Do You Believe in Credit Cards?

[Jermyn Davidson]

Originally Posted by Sherri

Bring those lotto earnings. We will sanctify the devil's money.

Most people I know don't earn anything off of the lotto, but they sure have "invested" in the wealth of some other person, whom they'll never meet. Sadly, most of the folks I know who play the lotto live in the inner city or in some of the rougher spots of MD. Those who win almost NEVER come from these areas.

I think responsible usage of credit cards is a very good habit to develop.

[Encryptus]

Originally Posted by Sherri

I guess I understand that mentality. But I feel like because I have learned to use them responsibly and ALWAYS pay them off monthly, they have become an asset and not a liability to me. The free stays and flights that I earn seem to be a good measure of stewardship.

On the other hand, drinking (although it may be done responsibly) is never really an asset, but just a carnal pleasure.

Well actually responsible drinking, for example a glass of red wine with a meal twice a day would hardly be called a carnal pleasure but has EXTREMELY verifiable health benefits, which think most would label an asset.

[Jermyn Davidson]

Originally Posted by Encryptus

A lot more involved than can easily go through on this format. Will be glad to PM you some articles.

But one small example, most people are not aware that having too many credit cards EVEN IF PAID OFF TIMELY can actually result in a lower credit score.

But the timely payment history will definitely be consoling to a banker to see when that person goes to apply for a home loan, especially if they are paid off.

[Sherri]

Originally Posted by Encryptus

A lot more involved than can easily go through on this format. Will be glad to PM you some articles.

But one small example, most people are not aware that having too many credit cards EVEN IF PAID OFF TIMELY can actually result in a lower credit score.

I did find this out once. I had several store credit cards that had zero balances that I had taken out to get the "15% discount with first purchase" or whatever (thinking I was being wise). I then immediately paid them off. What I did not realize was that your credit rating is based on the amount of AVAILABLE credit you can have compared to your income, not on just what you owe!! I have since cancelled everything but Visa, American Express and Macy's, and those also have zero balances every month.

[Rico]

Originally Posted by 1399

But the timely payment history will definitely be consoling to a banker to see when that person goes to apply for a home loan, especially if they are paid off.

Brother, your debt to income ratio plays a bigger role in determining credit worthiness than your payment history. Your payment history can help you qualify for a better rate, but having a bunch of credit cards with high available credit limits will hurt you, especially if you are trying to buy a house.

[LaGirl]

we have one that we pay off every month. my husband HATES credit cards.

[Hoovie]

It just depends on whether you have them or they have you.

[Jermyn Davidson]

Originally Posted by Rico

Brother, your debt to income ratio plays a bigger role in determining credit worthiness than your payment history. Your payment history can help you qualify for a better rate, but having a bunch of credit cards with high available credit limits will hurt you, especially if you are trying to buy a house.

Well, I can only speak what I have been told. I remember distinctly being turned down for loans when I did not have credit cards because I did not have any credit history. My first car loan interest rate was double digits high, because I did not have any credit history. My first cell phone, my gas and electric-- all did credit checks and when I did not have a "significant credit history", my initial deposits were high.

A few years later, several credit cards later, I was able to purchase my home at a nice interest rate last year. Then, I was able to refinance earlier this year for an even nicer rate!

This is possible by God's grace and having a significantly positive credit history.

[seguidordejesus]

Sherri, we use ours for the exact purpose you do, and not anything else.

[RevDWW]

Yes I believe............I've actually seem them...........








Seriously, with the recent passing of my Dad, I was able to pay off all our credit cards. My wife and I each have one with minimal balances. We are trying to live as debt free as possible. Our only major debt right now is our home. But we were renting it before we bought it and our mortgage is less then what we were paying for rent. Thank the Lord!