Do we really need credit cards?
Senior User
Joined: Dec 2005
Posts: 433
Likes: 0
From: Houston, TX
I agree with those who made points about online shopping, car rentals and hotels being best paid for with a credit card and that it is best to pay at the end of the month. Some cards have perks like airline miles, etc and can make sense for everyday purchases, again, as long as you pay it off at the end of the month. The biggest thing that a credit card does for you, as explained to me by a financial wiz, is to have a long history of charging and being in good standing as it will help increase your credit score. And having a higher credit score comes in very handy when buying that new truck or home as you can get the lowest rates available. It has worked for me. I have had 0 credit card debt for several years and when I bought my F250 back in March I had a vey high credit score and received the lowest rate my credit union offered.
Senior User
Joined: Sep 2005
Posts: 171
Likes: 0
From: Southeast Ky.
We treat our credit cards like cash and pay them off every month. The benefits are the convenience of not having to carry a lot of cash and we earn points for cash back on stuff we would have purchased anyway.
Post Fiend
Joined: Feb 2004
Posts: 10,728
Likes: 1
From: Damascus-Boring, Ore
We had to suddenly switch to cash (as in, the green stuff) a couple of years ago (identity fraud- long story), and made a fascinating discovery. Our spending habits changed dramatically. So dramatically that, after the crisis was over, we never bothered switching back. There's something about forking over green stuff everywhere you go that makes you think twice about how badly you really want or need something.
Fortunately, not many folks do this. If they did, our economy would tank tomorrow.
Fortunately, not many folks do this. If they did, our economy would tank tomorrow.
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Tuned
Joined: Oct 2005
Posts: 298
Likes: 3
Basic rule, only make payments on things that appreciate in value, pay cash for the rest.
Most anything you buy will go down in value. I have heard of a few (lucky) exceptions.
I feel lucky, I was raised to understand you don't buy what you can't afford.
Much better to have the cash to buy it but not, then it is to be making payments on it.
This topic seems familiar, anybody ever heard of Dave Ramsey?
He has a syndicated radio show and his whole focus is getting debt free and it is interesting hearing the people call in who have figured it out.
If you don't owe anything you can be pretty happy (and secure).
If you don't know Dave search him out online and see if he's on in your area, fun show to listen to.
Post Fiend
Joined: Feb 2004
Posts: 10,728
Likes: 1
From: Damascus-Boring, Ore
budman-mo- "Outside of gold or houses what appreciates?"
I think we should add a business loan and a College loan to the list- but that's about it. My dad's rule was "Only if it appreciates or generates you income in the future." Investing in yourself fits right in.
I think we should add a business loan and a College loan to the list- but that's about it. My dad's rule was "Only if it appreciates or generates you income in the future." Investing in yourself fits right in.
New User
Joined: Jan 2008
Posts: 0
Likes: 24
Loose your wallet with cash and your out that much.
Loose your wallet with cards and it's just a phone call away.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Yes Ben !
A LOOSE wallet gathers no cash or cards.
BUT,
To LOSE your wallet allows any gathered cash or cards be on the LOOSE.
Couldn't resist
Loose your wallet with cards and it's just a phone call away.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Yes Ben !
A LOOSE wallet gathers no cash or cards.
BUT,
To LOSE your wallet allows any gathered cash or cards be on the LOOSE.
Couldn't resist
Junior User
Joined: Jan 2005
Posts: 54
Likes: 0
From: London Canada
I prefer using credit cards. I have had one since I was 18. It can be very handy for pay at the pump instead of walking in. I pretty much buy everying on my card and just pay it all off at the end of the month. I am actually making money using the card since I get points. Plus I think it will help my credit when I want to buy a house. On the other hand if someone cannot control themselves it can very easily lead them into debt pretty quick. The interest rates on credit cards are awful. I think mine was 25% until recently. Atleast I never paid interest on it.
