First credit card?

Josh wrote: Egnorant - I suppose you also think it's the gun's fault whenever someone gets shot, or the car's fault whenever someone drives one into a tree. Not to say that there isn't some inherent financial danger in the world of credit cards, but, used by a responsible adult (as evidenced by the fact that he would even ask these questions rather than just signing up to get a free t-shirt), they can be useful tools that help you run your life, and can even save you money in MANY situations via cashback or free warranty/insurance coverage on the things you use it for. To suggest anything otherwise is following the same logic that would have us all stripped of other useful things that have some potential to harm us, like cars, or knives, or the right to walk around alone outdoors. Sheesh.

Credit cards are designed to promote irresponsibility and take advantage of the fact that most people will not go to extrordinary measures to understand the rules.

Your comparing apples to hammers here. Should a gun company require kickbacks from ammo companies or design a safety that will work for 6 months and then require an $8.95 monthly payment to keep it working then we may be a little closer on our comparisons.

Do some people have a lifestyle that makes credit cards an ideal tool? Yes, certainly! Even I have a credit card and have situations where it is the desirable tool.

Is Slick in a position to use his new credit card to his benefit.

I still say no.

Bruce

egnorant wrote: Credit cards are designed to promote irresponsibility.

Um, ok... I suppose guns are designed to put bullets in people and make them dead, but that doesn't mean I can't be trusted to know the difference between putting holes in people or putting holes in little pieces of paper with rings on them.

egnorant wrote: Your comparing apples to hammers here. Should a gun company require kickbacks from ammo companies or design a safety that will work for 6 months and then require an $8.95 monthly payment to keep it working then we may be a little closer on our comparisons.

I read this several times and I can't figure out what you are talking about here. I'm the only person responsible for how I use my credit card, the bank that issues it is not to blame for whatever I decide to do with it. If anything, that's the greatest advantage of it, that I actually have MORE control over what happens to my money when I use it. I get free warranty extensions, loss protection, free rental car insurance, and the fraud liability protection is much better than debit cards (which have limited protection) or cash (which have none at all). I use one for pretty much all purchases over $100, or when I have any fear that I won't get exactly what I paid for, I pay them off right away, and I have no doubts I am better off for it.

Hey, I'm living proof you can have a credit card (or two) and use it responsibly. So I won't tell you that you should never, ever have one. But, I've met so many people who have charged too much on cards that can't pay it off that I realize how easy it is once you become addicted. They are dangerous. The CC companies know this; that's how they stay in business. When it's not really 'cash' passing through your hands it's very easy to spend beyond what you can pay back quickly. They require real maturity and discipline, something very few college age people posess.

Josh wrote: I'm the only person responsible for how I use my credit card, the bank that issues it is not to blame for whatever I decide to do with it. If anything, that's the greatest advantage of it, that I actually have MORE control over what happens to my money when I use it. I get free warranty extensions, loss protection, free rental car insurance, and the fraud liability protection is much better than debit cards (which have limited protection) or cash (which have none at all). I use one for pretty much all purchases over $100, or when I have any fear that I won't get exactly what I paid for, I pay them off right away, and I have no doubts I am better off for it.

I am glad you are of the surprisingly small percentage that actually handles your affairs well. I agree with everything you said. You credit card use is smart and backed up by cash available at the time a purchase is made. You are not the credit card companies profit center.

A lot of folks either ignore or delude themselves into believing that they are handling their credit card debt. Cha-Ching..profit!!

Slick is asking the best way to do a bad thing. What happens in a year when he still has $1000 to pay with a credit limit of $4000? Another 2000 on the card? Rationalized by the fact that he has been keeping up with the minimum payments without trouble, he may push that 3rd year on the card. Suddenly he pays attention and wonders why he has been paying for 2 years, say $2400 and still owes $5200 when he borrowed $6000!!

Those of you with a credit card balance I offer this challenge. See how much of your payment is principle and how much is interest. Divide your balance by the monthly principle amount and you will see how many months are remaining. And what is the ratio of principle to interest.

Bruce

ddavidv wrote: They require real maturity and discipline, something very few college age people posess.

Thanks for lumping me in with that crowd. I don't think somebody could describe me as a typical college person, or a typical person for my age I mean, you can try (which you did) and it won't hurt my feeling.

To me, Slicks plan sounds perfectly reasonable. And the way you described racking up $8k in debt sounds just plain retarded. Now, if you want to pick on a typical college age person, by all means pick on my sister. She did get herself in deep, had to take a year off of college to pay it off, did some damage to her credit score, yadda yadda. And I have no qualms about calling her an idiot

ddavidv wrote: When it's not really 'cash' passing through your hands it's very easy to spend beyond what you can pay back quickly.

A lot of people say this, but I really feel the opposite. The quickest way to get me to spend some money is to put cash in my pocket, because I've already seen it deleted from the accumulation in my bank account, I know I never have to pay it back, and I know it won't affect my debt ratios or credit score if I spend it. When I put something on a credit card it's because I am sure that I want or need to spend this money and am prepared to deal with the responsibility of paying it back. It's cash that feels less "real" for me because when I use it I don't have a record of exactly what I did staring me in the face whenever I get a statement or log in to my online accounts. Maybe this is sort of a generational thing, because most of the people I hear this from are older than me. Meanwhile I've had a debit card since I was 14. To me, plastic is "real money".

Josh wrote: Egnorant - I suppose you also think it's the gun's fault whenever someone gets shot, or the car's fault whenever someone drives one into a tree.

The difference is that guns and cars are inanimate objects. Credit cards are revolving loans made by people. People who have created a set of rules designed to get people to go into debt that they cannot easily repay. Then, the goal is to charge them outlandish interest rates to keep them indebted and paying. The whole thing is like a financial pitcher plant; easy to fall into, hard to climb out.

I've got a little personal experience with this. Fortunately, I didn't fall in deeper than I could climb. I did some thinking on what I paid in interest, and it sickened me. I could have bought pretty much all of my realistic wants with the money that went to interest.

The only financial entities I consider worse than credit card companies are the payday and title loan companies. I'm not at all religious, but those places in the Bible where they talk about not letting money lenders into the temple and such always make me think of payday lenders and credit card companies. I picture a bunch of slick talking, fine print writing, slimy bastards wearing sandals.

My advice to Slick is to get a card. Use it very, very sparingly. If you can't pay it out of your checking account or cash, then you probably shouldn't use a credit card. There are a few rare exceptions, and you have to have a workable plan to get things paid off as quickly as possible.

I've got a little personal experience with this.

Sounds like somebody asking if they should have a beer and a recovered alcoholic going NOOOOOOOOOOOO. Sorry, but it sounds like you got a little "addicted" to credit. Definitly NOT the credit card companies fault. Maybe you should accept responsibility for your actions?

I feel like picking on someone after that whole getting lumped in with the crowd comment, not cause I care but I feel like spreadin' tha love

Can you park your canoe in the motel?