Credit Card Haters

A place to discuss anything... except credit cards!
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jrmsu
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Credit Card Haters

Postby jrmsu » Thu Jun 19, 2014 10:40 am

I am killing time at work before lunch and clicked on a Yahoo article about credit scores. It was the usual crap but what really caught my attention were the comments. Almost every single person who commented on the article bragged about not using credit cards or implied all credit card users are irresponsible and have taken on too much unnecessary debt.

The funny thing was that it reminded me I used to be one of them a few years ago. I felt so superior paying in cash or only using a debit card. Now I wonder how much cashback or rewards I could have earned at that time for money I was going to spend anyway. Not to mention that I could have started working on my credit score a long time ago.

Anyway, I thought I would share my mini rant. Any former credit card haters in this forum?
My Cards:

Discover It - $8,450 (9/13)
BankAmericard Cash Rewards Visa Signature - $5,000 (4/14)
Chase Freedom - $3,000 (5/14)
AMEX Hilton HHonors - $16,500 (6/14)



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kcm7
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Postby kcm7 » Thu Jun 19, 2014 10:56 am

Ah yes. I was talking about this forum to a friend the other day, and he was like, "Oooohhh I don't use credit cards. They're evil."

I mean, if you know you can't resist the temptation of a credit line, sure, don't get credit cards. But the holier-than-thou "I pay cash for everything so I'm better than you" types are annoying.

I was never a credit card hater, but, for a long time, I just had a plain $1,500 limit card from my local bank with no rewards. I figured playing games with credit cards would be too much trouble. But then I realized I have pretty darn good budgeting skills and financial discipline, so why SHOULDN'T I get some rewards and improve my credit score while I'm at it?
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

MemberSince99
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Postby MemberSince99 » Thu Jun 19, 2014 12:17 pm

I've seen that too. The hate and vitriol on Yahoo responses are far from limited to credit cards - on any article on the unemployed you get all these big hearted people screaming "Let them lazy bastards starve F em they deserve to die", and anytime an article gets posted about North Korea the comments are something like "Nuke that F'ing little commie pygmy SOB then nuke Russia and China oh hell just nuke the whole damn world and get it over with let's bring back Jesus in 'The Rapture'!!!!" and all sorts of nutty stuff where you wonder if they really believe it (scary stuff) or are just trolling. I used to troll there and post insane rants just for laughs so it could be either one. The comments on the articles are about as meaningful as the articles themselves.


But anyway yes I've seen the same stuff.


For a while I was against credit cards, and there was a time where I was in Target and offered a "pre-approval" at the register on a card and I replied "you couldn't pay me to accept that I don't believe in credit cards". Obviously I've since changed my tune. I still don't believe in carrying credit card debt, and I don't believe in paying interest on a credit card. I personally feel that's just a waste of money. (my views yours may differ). But I clearly believe if you use them right, credit cards can improve your life. Use them wrong and they can ruin your life. It's all in how you do it. Just like a handgun - you can take one and go nuts and shoot up a McDonald's or you can defend your family against a deranged intruder stoned out of his mind on angeldust.


Personally, I've kind of reached a place I want to be - I have the cards I want really for the foreseeable future, and in fact I still feel I have a card or two too many, or at least more than I want, but I'll just continue the process of letting them compete and eliminate the losers as I go. I don't want 20 cards to deal with - 6 is the MOST I want and I'd prefer fewer cards. I don't know how some of those guys on FICO deal with having 25 credit cards I simply could not or would not want to do that.


One thing I will say - I would never want to live through that again, but I have learned how bad having credit cards can be if you are not educated on how much trouble you can get into with them. When I ran mine up, I had no intention of stiffing my creditors - I was moving across the country to a new job and so on, and it just spiraled from there until I lost my job after 9/11 (no fault of my own but who cares whether it was my fault - no one) and I simply could not get out of that mess and I knew it. Looking back, it should have occurred to me and maybe it did that when I'm making minimum payments, and using cash advances on one card to pay other cards, that is a sign you are really in trouble. That's exactly what I was doing, robbing Peter to pay Paul. Eventually that house of cards collapses.


As a result of that, for years I did not have credit cards only a debit card. That taught me the habit and the discipline that you NEVER spend more than you can cover right now. It just became ingrained habit and so that's exactly how I treat my credit cards today, as if they were debit cards hooked to my checking account. As long as you do that, you'll be fine. So it was a good lesson in life but a hell of a way to learn it.

rclipper
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Postby rclipper » Thu Jun 19, 2014 4:03 pm

I never really cared to use cc until I met my girlfriend, she's a numbers person, analyzes every thing to determine best financial path, shes an MBA with accounting background. I mentioned one day I notice you use credit cards for everything (AMEX). Then she told me why, about rewards and other stuff. It opened my eyes. When I grew up, I learned from my parents, cards just weren't used for everyday purchase. That is what I carried into adulthood. now 10 years later I'm still with the same gal and I use my card for everything, really, every single thing, from Surgery to my Vespa. Averaging about 3k a month on my AMEX. I've held an AMEX since I was 19 and just never used it. Now I use it so much I have to get a replacement yearly, LOL

jrmsu
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Postby jrmsu » Thu Jun 19, 2014 6:14 pm

I mean, if you know you can't resist the temptation of a credit line, sure, don't get credit cards.


Exactly. I have relatives who have gotten in deep credit card debt because they thought it was fine to use ALL their credit line. They are part of the reason that I make sure to only charge things I can pay off. Most people in this forum seem to be responsible credit card users that use credit cards to their advantage. Now the people in the myfico forum are a different story...

The hate and vitriol on Yahoo responses are far from limited to credit cards.


I have noticed that too. Sometimes I think people skip the article and go straight for the comments. No matter what the article is about, somebody finds a way to make it political.

For a while I was against credit cards, and there was a time where I was in Target and offered a "pre-approval" at the register on a card and I replied "you couldn't pay me to accept that I don't believe in credit cards".


I did that at Banana Republic three years ago!

I still don't believe in carrying credit card debt, and I don't believe in paying interest on a credit card. I personally feel that's just a waste of money. (my views yours may differ).


Same here. I make sure to pay off my balances every month because I refuse to pay interest. I have noticed that a lot of people who think credit cards are evil seem to think you have to pay interest.
My Cards:

Discover It - $8,450 (9/13)
BankAmericard Cash Rewards Visa Signature - $5,000 (4/14)
Chase Freedom - $3,000 (5/14)
AMEX Hilton HHonors - $16,500 (6/14)


benhollberg
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Postby benhollberg » Thu Jun 19, 2014 10:23 pm

MemberSince99 wrote:But I clearly believe if you use them right, credit cards can improve your life. Use them wrong and they can ruin your life. It's all in how you do it. Just like a handgun - you can take one and go nuts and shoot up a McDonald's or you can defend your family against a deranged intruder stoned out of his mind on angeldust.


This handgun metaphor is one of the best I have heard explaining the good and bad of credit cards.
American Express Platinum Card
American Express TrueEarnings Card from Costco
Marriott Rewards Premier Visa Signature Card
Chase Sapphire Preferred World MasterCard
Discover It

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kcm7
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Postby kcm7 » Fri Jun 20, 2014 10:33 am

I think part of it, too, has to do with misconceptions people have about credit cards. For example, I live in a city that's booming and apartments are harder to get, meaning more and more landlords can afford to be picky and are basing their decisions more and more on credit checks. And several of my friends are freaking out because they don't have a credit history and don't want one.

I suggested to one person that he might just get a credit card, charge a couple packs of gum on it a month and pay it off. And before I could finish getting the words out, he started spitting fire and saying, "Well then I have to pay INTEREST. I shouldn't have to PAY INTEREST to have good credit and get an apartment!!!1!!1!!"

This person is 28 years old. I had to explain that all he has to do is let his balance report and pay it off before the due date. No interest necessary. He still thinks I'm trying to trick him.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

MemberSince99
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Postby MemberSince99 » Fri Jun 20, 2014 12:29 pm

Well if he goes with Credit One you would be :)


Yeah I know so many people are ignorant about the subject. We can't expect them all to be fanatics like us though can we? You are right of course, it's just hard to believe someone can be so uneducated.


So what's it like to live in a booming area instead of one that's chronically economically depressed? It's been so long I've forgotten what that's like.

WilliamJefferson
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Postby WilliamJefferson » Fri Jun 20, 2014 1:39 pm

I was never a credit card hater, but I only got my first one about 6 months ago. Mainly because I thought the process of getting one was very complicated and I didn't want to bother. Turned out it was very easy. I got a basic card from my local bank with 1.1% cash back. I got a new roommate who "collects" credit cards and tries to get as much rewards as possible. I never knew there were so many rewards out there, I started looking into it and now I'm hoping to get some of that for myself.

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kcm7
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Postby kcm7 » Fri Jun 20, 2014 2:04 pm

Well if he goes with Credit One you would be :)


Ha! Good point. Apparently his bank offered him a pretty basic no-frills no-annual fee card, so he's got a good option. I suspect his parents getting into Big Trouble with credit cards has him skittish. Can't say I blame him, although he's the most frugal dude I've ever met, so he'd probably be fine.


So what's it like to live in a booming area instead of one that's chronically economically depressed? It's been so long I've forgotten what that's like.


Good and bad.

Good that there's awesome people from all over the world want to be here, new businesses constantly opening, and a flourishing food scene.

Bad that you never know if your neighborhood will be the next "cool neighborhood" and price you out. My nice apartment in a great area jumped from $730 a month to $1,200 a month, for example, three years ago. People will move somewhere affordable and then, a year later, condos and gastro pubs go up and so does the rent, sending everyone scurrying. Hence the panic among my friends about needing good credit to snag a new place. After getting batted around for about three years (and living in some awful apartments), I have finally found a nice one about 10 minutes from downtown for a decent price. And I pray that the neighborhood doesn't get trendy. A local Lifestyle magazine recently gave my neighborhood a NAME, though, so it's only a matter of time.

Also bad: My city boomed in the 90s. And it went bust. So I am always expecting that to happen again.

I used to live in an economically lagging city in the midwest, and there were some perks to that too -- like having a giant, beautiful apartment walking distance from everything for $450 a month. And fewer hipsters. And less pretentiousness in general.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG



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