Credit card debt

[PoetPhilosopher]

Credit cards have their limited uses, but I feel like their high interest rates, eagerness to charge late fees, etc, trap us in like an animal most of the time, and cause us stress we don't need, potentially affecting some people's sense of freedom.

A few people can use them wisely. But more people get trapped.

 

[Stanyon]

Use them and pay them off at the end of the month to build credit then use only in emergency. Don't be like the monkeys who chose cocaine over food in lab tests.

Forks make people fat

 

[Vinayaka]

Credit cards have their limited uses, but I feel like their high interest rates, eagerness to charge late fees, etc, trap us in like an animal most of the time, and cause us stress we don't need, potentially affecting some people's sense of freedom.

A few people can use them wisely. But more people get trapped.

Mine pays 1% back on all transactions, 3% on store loyalty, and many special offers. It's free money, I pay it off every month. Getting 'trapped' is up to the individual.

 

[PoetPhilosopher]

Mine pays 1% back on all transactions, 3% on store loyalty, and many special offers. It's free money, I pay it off every month. Getting 'trapped' is up to the individual.

Yeah your card sounds pretty good if you don't keep a balance to accumulate more interest than the rewards.

 

[Enoch07]

It's a delicate balancing act. You can only charge like $50 on it, then pay it off at the end of the month. You will get 2 points added to your credit score.

Or you can maintain a steady balance, pay some extra money in interest, and you will get a steady flow of credit line increases which will increase your amount of a unused available credit. Provided you maintain a low running balance (under like $500 is what I shoot for). Unused available credit counts towards 30% of your credit any credit consideration.

So if you want to slowly but surely build credit (as in a young person or a person with low/no credit) then get 1 card. Charge 1 tank of gas or so a month on it, then pay it off at the end of the month for like 2-3 years. This will help you establish positive credit.

After you have positive credit (credit score above 650) then you can start playing applying for more cards/loa s with your unused available credit to start exponentially growing your credit. Just avoid a major purchase like a home because that will hamper your growth for a year or so. Get your credit to 700 and you can do pretty much whatever you want as far as borrowing money!

 

[PoetPhilosopher]

It's a delicate balancing act. You can only charge like $50 on it, then pay it off at the end of the month. You will get 2 points added to your credit score.

Or you can maintain a steady balance, pay some extra money in interest, and you will get a steady flow of credit line increases which will increase your amount of a unused available credit. Provided you maintain a low running balance (under like $500 is what I shoot for). Unused available credit counts towards 30% of your credit any credit consideration.

So if you want to slowly but surely build credit (as in a young person or a person with low/no credit) then get 1 card. Charge 1 tank of gas or so a month on it, then pay it off at the end of the month for like 2-3 years. This will help you establish positive credit.

After you have positive credit (credit score above 650) then you can start playing applying for more cards/loa s with your unused available credit to start exponentially growing your credit. Just avoid a major purchase like a home because that will hamper your growth for a year or so. Get your credit to 700 and you can do pretty much whatever you want as far as borrowing money!

Great advice.

 

[Enoch07]

Great advice.

Just be careful and go slow when using my advice on credit.

 

[Vinayaka]

Yeah your card sounds pretty good if you don't keep a balance to accumulate more interest than the rewards.

I use it as much as I can, up to it's limit. Probably saves me around $1000 per year. The gas loyalty is 7%.

 

[sun rise]

Credit cards have their limited uses, but I feel like their high interest rates, eagerness to charge late fees, etc, trap us in like an animal most of the time, and cause us stress we don't need, potentially affecting some people's sense of freedom.

A few people can use them wisely. But more people get trapped.

I agree. The problem comes in when there's a sudden highly costly emergency that overwhelms people such as a serious medical issue not covered by insurance.

 

[sun rise]

It's a delicate balancing act. You can only charge like $50 on it, then pay it off at the end of the month. You will get 2 points added to your credit score.

Or you can maintain a steady balance, pay some extra money in interest, and you will get a steady flow of credit line increases which will increase your amount of a unused available credit. Provided you maintain a low running balance (under like $500 is what I shoot for). Unused available credit counts towards 30% of your credit any credit consideration.

So if you want to slowly but surely build credit (as in a young person or a person with low/no credit) then get 1 card. Charge 1 tank of gas or so a month on it, then pay it off at the end of the month for like 2-3 years. This will help you establish positive credit.

After you have positive credit (credit score above 650) then you can start playing applying for more cards/loa s with your unused available credit to start exponentially growing your credit. Just avoid a major purchase like a home because that will hamper your growth for a year or so. Get your credit to 700 and you can do pretty much whatever you want as far as borrowing money!

Even better was what I learned from my father - save don't borrow. Unless you really need it, don't buy it. The only thing I have ever bought on credit was our house. We have a 1999 car and replaced our 1997 pickup truck in 2014 with a Prius plugin which included money from the federal and state governments, a special electrical rate from the power company. And by charging at night when the rate is on the order of $1.25/gallon equivalent compared to gas, we continue to justify the extra initial cost.

 

[Enoch07]

Even better was what I learned from my father - save don't borrow.

Saving is important. But building credit is important as well. Because you can't save for everything.

I have 6 credit cards, 1 home loan, 1 vehicle loan, 2 small loans (under $5,000), 2 savings accounts (1 normal, 1 high yield) 1 checking acct, 1 moderately aggressive investment portfolio, 1 Roth IRA account, 2 different retirement accounts through my work, plus some precious metal savings.

You gotta diversify, can't have all your eggs in one basket (i.e. savings only).

 

[Lyndon]

Saving is important. But building credit is important as well. Because you can't save for everything.

I have 6 credit cards, 1 home loan, 1 vehicle loan, 2 small loans (under $5,000), 2 savings accounts (1 normal, 1 high yield) 1 checking acct, 1 moderately aggressive investment portfolio, 1 Roth IRA account, 2 different retirement accounts through my work, plus some precious metal savings.

You gotta diversify, can't have all your eggs in one basket (i.e. savings only).

no wonder you don't want to pay taxes!!

 

[sun rise]

Saving is important. But building credit is important as well. Because you can't save for everything.

I have 6 credit cards, 1 home loan, 1 vehicle loan, 2 small loans (under $5,000), 2 savings accounts (1 normal, 1 high yield) 1 checking acct, 1 moderately aggressive investment portfolio, 1 Roth IRA account, 2 different retirement accounts through my work, plus some precious metal savings.

You gotta diversify, can't have all your eggs in one basket (i.e. savings only).

I agree on diversification. We have 3 credit cards, Costco, Amex and my wife's business card. That's enough. And we also have various investment and retirement accounts. But asset accumulation should come first and then the minimum possible amount of debt.

 

[Enoch07]

no wonder you don't want to pay taxes!!

Who said I didn't want to pay taxes?!?

So nonsensical.

 

[Kangaroo Feathers]

I agree. The problem comes in when there's a sudden highly costly emergency that overwhelms people such as a serious medical issue not covered by insurance.

What are you, a communist? Why do you hate America?