NT Fam what do you know about credit cards? vol. debt to my eyeballs

[ricky409]

Originally Posted by crcballer55

It would help build it up much quicker if you pay it off and cut up the card while keeping the account open. That way you'll eventually have a 0% utilization and won't have to worry about running it up for a 4th time.


true... but i needed the card for emergencies...
one time was for my momb. she had surgery and had to move out of her apartment and back to our home. the landlord wouldnt let her break the lease so i had to pay to break it for her.

.

second time was for some tickets i had to pay so that i could be able to get a job b/c it kept coming up on a background check...

this time was just buying stuff for my new apartment...

the best way i've found to keep myself disciplined is to LITERALLY FREEZE the card... put it in a zip lock bag full of water and put it in the freezer...

that way if something happens and you NEED the card, you have it... but the time it takes for it to thaw out...

REALLY makes you deliberate on using the card, and forces you to try and think of other ways to attain the money in situation.

 

[crcballer55]

Originally Posted by ricky409

Originally Posted by crcballer55

It would help build it up much quicker if you pay it off and cut up the card while keeping the account open. That way you'll eventually have a 0% utilization and won't have to worry about running it up for a 4th time.

true... but i needed the card for emergencies...
one time was for my momb. she had surgery and had to move out of her apartment and back to our home. the landlord wouldnt let her break the lease so i had to pay to break it for her.

.

second time was for some tickets i had to pay so that i could be able to get a job b/c it kept coming up on a background check...

this time was just buying stuff for my new apartment...

the best way i've found to keep myself disciplined is to LITERALLY FREEZE the card... put it in a zip lock bag full of water and put it in the freezer...

that way if something happens and you NEED the card, you have it... but the time it takes for it to thaw out...

REALLY makes you deliberate on using the card, and forces you to try and think of other ways to attain the money in situation.

I just cut mine up and set aside an actual emergency fund. When you don't have the option of using a card, it forces you to be disciplined and make sure you have the cash on hand. I challenge anyone to try it. Set aside 3-6 months of your expenses in cash for the items mentioned above. Not only will you not have to pay the bank interest, you'll be earning interest on the money you have sitting there. You'll also be amazed at the financial muscles you'll be forced to use too.

I believe that we often focus too much on increasing our credit score instead of actually increasing our net worth.

 

[gottabeem21]

Originally Posted by ricky409


As long as you pay the minimum every month, you're good.

you're wrong.
unless "good" to you is paying 18% (or more) on the money you borrowed (read: didn't have).

credit cards should be paid off in full every month

 

[ricky409]

Originally Posted by GottaBeEm21

Originally Posted by ricky409


As long as you pay the minimum every month, you're good.

you're wrong.
unless "good" to you is paying 18% (or more) on the money you borrowed (read: didn't have).

credit cards should be paid off in full every month

i really wish people would look at the posts i made in this thread.. 

i just said that i pay on the 300 percent of the MINIMUM, often times more...

paying it off every month is cool, but when you're trying to get loans and stuff, they want to see that you can maintain consistent payments over time.

that's why my cards hover around 100 bucks... that's around 2 percent of my combined limit.

under thirty percent is a good number...

the following sentence says "YOU HAVE TO PAY SOMETHING"... meaning you're GOOD if you pay SOMETHING... 

dont get a card and not pay anything... THAT'S when you start messin up in the game...

EDIT... that avy... omar =

(no romo)

 

[gottabeem21]

Originally Posted by ricky409

Originally Posted by khemikalali

never had a serious credit card before (im 26) and have been seriously thinking of scooping one up.. maybe just for the simple fact of collecting rewards..
have been traveling alot lately and wouldnt mind a free plane ride somewhere.. anyone have exp with this?

people say "get a credit card, and pay it all down as soon as you get it" that's a mistake... you want to stay under %30 on your limit and carry a balance .... it will help your score... and if you do pat it down, don't close it..

you're wrong.  i'm sorry but this is not even an argument.
from MSN Money: 7 Nasty Credit Myths That Will Not Die - 

Myth No. 4: "You need to carry a credit card balance to have good scores."

Fact: You don't need to be in debt or pay a penny of interest to have good credit scores.

Your credit reports and scores don't "know" whether you're carrying a balance or paying it off in full every month. That's because the balance reported to the credit bureaus typically is the balance from your last statement, not what was left over after you got that statement and paid the bill. So you might as well pay in full and save yourself the interest.

This myth encourages people to carry unnecessary debt, putting them at the mercy of credit card issuers and eroding their financial security.
edit: omar/chalky white is boss.  glad we can agree on that fam. 

 

[grizzlyboy]

First you need to create an account at MINT.COM
Place all of you banking and CC info there. Its safe, its the same people who do TurboTAX.
Create a goal which shows you how to pay the balance off within X amount of time. I would transfer the balance to the BOA card.

LASTLY! AND THIS IS VERY IMPORTANT



























































Take the cards and put them in a ziplock bag. Fill it with water and place in freezer. THESE NEED TO BE ON ICE WHILE YOU PAY THEM OFF.

 

[based mod]

Originally Posted by ricky409

Originally Posted by GottaBeEm21

Originally Posted by ricky409


As long as you pay the minimum every month, you're good.

you're wrong.
unless "good" to you is paying 18% (or more) on the money you borrowed (read: didn't have).

credit cards should be paid off in full every month

paying it off every month is cool, but when you're trying to get loans and stuff, they want to see that you can maintain consistent payments over time.

dude.  

i've NEVER paid interest on my CCs.  paid everything in full every month.  got a 800 credit score by the time i was 24.

 

[carver]

Originally Posted by Based Mod

Originally Posted by ricky409

Originally Posted by GottaBeEm21

you're wrong.
unless "good" to you is paying 18% (or more) on the money you borrowed (read: didn't have).

credit cards should be paid off in full every month

paying it off every month is cool, but when you're trying to get loans and stuff, they want to see that you can maintain consistent payments over time.

dude.  

i've NEVER paid interest on my CCs.  paid everything in full every month.  got a 800 credit score by the time i was 24.

Deeyum bruh 800 credit score

thought I was good 780 23 turn 24 next month

 

[ricky409]

Originally Posted by Based Mod

Originally Posted by ricky409

Originally Posted by GottaBeEm21

you're wrong.
unless "good" to you is paying 18% (or more) on the money you borrowed (read: didn't have).

credit cards should be paid off in full every month

paying it off every month is cool, but when you're trying to get loans and stuff, they want to see that you can maintain consistent payments over time.

dude.  

i've NEVER paid interest on my CCs.  paid everything in full every month.  got a 800 credit score by the time i was 24.

... that's pretty good.. everyone goes at it differently but it seems like you found the solution. Keep it up.

 

[dajoka004]

Originally Posted by ricky409

Originally Posted by GottaBeEm21

Originally Posted by ricky409


As long as you pay the minimum every month, you're good.

you're wrong.
unless "good" to you is paying 18% (or more) on the money you borrowed (read: didn't have).

credit cards should be paid off in full every month

i really wish people would look at the posts i made in this thread.. 

i just said that i pay on the 300 percent of the MINIMUM, often times more...

paying it off every month is cool, but when you're trying to get loans and stuff, they want to see that you can maintain consistent payments over time.

that's why my cards hover around 100 bucks... that's around 2 percent of my combined limit.

under thirty percent is a good number...

the following sentence says "YOU HAVE TO PAY SOMETHING"... meaning you're GOOD if you pay SOMETHING... 

dont get a card and not pay anything... THAT'S when you start messin up in the game...

EDIT... that avy... omar =

(no romo)

You are DEAD wrong. Somebody already pointed it out, but your monthly statement balance is what influences your credit. I've never paid a dime in interest from a credit card. I use my credit cards for everything. Credit score after three years of establishing credit is 748.

 

[mojodmonky1]

Originally Posted by khemikalali

never had a serious credit card before (im 26) and have been seriously thinking of scooping one up.. maybe just for the simple fact of collecting rewards..
have been traveling alot lately and wouldnt mind a free plane ride somewhere.. anyone have exp with this?

ive mentioned it on other NT credit related threads.  DO THIS NOW.  Dont work for the credit card companies/banks.  Let  them work for you.
If you travel internationally a lot, you might want to look into the Chase Sapphire Rewards card which offers no foreign currency fees on purchases.  The annual fee of $95 is usually waived for your first year.  If you do a lot of spending on the card, you will easy make the $95 fee (for the 2nd year) back in no time.

EDIT:

for those of you credit noobs looking for advice, read what CRCBALLER55 posts.  Dude is usually on point with his credit advice.

 

[crcballer55]

Originally Posted by Mojodmonky1

Originally Posted by khemikalali

never had a serious credit card before (im 26) and have been seriously thinking of scooping one up.. maybe just for the simple fact of collecting rewards..
have been traveling alot lately and wouldnt mind a free plane ride somewhere.. anyone have exp with this?

ive mentioned it on other NT credit related threads.  DO THIS NOW.  Dont work for the credit card companies/banks.  Let  them work for you.
If you travel internationally a lot, you might want to look into the Chase Sapphire Rewards card which offers no foreign currency fees on purchases.  The annual fee of $95 is usually waived for your first year.  If you do a lot of spending on the card, you will easy make the $95 fee (for the 2nd year) back in no time.

EDIT:

for those of you credit noobs looking for advice, read what CRCBALLER55 posts.  Dude is usually on point with his credit advice.

Thanks! Appreciate the nod. Your advice is usually pretty solid as well.

I might have to disagree on the airline miles thing though (unless things have changed recently, in which case, please call me out). With airline miles, I've heard multiple evidence that the Capitol One commercial is pretty on point when they say you'll pretty much get the equivalent of a hat for your airline miles and that's when Jupiter aligns w/ Mercury. That's why I pay for everything in cash and then set aside whatever wasn't spent that month and put it towards my goals (in this case it's to pay off the house).

 

[tengoeljugode]

I wouldn't have half the things I do without credit cards. I have about 7 or 8 open as we speak, with only 3 carrying a balance. I make sure to use each one every so often to keep them active.

Right now, I've never paid interest on cc's a day in my life. I have an 18 month 0% card with a 9k limit and a balance of 8,500 or so. Am starting my payments next pay period and will payoff in 12 months.

I've bought a car, truck and house over the years and don't really need to worry about a uber good credit score right now.I was at 780 at one point and have dropped to 725 because of too many hard inquiries and a few other non-serious dings.

In all, I have about 60k in available credit and only about 9k outstanding. My issue is, I now have a truck loan of 20k and the house is solely in my name so it looks like my entire take home income is going out for installment loans lol. I don't care though because interest rates on loans are entirely negotiable when it comes down to it. I got my truck at 3.99% and house at 4.25.

 

[teamjordan79]

1200? though it was gonna be like 40k in student debt

if $1200 is considered living outside your means then you really need to get your priorities in order. 

i dont mess with cc's, just debit to spend money that i have on things that i need. 

 

[crcballer55]

Originally Posted by tengoeljugode

I wouldn't have half the things I do without credit cards. I have about 7 or 8 open as we speak, with only 3 carrying a balance. I make sure to use each one every so often to keep them active.

Right now, I've never paid interest on cc's a day in my life. I have an 18 month 0% card with a 9k limit and a balance of 8,500 or so. Am starting my payments next pay period and will payoff in 12 months.

I've bought a car, truck and house over the years and don't really need to worry about a uber good credit score right now.I was at 780 at one point and have dropped to 725 because of too many hard inquiries and a few other non-serious dings.

In all, I have about 60k in available credit and only about 9k outstanding. My issue is, I now have a truck loan of 20k and the house is solely in my name so it looks like my entire take home income is going out for installment loans lol. I don't care though because interest rates on loans are entirely negotiable when it comes down to it. I got my truck at 3.99% and house at 4.25.

If you wouldn't have them without credit, doesn't that mean you wouldn't need them at all? If you can't pay for something in cash, typically it means you aren't able to afford it in the first place.

If you lose your job in the next 12 months and still have that $8500 balance, not only will your credit score be screwed, so will your peace of mind. You're also killing your score in two noticable ways that I can tell. First, you're using 95% of the available credit on one card. Second, you have too much available credit. Most people think that's a good thing, but it tells a potential lender that you have the ability to rack up that much debt overnight. Close a couple of the newer cards and you should be good. Plus... it'll be 2-3 less cards open that you'll have to worry about having the numbers stolen from.

 

[6 Rings G.O.A.T.]

Going to read all of these replies in here..

 

[lightweight champion]

Originally Posted by firered18

OK guys so last summer I took a trip to San Fran and decided to live outside of my means and ran up a platinum citicard with a $1200 limit. That card had no interest for a year and the year is now up.

I paid the card 3/4 off last month but car troubles have me at $1184 in the hole again. Today I signed up for a bank of America card with an $800 limit with 0 interest for a year. I think I am going to use all $800 to pay off the citicard and pay the remaining $384 myself. That way Ill owe $800 interest free and have a year to pay it off. Is this smart?

Btw, I am a 20 year old college student working min wage. Every now and then I make lump-sums of money from working camps and whatnot so I should be able to do this, right?

You better read that fine print. Balance transfers and cash advances can automatically activate your APR. Don't make that mistake.

 

[girlslovewaffles]

i'm always blown away when i hear about people maxing credit cards and carrying high balances. the interest rate on credit cards is ridiculous, what goes through your head? do you need something THAT BAD that you're willing to pay that high of an interest rate?

have some discipline, my god.

 

[651akathepaul]

Originally Posted by crcballer55

Originally Posted by ricky409

Originally Posted by crcballer55


Correction... Credit Card companies LOVE people like you. You keep racking up debt on your card and pay interest for the privilege of using their money.

don't mind paying the LITTLE interest that occurs when paying it fast to raise my score faster.. which will in turn let me negotiate lower interest rates on major purchases like houses.. *shrugs*

You'll get a better rate by putting down a larger down payment than having a better credit score. Trust me. Both my wife & I had EXCELLENT credit with a small down payment and we still got screwed.

I still have excellent credit and have gotten to the point where I'm actually closing accounts because I don't want to support the banks anymore. I also realized that when purchases are made with cash you spend MUCH less and will be able to save up more for the large purchases.

It's unfortunate that we've bought the line that we need a credit score to make large purchases. While it may be more difficult, you CAN buy a car with cash (it'll just take longer) and you can get a mortgage without a credit score (manual underwriting).

In all honestly OP...I'd PM this guy if you wanted an unbiased explanation of the why's and what's. For advice as well...
Just by going from your question, and to keep it simple, if they offer that same 0% APR for balance transfers, then do it. Just don't use that as an excuse to "buy time" to spend more of your credit without actually progressing towards paying your total credit balances.

 

[crcballer55]

Originally Posted by girlslovewaffles

i'm always blown away when i hear about people maxing credit cards and carrying high balances. the interest rate on credit cards is ridiculous, what goes through your head? do you need something THAT BAD that you're willing to pay that high of an interest rate?

have some discipline, my god.

The truth is, all most people hear is "get a CC so you can increase your credit score". What they don't understand is how a credit card or (especially) interest actually works. I don't know how many times I've heard people max it out thinking it was either free, or having no clue that only making the minimum payment would enslave you to that card for the next 25 years. On a different subject, my cousin's wife once commented that she still had checks in her book, so she must have money. She said it with a straight face too.

 

[Deleted member 37467]

I'm 23 and have never had a CC.

I have been thinking about getting one soon, though.

So, I guess I should read some replies in this thread,

.

I really don't think having good credit will do me anything, though.

 

[kdawg]

[QUOTE name="ricky409"]
Originally Posted by ricky409


As long as you pay the minimum every month, you're good.

you're wrong.


unless "good" to you is paying 18% (or more) on the money you borrowed (read: didn't have).


credit cards should be paid off in full every month

[/quote]

Yep, when you start paying 18% (and that is pretty cheap nowadays if my card is anything to go by) then the interest quickly adds up - even if you're paying more than the minimum so avoiding compound interest.

 

[mojodmonky1]

Thanks! Appreciate the nod. Your advice is usually pretty solid as well.


I might have to disagree on the airline miles thing though (unless things have changed recently, in which case, please call me out). With airline miles, I've heard multiple evidence that the Capitol One commercial is pretty on point when they say you'll pretty much get the equivalent of a hat for your airline miles and that's when Jupiter aligns w/ Mercury. That's why I pay for everything in cash and then set aside whatever wasn't spent that month and put it towards my goals (in this case it's to pay off the house).

i guess it depends on how you use it. i have a free card (Amex Blue) that accrues Amex Membership Rewards points. No annual fee so I'm not paying extra for the benefit. I can use the rewards points to pay for stuff that I buy off of Amazon. The conversion is not great, but hey, if they are going to give me free points to buy $100 of stuff of Amazon (I buy a lot of my household goods off of Amazon since its cheaper, no tax, and free shipping) why not?

With my current rewards card there is an annual fee, but the rewards I get far exceed the cost of the card itself. The rewards points I use arent tied to any specific Airline miles program so I can just use the points to book travel on a buncha different airlines as long as I book through their website. The prices for airfare are the same as if I went to the airline website directly. In this case, there is a points per cash equivalency, usually 10,000 points = $100. There is an exception if you use the points to book travel where you actually get a bonus (10,000 pts = $125). If you dont want to hassle with buying stuff with points, they even allow you to do a direct points for statement credit at the 10,000:$100 exchange rate. I've already managed to accrue 80,000+/- points this year without paying a penny in interest or fees (1st year card fee waived). Even if I had to pay the $95 annual fee, the $800 cash equivalent I have accrued would far exceed that cost.

 

[shorty doo wop]

I always pay in full every month (I dont use my card if I dont have the money for it)

 

[air spider 777]

Built up my credit when I was younger by getting a secured card, then I got one of those ******** Household bank cards, then used that for everything but made sure I paid off the balance in full each month. Also got myself a exxon gas card as well and paid off the balance in full each month. Did this for about a year or so. Got a real job. Got my credit score up to 720 then got myself an Amex Gold card and to this day I use that for everything and pay off the balance each month. A charge card keeps you on a proverbial leash because you have to pay off what you spend. Fast forward to this day I still pay off my balance in full and few years ago got my Jeep for 0% for 48 months (doubled up each month and the car is paid off now). I have a credit score of 815 now last time I checked.


Remember ladies without credit you do not have ****.

Take care of your credit people. And remember dont spend what you dont have.