I do not use a credit card period.
Maybe it is because despite being bailed out, the credit card companies are jacking interest to usery levels and cancelling cards on people.
After 25 years on my card, Citi decided to cut off my card because I was not using it enough at their 30% interest. So long Citi.
Decreased use of credit is a good thing. I have an open account with Amex, and they sent me a letter, really rude, cutting my line from $20,000 to $8,000 because I was a bad credit risk. I had a WTF? moment, as my credit has always been great.
I checked my credit score and it was in the 770s. Then I realized the problem. When I opened the account I took advantage of their 1.9% until paid off and didn’t charge anything else on it. It’s not about me having good credit. It’s about them not being able to nail me with late payment fees and high interest rates. (Some) Credit card companies are jackals.
This is why I using my debit instead—and constantly monitor my activity on my bank’s online banking service.
Gee, let’s see, our benevolent ozero media tells us the recession is over, so go out and spend. Yea, right. No one trusts this goofball or his media. I used to have a card that tried to charge me 21%, so we had a little chat. I called them and asked them to lower the rate to 9%. No go. So I let the rocket scientist know that they could either get 9% of a balance, or 21% of nothing. It took 4 levels of management until I got someone who actually understood what I was saying. Got the 9%, then paid it off anyway.
The beauty of cash is you don’t have to stand there during the purchase and worry if it’s going to clear or if you’re over your limit!
Dave Ramsey ping.
Cash is king...debt is dumb. Life without owing money is priceless :)
“people who buy gifts with a credit card tend to spend anywhere from 20 to 40 percent more on the gift,”
Which is the best reason to buy with cash, have a plan and don’t deviate from that plan. I understand that some (very few) CC users can manage to stick to the plan and not spend more than was planned, following that up with paying the full balance each month, however I believe that this is a very small percentage (maybe a fraction of a fraction) of CC users. I prefer not to even risk it....Remember, if you play with snakes you will eventually get bit.
Thanks Hoosier for the ping.
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I don’t even have a Credit Card why assume the risk?
I know I know I know, All you much wiser than me FReepers are gonna tell me about cash back and all the great things putting yourself at risk does for you.
My gifts are purchased, wrapped, and under the tree. Paid cash for everything including 2 DS systems for the little kids, 2 DS games each, a new flat-screen for the RV with a new DVD player for Hubby, tons of stuff for the grandgirls and my grown kids.
I even got gifts for the pets. No Debt. Not one penny.
And....in honor of my nice promotion, I bought myself a new leather padfolio for work and the Wii Fit Plus (already have the Wii).