Do You Use Credit Cards? Are They Maxed? If So, Do You Pay Off Credit Cards Monthly?

I was going to say that my credit card number is 4307657644563245 and my mothers maiden name is Robertson. I’m glad you stopped me, OP!

R1 lmao! I put the disclaimer in because some DL’ers freak out if they think people are trying to get personal information.

Yes. Yes. No, just the barest minimum amount on the last possible date.

It makes me sad.

R3 does it stress you out? Was it worth the debt?

I only have one card with a limit of $13.5k. I never spend more than what I expect to have in checking by the end of the month. As a new grad, I'm already stressed with paying off student loans, I can't even imagine having to worry about credit card debt and the insane interest rates.

I have one card for me and one card for a small business I run on the side. I pay it religiously every month. I get the points which are great. (Sapphire card has excellent points.)

The interest on credit cards is colossal. It’s a terrible idea to use a credit card to live beyond your means.

52 here and spent 20 years with no credit because I fucked it up very young. Wound up being the best thing that ever happened to me. I had about $2K I quickly paid off outstanding debt and worked with a credit counselor and have a score of 804 now. The only debt I have is a mortgage and my car loan.

No matter how fierce the tech, fashion, or food is, don’t buy it or travel if you can’t afford to pay it off the end of the month. Everything eventually winds up in a landfill and forgotten. Pay close attention to daily spending if you use cards.

You’ll want to save and buy more durable shoes and clothing, pay attention to stitching and quality rather than fast fashion. Plan vacations out six months to get the best deals and learn how to cook at home and brown bag your lunch instead of ordering a $13 lunch at work. I save about $3K a year doing this.

I gor so many credit cards in college and over about 7 years, I amassed 13k in debt. Filed for bankruptcy at age 23. A beautiful thing. Poof debt was gone. 24 years later, I have one credit card and doing ok.

Paid off all my cards and debts this year aside from my car. Took me about 5 years. I have some re-occuring monthly expenses that I still put on one for the points, but I pay it off the same month it's incurred so no interest.

For about 20 yrs I’ve paid off my cc balance in full every month. The cards are good for large purchases, along with earning bonus points. My monthly bill is usually around $1k, but that includes my cable & cellphone bills.

I have one Visa card and I basically use it instead of carrying cash. And yes, I pay it off completely at the end of the month.

If I can't afford something, I don't buy it. Or I save up the money until I can. I know it's old-fashioned, but I'm 63 and I have no debt at all. I always tell people that I don't have much, but everything I have I own.

I know people who have 10s of thousands of debt on credit cards. I don't know how they sleep at night. But to each his/her own.

I have about $1200 in credit card debt. I could pay it off but I don’t feel like it and just pay my monthly minimum.

I have about five cards, 4 with large credit lines, one with an intentionally small line (I use it rarely, when I'm worried about the security of an online vendor.) I used to have more cards but I moved countries and got rid of ones I never used. Two have very useful travel rewards programs that I haven't had taken advantage of for a couple of years. Those two are the ones I use; the others I try to make a point of charging something one them once or twice a year. I use the hell out of the cards, and will pay with a card rather than cash whenever possible.

I pay off the balances every month. My credit score is good, in the 840s., though it was not always so. Many years ago I got behind and spent a couple disciplined years not spending and paying off balances: lesson learned. I was lucky because in that time some things occurred that allowed me to pay off the balances in a fell swoop and bring to a close the process I had started on a much slower schedule. Being free of debt and seeing my credit scores ascend again was a great thing, just the relief of the burden of too much money, and it made me see the benefits of money in a different light, less about consumerism and more about security and giving more thought to spending money for better, or at least more considered reasons. Credit cards are great so long as you have the money behind them to pay off the balance every month.

R12 you’re ok with all the interest added to your bill each month?

I have a number of cards and usually pay them off monthly. I will carry a balance on one for a few months if I have made a particularly large purchase but only a few times a year. My credit rating is 827. If you regularly carry large balances totaling the high end of your total available credit, you will not have a good credit score.

I have two credit cards. One I never use, the other I use all the time to get the travel points. I pay it off every month. I just use it for groceries, dining out, etc. It's usually about $400 every month. I have no other debt. Finally started to be able to save after paying off my student loans and my car a year ago. Doing pretty good although I don't have enough $ to retire. I know people who have so much credit card debt it's just sad. I have been there but learned my lesson.

I have 5 credit cards, 3 of which were starter cards when I was in college or early 20's to build credit. I use a Capital One Venture and an Apple Card for everything. I use my cards for everything and then pay them off in full. I request credit increase lines each month, which Apple is especially generous. If I can't afford it, I don't but it. I have a savings, but my CC are back up for a major emergency or if something happened where I lost all my money. I like the Apple Card the best. The interface, the ease of use, and I like seeing the cash accumulate more than I like the miles.

I get frequent flyer miles for using my credit card so I use to pay for everything...a cup of coffee, a birthday card, a candy bar, groceries, utility bills, car insurance, everything. And I pay off the whole balance every month.

R18 that’s a great idea. Is the credit card generous with Frequent Flier Miles? Is it worth it?

most people in credit card debt are stuck not because of poor spending decisions but because of life emergencies like an unexpected medical or dental bill, car repairs, etc.

R17 i had no idea you could request credit increases monthly....

If you want to plan for a debt-free future or retirement, pay them off monthly and keep your spending under control.

R19. Yes, it's worth it. The frequent flyer miles add up (American Airlines Advantage card from Citi Bank). Also, by using my credit card to pay for everything, I don't have to carry around much cash. I always have some cash in my wallet, but not a lot. Oh yeah, the guy who cuts my hair--I have been going to him for years--does not accept credit cards. So, I pay him with cash.

R20 - I meant every 3 months you can request a credit increase or that's what I do.

I use one card only - the one with the greatest benefit financially - cash back, etc. I pay it in full each month. When it expires I shop for a new card with good benefits. I don't hold a balance on any cards. Took me a few years to get to this point!

Iprobably have around 15 credit cards. I charge everything and pay the bills off in full the day after the bill notification comes in email or text. I try to maximize cash back by always using the card that gives me the largest rebate--e.g., Target's red card for 5% at Target; Amazon's VISA for 5% there. Chase and Discover lboth have cards that have rotating 5% categories that change every quarter. Venmo recently issued a VISA (through Synchrony) that doubles your cash back for the first year on your two highest spending categories--so I'm getting 6% back on at least one category,. I have one card that gives back 2% on everything (Citi DoubleCash) so that's my go-to for any categories that can't earn a higher percentage. I don't bother with miles.

What a stupid post. Why do you feel bad about yourself today, OP? I'm curious why you hope an anonymous online site would care.

I stopped carrying cash 10 years ago. Gave up on my ATM card 5 years ago. It kept getting hacked even with the card number and CVC code changing.

We use two 30K limit credit cards that are paid off every month. We pay cash for everything including cars. We are a coupla tight wads. My credit score revolves around 835. His is in the high 700's.

Before I retired from my small business, I realized that paying the bank interest was stupid. So, I kept a minimum of 100K in the company account which could handle any emergency expenditures. So no loans there anymore.

Easy to sleep at night.

I have several cards but only use one to get Hilton points which I only use while traveling. Tines are tough right now and I cannot save anything as i'm on fixed income. But, I try to predict expenses. For instance, car insurance is due by Jan 1. So, I will wait until mid-Dec to pay it, when pushed my need for payment into next month. It sounds complicated, but isn't really. I just got to pay what I own on the due dat, but the rest can float... if you know what I mean. Being on a fixed budget means creative bookeeping to max every dollar.

Your senior of high school, there should be a mandatory class about credit and credit cards. If I could back to freshman year of college and rip that first credit card application out of my hands, I would.

Credit cards are horrible for young adult. It took me ten years to pay the debt of free spending while in college, not including school loans. Everyone I know had money problems. R29 is right. I wish we had a class about debt in school. My parents were no help.

People who run up their credit (because of frivolous purchases, not medical debt or job loss) and then declare bankruptcy piss me off. You deserve harsher penalties for being a moron.

Every month paid in full girlfriend! (as if!)

Right now I have 3 credit cards - Apple Card, Amex, Chase Sapphire - and about 2k in debt. It'll be paid off after the holidays. I never have more than 3k and I pay it off always in under 2 months.

My new year's resolution is to keep all money off credit cards and just reserve them for travel. Whenever that starts up again.

Every month paid in full - almost. In the past, I've had months when there was a zero balance on all my cards and my credit score got dinged for "not using revolving credit!"

Yes I use them; no, they are not paid off. I have about 3 totaling about 10K in debt, I pay probably 3-4x the minimum amount due on them every month. More than a car payment. My accountant says I should take out a 401K loan to pay them off. But I'm wary.

I have 15, and rotate them in and out of use for the different rewards.

Yes, I pay them off at the end of the month 98% of the time (occasionally there is something like a new fridge/car repair that I end up paying over a few months. I always choose my lowest APR card for those things).

I for the life of me don't understand why people pay with debit or cash. Depending on the card you can get anywhere from 1-6% cash back (or airline/hotel/etc miles) on a lot of purchases. People paying cash are paying for my rewards and they are just not smart for doing so.

R36 I totally agree. If you can pay your cards down every month, doing so with a card that gives perks is a no brainer. I have one card that gives me hotel rewards and I use that card exclusively for everything that I can, except mortgage. I find I have not spent a dollar on hotels for over ten years.

I got my first credit card 20 years ago, while in high school, and have never carried a balance. Our primary card is from a brokerage and our cash-back rewards are automatically deposited into an investment account there.

I have 3 CCs. Mastercard, Discover & AMEX. Discover is used only for groceries. Mastercard is only used for household expenses, and AMEX is used for incidentals such as entertainment, clothing, dining out, etc. I pay them all off in full every month, a day or two before the statements drop so that the balance on each card reported to the credit reporting agencies is always 0.

Three cards plus a store card, all paid off monthly. Rarely use the store card. Two cards I keep just for the credit score boost and only use them once a month to keep them active, but the third is where almost all my bills and purchases go. I use the points earned to pay down the balance and don't risk using my debit card for purchases, after it got hacked twice in six months' time.

I've been wondering why my credit report shows debt every month even though I always pay the balances off, and after reading r39 I realize why. I've been paying them the day the statement drops but I should do it a couple of days before.

Yes you should R40, and you'll be surprised how fast your FICO score will increase. Debt to credit ratio is a major factor in how they calculate your scores. They love to see high credit availability that's not being used, or is being used very minimally and paid off quickly.

I have one cc with a small limit. I have a few hundred dollars balance and it is a struggle. I can barely afford the minimum payments right now.

Between my rent, utilities, groceries, car, insurance, phone, etc. I am strapped. I've been having to put gas and groceries on the cc, which I really do not like. I do not even spend much.

I'm also a graduate student and work part time. My apartment is more than I can handle, but it is close to the school. I can't survive without working part time and the school's financial aide.

In today's Wall Street Journal

It can be hard at that age R42, but you'll very likely end up much wiser for it when you're out of school and starting your career. You'll look back on these days and be proud you did as well as you did with the resources you had. It's people like you who end up as very good money managers later in life. Some struggle in the beginning will do that for you.

R44 Thanks, it is a very stressful time. My parents don't really help (they definitely will not let me starve, but they will not just give me cash for no reason). I'm just nervous about paying December's rent, bills, my car payment, and insurance. Oh yeah, it is also Christmas.

I'm going to have to sell books/movies/clothes to cover some expenses.

That answer is easy. Don't buy Christmas presents for anyone. Bake something or if they're the type to be offended for not getting a gift just tell them you're a struggling college student and there simply is no discretionary money available. I think they'd understand it's more important that you eat and keep a roof over your head than buy them gifts.

Make heartfelt Christmas cards for everyone. I got by through school doing that and even got bucks in return.

R46 I usually buy small gifts like books.

Tell your parents to get the info out to any family members that if they're planning on buying you a Christmas gift, cash will be most appreciated.

I'm a credit card company's worst nightmare. I have a rewards (cash back) card with no annual fee. I have no other credit cards other than my debit card tied to my checking account. I pay off the credit card balance in full every month and have since my mid-20s (in my mid-50s now). I basically make money off my credit card.

One will be paid off this month. I pay at least twice the minimum and pay early electronically online. My balances are low.

WOW - I'm a total mess. I ran my credit cards up to $52K. Most of it was pandemic and gambling during the time I was laid off. I was balancing each card - Cash advance to pay another card. It got out of control. I just filed for Bankruptcy. My credit score was shot anyway. I will never get into this situation again. I even took huge amounts of money out of my 401K, but the interest on those cards was impossible to catch up with. I feel 100% better. I am waiting for the discharge papers, but the CC Companies can't have ANY contract with me. everything will be complete January 17th. I will start off the New year debt free! PS - Can you believe that a week after I filed, I am getting offers from CC companies to open NEW cards? Since you can't file BK for another 8 years, they must believe that you HAVE to pay any NEW debt..

I was a mess, too R52. I went through a credit counseling service, where they negotiate with the debt holders for a lower montly payment. I make one monthly payment to the credit counseling service...they pay the credit card companies. I paid it off in a little over five years. The best thing I did.

I put TV's, guns, going out, cigarettes, tobacco, and beer

I put practically everything on my credit cards and I pay them in full every month.

My goal is to get reward points.

For example, my Mastercard has gotten me about $1K worth of Target give cards that I've used for some cookware, a blender and some kitchen gadgets, some food items, and a few items of clothing - and I still have hundreds of dollars left to use.

My Visa and Amex have gotten me reward $$ that I use once a year to subtract from my bill. (For example, this year I'll get back nearly $200 from using the Visa.)

It's foolish not to let your credit cards work for you.

Meant "gift cards" instead of "give cards" @ R55

I have 2 credit cards, one for personal stuff, one for business. I don't care about points or cash back. I pay them off monthly.

I use CCs only for online or large purchases. Large means $200 or so.

You all do realize that one reason prices keep rising is because the credit card companies stick stores with the cost of miles and cash back.

What should be $100 of merchandise has be sold to you for $103 so that that the store can pay the credit card company the extra $3, they demand stores tack onto prices for the “privilege” of taking Visa. The card companies then magnanimously give you a buck worth of miles or “cash back,” and pocket the rest of the markup for themselves.

We ultimately end up paying $102 for $100 of merchandise. The more people use cards, the more emboldened the card companies are about jacking up their fees.

We have many credit cards, all with huge limits. We only use two: I prefer the Costco Visa because of the cash back. My husband prefers using United Airlines Mileage Plus Visa for the miles. He is a mileage whore, even though we aren’t traveling right now. We use credit cards for everything, never carry cash. We pay the balances off each month. I never had a credit card or a checking account until about age 30. I was afraid of getting in trouble. I paid cash for everything - including rent. That changed when I met my husband. He insisted I get a credit card for traveling instead of carrying large amounts of cash or Travelers Checks.

My best friend, whom I’ve know since we were in elementary school, has declared bankruptcy multiple times. He simply can’t manage credit. He thinks that if he had a credit card with a 20,000 limit, it was the same as having 20,000 in the bank. His wife finally left him over it. He is 67 and hasn’t got shit because he mishandled credit.

[quote] I was a mess, too [R52]. I went through a credit counseling service, where they negotiate with the debt holders for a lower montly payment.

I have often wondered about those credit counseling services. If you are so far down the hole, how can you afford to pay them for their service? Is going bankrupt a difficult process to live through? Heck, sounds inviting, but if you have no credit can you buy a car, house, anything without cash?

R58, when I had my old Honda, my mechanic would charge me less (for repairs) to pay him by check or cash (vs. credit card). So, I paid him by check.

OP I have run my credit cards up to huge amounts ($80k - the worst because it went on for over a decade), next time $50k) a few times in my life and paid them off due to sales of assets as well as some luck. Never again. It's very very easy to get used to living with constant card payments and it's very very hard to get out from under them. Currently have no credit card debt after paying off the last of them last year, and have even locked all my cards in case I forgot about some recurring charge somewhere.

Living off cash only is harder, but it's definitely nicer not having that hanging over your head. Job changes and life events can cause you to start using the cards, as in my cases, and it can be very easy to let it get out of hand once that dam has been breached.

I have 5 CCs but only use 1 and I use it for nearly everything because it gives 1.5-5 percent cash back on all purchases. And I always pay it off every month.

I was stupid when I was young and racked up $16k in CC debt. Carrying that much debt with such interest rates was really stressful and I swore that once I paid it off I would never use credit cards like that again. Paying it off was, financially, the best thing I've ever done. Now they pay me.

R60...Yes, if you're really down the rabbit hole, it would be difficult. It's an option if you have a source of money, in a 401K or retirement fund to tap into, to get it going. I don't think you can go into it without much money. For me, I had to take out some of my retirement $$ up front, to make the monthly payments doable for me. It's something to check out, though. The worst a credit counseling service can do is say no, it won't work in your situation. At least they could give you some advice. It's just another option outside of bankruptcy.

I have one Visa card with a $30,000 credit limit. I use it for everything and pay it off each month. I find that using one card makes budgeting really easy since the card company categorize each purchase. At the end of the year I know exactly how much I've spent on groceries, travel, doctors, restaurants, gas, car repairs, etc.

I'm another one that got into big trouble with credit cards in my 20's and 30's. Too many cards, constantly juggling balances, only able to make the minimum monthly payment, etc. I got in way too deep and then was unemployed for a bit. Took me years to dig myself out of that mess. It's such an easy trap to fall into.

Also, be very careful about overdraft protection on a checking account. Unless you're really disciplined about every cent in your checking account, without any overdrafts on checks/payments, it can cost you big time. The interest rates are astronomical. I learned that the hard way.

^^ Yes, every gets upset when checks bounce. Hopefully, the account tied to your checking account has money in it. I wonder, can you have a credit card serve as overdraft protection? Seems ironic, but doable.

I have three credit cards, plus a debit.

One card is used for day-to-day stuff and is paid in full monthly.

Another is for large purchases, has a high credit and low interest rate, is paid in installments, and is usually paid off before another purchase in put on it. I’ve bought two cars on this card.

The third is a business card, also paid in full each month.

If there's not enough money in your checking account, the overdraft protection covers the difference...letting the payment go through. However, there's a cap on the amount of money in the protection itself, and when that exceeds...you're sol. Also, the interest rates are in the 20s...making that rack up very quickly...if I remember. It's a very easy trap that banks love.

I have 4 credit cards, 2 I use and 2 for emergencies. I never use debit except to get cash for the barber. I pay them off every month. The only time I didn't was when I moved across country to change careers. I got a new card with 18 months no interest, put all the expenses on it, and paid it off before the APR kicked in.

Live within your means.

Which response is Joey Lawrence?

We have CC's but all of them get paid off in full 98 percent of the time. Once in a blue moon we spread a big ticket item over 2 or 3 months.

A few years back I stopped using my debit card for as many things as I did, and started charging the groceries, etc. and paying them off at month's end. An extra layer of safety, and now our bank gives me back anywhere between $50-100 a month because we have a cash back CC.

December is really going to be a bad month financially for me.

R42^^^^

R68 what card is that second one?

Just wait 7 years and the debt will fall off. I bought a BMW that way. paid the deposit cash, made payment in 6 different cars.

When the bill collectors came calling I paid off the car I cash. They couldn't repo the car because it was paid in full.

Do not I repeat DO NOT pay anything collection agency start calling. Not even $5. It will reset the whole thing that you have to wait another 7 years

I have $30k+ in credit card debt from 5 years ago. Most of it is probably in collections. I got a call from American Express a couple weeks ago and they offered to settle the debt and I paid it off, a lump sum of $486. Feels good not to owe American Express anymore I guess, but I could have done a lot more with that $486. Oh well...

^ it's more like 5 1/2 going on 6 years. Should I just wait for the 7 year mark and I get a clean slate?

Why would anyone not pay off their credit cards every month? What’s the point of collecting interest?

R79 people who don't live within their means

I have one card, and I put every transaction through it is possible. I generally pay it off fortnightly when my wages come in. Sometimes I dont manage to pay it all off, I did pay $24 in interest last year, which is still a lot less than I accumulated in points

I racked up over $75K in debt over ten cards because I was unemployed. Finally got a job during the pandemic because people were desperate to hire and paid off my credit cards completely in a few months.

Well, that must have been some lucrative job if you could come up with that kind of money in just a few months.

I have six, one of which has a monthly recurring bill and another I use for purchases and expenses. I pay them off every month, and have for over a year (after spending more than a decade trying to crawl out of credit card debt; thanks, Bush-Era recession!). Generally I'm using about 1% of my total credit in a given month.

I have 6 or 7 cards, 2 that I use for everything (basically for the perks). The Amazon visa gives me 5% back on my Amazon purchases, and the United visa gives me free checked luggage.

I can't remember the last time I paid interest. I'm not rich but I do manage my credit extremely well (worked as a credit analyst and learned a lot).

The less you need credit, the more they throw at you. They upped the Amazoin visa from 6 to 10k even though I've never had a monthly balance over 1000 dollars. My AmEx just came out with a promotion for a year of no interest on purchases. Why? No idea.

Why would you need to use credit cards? Never owned one. I’m rich enough to be able to pay for everything with cash.

R86 I live within my means. Cards give me points. Cash doesn't give me shit.

[quote] I’m rich enough to be able to pay for everything with cash.

But not smart enough to know the benefits of using credit cards over carrying large amounts of cash around in your wallet.

Benefits like having my identity stolen? No thanks.

And I don’t carry a wallet. I carry a purse.

Are you what is commonly known as a "rich bitch"?

I have many cards and I keep my total credit cards balance under 25% of my available credit, that is the general guidance to keep your credit looking ok. Some of my cards have balances and others with great rewards are paid off every month.

I am always receiving balance transfer offers for low to 0% rates. I use them to rotate balances, I pay the 2% or 3% transfer fee, as long as I'm not paying staggering rates like 29%.

I have been following this practice many years, my credit is good, I've purchased homes, etc. I really don't care about having an 850 credit score, I just need my credit to be robust enough to do essential things. If you die tomorrow the score is not going with you.

[quote] I keep my total credit cards balance under 25% of my available credit, that is the general guidance to keep your credit looking ok. Some of my cards have balances

Why keep a balance at all?

It isn't keeping a "balance" R93, as in paying interest.

It is keeping your reported balance under 30%.

If you have a credit card with a $1000 limit, and charge $900, and then the statement cuts, your reported balance is 90% of your credit line.

You can still of course, pay the $900 and pay no interest.

The 90% utilization (using 90% of your $1000 credit line) is what can kill your credit score. Even if you pay it off at the end of the month. Experian doesn't know month to month if you are paying it off. They just know you are nearly maxing out your card and to them, that is high risk.

This is why it is good to have high credit lines, and multiple cards, to keep your overall utilization under 30%, so it doesn't look like you are living on the edge of your cards/available credit.

[quote] Some of my cards have balances and others with great rewards are paid off every month.

But you are paying interest if you’re not paying if off every month. Why keep balances on some cards?

Actually, I use charge cards- I have 2 and both require payment in full each billing period, e.g., AmEx. If it was the only legal way to “charge” a lot of bankruptcies would be avoided.

There’s a whole lot of debtors on this thread.

All of my and my partner's spending goes on an Amex charge card, and is paid off monthly. Between the two of us, we have $200K in available credit. We generally don't use credit except for occasional 0% promos for things like appliances or furniture, which we pay off before the promo expires.

I also got into trouble in my 20's and 30's with CC debt. I had nothing to show for it though as the cards were used for life expenses such as groceries and to pay for my college. I was on my own at 18 with no money, a job that paid $10 per hour and no help from parents. Never bought a single frivolous thing and ended up in some major debt. Never traveled.

I learned from that debt though and now am debt free. Debt is slavery. It makes you have to stay in jobs you hate and prevents you from ever getting ahead. Paying interest on items is just dumb. When you're young though, you don't think about how much interest you're paying. You just think that if something costs a grand and you can pay smaller payments on it over time, you're getting a bargain. But in reality, often you are paying that grand two or even three fold. And if you lose your job, you are fucked even more because you started a vicious cycle that never, ever allows you to get ahead. Once you go debt free, your savings starts to thrive and it's then you realize how much of a prisoner you were to your debt. Been debt free for about 2 years and managed to save almost 50 grand already. The other trick is to always live below your means. Friends thought I was weird for living in small, studio apartments or renting rooms from people but once that debt was gone and my rent being low, I have flourished. And always, always contribute to a 401k if you are offered one. Most of the time it's before taxes so your tax burden goes down. I have a 401 that I stopped paying into in 2016 when I left the job that offered it. It was at $55,000 and in 5 years because of compound interest, it's now over $116,000 without me putting in a single dime since.

I have three I use in rotation for points and perks. I have them all set up to automatically pay off monthly.

[quote]I for the life of me don't understand why people pay with debit or cash. Depending on the card you can get anywhere from 1-6% cash back (or airline/hotel/etc miles) on a lot of purchases.

Agreed. Chase Freedom for rotating quarterly 5% back on various categories (restaurants, supermarkets, etc.). Chase Sapphire for 3% back on dining and travel. If you use the Chase travel portal (it's like Expedia) each $1 is worth $1.50, so a $900 round-trip ticket will cost you only $600 in points.

I also use Amazon's 5% back card and have a Southwest card that quickly accrues free plane trips.

Pay 'em off every month. My credit score hovers between 795-810.

This is just another humble bragging thread for cunts to boast about having zero debt and being more financially superior than everyone else.

I have the Chase Freedom and the Amazon Rewards cards, plus cards for Delta, American and United airlines. All the cards are auto paid in full each month. I just got the Amazon card, in time for Black Friday shopping. My credit score is currently 821. The airline cards are stupid for me to have, since when I fly, I mostly use Southwest. However, I have racked up a lot of miles using the cards for everyday things and have taken trips to Europe using those miles before Covid.

I wonder if people who rack up credit card debt are the same or similar to the people who gamble and rack up huge losses. If I'm at casino and my losses get to the $10 mark, I stop gambling and walk away. I imagine that people who charge more than they can pay are like gamblers, unable to control themselves.

Im all for personal responsibility. But these credit card companies are ruthless about manipulating people into staying in permanent debt.

I started paying off my balances. They massively increased my limit. I ran up a bunch and paid it all off in a month (purposely, I had legit expenses and wanted the travel points) and within an hour, I got an email that basically said "hey, in case you didn't realize, we increased your credit limit so you can have more flexibility in making payments." Those fuckers have an auto response email set up inside chase bank to remind people they don't necessarily have to pay their cards off so quickly. I think the APR is 22% btw.

Anot

[quote]I racked up over $75K in debt over ten cards because I was unemployed.

Did you ever come to realize how stupid it is to rack up debt when you are unemployed, the time when you least able to pay it back? Unfortunately, it's probably necessary that there should be notifications to credit card companies when people leave a job so that their credit can be cancelled to save those debtors from themselves and their poor choices.

I pay mine off within the month. I’ve seen friends get into very serious debt which took years to clear. One friend treated it like free money, and would go on clothes shopping trips to New York. While there he would go to clubs and restaurants, all on the plastic. He ended up £30,000 in debt. The interest was staggeringly high. He had a well paid job, but was using his credit card to pay his bills. Madness.

[quote] Did you ever come to realize how stupid it is to rack up debt when you are unemployed

Did you ever come to realize how stupid you are to ask this question?

[quote] Unfortunately, it's probably necessary that there should be notifications to credit card companies when people leave a job so that their credit can be cancelled to save those debtors from themselves and their poor choices.

So you don’t want unemployed people to be able to buy food?

Credit is specifically for people who have the means to pay it back. It's not for using to make ends meet.

That's terribly short sighted R108.

I grew up in a working-class family, but one with a stellar credit rating, and my parents taught us to get credit cards young, to use them often and to pay them off always. I can't imagine maxing out my credit cards or getting close to doing that. I think of them primarily as a means of cultivating and maintaining a strong credit score and secondarily as a means of accessing money if an extreme emergency such as prolonged unemployment were to occur. But even then I would try to avoid it because of the terrible feeling of being shackled to debt.

[quote] and secondarily as a means of accessing money if an extreme emergency such as prolonged unemployment were to occur.

Watch out, R105 and R108 say that’s forbidden.

[quote]secondarily as a means of accessing money if an extreme emergency

In an extreme emergency, like a trip to the emergency room or having to get a new water heater, credit cards are used when the person knows they will be able to pay off the charge over the next several months. You don't charge something when you don't have sufficient income to pay the money back. Think about what you would do if your bank ever cancelled your credit card, and then just do whatever that is.

[quote] In an extreme emergency, like a trip to the emergency room or having to get a new water heater, credit cards are used when the person knows they will be able to pay off the charge over the next several months.

OK, so if they’re not able to pay it off in the next several months, then they shouldn’t go to the emergency room? Should they just die instead?

Why does anyone need more than two credit cards?

An Amex and a Visa or Mastercard.

If you're getting points/miles/cash back you'd probably want to concentrate all your spending on one card anyway.

[quotes]Why does anyone need more than two credit cards?

Needs? No. It's more that people end up with more cards than they need, but if they are not abusing their credit or paying annual fees beyond a return, there's no harm in it either.

I have one card where I restricted the credit limit to something quite low. I only use it if some online payment system seems dodgy, or to tie it to a Paypal account which I mistrust and use only s a last resort.

I have two cards with high limits I use all the time from the same bank, changing from one to the other because the rewards systems are different. I have two more cards with high limits that are essentially back up plans - in the off-chance both of my principal cards might be frozen because of some security concern. I use them just often enough to keep them active.

I used to have a dozen more cards: specific airline rewards, big sign-up rewards bonuses, other travel rewards, purchasing discounts, etc. They were a useful idea at the time and then not, so I closed them rather than pay an annual fee or just for the bother of having a card I didn't need or use.

Regarding debit cards, please PLEASE do not carry them around on your person. All it takes is for you to lose it or have it stolen and you not realize it for even a short while. Whoever gets their hands on it can go on a buying spree at lots of places with no problem as few to none of them require the use of a pin # at checkout. Walmart sued VISA a couple years back (I don't know if the case has ever been settled) for that very reason. People were absent mindedly leaving their debit cards in the machines and once someone got hold of them they'd go back and pick out a nice flat screen and charge it with no problem. No questions asked.

Personally I haven't used my debit card in over 3 years. I go to the bank the first of each month and cash a check for my walking around money for 3 months. I keep that money in the safe and pull from it as needed, making sure I never keep more money in my wallet than I would be comfortable losing or having stolen, generally no more than 100 bucks.

I don't see the point of debit cards in the U.S., with two exceptions: you have bad credit, and/or don't trust yourself not to overspend.

Otherwise there's not much advantage to them. In the past I used mine to withdraw cash often; now I do that once every 8 weeks or so because I have so little use for cash.

In Europe debit cards are popular because credit cards rarely have the kinds of rewards programs popular in the U.S. And the theft/fraud protections are less disparate than in the U.S.

I pay the balances in full when I use my cards, but I don't use them frequently, so it's not monthly.

That sounds on the spectrum R115

Not only do I pay my cards off monthly, for some I pay more than what is due as a form of a cushion. I know. Dumb.

I have done that by accident R120 and the credit card company sent me a check for the difference.

I use credit (not debit) for nearly everything I purchase. Aside from the points rewards, it's a lot easier and safer than walking around with a lot of cash in various pockets. None of them are maxed out and I pay off each one in full at the end of the month.

r103 "I imagine that people who charge more than they can pay are like gamblers, unable to control themselves." Absolutly, its a trap that I am gonna get out of - Thanks to BK. Small price to pay for not having to pay $54K. I had to manipulate the system to qualify for Bk, had to pass the "means test". But know I am going to be on track I have a car and a house, I don't care ion my credit suffers for a few years. The sad part is, after I filed - I suddenly am getting offers for NEW credit Cards!

R114 Amex? What are you, 80?

Amex used to have the best rewards program plus all sorts of benefits like extended warranties on purchases, etc. Now many other cards offer the similar perks. I find that Chase Reserve is the most flexible in terms of converting your points into airline or hotel points.

[quote] I have done that by accident [R120] and the credit card company sent me a check for the difference.

Chase does that for me; the (two) others I have don't.

I have never ever maxed my credit card and always paid the balance in full. No wonder my FICO score is 820. Of course the three nosy rating "services" often chastise me for not incurring debt by dropping not very subtle hints.

r114 I have three. HIlton Amex that gets me diamond status and Hilton Points. United Pres plus that gets me united club access and accelerated miles on United plus a host of travel perks (President's Club in avis, 250 bill credit for airline tickets. The Hilton Amex gets me 200 dollar resort credit as well and another 200 dollar airline credit().

Then I have Chase Ink Visa - it pays 5x the amount of points when I pay utilities, cable bill, etc. It also gives me 5x the points on purchases at office supply stores - which sell target gift cards.....which I buy to do grocery shopping and shell cards for gas.

I travel for work (well before covid put picking up again). I racked up so many points among the three, my husband and I flew first to the UK, stayed 10 days for nothing at the Park Lane, and even with shitty covid I am still racking up enough points for a cheaper florida two week vacation this year.

[quote] I have never ever maxed my credit card and always paid the balance in full. No wonder my FICO score is 820. Of course the three nosy rating "services" often chastise me for not incurring debt by dropping not very subtle hints.

Ditto. It's so obnoxious that my score rating is criticized because I'm *not* tens to hundreds of thousands of dollars in debt to loans. WTF?

r129 how dare you.

The credit scoring companies are not being nosy. Their computer algorithms simply see a FICO score that is lower than 850 and automatically suggest ways to make it better. There's certainly no person or people at the company scanning your credit ratings and coming up with ways to get you to go into debt.

(R131) Credit rating services not nosy? Funny they congratulate me when I pay a bill,, note that my department store credit card shows a $$ amount, note that I have no continuing mortgage payments. I suppose that's not being nosy, but just being neighborly.

Oh good gravy gramps. Do you even know how computers work? No, Trans Union employees are not sitting in staff meetings going over tens of millions of credit reports deciding which accounts they should send suggestions to on how they should spend their money.

R132: My credit score has been in the 840s for many years and I don't get all these glad tidings from credit ratings services. You've opted in (or failed to opt out) of pointless notifications.

I don't get the suggestions of how to improve my credit score (mine is also in the 840s), but I do get suggestions on credit cards that might be perfect for me. I'm quite sure the credit card companies pay the reporting agencies for running that algorithm. And I certainly don't see that as being nosy. It's just the usual sales tactic.

r135 I get the from credit karma...but not from the bureaus.

(R133) Gramps here, what are computers? What is Trans Union..someone who had a sex change? Oops need to excuse myself, have to change my diaper.

I've learned to live below my means, so now I use my credit cards for everything but do pay them off in full each month. I don't auto pay though, I like review and I do keep track in a spreadsheet. I have about 10 accounts but only carry 2 in my wallet (one is an Amazon Visa for points). I have a few other cards that I have on auto pay for small things (I have an AA branded card that i put my monthly cell bill on). My utilization is always below 5%.

But I wasn't always this disciplined, after I got my first real job out of college I bought things without keeping track. On a salary of $30 K (this was in the 90's, I'm old) at my worst I had total CC debt of almost $14,000.

The breaking point was when I realized Capital One had let a charge go through that exceeded my credit limit. I remember calling to ask why it wasn't just declined. "Oh, we thought that would be embarrassing for you". I was livid and resolved to close that account. That was when I started budgeting and reading about money management. I learned to stop splurging and gradually put every extra penny toward the debt. I then created an emergency fund and managed to fund that. Another big lesson was putting money aside for "occasional" expenses - car repair or a yearly car insurance bill shouldn't be 'surprise" expenses. I also used a version of the 50/30/20 rule that I still find helpful.

R138 thank you for sharing very informative.

I use three cards regularly to keep my credit active for the sake of my credit score and I pay them off manually each month. I do have all set up for automatic monthly payments, as well, to cover the minimum in case I ever forget or end up in a coma or something so that will be taken care of.

My FICO score is 830 and my Vantage score according to one card is 812. Supposedly there's no difference to any lenders between an 800 and a perfect 850, but I recently learned my father and my sister both have scores of 850 and I feel competitive envy and want mine to be higher. According to the reports, the only thing that can improve my score at this point is older credit accounts, so I have no power over that.

I never ever use auto-pay, unless I get a discount. And I'm very particular about what kind of company I would allow to have access to charging me without my prior approval before each charge. Currently the only company I have my payments on auto-pay with is my mobile carrier and it's only because I get a little discount.

Many people don't realize there are multiple types of FICO scores that are industry related and use different criteria in their calculations. Most, if not all, FICO scores also have sub-scores. I believe there are currently somewhere between 15 and 20 total FICO scores available for lenders/creditors to use.

FICO 9 Newest version. Not widely used. FICO 8 Most common. Used for Auto and Bankcard lending. FICO 5 Used by mortgage lenders. Built on data from Equifax. FICO 4 Used by mortgage lenders. Built on data from TransUnion. FICO 2 Used by mortgage lenders. Built on data from Experian.

Thank goodness such meticulous records are kept on our credit history. How else would the banks know on whom to offer predatory lending?

R142 very interesting.

A LOT can happen for the queens waiting seven years for their credit to reset. Living costs poor people three times what people that have decent credit and you fall into scenarios where companies KNOW you have bad credit and seek you out to capitalize on it!

You cannot get an apartment with your name on the lease, buy a car on decent terms, or worse, it’s be a dealbreaker if a prospective employer digs up this information for that fabulous job that you’ve interviewed for- that pays double what you make- but requires financial acumen.

I’d also think twice about dating a man with terrible credit, it speaks volumes about responsibility, priorities and accountability.

I used to work for a credit repair place. If you want good credit, you need to carry a moderate monthly balance. If you pay it off in full every month are are considered a loser by the credit industry and your actual score will be lower. Basically it's a rigged system to make money.

The dirty little secret is that most credit card companies make the vast amount of money from late fees, not the annual ones. They literally develop their business plan on the expatiation that people will slip or fail. Then bam, fee, after fee, after fee. That's why some don't even charge monthly anymore. Did you ever wonder how they could afford to do that?

Now if you are rich, you can pay it off every month because in reality, a credit card is just a continents, your credit score is meaningless if you have the kind of cash to buy something like a Ferrari.

The hardest thing to do is be disciplined enough to carry a balance every month on a few cards but not more than 30% on each one. And not more than 3 to 5 cards, and dont let them bump up your available credit too high. That turns into a risk as well if it's more than what you make in say 6 months salary. That can knock your score down too if you have too much available credit. On the surface it seems good but it's not. Basically they think you could go crazy one day, load it up, then lose your job, go BK on them.

[quote] If you want good credit, you need to carry a moderate monthly balance. If you pay it off in full every month are are considered a loser by the credit industry and your actual score will be lower.

What? I understand that credit card companies make money off interest and late fees and carrying a balance. But credit reporting companies provide info about your credit-worthiness based on your management of charges against your account. You don't get a higher credit score for each month you pay lucrative fees and penalties to a credit card company.

I have a large available credit amount but most months I charge only a few thousand. I pay them off that same month. Always. My credit scores are in the 842 - 848 range. What more do you want? Where's my penalization for paying off balances each month? For not paying late fees? Tell me how an extra 2 to 8 points and a perfect score would improve my credit opportunities.

It seems you're mixing two things: credit reporting and how credit cards profit from their customers. The first does require some risk relative reward on that someone who acquired a card but never used it for years should also have a perfect credit score but won't because he has no record of incurring credit against which to measure his responsibility. That's different that suggesting that people who don't pay their balances in full are rewarded above those who do with better scores

Your score evens out and becomes insulated from monthly credit card fluctuations with LONG TERM and DIVERSIFIED credit- like a mortgage or a car loan. Four or ten points either way honestly doesn’t matter once you’ve increased your score past 750.

Diversifying your credit history over the years with smaller firms like credit unions or private companies like VW also disarms control away from the handful of big banks- who essentially dictate exactly what services, rates and restrictions or limitations of credit that you are marketed, or approved for. THIS was an eye opener for me because again, if you have terrible credit, you will NEVER see or be offered ANYTHING LIKE what people with great credit are offered.

One bulletproof way to quickly improve credit is to go to a smaller credit union and open a secure loan for a specified time span and amount. For a fee, they then bill you a monthly payment that’s reported to credit agencies as though it’s an actual loan.

Once it’s paid off they deposit the full amount in a savings account for you. This worked wonders for me when I was repairing my credit.

[quote] I understand that credit card companies make money off interest and late fees and carrying a balance. But credit reporting companies provide info about your credit-worthiness based on your management of charges against your account. You don't get a higher credit score for each month you pay lucrative fees and penalties to a credit card company.

No you are mixing it up. Credit scoring agencies use non-transparent scoring system that look at your balance and ability to maintain and pay on a regular basis, when you pay it off every month, you basically haven't maintained a balance in their eyes. Banks make their money from your failure to not pay on time. The credit scoring companies do not factor in the fees you are paying. They just look to see if you are late or not, if you can manage a balance over the period of months or years.

R148 is correct. What sucks is to get the best possible credit score, you have to have a home loan and car loan as it's one of those secret factors the credit agencies use. Even if you make a tone of money but live in a NY apartment, you can have good credit sure, but you cant get it up into that perfect highest level without some kind of long term loan. But that said, anything over 750 your fine.

The credit scoring agencies actually wont tell you how to get a perfect 850. Only generalizations on what they look for. It's not transparent which really needs to change.

[quote]Even if you make a tone of money but live in a NY apartment, you can have good credit sure, but you cant get it up into that perfect highest level without some kind of long term loan. But that said, anything over 750 your fine.

That's not true in my case and with various friends. I don't have any long-term loans of any sort and haven't had for many years, and I pay all balances in full every month, yet my scores are in the 840s which is practically perfect if not 850 perfect. I am doing what you say prevents me from reaching "that perfect highest level" and yet my score is just that.

I have friends with the same range of scores as mine who have been fastidious about their credit every step of their adult lives, never put a foot wrong, and have current mortgages which should be a further evidence of responsibility in meeting recurring payments, yet their scores are no more "perfect" than mine, we're all in the 840s boat. And I have friends like me who have don't have mortgages or loans, don't carry balances, yet have the same 840s scores. So it's not impossible to have the highest credit scores without more evidence of responsibility in meeting risk.

It's not as though credit is denied to someone with an 846 score with the explanation that "we gave it to the guy with 850." The core varies, everyone knows this, and it's practical application is to place you in a band of risk.

Does you credit score really suffer if you close accounts? I have a couple of store cards with fairly low balances I just want to pay off and close so I don’t have to think about them.

[quote]One bulletproof way to quickly improve credit is to go to a smaller credit union and open a secure loan for a specified time span and amount. For a fee, they then bill you a monthly payment that’s reported to credit agencies as though it’s an actual loan.

Triple check that your credit union DOES report to credit agencies. I had a small home improvement loan and paid it off in full on time and kept waiting to see my credit score improve, it didn't, then found out my credit union doesn't report to credit agencies.

[quote]Your senior of high school, there should be a mandatory class about credit and credit cards. If I could back to freshman year of college and rip that first credit card application out of my hands, I would.

I'm right there with you, but there were times that credit cards were my only option: car repairs, some ridiculously expensive textbook or even cash advances, which I didn't realize at the time come at loan shark rates. I probably have $1-2K of credit card debt at any given time, but try to aggressively pay off cards, particularly after the holidays when things seem to add up quickly

Some information given here isn't exactly true. I don't have a mortgage or an auto loan and my FICO score is 830, and so that is not a major detriment to a score if finances are managed well. That said, I suspect it does keep my score from being "perfect"; my sister has an 850 and she does have a mortgage.

Someone here mentioned judging a person's character based on their credit score and I kind of get the logic of that but I don't think that should be a hard-and-fast rule. I grew up working class and neither of my parents went to college but both were financially savvy and they raised us to be careful with our finances. My mom made sure my sister and I got credit cards at age 18 and that we regularly charged only small amounts to establish credit. My mom also advised me to carry a small balance often rather than always paying off the balance after charging things because she said always paying off a balance completely every month can adversely affect a credit score. I don't know if that is true, but my sister and I heeded the advice and we have strong credit. My parents also have an 850 FICO score.

I've known A LOT of adults who were never educated at home or formally about personal finance, including intelligent, responsible people who have surprisingly lower-than-I'd-expect credit scores because no one ever explained the tricky rules to them and many seem to have no idea that there are tricky rules. I've known people who proudly never charged anything and didn't know why their credit scores were not perfect.

I hover between 790 and 815 and can't even imagine how anyone gets higher

Mine is at 740-760. Never missed a payment or been late on any of my cards my entire life. Have paid off 5 car loans and all my student loans.

I'm 52 and whenever I check my credit, it says my credit is only 2.5 years old. WTF?

R156 Debt-to-credit ratio, credit usage, paying on time and age of credit accounts are the big factors. Even if you have a lot of available credit but never use your cards or always pay them off totally within a month of charging, I think you'll limit your credit score.

[quote] Some information given here isn't exactly true.

Oh honey. Did you not realize what site you were on?

"I used to work for a credit repair place. If you want good credit, you need to carry a moderate monthly balance. If you pay it off in full every month are are considered a loser by the credit industry and your actual score will be lower. Basically it's a rigged system to make money."

R146, I disagree. I've paid my balances off every month for years and my credit scores are consistently 820+.

As others have said, they don't care if you pay it off. The score is comprised of many factors which are weighted differently. The credit score is more about how you use credit and your risk, not how much the company can make off you.

One main reason I keep my Discover account is that it was opened almost 30 years ago when I was in college. It was actually a co-card on my dad's account ( I used it for textbooks and train tickets). But the age of that account really helps my average.

Wow there is some great information on this page. Question if you want to buy a home in the next six months what are some fast ways to improve your credit score?

[quote] I disagree. I've paid my balances off every month for years and my credit scores are consistently 820+.

OMG some of you cant read. 820 is a good score, a great score, we got it, lots of bragging here. But it's not a perfect score. Paying off your cards every month and having no long term loan will not get you to a perfect score. No one said it was a huge difference, but there is a difference.

[quote]Never missed a payment or been late on any of my cards my entire life. Have paid off 5 car loans and all my student loans. I'm 52 and whenever I check my credit, it says my credit is only 2.5 years old. WTF?

Because you paid them off. A car loan is good for credit. Once you pay it off, it stays on there for a number of years, and still good but after a few years, it become irrelevant. Credit is not a record of your life long history. It's mainly the last 10 years OR LESS.

Even people who go bankrupt can have clean credit after that time period. So even if you the picture perfect pay my bills queen of the 80's, no one cares about that or your 80's hair. It's all about what is your payment record in the last 3 to 5 years.

[quote] OMG some of you cant read. 820 is a good score, a great score, we got it, lots of bragging here. But it's not a perfect score.

It’s not necessary to have a perfect score. Having a credit score above 800 is sufficient to firmly place a person above the people with lower scores who lack moral character.

163 better to have 80's hair than be bald..

[quote]It’s not necessary to have a perfect score.

No shit Sherlock. No one is saying that. What has been said is that you cant get to a perfect score without carrying some kind of long term debt like a car or home loan. As has already been sated numerous times, anything over 750 is considered excellent credit. Not much difference between 800 and 850. But if you want perfect credit (850) it can not be achieved without having some kind of long term loan.

800 = NEAR perfect 850 = PERFECT CREDIT

[quote] better to have 80's hair than be bald..

I dont know about that. Some really hot guys out there with bald heads.

[quote] you cant get to a perfect score without carrying some kind of long term debt like a car or home loan.

Isn’t it just owning a house, including when it’s paid off, that gets points? Lenders would consider homeowners to be more financially responsible and less like a drifter.

Not necessary R168. That's a weird assumption. Lots of people flake who own houses. The majority of the population that claim bankruptcy are homeowners not renters. They get in over their heads. They take on a lot more debt than a renter might typically do.

The real answer is they have a pie chart of things they like to see to establish what they consider good credit. They don't want to put all their eggs in one basket so home ownership is one egg out of the whole basket. Plus, it's unfair to penalize people who choose to not own property. Many people in NY for example never buy a condo or home. They rent their entire life and a lot of them are very rich people.

[quote]No shit Sherlock. No one is saying that. What has been said is that you cant get to a perfect score without carrying some kind of long term debt like a car or home loan. As has already been sated numerous times...

[quote]800 = NEAR perfect 850 = PERFECT CREDIT

But what (aside from churlishness) is the point, R166? If a perfect credit score of 850 has no practical advantage over an imperfect score of 849, what's the point of foot stomping about this big distinction?

To be fair, I don’t think it’s possible to specifically aim to get a perfect score and those that have 850 simple fall on the right side of the algorithm lottery.

The chances are better if your credit history doesn’t rely entirely upon credit card accounts.

I’d date a guy in his 20’s with bad credit, but by the time you’re 50 you should at least TRY to improve it because there are bad habits attached to tarnished credit histories that do indeed reflect a person’s character, educated or not. If you get married to them, you wind up being legally responsible for some of it too.

So dont get married, you never heard of just sleeping together? Sheesh.

Ok, snark aside, that's a weak argument to love or not love someone. Life happens and someone could have perfect credit, get in a car accident, maybe never be able to work again, maybe insurance not cover what you expected, etc. All sorts of things can happen that can throw you in financial ruin. Trying to bet the odds by looking at someones credit score as a prerequisite to falling in love reaks more of shopping for a product than a true emotional connection that will last through thick and thin.

There are ways to limit your risk of the other person has bad credit and yours if perfect. You can keeps separate bank accounts, file taxes separately, etc, etc. But to be honest, I know straight couples where one had bad credit and as a expression of love, the one who had the good credit paid off all the debts of the other just so they could have a fresh start. A lot of straight couples do that. I don't know why gay men are suddenly like OH NO BITCH, that's my money, why should I help you with that mess.

I agree. I have a high FICO score (830), but I wouldn't automatically reject someone who doesn't. It is possible to, like, talk to a person, to ask and find out why they might have an imperfect credit rating. Some people may not have understood credit until well into adulthood. Some people might have managed their finances well but, for example, having come from a poorer family, might have used cash more than credit. Some people might have had strong credit destroyed by a sudden major health crisis, which could devastate almost anyone financially. I went to college with someone who was really intelligent, a polyglot who excelled in everything he did, and in his late 20s, he got lymphoma and incurred hundreds of thousands of dollars of medical debt that he is still saddled with in his 40s.

I have 4 major cards (no Amex), with 2 of them over $10k credit limit. I use store cards when it’s an advantage to do so. I use one credit card the most that earns me the most cash back (thanks Sam’s Club). I use my Amazon Prime when shopping Amazon to get 5% discount, same for my Walmart Mastercard, and Lowe’s. I also use a store credit to take advantage of 0% interest deals for larger purchases.

I have all my credit cards on auto-pay, paying off the ‘statement balance’. So I don’t get any interest charges, but I don’t have to pay off the whole balance.

[quote] Some people might have had strong credit destroyed by a sudden major health crisis, which could devastate almost anyone financially.

Except that a responsible person would have insurance and not be destroyed by a major health crisis, not including rare circumstances. The whole point of insurance is to protect a person financially.

R171 here again- Ok, so several posters took my post different than I intended. I had terrible credit when I met my husband and he had a perfect score. BUT I was in the middle of repairing it and had hired a counselor to help, I had several life emergencies but I would've done it eventually whether or not I met him. I have met a LOT of couples that wind up wrecking each other's credit because they 1. can't control spending 2. can't save or 3. are living well beyond their means. These are ALL traits that aren't particularly great to start a new relationship with!

The issue is that even when the chips are down, someone is at the very least ATTEMPTING to better themselves. I wouldn't judge a bad credit report on it's own, but in the larger context of someone's past and present behavior and attitudes about either paying it off or figuring out how to manage it.

I’m also going to say it took about five years to reestablish decent credit, most people want to rush or pay someone else to do it- nothing can speed the process up, you just have to pay all the billls on time and wait for the dings to fall off.

Credit card companies are deliberately targeting poor people, so they shouldn't be surprised when people stop paying the bills. Period. There's only so much people can keep up with before they just drown in the debt.

Hope Biden can get a $10k (or more) student loan reduction through Congress.

OP, answers in order: Yes. No. Yes.

Previously worked in the industry. R169 explains it very well.

[bold] Paying [/bold] on a mortgage (or other big loan), always on time, definitely helps.

Also having only a small number of general purpose credit cards (V/MC/Amex/Discover, like 2) is a plus. Don’t use but a fraction of the credit line - they’ll keep raising it.

Ditto store accounts. I recommend you try replacing appliances mainly when stores offer 12 months interest free deals. Then pay them off On Time no matter what (no,oh gosh I I forgot, I’ll pay triple next month). And do it in TEN months. You pay no interest and it does wonders for your score. (Be late or go three months over, though, and you’re fucked.)

The scoring companies provide the best scores to those who [italic] look [/italic] like they don’t really NEED it.

R164, thank you for getting my point.

R162, why the obsession with "perfect" score? I referenced my "820+" because whether my score is 821 or 840, or 815..it's STILL a good score. I'm getting all the advantages of great credit without feeling the need to pay interest. I just don't get it.

If it matters, I'm with R174. I pay the statement balance each month. That's what I meant when I said paid in full each month.

Lusted for Race Bannon

[quote]Except that a responsible person would have insurance and not be destroyed by a major health crisis, not including rare circumstances. The whole point of insurance is to protect a person financially.

Except that the world doesn't work that way Marie-Antoinette. Most people dont make enough money to afford secondary insurance like that. 50% of small companies don't even offer insurance, The average US salary is 35,000 a year, that's gross before taxes, rent, car, auto insurance, gas, clothing and food. And even if you work for a good company with a good plan, it often fall way short for catastrophic things like long term cancer care.

[quote] I recommend you try replacing appliances mainly when stores offer 12 months interest free deals. Then pay them off On Time no matter what

That's a good tip, assuming your appliance doesn't die unexpectedly before you are ready to buy. But then that's usually when most people wait to buy.

I pay the total amount in full each month. Credit card companies call people like me "deadbeats". One time, I forgot to pay my credit card bill on time. When I logged on to my account online, I was met with a message that I was now being charged a huge interest rate on the amount because of my late payment. And...my late payment had triggered a permanent interest rate increase. It was my first time being late on a payment for that card in 7 or so years, and I was just one day late. (That discouraged me from being late again.)

Welcome to modern credit world and it's many gritfy policies R185.

Gritfy...

I have a few cards. Discover, AmEx, AmEx Blue, a Chase United Miles Mastercard. I also have a Mavis card (backed through Synchrony Bank), Target and TJMaxx. I got the TJM to get a discount on my initial purchase. I rarely shop there so the card is just . . . there. I keep my Discover for major car repairs but, since I bought a 2021 Encore in 2020, it's under warranty.

Does anyone know if AmEx gets reported by the credit companies? When it first came out, it wasn't a revolving charge card. The entire balance was due by the due date. Now, you can choose which charges to pay and when so I guess it IS a revolving charge card. I keep my AmEx green purely out of sentiment. I've been a member since 1987. Back then you had to have a gross salary of $40k to qualify.

I had lots of debt when I got divorced. I needed credit in my name since I went back to my maiden name. That meant having cards in both names. Of course, I needed to use the ones in my name even though I had balances on the joint card. I didn't get into any debt trouble but do remember having less than $50 or $100 in my checking account after all my bills were paid.

To get out of debt, I used Suze Orman's advice . . . sort of. She recommends paying off the highest interest rate balance first but paying the minimum on all other debt until the high interest debt was paid off. Then you move to the next highest interest debt. I paid off the smallest BALANCE first to give myself little wins along the way. It really helped me feel like I was making progress. I highly recommend my method to those drowning in debt.

For those who pay their credit cards through auto-pay, please check your statements. I discovered that someone had charged a $750 Airbnb stay on my AmEx during the pandemic. I called and the charge was removed. The only auto pays I have are household charges like mortgage, electric, gas, cable, cell phone, water. I scrutinize all credit card statements online. To stay on top of payment due dates, I have a recurring reminder in my phone calendar. My score is in the high 800s now. It took some tough love but I'm finally financially comfortable.

Yes, I use a couple of credit cards who offer travel credits or points and pay them off monthly. I use these cards quite often and my annual travel point reimbursement is generally $800 - $1,000. It hasn't always been this way and remember those lean years when I couldn't pay off my balances.

Thanks for the heads-up, R188. A couple of years ago, I had unexpected charges of $700+ on my Discover card. Someone had received my credit card number somehow, and they looked up my address info online (easily available) and used it to create an account with a shipping supply company. They attached my credit card number to the account and then they placed an order for $500 worth of boxes and packing tape. Even though my address is on the East Coast, they had the supplies shipped to an abandoned house on the West Coast. UPS dropped off the stuff in front of that run-down house and then the thieves picked up the stuff. They also used my card to pay for a $100+ taxi ride and a one-night stay at a hotel. At the hotel check-in, wouldn't they have to hand over a physical card with ID?

[quote] Most people dont make enough money to afford secondary insurance like that. 50% of small companies don't even offer insurance, The average US salary is 35,000 a year, that's gross before taxes, rent, car, auto insurance, gas, clothing and food. And even if you work for a good company with a good plan, it often fall way short for catastrophic things like long term cancer care.

The context was what would responsible people do, and yes, they would have insurance. Being responsible also includes making the life choices that would prevent one from being in the 8.6% who are uninsured. The insurance would be primary and with it’s annual out of pocket maximum, it would not be falling way short.

R190, it was Airbnb, not a physical hotel so there was no need to show a physical card at check -in.

In January, I'm thinking of rolling over a 401K from a job I no longer have -- haven't had it in five years, but the account has been growing -- and roll it over to an IRA; then, I can draw on it without penalty (I'm 59 1/2! WHEN did that happen?) and I am strong considering taking out 20K and sandblasting some debt.

The cards won't like it and they'll lower my spending limits but I'm sick of paying off double minimums and still being in debt.

[quote] In January, I'm thinking of rolling over a 401K from a job I no longer have -- haven't had it in five years, but the account has been growing -- and roll it over to an IRA; then, I can draw on it without penalty (I'm 59 1/2! WHEN did that happen?) and I am strong considering taking out 20K and sandblasting some debt.

Can you take the 20k out of savings instead? It would be better to do that than touch money in a retirement account. Let the 401k money grow as long as possible in the 401k account or in a rollover IRA.

What R194 said. Leave your 401k or rollover IRA alone as long as possible. Tap into your taxed / brokerage and or savings account(s) first. You've already paid income tax on the principal (it was after-tax money you used for the initial investment) and you will only pay tax on the gains. After those accounts are depleted withdraw from your IRAs (after 59.5), and leave your Roth if you have one for last.

R193 here; thanks R194 and R195

Because I'm no longer contributing to the 401K and am not an employee anymore of the company I have it with, I was told that if I touch any of it I have to take it all out of the company account altogether.

I'm not sure what to do. I'll seek out an advisor. ideally, I'd get a job back with the company and then borrow on it when I'm an employee again.

r196, you can take it all out, but do it as a rollover directly into an IRA, to keep the tax advantage.

R196, you can call a company like Vanguard or Fidelity and ask them what the rules are for rollovers. A rollover from a 401k plan is a simple process.

Thanks all.

You have no idea what a few kind words mean to me at this time.