There seem to be a few philosophies: 1) Abuse of credit with no thought to the ramifications. 2) Credit as a tool. 3) Swearing of credit altogether (or almost altogether). My wife and I fall into the #3 spot -- after we cancel our Discover, we'll only have a Citibank left, and we have 0 debt. Where do others fall on the spectrum? --Galabar
i was a #1 while trying to keep up with the Jones', so now have 4 almost-maxxed cards. that forced me into a #3 spot but it's not so bad to pay cash for most things, so i will probably stay at #3 for a while after paying the cards off. the Jones' have long sinced moved out of my neighborhood -- or were they ever in it???
#2/#3... I use it only for high ticket items(house, cars). I have 2 low limit cards I reserve for unplanned large expenses.
#3, except the sock-drawer card for unexpecteds. Once my report is a bit spiffier, I'll begin my rise to a #2!
Re: Re: Where do folks stand on cre Hmm, I'm not sure I would consider it a rise, especially given #1... --Galabar
Re: Re: Where do folks stand on cre CREDIT AS A TOOL...AND TO SAVE MONEY CASH AND CHECKS ARE TOO EXPENSIVE TO GET AND USE... ---------------------------------------------------------------------------------------- I USE CREDIT AND ONLY CREDIT!!! I pay EVERYTHING over 5.90% in full... I use any and all 0.00% BT's TO THE MAX!!! I just maxed a 1.90% BT... I have 3 mileage cards...ALWAYS PAID IN FULL... All payments are made ON-LINE from my checking account "IF" available... I write maybe 50-75 "paper" checks per year...(12 or 13 of them for mortgage) I may use $500 CASH per year...mostly for wife...she wants SOME cash... I would consider only using a "DEBIT" card and checks...BUT I WOULD NEVER CONSIDER CASH ONLY!!! (CASH--THE GREEN STUFF)
Re: Re: Where do folks stand on cre I'm a mixture of one and two. I like to spend and probably do spend a bit too much, but have never missed a payment in 10 years.
I'm now a #3 because I was stupidly in #1 for over 2 years (with high limit cards). I now owe over $20k in credit card debt. Once all cards are paid off, I'll become a #2 to make sure my credit is clean for getting a good mortgage. Then I'll become a #3 to make sure I never get into the same mess again.
Re: Re: Where do folks stand on credit? BEING IN BANKING...YOU OTTA' KNOW BETTER... Then I'll become a #3 to make sure I never get into the same mess again. BIG MISTAKE!!!
Re: Re: Where do folks stand on credit? You don't have to spend $200,000 on credit cards every year...BUT ON THE OTHER-HAND...IF YOU SPEND NOTHING WITH CREDIT CARDS...YOU EVENTUALLY HAVE NO CREDIT!!! You probably will be lookin' at the low 600's...high 500's (GUESS)
Re: Re: Where do folks stand on credit? Now, George, I don't agree with that -- you can still build credit with a mortgage and an auto loan believe it or not (or even with just a mortgage). It would be a mighty thin file with just 1 to 3 tradelines, but the old FICO score might be pretty high anyway. To answer the original question, I used to be a #1 to tell the truth. I would get a new credit card with a $5,000 line of credit, and I would think, "Hey, I can spend $5,000!" In other words, I pretty much saw it as income rather than simply as an opportunity to borrow a large sum of money I didn't earn from somebody else. Today, I would rank myself on your scale as a 2 and a half. Although I swear off as much credit as I can (your #3 -- that old Dave Ramsey influence), I still use credit cards as a tool for rewards, convenience, etc., although I usually pay off all balances at the end of each month (your #2 on the list). Really interesting question, galabar -- thanks for bringing this up! Doc
Re: Re: Re: Where do folks stand on credit? ALL CASH MAKE NO CREDIT HISTORY!!! "IF" you (OR OTHERS) are just going "CREDIT CARD-LESS" that is a different story...
Re: Re: Re: Where do folks stand on credit? We are on our way to #3. After years of spending we have finally got our act together and are now strictly budgeting by month. Eight months into the plan we are still on target and enjoying the lower stress environment. We now just say no to impulse purchases while in the mall. You know what the best thing is? We really don't feel deprived at all. We will be down to two cards when done (Amex Platinum and Citi Plat Select). I will enjoy the simplified lifestyle. Regards, ChesterR
Re: Re: Re: Re: Where do folks stand on credit? ChesterR, I couldn't agree with you more. Getting on a budget and getting rid of most of our credit cards has really given us a sense of freedom -- we simply don't buy all the crap that we didn't need anyway. It feels so good!!! Thanks to everyone for such interesting responses! --Galabar
Re: Re: Re: Re: Where do folks stand on credit? Now that I am older and wiser, I get a rush when I pay cash. My only need for credit is for the big items, such as a house or car. I like the feeling I get when I use my Checkcard with the Visa logo knowing that it's really cash I'm using.
Re: Re: Re: Re: Where do folks stand on credit? I was a one...now I'm more a 2. I don't think I'll ever be a 3
Personally, I don't think position 3 would help most people at all. It would help only a person who could control cash spending but couldn't control credit spending. I have more trouble controlling cash spending than credit spending. Cash burns a hole in my pocket. It's easier to make small non-essential purchases with cash. Pulling out the credit card makes it seem like a bigger deal, and gets me to reconsider. Especially since I had a few repayment problems recently, due not to excessive spending but to loss of income, credit almost seems more real than cash to me. I know it's easy to get into trouble with credit if you make big purchases and figure that making the payments is a problem for the future. However, I've never been like that. I've never bought vacations, stereos, or furniture with credit cards, never gone on a shopping spree at the mall, never charged more than $360 at a time, and that was only once. Credit changed my life for the better. I think it's a great invention. It's all about the 3 F's--freedom, flexibility, and float.
