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Wow. I guess I am a big boy now.

Discussion in 'The VIP Lounge' started by NathanP, Jun 3, 2007.

  1. NathanP

    NathanP New Member

    Sheesh, credit card companies are crazy.

    I remember when I got my first credit card @ 18yrs old. Had a $700 limit.. got stupid, ran it to the limit, and paid it off. After I paid it off, they upped my limit to $1200 without me even asking. I got bored the other day, and pressed the "request credit limit" button. I punched in $2000. You know what? I checked it this morning and they upped my limit, no questions asked. I wonder how much farther they would go.

    One things for certain, being a student, I'm only using my credit cards in case of an emergency.
     
  2. Tyson

    Tyson New Member

    They will probably go much higher than you can imagine. Be careful. :wink:
     
  3. Stefan

    Stefan Active Member War Zone Member

    Yeah right - keep telling yourself that.

    If you like the convenience of a card, get a debit card that is linked to your checking account. That way, you spend the money you have rather than what you don't have.

    I got way in credit card debt durring college. Then I paid it all off with my first job out of college. Then I immediately started building it up again. I have been in credit card debt ever since - 12 years now. Trust me, throw the card away. No smilies here.

    Stefan
     
  4. Tom R S 4

    Tom R S 4 New Member War Zone Member

    A differing opinion: Credit cards are great - assuming you have the necessary control to pay if off every month. Use someone else's money for a couple of weeks. 8)
     
  5. Chris White

    Chris White New Member

    I'd guess that the percentage of folks with zero credit card balances is about the same as the percentage with a paid off mortgage.
     
  6. Eric

    Eric Active Member

    Hmm, I keep my credit card balances at zero (have for years now). Wish I could say the same about my mortgage :(

    FWIW, I did the same thing between the ages of 18 and 27-28. Never rang up HUGE credit card balances, but even a couple of thousand is an uncomfortable level on a card. Paid 'em all off a few years ago, and now I pay the balance in full every month. No car loan either. I've learned to hate debt.
     
  7. CJ

    CJ Well-Known Member Admin War Zone Member

    Nah, I bet there's a huge difference. Almost all of my friends (late 20s professionals) use $2-3k of credit card purchase per month but don't EVER carry a balance and have no debt riding on it yet have a mortgage.
     
  8. Chris White

    Chris White New Member

    It isn't statistically valid to generalize from a sample size of three.


    :wink:
     
  9. Chris Smith

    Chris Smith Well-Known Member

    I HATE debit cards. I have to fight my bank every time my ATM card is expired to give me just a standard ATM card with no visa/debit linking to my checking account.

    I hate them for a very specific reason, fraud. 3 people I'm very close to (me, my wife before we were married and my father) all had our numbers stolen and large purchases made on the card. The main difference between a credit card company and these debit cards is that the CC is *usually* on your side from the beginning while the bank almost makes you prove that you didn't make the purchases. Of course, if you didn't you're not liable for any of the money, but and this is a huge BUT, while they are investigating/processing your claim, you DO NOT HAVE the money in your account. It is gone, and too bad if you have a mortgage to pay. Eventually (took me 3 weeks, my wife 4 and my Dad just around 2) you'll get the money back in your account, but I hope you didn't need it for that time period.

    I charge between 2 and 3k on my card every month (and that's almost 100% of our expenses, food, bills, etc besides the mortgage. If I could figure out how to charge that too, I would) and pay it off every month. I've been using my card and paying it off since I got it my freshman year of college. It's the best advise I ever listened to that my Dad gave me. Get a card, make a semi-large purchase on it and pay it off over 3 months (builds credit, at least at the time.) Then use your card and pay it off every month. Get a card with points too, might as well get free stuff. I have an Amazon card now and every once in a while I get Gift Certificates in the mail and I go buy something fun.
     
  10. Chris Smith

    Chris Smith Well-Known Member

    4! I'm in the same boat as CJ.

    Although, many more of my friends have mortgages and huge credit card debts. I don't know how they do it.
     
  11. Drew

    Drew Well-Known Member War Zone Member Top Poster

    It's rather quite simple really. :wink:
     
  12. CJ

    CJ Well-Known Member Admin War Zone Member

    You can have a several thousand dollar CC debt and have a small payment (if you never want to pay it off). So like Drew said, its quite simple.
     
  13. RicP

    RicP New Member

    Whoo Hoo! I have both! :)

    Wait... that means I'm in some sort of minority special interest group right? :?
     
  14. cjd

    cjd New Member

    Nah, no way you can pay off a mortgage that fast. Trust me, we're doing everything possible to try - it'll be at least 8 years if I keep a job, more if we have to drop to just the required amount... I've never carried a balance over on a card. Have paid 'em in full when the bill comes every time. Even in college. It really *was* a convenience. Something to use places I didn't trust with a debit card, that kind of thing.

    I also think that my wife and I both have FICO scores over 800 now, though I'm not absolutely sure. Close, if it's not the case.

    Those low limit cards are nice though. I still use mine - heck, it's the only one that doesn't add any fees purchasing outside the country (there's the 1% charge MasterCard makes, no more).

    Nathan, requesting more credit means they just ran a credit check on you (in all liklihood). Too many of these hurt your credit score. So, think twice before making such a request next time. ;)

    C
     
  15. LarryB

    LarryB Active Member

    I'm with Tom - - I take advantage of the interest-free loan.

    On the rare ocassion in which I cannot pay the bill in full, I use my Home Equity L-o-C, whuch hs a much lower interest rate than the credit card.
     
  16. Graeme

    Graeme Active Member War Zone Member

    I am in the CJ boat. Why there would be any sort of co-relation is beyond me. Mortgage debt doesn't, as far as I know, represent any lack of planning or budgeting. I've never heard anyone claim "you shouldn't buy a house if you can't pay for it in cash"

    On the flip side, carrying a credit-card balance to me does carry the stigma of poor planning/budgeting. And I've heard from many people (both personally and via professional advice) that buying something on a credit card should only be done if you have the cash to pay for it.

    That said, I wouldn't be surprised if the percentage is the same, simply because of the number of people who carry a credit-card balance but don't carry any mortgage because they rent, live with others who do carry the mortgage, have paid off their home etc. :)

    Graeme
     
  17. CJ

    CJ Well-Known Member Admin War Zone Member

    Good point Graeme. There might be some correlation but only due to statistics. Most people who don't rent, PROBABLY have a mortgage payment. So when you start checking to see who has credit card debt too, you're going to get a lot of matches.
     
  18. Tom R S 4

    Tom R S 4 New Member War Zone Member

    This is what so many people don't seem to understand. I can, however, understand the unexpected large purchase that must be made (nothing HT related counts :wink: ), but even then pay it off as quickly as possible.
     
  19. Jason Lorette

    Jason Lorette Active Member

    Trust me credit debt is no fun....I have it...lots of it....enough that I've considered a part-time job just to get rid of it...and I already work 50 hours a week...
     
  20. LarryB

    LarryB Active Member

    CJ:

    Could you please translate that into English? ;')
     

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