Dumped a Credit Card today

Discussion in 'Financial Cents' started by stg58, Apr 11, 2014.

  1. stg58

    stg58 Monkey+++ Founding Member

    I had 3 CC and I paid 1 off and closed it out today...

    Visa: "Sir we are sorry to lose your bu$ine$$ we can drop your interest rate and extend your line of credit"

    Me: "hear that sound? That is my shredder shredding your card [gun]

    I will probably dump one more soon with one as an emergency reserve and for travelling.
  2. Dunerunner

    Dunerunner Brewery Monkey Moderator

    Just transferred the balance from one to another, at 0% for 12 months. That balance will be paid off 3 months earlier and no interest!! Woot!
    Marck, Sapper John, Mike and 4 others like this.
  3. Yard Dart

    Yard Dart Vigilant Monkey Moderator

    Very nice, something we should all be aspiring to do. Getting out of debt should be one of the top things you do. No CC debt= piece of mind!!!
    BTPost, kellory and Dawg23 like this.
  4. BTPost

    BTPost Old Fart Snow Monkey Moderator

    CC's are not the problem.... It is the restraint from Spending, what you do NOT have, and can not Repay, before the Interest Accrues....
    THAT is the Issue.... When you use them, this way, you incur DEBT, and THAT is where the Fallacy snares you..... If you have a Big Line of Credit, and use it for ONLY what you can afford to Repay, before Debt, and Interest Accrues.... You will be using THEIR Money for FREE, and THAT Makes you Smarter than "The Banksters".... If you do NOT Repay them before Debt, and Interest Accrue, They Have You, and you are not as smart as they are.... and THAT costs you Money.....

    I have a few Credit Lines, for my Business, that are 6 figures, and were built up over 30 years.... I use these Accounts all the time, HOWEVER I haven't paid "The Banksters" a Penny in Interest, in Decades. I NEVER spend more than I can Repay, each Month.... I take their Miles and Rewards, but pay NO Interest or Annual Fees. I use their Money, for FREE, and get My Rewards. All my Banking is Online, and I transfer Money, to Pay each Account, before the 30Day Grace Limit is up, on each Account, EVERY Month.

    "The Banksters" make it easy to do this, in HOPE, that you are To Stupid, to maintain your solvency, and they HOPE you spend more than you can PAY.... If you have the "Self-control, and Discipline, to only spend what you can PAY, it is easy to use their MONEY, for your own purposes.....

    ...... YMMV.....
  5. Mountainman

    Mountainman Großes Mitglied Site Supporter+++

    I do the same thing BT. Pay off the CC each month and don't buy anything that I can't cover. Collect the CC rewards and don't pay any interest is great, screw them!
    BTPost likes this.
  6. Motomom34

    Motomom34 Moderator Moderator Site Supporter+++

    Careful with closing those accounts. It will hurt your credit rating. One of those no win situations. You pull a line of credit it hurts your rating, you close a card it hurts your rating. You apply for a job and they pull a credit report, it hurts your rating. If you are planning on a purchase or refi, leave your cards dormant but don't close cause it will effect your interest rates on future purchases.

    Btw- congratulations on paying it off.
  7. ReadyYankee

    ReadyYankee Monkey

    I don't prep for the End of the World; I prep for the end of MY world.

    EMPs, supervolcanos, nuclear winters, economic collapse may or may not occur but there events which are more likely to occur that could affect me, or anyone, significantly such as job loss.

    I grew up in exurban or rural areas before cell phones were common and the service sucked, so I needed to know how to change a tire and if my car broke down then I was walking so a bottle of water handy was always a good idea.

    I was laid off the same year my former employer posted record earnings and record profits - and I made "Presidents' Club" - you're welcome boss.

    My part-time gig as a graphic designer and my 401k saved me. I started a garden to reduce food costs but also to personally reduce stress. I suppose this is when you can say I "started prepping." When I found a job that paid at least 60% of what I had earned, 132 weeks later, that's when I started "serious prepping."

    What's more likely to happen Red Dawn or a checking account in the red after a job loss or a business downturn?

    A clean credit card with no balance due is just as valuable as a three month supply of canned food or a few ammo tins.

    I recently paid off a card as well, I put it in the back of my wallet, and back of my mind, for the same reasons I took it out in the first place - EMERGENCIES.

    Not a beer emergency. Or a male impulse gotta have the new gun, or new video game, emergency.

    A real emergency.
    Last edited: Apr 12, 2014
    3cyl, Cruisin Sloth, stg58 and 5 others like this.
  8. Mountainman

    Mountainman Großes Mitglied Site Supporter+++

    Wait a minute. Getting a new gun you want is pretty close to being an emergency!!! Just be able to pay it off at the end of the month.
    stg58, Sapper John, oldawg and 3 others like this.
  9. Yard Dart

    Yard Dart Vigilant Monkey Moderator

    Getting ready to pay off all credit debt except the house and vehicles at the end of the month...a long journey for sure. :5s:[beer]
    Pax Mentis, 3cyl, Sapper John and 3 others like this.
  10. Yard Dart

    Yard Dart Vigilant Monkey Moderator

    I agree with Moto on this one.... great to pay off a credit card but don't close the account without consideration to the credit rating. In the short term your rating will actually get hammered vs showing the benefit of eliminating debt... stupid... but that is the way it goes.
    3cyl likes this.
  11. mysterymet

    mysterymet Monkey+++

    I like the put the in water and keep them in the freezer trick. That way it is still there if it's a true emergency but not easy to get to that you end up buying junk with it.
    Marck and Yard Dart like this.
  12. Motomom34

    Motomom34 Moderator Moderator Site Supporter+++

    I had my credit score pulled today and it dropped! I was stunned. How does that happen? I use my cards sparingly, bills paid on time. Yet it went down. Nothing has changed.

    Though it seems they ding you now for having open cards but no balance but then ding you if you do. Something is not right.
  13. Yard Dart

    Yard Dart Vigilant Monkey Moderator

    You need to use your cards from time to time, and pay them off at the end of the month when the bill comes. They will penalize your score for not using your line of credit, just as they will penalize you for maxing your credit line. We have seen the same thing when we let cards go "dormant"....:mad:

    A good tactic is to use the envelope plan for your grocery money, but use your couple of CC's to make the purchase. Then drop that cash in the bank and make the CC payment each month.... if you have that discipline. ;) That will reflect a great payment record and your credit score will show that trend.
    Last edited: Aug 18, 2016
    Motomom34 likes this.
  14. oil pan 4

    oil pan 4 Monkey+++

    Closing accounts hurts credit rating.
    Best thing to do is get them and use them for stuff you have to have like bills and pay the credit card balance in full every month.
    If you have credit cards they need to see some activity or they would be closed for you in the next credit crunch which looks bad even if your accounts were always in good standing and they closed them to shed their own credit liability.
    I just use my credit card for day to day purchases and pay balance in full at least once a month.
    So I have a ton of activity and no balance.
    Once you are out of debt and you are not making the banks rich any more you wont believe how much money you have then you can start collecting piles of $100 bills, buying stupid stuff like gold and silver and doing stupid stuff like paying cash for larger purchaces (or buying it on your credit card and payng it off that month).

    Believe it or not I know people who have made well over $100,000 per year and were broke all the time. They bought everying on high interest credit and bought a huge house they didn't need at all.
    Motomom34 and 3cyl like this.
  15. Yard Dart

    Yard Dart Vigilant Monkey Moderator

    Motomom34 likes this.
  16. chimo

    chimo the few, the proud, the jarhead monkey crowd

    Credit Rating = Sucker Rating...it indicates how big of a sucker you can be. They love to lend money to suckers...and they'll even charge less for the biggest suckers because they know they'll get more repeat business from them than from an average sucker.

    My sucker rating dropped a little when I paid off and closed all but one of my credit cards....for a little while. Within a year it was higher that it was before I did so. Don't carry debt just to prop up your sucker rating.
    Motomom34 and Ganado like this.
  17. oil pan 4

    oil pan 4 Monkey+++

    That is how I see it too.
    Once you have a house that's paid off and get smart enough to not be hung up on having a new car all the time then credit rating becomes kind of irreverent.
    Problem with credit is it gives instant gratification by allowing people the appearance of living well beyond their means but is actually just enslaving you to a life time of debt in most cases.
    Motomom34 likes this.
  18. Ganado

    Ganado Monkey+++

    You are not your credit score. your credit score changes like the wind based on 3 separate businesses and their secret formulas. pfft... low this year high the next... just mange your money for you and your family and let the score fall where it may!
    Legion489 and Mountainman like this.
  19. Motomom34

    Motomom34 Moderator Moderator Site Supporter+++

    I think you are on to something because I have good credit, one of the good guys, I would eat dirt before I have a past due bill. So when I called my banker(who knows me well) for a mortgage rate because they are at an all time low he said 4%. 4%??? I asked him about the record lows but he said that was just news people talking. What? If he thinks I am a sucker and have blind loyalty to him, he will be really sad.

    You cannot just let it be. It is as important as your SS#. I have heard of companies pulling credit ratings as part of the hiring process. We are no longer based on who we are but what is on paper.
    Yard Dart likes this.
  20. ghrit

    ghrit Bad company Administrator Founding Member

    An unfortunate truth, what's on paper (and what the rumor mill has to say about you. If you aren't on "social media" they can't sell rumors.)
    Cruisin Sloth and Yard Dart like this.
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