Credit Cards
- Thread starter TomFraser
- Start date
Supracentral;1543751 said:
This. Why do consumers agree to borrow from a large corporation and then allow said corporation to change the terms at their will, is beyond me. Credit history is under-rated when it's good, and if you eff-up, then a lending institution will play it up to their advantage.
Supracentral;1543751 said:
Ordered that book, coming Thursday
(Thanks Theresa)Supracentral;1543751 said:
The main attraction for me is the rewards and money back, for seemingly nothing on my part (just using the card). If I can get 5 percent back on most of my purchases, with no downside (that I can see), I'm going to use a credit card to do so...
I hate having debt, frankly I hate the idea of paying money monthly (phone, insurance, etc.), but my average gas/groceries per month is about 320, getting 5 percent back is good for an average 16 dollars a month, which doesn't sound like much, but I only make about 23k a year, so any money is good for me.
TomFraser;1543868 said:
It's really a matter of self control. You can have credit cards and not carry a balance. This is a good thing, but most people can not do it.
Theresa and I can have cards and not use them, but we're financially stable enough where we just don't need them, even for an "emergency".
The problem with cards, is that they are always there. If you get a flat tire, you think "well that's a good reason to use the card". The question most people don't stop to ask is, "If I didn't have this card, what would I do?" - if they did that most of the time they could find a way to not use the card and still have a tire.
It's all about discipline.
Very true...
I believe I am disciplined enough, and to be honest I don't have emergencies, as I still have mommy and daddy if anything truly bad ever happened, and I always keep more than 1k on hand in my "uh-oh" account. (I have checking, savings, "uh-oh" as well as an account I deposit my paychecks I earn over the summer that are just an envelope full of cash).
I appreciate all the input, this off topic section has taught me a great deal, that will hopefully allow me to navigate through life a little easier.
I believe I am disciplined enough, and to be honest I don't have emergencies, as I still have mommy and daddy if anything truly bad ever happened, and I always keep more than 1k on hand in my "uh-oh" account. (I have checking, savings, "uh-oh" as well as an account I deposit my paychecks I earn over the summer that are just an envelope full of cash).
I appreciate all the input, this off topic section has taught me a great deal, that will hopefully allow me to navigate through life a little easier.
jugodegolf;1543768 said:
I never use cash, it just isn't convenient for me. I use my debt card for in place of cash and see no downside to it, there's no interest involved with a debt card. I know businesses pay a fee for credit and always prefer you use the card as a debt card(at least that is what a small business owner told me). If these businesses would rather I use cash instead of a form of plastic, they should offer that 3% discount to people paying in cash.
I can run my debt card as a credit card and it will come out of my bank account again with no interest applied but from what I've been told that will also hit the business with the credit card fee. If I feel a place is hassling me or I am just not happy with the customer service I will use my card as a credit card just to stick them with that fee.
Note about debit cards:
1. If you use your debit card as a credit card, you have all the protections of using a credit card (chargeback rights, etc) - all those people running around saying the sky is falling when it comes to debit cards are only telling 1/2 truths...
2. If you use your debit card as a debit card (with a PIN), it is like you wrote a check, and you have none of those protections mentioned above.
Few people know this.
Personally, I use my debit card as a credit card only. I don't even KNOW the pin number for the card that I use that way.
1. If you use your debit card as a credit card, you have all the protections of using a credit card (chargeback rights, etc) - all those people running around saying the sky is falling when it comes to debit cards are only telling 1/2 truths...
2. If you use your debit card as a debit card (with a PIN), it is like you wrote a check, and you have none of those protections mentioned above.
Few people know this.
Personally, I use my debit card as a credit card only. I don't even KNOW the pin number for the card that I use that way.
Supracentral;1544179 said:
I was actually told opposite about the debit cards but it was second hand info so I don't know. I was told however, if you use a visa debit card in any form that you have none of the protection a normal visa offers(charge backs and whatever). Even if you use the card as a credit card and sign for it rather than using a pin number. Could this be different for each bank that offers the cards? Or, is it a standard set by visa that if you use the card as credit you are open for the visa benefits?
I'm also not sure why I keep typing "debt card" rather than debit lol, I guess I am thinking about debt...
From the VISA debit/checkcard FAQ webpage:
Anyone who tells you anything different has a vested interest in your using a debit card.
That's VISA - all other major logo's (MasterCard for example) have similar terms. That's the entire point of the VISA logo being on the card.
Now if you are using a true debit card without a VISA/MasterCard logo you don't get those protections.
Anyone who tells you anything different has a vested interest in your using a debit card.
That's VISA - all other major logo's (MasterCard for example) have similar terms. That's the entire point of the VISA logo being on the card.
Now if you are using a true debit card without a VISA/MasterCard logo you don't get those protections.
Supracentral;1544207 said:
Thanks for that, I was told by someone who shares a bank with me. They were told by someone at the bank, so I guess the bank is passing on misinformation. I'm going to have to ask someone at my bank and see what they say and then call them out on it.
Fuzz420
Are U Here 2 take My Baby
TomFraser;1543881 said:
I also have a oh-shit fund of at least 1k, and I've had it since the first time I've had 1k at once (which was like 3.5 years ago lol). It defenitly lowers my stress level. I also set a budget: All my checks go into a savings account, all my tips (I work at a restaurant) go into a checking account. The savings only get spent on school and car related purchases and emergencies. The checking is for everything else (inluding phone bill), and it has a debit/credit card. The savings has checks. If I have 2k in my savings, and $100 in my checking, I can't afford the $500 TV I'm looking at.
Supracentral;1544179 said:
I didn't know this either, thanks!
Fuzz420;1544254 said:
Yep, I've also been following the c.r.e.a.m. principle lol.
I've only borrowed when I have the money, but just not physically in my pocket, and I pay back the instant I can. Not spending more than I have has kept me from buying a lot of things that, after spending the time that it took to save up for it thinking about it, I realized I no longer wanted. I surprised a lot of people (including some employees) when I paid a $1500 deposit to open a cellphone account with 3 lines... cash.
That's when I began to realize how rare it is now a days for people to save up money, and to have discipline (well, people I come across).
I would like a credit card to build credit for a car one day, but it's not urgent enough to get screwed by them, as Poodles mentioned.
And, like I mentioned, I like to think about things while I wait for the opportunity to get them. Maybe I'll decide that I don't need one by then, too, like Supracentral.
credit cards are snakes. snakes bite.
For those that use cards for everything and pay it off every month....
those big pretty buildings and high salaried execs exsist for a reason. these companies have spent an ass-load on research and have years of expierence in the game. their game. dont think for a second you are going to beat them at the game they created, and made the rules for.
McDonalds, your grocery store, the gas station, they are in the game . McDonalds put in their time and dollars into figuring this stuff out too. They didn't put those handy-dandy card readers on the registers for your convienence. They did it because its just fact that the per transaction sale is 30% more for card users than cash buyers. When you pull your out wallet and take green stuff out of it, its a lot more "personal" than sliding a card through a slot. Im willing to bet(and these companies have already) that if you switched to cash, you would be spending a lot less than you do now. this is in spite of your little expense statements and cash back.
For those that use cards for everything and pay it off every month....
those big pretty buildings and high salaried execs exsist for a reason. these companies have spent an ass-load on research and have years of expierence in the game. their game. dont think for a second you are going to beat them at the game they created, and made the rules for.
McDonalds, your grocery store, the gas station, they are in the game . McDonalds put in their time and dollars into figuring this stuff out too. They didn't put those handy-dandy card readers on the registers for your convienence. They did it because its just fact that the per transaction sale is 30% more for card users than cash buyers. When you pull your out wallet and take green stuff out of it, its a lot more "personal" than sliding a card through a slot. Im willing to bet(and these companies have already) that if you switched to cash, you would be spending a lot less than you do now. this is in spite of your little expense statements and cash back.
livinasask8er;1544647 said:
Damn... that's crazy. When do you get that money back? Just curious.
mkiiSupraMan18;1544810 said:
Oh yea, forgot to mention that, they keep it for a year. I'm like half way there now, and if I make it til then without it (so far so good), it's gonna feel so great to suddenly have that money again, I'll prabably go out that instant and spend it on... what ever is broken on the supra at that time.
Saving money while owning a supra; a paradox.
In summary this thread is full of win.
Credit cards can be good/bad.
The post by trucker that cc are snakes is quite appropriate. If you handle your credit card like a very poisonous snake you will be fine. I and my brother have both been bitten before, not fatally though. I think that it is apparent that American Express doesn’t make billions giving away 3%, they know that a majority will eventually get bitten.
SC brings some very useful pin vs. swipe info and some good reading. I would add the book called “the bankers secret” by Marc Eisenson
Cash vs debit/cc. I have to agree the debit cards are convenient and I use them.
I would suggest to anyone before they take on any debt to have a emergency fund first. Myself I have one in my brokerage account and the access is the same as a checking account.
In regards to buying a car. I will point out a example I purchased a new infinity. I had sufficient funds to pay cash, but I chose to take the super low interst rate from Nissan. So not all credit is bad.
92nsx Hit on a more important note. Money Management. Before direct deposit and debit cards about the same time when you had to remember phone numbers. I remember that I would deposit what I needed for my bills and kept the rest for fun spending. Now I seldom check that my checks are correct, which goes without saying is not too bright. Habits folks! Creating good ones is the key to avoiding financial woes!
Credit cards can be good/bad.
The post by trucker that cc are snakes is quite appropriate. If you handle your credit card like a very poisonous snake you will be fine. I and my brother have both been bitten before, not fatally though. I think that it is apparent that American Express doesn’t make billions giving away 3%, they know that a majority will eventually get bitten.
SC brings some very useful pin vs. swipe info and some good reading. I would add the book called “the bankers secret” by Marc Eisenson
Cash vs debit/cc. I have to agree the debit cards are convenient and I use them.
I would suggest to anyone before they take on any debt to have a emergency fund first. Myself I have one in my brokerage account and the access is the same as a checking account.
In regards to buying a car. I will point out a example I purchased a new infinity. I had sufficient funds to pay cash, but I chose to take the super low interst rate from Nissan. So not all credit is bad.
92nsx Hit on a more important note. Money Management. Before direct deposit and debit cards about the same time when you had to remember phone numbers. I remember that I would deposit what I needed for my bills and kept the rest for fun spending. Now I seldom check that my checks are correct, which goes without saying is not too bright. Habits folks! Creating good ones is the key to avoiding financial woes!
my wife and I got hit with an overdraft fee (mortgage payment was taken out twice... two months in a row... Sadly, we had more than enough in savings to cover it.) about 3 months ago, and since then I've taken on the responsibility of money management (was always the wife's "job"). I started using Mint.com and I check it every day first thing while brushing my teeth on my phone. Shows all my accounts, bills, etc. and when they are due and all that jazz. It takes a while to get set up properly, but it's been awesome having. At a quick glance I know whats in all 5 of our accounts, what happened the day before, and what bills need to be going out.
Considering I used to have to call the wife and ask if we had money for ______, now I know how much we have and where it's at.
Another good thing about Mint.com is it breaks down what we've spent on what and where. We set our budget for, let's say fast food for $50/month, I'll get a notification in the morning saying that i've spent $42 already this month on fast food, so I know that for that next week, I've only got another breakfast coming from McD's. Knowing where your money is going and seeing just how much is going there is a real eye opener. had it not been for that overdraft (which was refunded by mortgage company) I'd still be in the dark about all this stuff. Would have been the best $30 we were ever forced to pay. lol
All slightly off topic, I know.
Considering I used to have to call the wife and ask if we had money for ______, now I know how much we have and where it's at.
Another good thing about Mint.com is it breaks down what we've spent on what and where. We set our budget for, let's say fast food for $50/month, I'll get a notification in the morning saying that i've spent $42 already this month on fast food, so I know that for that next week, I've only got another breakfast coming from McD's. Knowing where your money is going and seeing just how much is going there is a real eye opener. had it not been for that overdraft (which was refunded by mortgage company) I'd still be in the dark about all this stuff. Would have been the best $30 we were ever forced to pay. lol
All slightly off topic, I know.