big purchase (new appliance etc.) where I get a certain time to pay off with no interest. Home Depot is great for this. Anything more than $299 and you get 12 months free financing. Can I drop $2000 for the new flooring I want? No, but I can pay $200 per month and still beat the interest by 2 months.
Having credit isn't bad. But you do have to have the discipline to use it wisely. Don't succumb to the urge to buy those things that you really don't NEED. There is a very big difference between a NEED and a WANT. Sadly most people don't understand that.
KeysDawg
The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. - Carl Sagan
|
|
|
|
|
Joined: Sep 2006
Posts: 1,711
Dawg Talker
|
|
Dawg Talker
Joined: Sep 2006
Posts: 1,711 |
i hear ya....my biggest problem is raising 4 kids on 1 income....something always comes up....having cash in the bank is a must for me....i'm to the point where i have alittle, but i still have the card balances...my taxes will pretty much totally pay off what i owe....my biggest problem is smoking....about 3 grand a year goes to that...problem is i can't quit....if i could i would be in alot better shape.
just speaking from personal experience, it feels better to pay cash...and having some cash in the bank for emergencies, makes them less of a problem....sure you might have to shell out a grand for a car repair, but you have the money....if all you have is a visa, then you cripple your monthly income by the increase in the minimum payment for the card...that leads to using the card more, which leads to an even higher minimum payment....etc.
there is no doubt that the 12 months same as cash is beneficial....i've done it...and paid it off early...first time i did it, when i was about 21 i got smacked with 6 months of interest...lol
i'm not debating that credit doesn't have its purposes...because it does....i'm simply saying that credit has come to be used for more for things that it shouldn't be used for...
needs vs wants like you said....i do know that its easier to put things back, when you are seeing the cash in your pocket dwindle to nothing.....with a card, its more difficult....
Attitude is everything....FEAR THE ELF!!!
|
|
|
|
|
Joined: Sep 2006
Posts: 9,955
Hall of Famer
|
|
Hall of Famer
Joined: Sep 2006
Posts: 9,955 |
Quote:
now i don't know what the balances are, or the interest rates...
Okay, since you went into long thought about what interest I spend in a year, I'll tell you. This year, 2008, I've paid exactly $13.34 in interest -- and that was from January when I was paying off all my balances. All of my big balances (washer & dryer with Home Depot and television with Circuit City) are at zero percent interest for "whatever" period of time. I divide up the item cost by the months I'm given same as cash (minus two for safety) and pay that amount each month.
Example: $1500 washer/dryer was 12 months same as cash. 1500/10= $150 per month. Make sense?
My everyday card, which is my rewards card, I pay off every month. Actually, I pay it off every 10 days or so -- just for the very reason that it doesn't get out of control.
#gmstrong #gmlapdance
|
|
|
|
|
Joined: Sep 2006
Posts: 9,955
Hall of Famer
|
|
Hall of Famer
Joined: Sep 2006
Posts: 9,955 |
Quote:
I think 10 is way too many.
Ten is about my limit for juggling the card usage and keeping them active. To be fair, one of them is for the heating/cooling company that installed our new furnace and air conditioner. That one won't get used much at all, if ever again, but I'll keep it open and buy furnace filters & repairs with it.
Another, Circuit City, will be closed eventually since CC filed bankruptcy, and as soon as the television is paid, I'll close that one.
Get this...if you think 10 is too many...there are people on the credit message board I frequent that juggle 40 credit cards. That's FAR beyond my limit of easy. They have Excel spreadsheets just for keeping the cards in usage rotation. 
#gmstrong #gmlapdance
|
|
|
|
|
Joined: Sep 2006
Posts: 1,711
Dawg Talker
|
|
Dawg Talker
Joined: Sep 2006
Posts: 1,711 |
lol...i wish i was able to do what you are doing....
i'm not knockin' ya, and i'm not judgin' ya either...
i just think that credit as a whole causes major problems....i draw from my own experience, and yes, i'm to blame....i'm not too bad off, but i know i could be in a better situation...
part of my ire, is its whats promoted, or marketed to everyone....its the "in" thing to use credit cards....cash is lame....i look at it as it harms more people than it hurts....this country, and its citizens are gonna be in for a rude awakening when the payment comes due....
money has always been a sore spot with me....well enough of this for tonight anyway.......happy new year!!!!
Attitude is everything....FEAR THE ELF!!!
|
|
|
|
|
Joined: Sep 2006
Posts: 27,416
Legend
|
|
Legend
Joined: Sep 2006
Posts: 27,416 |
Quote:
It's much easier to put a stop on a credit card than it is to wait to be reimbursed by your bank after your account has been drained of money -- no matter what "protection" debit cards offer.
Thats one I can't argue for or against. I know I am only on the hook for the first 100 bucks on my debit card. As far as how long it takes to get your money reimbursed.... I have no clue and don't want to find out
Quote:
Don't people without a credit history have lower scores than those with a good credit history? Wouldn't their rates be higher?
You can have a credit history without having any credit cards.
Quote:
It depends as to whether "too much available credit" is a bad thing. I certainly wouldn't have $100,000 of available credit sitting out there, but some people do and they are getting great rates right now. More than "available credit" they like to see low utilization, too.
Trust me to much available credit IS a bad thing. I have seen many people be turned down for car loans because the banks say they have to much available credit, and many of these people had never been late on one single payment.
Quote:
Every time this subject comes up there are people that think they know how it works. You and I are two of them. You, because you work with credit apps all the time, and me because I took time to educate myself, rebuild my credit file, and learned how to play the credit game. I'm sure we could debate until we're dead -- and we just may
Well here is to another 34 years of debating the subject for me and another 60 years for you
I AM ALWAYS RIGHT... except when I am wrong.
|
|
|
|
|
Joined: Sep 2006
Posts: 17,438
Legend
|
|
Legend
Joined: Sep 2006
Posts: 17,438 |
jc I refuse to carry a balance on a credit card and pay outrageous interest. Credit card companies will rape you any way they can. I have one bank debit card that I never use except at the ATM. And one credit card. It is a Exxon-Mobile Citi Credit Card and gives me a percentage of my spending back to use at the gas station. So I just put all my charges on that credit card, pay it all off on time, and then go get a free tank of gas.  I hate paying interest in general. It's the same with buying cars. I prefer to just write the dealership a check for the damned thing and not pay interest or have a payment.
|
|
|
DawgTalkers.net
Forums DawgTalk Tailgate Forum Credit Card Rates
|
|
