The pros and cons of cutting up the credit cards...

[rebapuck]

Credit scores are also decided by credit limits and how much of it you use.

If you have a card with a $10,000 limit and owe $6000, that's using 60% of your credit. If you have 3 cards with $10,000 each, and still owe $6000, that's using only 20% of your available credit.

Get lots of cards. but don't use them.

[Mightydog]

Get lots of cards. but don't use them.

To quote Garrison Keillor, "A girl in a bikini is like having a loaded pistol on your coffee table - There's nothing wrong with them, but it's hard to stop thinking about itâ€

[kinshipknight]

Yeah, I use credit in much the same way you do, to even things out as my paychecks are irregular. Changing that game would definitely be an adjustment.

[ParTaxer]

C D I'm in the boat with you except its a heart attack and diabetes. I'm a self employed tax consultant and the clients are very loyal. I'm digging out of debt that began with the heart attack. Before that I could manage my money very well; now its the Peter/Paul senario. I'm looking at three more years before I'm consumer debt free. Cars are paid off with new tires. Medical expenses are gone except for the supplies and co-pays. I do have excellent health insurance.

[starleen2]

We don't have debit cards- our credit union ATM card has no Visa or MC logo. I don't want anyone to get direct access to our bank account.

Our debit card has a transaction limit of $500.00 per day. I could raise that amount if I so choose - at least it protects my entire account - not all debit cards have this feature. Should I ever need more than that during a day - I usually use an e-check

[hotrod]

not ever, never will ever have a credit card...

[S. Heisley]

Okay, it sounds like we're in agreement to use from as little as possible to no credit cards.

The next thing everybody needs to do is help create income and jobs on the home front by buying as much 'Made in USA' as we can responsibly do. When I write 'responsibly' what I mean is that we shouldn't go into debit to do it or buy when we don't need it and we shouldn't buy USA if the manufacturer is pushing junk at us. But when it is available and decently made and we need it, buy USA, even if it is a buck or two more ...Right?

[hotrod]

Okay, it sounds like we're in agreement to use from as little as possible to no credit cards.

The next thing everybody needs to do is help create income and jobs on the home front by buying as much 'Made in USA' as we can responsibly do. When I write 'responsibly' what I mean is that we shouldn't go into debit to do it or buy when we don't need it and we shouldn't buy USA if the manufacturer is pushing junk at us. But when it is available and decently made and we need it, buy USA, even if it is a buck or two more ...Right?

We try to but man its pretty hard! someone here a year or 2 ago posted a link to all american made products...

[Fenlason]

Okay, it sounds like we're in agreement to use from as little as possible to no credit cards.

The next thing everybody needs to do is help create income and jobs on the home front by buying as much 'Made in USA' as we can responsibly do. When I write 'responsibly' what I mean is that we shouldn't go into debit to do it or buy when we don't need it and we shouldn't buy USA if the manufacturer is pushing junk at us. But when it is available and decently made and we need it, buy USA, even if it is a buck or two more ...Right?

Not completely.. as I said we use our card a lot. We put everything we can on it.

Always paying it off.. we get the benefits of a card, without any of the problems.

I do not specifically look for American.. as Paul said it is quite hard now.

I do try to buy locally.. and I don't purchase based on lowest price.

[S. Heisley]

I thought I had saved that 'Made in USA' list information but, now, I can't find it. If I find it, I'll post it.

I know we can't buy everything from our home land but, if we're more conscious of it, I think we'll naturally be more responsible.

[starleen2]

If you have a low credit scores your car ins. is higher . And befor I go going to have a hell of a party 3 weeks long and put on my cards then let them get there money

Allstate got sued for doing just that -I dropped Allstate after they tripled my premiums. i had been doing business with then for eight years and had a very low rate - then the next year - BAM - outta sight. The agent then said that they have moved us form one book to another based on a credit score - we dropped em' immediately and went to another agent. Later we were contacted by a class action lawyer who was suing Allstate for illegally checking credit scores wand raising the rates on clients with out their consent.

What does my credit rating have to do with the way I drive. Can you imagine being in a situation where your credit score sucks because of a hospital stay - or late paying on an electric bill and then your car insurance goes Up? Sure it happens all the time. If you need to check my credit before I buy insurance - then I skip that company and go to another.

[Larwyn]

We gave up credit cards well over 5 years ago. If I cannot get it without credit, I either repair the one I have, build one myself, or do without. It gets easier every day to live without most of what many people use as justification that we all need to have credit cards. I never want another credit card, cell phone or heart attack, all three are evil.

[razorback]

credit cards can be addictive. you look at the available credit and temptation can set it quite easily. We are fortunate in that we pay ours off each month.
However I did hear a report last week that said if you need to build up your credit score to ONLY use a credit card for weekly purchases of gas for your car and then pay it off. The logic being that you never buy more gas than your need. seemed quite logical to me.
Larry

[TwilightLane]

www.daveramsey.com

[Judeyramone]

Heavens, do I have stories about credit cards!

First... do the math. Nobody in their right mind would take out a mortgage or car loan on the terms offered by any credit card company. During my 15yr relationship with my ex, I fought the whole time to eliminate the credit cards - I'm a pay for it with green cash from my pocket kind of guy.

But... I have to tell this story...

Shortly after we were married, I put my wife on my AmEx account, so she could have her own card, as opposed to asking me for mine when she needed it. After about a year or so, AmEx cancelled my card for non-payment (wife was in charge of paying bills - it was just her job. I fixed the furnace when it stopped working, etc). Looking into my bills... wife was charging a daily latte ($6) at Starbucks on the way to work on a regular basis. "I didn't have any money."


Well, you don't drink any F***ing coffee today, do you?

I was later able to convince her that we would be better off w/o the credit cards, and we rolled them into a mortgage refinance. Several years later, during the divorce, I found out she'd borrowed against all the equity in the house without telling me. All beside the point, I know. I have not used a credit card for almost 10yrs, and have never missed it.

My coffee comment above may be rude, but expresses a sentiment not unfamiliar to most older folks, who lived through the 30s, or whose parents did. .. if you don't have the money to buy something, you don't buy it. Simple as that.

I have plenty of other debts currently, but none at 29%.
Good luck.