Going checkless and no credit cards

[Andrew111]

When I post similar questions about credit cards in other forums, this is usually the type of answer I receive.

Let me turn that around on you - you dont think society has conditioned you to "believe" that you "have" to have a credit card?




I disagree with the statement "credit cards can be valuable" - credit cards are a trap. It financially enslaves you and your family to the lender.

By thinking that credit cards are good, your also saying that debt is good.

HAHAHAHAHAHAHAAHAH that whole post of yours was hilarious. Just own up to it...you are not responsible to manage your own life if you can't trust yourself with a credit card. Credit cards are marvelous if you have a brain and have an ounce of discipline....but of course the late fees from people who aren't responsible help pay for my cash back credit cards and free flights🙂 Credit cards make purchasing things much quicker and it's easier to see what you bought at the end of the month...credit cards ARE valuable whatever you may believe. Yes, some people just don't have self-control/discipline and shouldn't have credit cards...you obviously being one of them. But you saying credit cards have no value? It's not Visa/Mastercard/Discover's fault YOU are NOT responsible/lack discipline. Just own up to it.

Rant done😛

 

[Dacalo]

Credit card gives me benefits, points, and cash back. I pay it off every month, so they don't get a single dime from me. To say that credit cards are dangerous is a testament to your lack of financial discipline.

 

[vshah]

i put everything on the cc. i can buy a new tv every 3-4 years with the points I get converted to best buy gift cards.

 

[zCypher]

When I was younger I got a credit card, maxed it out, got another one and maxed that out, and a third one too. I spent more than I earned and, somehow I understood that it was my own stupid fault? You seem to place the blame on the evil credit card companies. Sure, you can look at their interest rates/fees and shudder in disgust. Great! Did that force you to subject yourself to those rates and fees?

A trap? Seriously? lol. I can appreciate that your past experiences put you through some tough choices to improve your life. I've been irresponsible too, the only difference is that you seem to avoid admitting the fact that it was irresponsible in your case.

I'm not religious by any stretch of the definition, but it's interesting to me that usury (basically the charging of interest) was historically considered a somewhat heinous sin in a biblical context.

I've lived with and without credit cards. More with cash and more with debit. Given the choice I'll take the benefits of using a tool that can benefit me. While rebuilding my credit I used a secured credit card. I prepaid a deposit amount equal to the limit of the credit card. What opinion do you make of that?

If you ask me, a mortgage is one of the worst "debt" items. You might pay 2 or 3 times the actual value of your house over the course of a mortgage. Does the interest on a mortgage not far exceed the typical credit card debt?

If you want to swear off any debt whatsoever you should save up the necessary cash to pay off your house in its entirety. Am I wrong? If so, why would a mortgage be less evil than a credit card?

Just because credit card debt is "revolving" and a mortgage is "fixed" (or variable or wtv), that doesn't change the fact that both are charging you interest/fees and both are "debt".

edit: I'm not saying that houses (even with mortgages) are not worth it. depends on your situation.

 

[Rumpltzer]

I've had a credit card since I was 18. In the 18 years that I've had credit cards, I've never carried a balance so I've never paid any fees on a card.

My primary use cards yield me 5% Thank You Points on every dollar that I spend and 2% cash back on every dollar that I spend. The 5% card is a 6 month promotional thing that's about the end, but it's stacked up into >$650 in actual money (gift card & student loan rebates). The 2% card automatically deposits directly into my checking account every month.

Having credit cards is convenient, and I get something out of it. Why wouldn't I use them??

 

[cKGunslinger]

Troll successful!

 

[lothar]

This thread(IMO) is one of the most moronic financial thread ever created on ATOT.
But then again...if what you're doing works for you, keep on doing it.

 

[yh125d]

So let me get this straight, OP is in his own opinion, too irresponsible for a credit card or even a checking account, but is perfectly fine with the responsibility of raising a child?



:|

 

[Goosemaster]

No one is making you fight but don't decide to get in the ring on title night and start bitching about the rules.

From experience, Credit Cards are great financial tools. With their great utility come stiff penalties for reckless use. The difference between seeing them as a tool and a burden is your level of financial discipline.

I say this as a real person who has made real mistakes and learned a lot from them. Even at the worst of times I accepted that I I was completely responsible for my actions and the Variable (ouch!) repercussions, both my failures and triumphs.

The Credit Card companies are not evil - it's just business - business that we agree to be a part of.

EDIT: A lot of people never get a basic financial education. I do not condone the predatory lending out there that takes advantage of this.

 

[goog40]

Credit card signup bonuses can be pretty sweet. The cards I've gotten in the last 18 months:

Chase Sapphire - instant $250 cashback after first purchase
Amex Rewards Gold - 50k points after spending $500. Redeemed the points for $200 in Dell gift certificates and $300 from Home Depot
Chase Southwest - Free roundtrip flight after first purchase, plus an additional $500 in gift cards after charging $5k within 3 months
Amex Starwood - 30k points after spending $1000 (points valued at $600-900 if used at hotels; could also redeem for over $300 in Amazon GCs but that would be a waste)
Citi AA - 75k miles after charging $1500 (easily worth $1000-1500+ if not more; my friend buys the miles from AA at $1000 for 40k miles since it's cheaper than purchasing the tickets for international flights)
Chase Continental - 50k miles after first purchase (redeemable for $500 in gift cards; probably worth more if you use it for flights)
Amex Delta - 50k miles after charging $1000 (redeemable for $450 in Amex prepaid debit cards)

The best part is that credit card signup bonuses are not taxable income. For me, getting $500 tax-free out of something is equivalent to earning an extra $850+ at work.

 

[Goosemaster]

Credit card signup bonuses can be pretty sweet. The cards I've gotten in the last 18 months:

Chase Sapphire - instant $250 cashback after first purchase
Amex Rewards Gold - 50k points after spending $500. Redeemed the points for $200 in Dell gift certificates and $300 from Home Depot
Chase Southwest - Free roundtrip flight after first purchase, plus an additional $500 in gift cards after charging $5k within 3 months
Amex Starwood - 30k points after spending $1000 (points valued at $600-900 if used at hotels; could also redeem for over $300 in Amazon GCs but that would be a waste)
Citi AA - 75k miles after charging $1500 (easily worth $1000-1500+ if not more; my friend buys the miles from AA at $1000 for 40k miles since it's cheaper than purchasing the tickets for international flights)
Chase Continental - 50k miles after first purchase (redeemable for $500 in gift cards; probably worth more if you use it for flights)
Amex Delta - 50k miles after charging $1000 (redeemable for $450 in Amex prepaid debit cards)

The best part is that credit card signup bonuses are not taxable income. For me, getting $500 tax-free out of something is equivalent to earning an extra $850+ at work.

I bought a bunch of gifts for myself and my family on black Friday and with Discover I basically got an interest-free loan for 12 months + rewards. I will probably pay it off in a month.

What is funny is that I was buying a gift for someone the other day and I decided to use it for the rewards - I got the "I'm sorry, we don't take Discover" line and burst out laughing.😀

 

[summit]

where do you keep all this money that you are so careful with? what do you do when you cash your paycheck? do you stuff it underneath the mattress? what happens if there's a fire or a robbery?

 

[edro]

Credit card signup bonuses can be pretty sweet. The cards I've gotten in the last 18 months:

Chase Sapphire - instant $250 cashback after first purchase
Amex Rewards Gold - 50k points after spending $500. Redeemed the points for $200 in Dell gift certificates and $300 from Home Depot
Chase Southwest - Free roundtrip flight after first purchase, plus an additional $500 in gift cards after charging $5k within 3 months
Amex Starwood - 30k points after spending $1000 (points valued at $600-900 if used at hotels; could also redeem for over $300 in Amazon GCs but that would be a waste)
Citi AA - 75k miles after charging $1500 (easily worth $1000-1500+ if not more; my friend buys the miles from AA at $1000 for 40k miles since it's cheaper than purchasing the tickets for international flights)
Chase Continental - 50k miles after first purchase (redeemable for $500 in gift cards; probably worth more if you use it for flights)
Amex Delta - 50k miles after charging $1000 (redeemable for $450 in Amex prepaid debit cards)

The best part is that credit card signup bonuses are not taxable income. For me, getting $500 tax-free out of something is equivalent to earning an extra $850+ at work.

Wow, thanks!
I'll be looking in to a few of those.

 

[Zebo]

How about just don't buy shit?

Here is what my dad taught me among other things. Worked good, so good I stopped working for others at 30. Every purchase should be looked at as an asset or a liability. Assets are things that make you money, liabilities are depreciators. Never buy a liability.

Some examples of liabilities:
Playstaion
Computers which don't make you more than purchase price
Cars which don't make you more than purchase price
eating out
Cable TV/internet
TV
Houses which don't make you more than purchase price.

Neutrals or must have to survive:
Food
shelter
clothing
basic transportation

Assets:
Stock
Bonds
appreciating real estate
CD's
A business with positive cash flow, sundries and capital equipment needed for business


Of course nowadays I don't follow it cause I have what need and what's the use of making it just to sit on it? I aint Sam Walden's cheap ass but it's important to understand the basics.

 

[RearAdmiral]

I get all my checks cashed at the bail bonds joint down the road. Worth the 15% to stay off the grid yo.

 

[Svnla]

Zebo - not sure about broadband internet as liability. I make money from internet deals and save money by watching shows on hulu/internet instead of paying for cable tv.

 

[RearAdmiral]

Credit card signup bonuses can be pretty sweet. The cards I've gotten in the last 18 months:

Chase Sapphire - instant $250 cashback after first purchase
Amex Rewards Gold - 50k points after spending $500. Redeemed the points for $200 in Dell gift certificates and $300 from Home Depot
Chase Southwest - Free roundtrip flight after first purchase, plus an additional $500 in gift cards after charging $5k within 3 months
Amex Starwood - 30k points after spending $1000 (points valued at $600-900 if used at hotels; could also redeem for over $300 in Amazon GCs but that would be a waste)
Citi AA - 75k miles after charging $1500 (easily worth $1000-1500+ if not more; my friend buys the miles from AA at $1000 for 40k miles since it's cheaper than purchasing the tickets for international flights)
Chase Continental - 50k miles after first purchase (redeemable for $500 in gift cards; probably worth more if you use it for flights)
Amex Delta - 50k miles after charging $1000 (redeemable for $450 in Amex prepaid debit cards)

The best part is that credit card signup bonuses are not taxable income. For me, getting $500 tax-free out of something is equivalent to earning an extra $850+ at work.

So for the Amex rewards card, which im assuming is the platinum card. Did you get around the $450 annual fee?

 

[goog40]

Wow, thanks!
I'll be looking in to a few of those.

The last two offers, and the Chase Sapphire offer, are available right now (I think the Chase requires you to charge $500 in the first three months, but it's for the no-annual fee version which is nice). There's also a deal for two free roundtrip flights with the Southwest card after your first purchase, but you have to pay the $59 annual fee for that one.

Check out the FWF forum. If there's a good signup bonus available it's usually posted there.

So for the Amex rewards card, which im assuming is the platinum card. Did you get around the $450 annual fee?

It was actually a targeted offer they sent through the mail for the Rewards Plus Gold. Annual fee was around $150, but they waived it for the first year. The cards for these deals often have an annual fee that is waived for the first year, so you have to either cancel the card before the year is up, or see if they'll let you convert the card to a different one that does not have an annual fee. I think the Amex Platinum fees are rarely, if ever, waived though. They usually have a free 50k points offer which pretty much covers the fee, but some people have received targeted bonus offers for 100k points for the Platinum card.

 

[silverpig]

How about just don't buy shit?

Here is what my dad taught me among other things. Worked good, so good I stopped working for others at 30. Every purchase should be looked at as an asset or a liability. Assets are things that make you money, liabilities are depreciators. Never buy a liability.

Some examples of liabilities:
Playstaion
Computers which don't make you more than purchase price
Cars which don't make you more than purchase price
eating out
Cable TV/internet
TV
Houses which don't make you more than purchase price.

Neutrals or must have to survive:
Food
shelter
clothing
basic transportation

Assets:
Stock
Bonds
appreciating real estate
CD's
A business with positive cash flow, sundries and capital equipment needed for business


Of course nowadays I don't follow it cause I have what need and what's the use of making it just to sit on it? I aint Sam Walden's cheap ass but it's important to understand the basics.

That's not the definition of an asset nor a liability.

 

[krunchykrome]

My AMEX is paying me $800 for my annual rebate this year. And I didn't pay any annual fees on the card or interest.

I'm not special; I'm just responsible. The sooner you stop making excuses for yourself, the sooner you can make credit work for you.

 

[PimpJuice]

I disagree with the statement "credit cards can be valuable" - credit cards are a trap. It financially enslaves you and your family to the lender.

By thinking that credit cards are good, your also saying that debt is good.

By saying that you can't avoid the temptation of going into debt, "your" also saying that "your" a financial retard.

 

[thraashman]

Credit card signup bonuses can be pretty sweet. The cards I've gotten in the last 18 months:

Chase Sapphire - instant $250 cashback after first purchase
Amex Rewards Gold - 50k points after spending $500. Redeemed the points for $200 in Dell gift certificates and $300 from Home Depot
Chase Southwest - Free roundtrip flight after first purchase, plus an additional $500 in gift cards after charging $5k within 3 months
Amex Starwood - 30k points after spending $1000 (points valued at $600-900 if used at hotels; could also redeem for over $300 in Amazon GCs but that would be a waste)
Citi AA - 75k miles after charging $1500 (easily worth $1000-1500+ if not more; my friend buys the miles from AA at $1000 for 40k miles since it's cheaper than purchasing the tickets for international flights)
Chase Continental - 50k miles after first purchase (redeemable for $500 in gift cards; probably worth more if you use it for flights)
Amex Delta - 50k miles after charging $1000 (redeemable for $450 in Amex prepaid debit cards)

The best part is that credit card signup bonuses are not taxable income. For me, getting $500 tax-free out of something is equivalent to earning an extra $850+ at work.

The biggest problem with this is that opening and closing credit cards a lot can hurt your credit rating, and I have a plus 800 rating that I'd like to keep that way.

 

[bargetrav]

The biggest problem with this is that opening and closing credit cards a lot can hurt your credit rating, and I have a plus 800 rating that I'd like to keep that way.

So you have a perfect 800 credit score? Let's see a screenshot.


Anyway, some people are stupid, some people are smart.


I took advantage of a British Airways 100k mile deal last year (wife got a card too), so i got 200k miles plus the miles from regular purchases and got a free companion ticket for spending 30k in a year on the card. Now we're flying FREE first class to italy, just because i signed up for their cards, both only had a 75 dollar annual fee, waived for the first year, and i have already cancelled the first card and paid no fee.

i carry no balance on any CC, and now i get to fly to Italy first class on British Airlines this year, which would cost almost 10,000 dollars to purchase out right otherwise. god i'm so stupid.


I have shitloads of credit cards, none carry a high balance, and i've left my very old high limit cards open to keep my credit score high (740ish).



This entire thread is a bullshit troll thread anyway, so long story short, troll is gonna troll.

 

[Svnla]

Hummm, 800 FICO is not perfect, very good but not perfect.

850 is perfect but rarely anyone would scored that high.

"It's very rare to be there," says Maxine Sweet, the vice president of public education with Experian, one of the three major credit bureaus. "I've never seen it."
Though it's theoretically possible to score 850, most high scores top off around 825, Sweet says. "You can't get much higher," she says.

Source = http://articles.moneycentral.msn.com/Banking/YourCreditRating/PerfectCreditYouDontNeedIt.aspx

 

[BlahBlahYouToo]

Perfect example - thank you for posting that.

Everything might be fine and dandy right now, but what happens when one of you loses your job? Your stuck with a large bill at the end of the month that you may not be able to pay.

wtf kinda mindset is this?
you don't charge things on your card based on next week's paycheck. you charge against what you currently have in your bank account.