Random rant about bad credit decisions

For just about anything you want to get off your chest about credit cards.
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kdm31091
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Re: Random rant about bad credit decisions

Postby kdm31091 » Thu Oct 08, 2015 9:09 am

Vermonster wrote:99% of the stuff said on MF is complete bullshit. It is probably one of the more vain websites on the internet. People continually contradict themselves and weave these intricate stories just to up their post count. If what was said on MF was any indication of reality, Bankruptcy would be as regular as my BM's, everyone would have 5 or 6 $20k+ limit cards and 20-30 store cards with $500 limits, 800 FICO scores, ridiculous mortgage and auto loan rates, and any derogs would be because a girlfriend/boyfriend/brother/uncle/plumber/dachshund borrowed a credit card and forgot to pay it.


Any way.


Yeah honestly I call BS on a lot of the people there. I doubt many of them have the cards, limits and income they claim they have. If you believe everything they say, it would seem 90% of our population can justify carrying and paying for an Amex Plat, and a CSP, and 5 hotel cards. It makes no sense. Yes, some people travel a lot, but most people are not traveling every week like these people act like they are.

I agree with lobbythis, we're probably too worried about it, but it's fun to pick them apart lol.


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CarefulBuilder14
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Re: Random rant about bad credit decisions

Postby CarefulBuilder14 » Thu Oct 08, 2015 10:12 am

kdm31091 wrote:
Vermonster wrote:99% of the stuff said on MF is complete bullshit. It is probably one of the more vain websites on the internet. People continually contradict themselves and weave these intricate stories just to up their post count. If what was said on MF was any indication of reality, Bankruptcy would be as regular as my BM's, everyone would have 5 or 6 $20k+ limit cards and 20-30 store cards with $500 limits, 800 FICO scores, ridiculous mortgage and auto loan rates, and any derogs would be because a girlfriend/boyfriend/brother/uncle/plumber/dachshund borrowed a credit card and forgot to pay it.


Any way.


Yeah honestly I call BS on a lot of the people there. I doubt many of them have the cards, limits and income they claim they have. If you believe everything they say, it would seem 90% of our population can justify carrying and paying for an Amex Plat, and a CSP, and 5 hotel cards. It makes no sense. Yes, some people travel a lot, but most people are not traveling every week like these people act like they are.

I agree with lobbythis, we're probably too worried about it, but it's fun to pick them apart lol.

I agree that MF is not representative of the general population in many ways. Most people have fewer cards and are much less likely to be rebuilding, or care about how cards report utilization. For most people, the idea of having 4 cards is a lot, let alone 10 (or 20 or 60).

As far as the premium travel cards, I think most people who claim to have them do have them. They just downgrade/cancel them (transferring the CL, of course) after the first year (or even sooner). A $400 first-year AF can be worth it even if you use the bonus inefficiently, getting $500 of value instead of $1k. I'm not sure what to think about the incomes and limits, though. My limits are pretty low compared to what others have (or claim to have), so maybe some people are exaggerating their incomes when they apply. It seems like a lot of MF people who get FR-ed close the accounts instead of complying. I can think of one case where a person with $100k+ in limits said he hadn't needed to file a tax return for 2 years.

And you don't absolutely have to travel often for some cards to make sense. If a premium card allows for a lot of statement credits (and a person uses them well), the net AF can be pretty small.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

yfan
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Re: Random rant about bad credit decisions

Postby yfan » Thu Oct 08, 2015 10:36 am

kcm7 wrote:Oi, with the CSP.

For whatever reason, it's shown as the top recommended card whenever a lot of people go on Credit Sesame/Karma. My friends and family know I'm a little obsessed with cards, so I'm getting a lot of, "Hey so is the Sapphire a good card?"

And then their eyes glaze over when I respond, "Well it can be, but it costs $95/year. But how much do you spend, how much do you travel, and how much do you travel with these specific airlines and hotels?"

"... But ... it's a good card right?"

*sigh*

I have a feeling lots of people out there are getting the CSP and redeeming for cash back, when they could get possibly MORE cash back on cards without the annual fee.

But it's a good card, right? ;) Lol.

It's your last sentence I think holds a lot of value, and it's also the thing lots of so-called credit-educated people miss. For the majority of people (maybe even a good majority) who have reasonably good credit, a few well thought out cards can be a lot more beneficial than snazzy AF cards. First, if you are a member of a warehouse club, look into their branded offering, as those cards often offer good value outside the warehouse too. You are already paying for the membership, use all the benefits! If you are not, consider the following strategy with cards with relatively easy/low redemption thresholds:

  • Pick a category that's your biggest regular spend and get a no-AF card that offers around 3% in that category year round. (ED/BCE if this is groceries, BofA Cash Rewards if this is gas).
  • Pick a 5% rotating category card with no AF (my recommendation is Discover)
  • Get one or two good flat rewards cards - for me these are the Citi DC and QS... QS for Uber and international travel.

Now use these cards wisely. Decide what you want to use them for. Save them up or take smaller, more frequent rewards. Treat yourself, a friend, your significant other, or family. I'd say for 6 to 7 out of 10 customers this would result in better rewards - not to mention more sanity - than racking up AF cards.

Oh, and remember there are other ways to save than credit card rewards. I just picked up some Six Flags Halloween hunt tickets for $37 a pop, and that includes a picnic lunch, without which the tickets would have been $25 a pop. The usual tickets, even online pre-purchase, are $50+. So why were mine $25? AAA. We're going on AAA appreciation day and we got an email from AAA.

We often get pretzeled into the thought process of "The more you spend, the more you save." I think it'd help a lot more if people thought about how to better utilize the tools they already have - current credit cards, memberships they already have that have fringe benefits they aren't using, deal hunting - than going around flashing high-roller CCs that really no one cares about but the holder.

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Re: Random rant about bad credit decisions

Postby yfan » Thu Oct 08, 2015 10:42 am

Oh, and here's my pet peeve on the stupidest reason to get a card... attention. No, really. There are people on MF who get a card just because it's metal and it makes a metal cling when it hits a hard surface. "I intentionally dropped the card in front of the waitress and she was like OMG..." There are a ton of threads swooning over a card's look and material, and how that makes the holder look good when they pay and how it gets them compliments. I am no psychologist, but if you need a credit card to make yourself feel like you're a success, maybe it's time to go see a professional.. or, you know, do something better with your life.

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Re: Random rant about bad credit decisions

Postby CarefulBuilder14 » Thu Oct 08, 2015 10:45 am

yfan wrote:Oh, and remember there are other ways to save than credit card rewards. I just picked up some Six Flags Halloween hunt tickets for $37 a pop, and that includes a picnic lunch, without which the tickets would have been $25 a pop. The usual tickets, even online pre-purchase, are $50+. So why were mine $25? AAA. We're going on AAA appreciation day and we got an email from AAA.

I used MC's Priceless Cities feature to save $2.50 at NY Botanical Gardens. I later found out my AAA membership could have saved me $5.

Not a huge difference...but it goes to show that MC/Visa-wide programs often aren't that great (the recent Visa Checkout promo excepted).
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

Nixon
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Re: Random rant about bad credit decisions

Postby Nixon » Thu Oct 08, 2015 1:44 pm

yfan wrote:Oh, and here's my pet peeve on the stupidest reason to get a card... attention. No, really. There are people on MF who get a card just because it's metal and it makes a metal cling when it hits a hard surface. "I intentionally dropped the card in front of the waitress and she was like OMG..." There are a ton of threads swooning over a card's look and material, and how that makes the holder look good when they pay and how it gets them compliments. I am no psychologist, but if you need a credit card to make yourself feel like you're a success, maybe it's time to go see a professional.. or, you know, do something better with your life.


Or, "because I can get a $10,000 CLI every 30 days with the telephone lady" Image
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Re: Random rant about bad credit decisions

Postby JonE » Thu Oct 08, 2015 3:02 pm

That site seems to exist in a vacuum where everyone thinks the economy is just dandy, and that their credit profile can withstand 20+ cards even if the majority is $500 balances on store cards.

I understand wanting good credit, and not having to worry about money. I'm just more willing to do it with three credit cards, an investment account, emergency savings, and a prudent fiscal plan that doesn't include living beyond my means. I'm not big on Dave Ramsey either, but that site is the anti-Dave Ramsey.
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Vattené
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Re: Random rant about bad credit decisions

Postby Vattené » Thu Oct 08, 2015 5:53 pm

yfan wrote:We often get pretzeled into the thought process of "The more you spend, the more you save." I think it'd help a lot more if people thought about how to better utilize the tools they already have - current credit cards, memberships they already have that have fringe benefits they aren't using, deal hunting - than going around flashing high-roller CCs that really no one cares about but the holder.


https://xkcd.com/870/
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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CarefulBuilder14
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Re: Random rant about bad credit decisions

Postby CarefulBuilder14 » Fri Oct 09, 2015 1:32 pm

Vattené wrote:
yfan wrote:We often get pretzeled into the thought process of "The more you spend, the more you save." I think it'd help a lot more if people thought about how to better utilize the tools they already have - current credit cards, memberships they already have that have fringe benefits they aren't using, deal hunting - than going around flashing high-roller CCs that really no one cares about but the holder.


https://xkcd.com/870/

Some of that's pretty entertaining. I had to teach myself some set theory to get one of the jokes, though.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

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Vattené
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Re: Random rant about bad credit decisions

Postby Vattené » Fri Oct 09, 2015 5:59 pm

I love xkcd, but some of the stuff is definitely over my head.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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