durasmack

Hohn nailed it.

displacedtexan

He usually does. And this post was a lot simpler than most of em. I usually have to read his posts a few times

DodgeCowboy

I beg too differ hon you can make them work if your smart about it. I have two credit cards that I cut the limits off at 2000 for both of them one is for the ranch and i put every thing on it so i have a record or stuff bought for the ranch it gets paid triple the monthly payment if the monthly payment is say 30 i pay 200 or so and then that card gets paid off in October when I sale my calf's. The second card i have is for every day big expense's such as truck work or stuff i need and i do the same thing with the monthly payment and I pay that one off each April when i get my tax returns. The trick I have learned is to figure roughly what your interest a month is and factor that it and always pay above that amount.

HOHN

Cowboy, you have extenuating circumstances that apply to very few people.

If I got paid once a year, I'd probably have a similar plan as yours.

Dieseldude4x4

I'm very near that point now. I'm tired of throwing money away on money. Just cancelled five cards and only got one left. If you ever need to rent a car or anything, a card is almost a necessity.

hotdram

One word: DISCIPLINE

We have an American Airlines M/C that gives you one AA mile for every dollar spent. We charge all expenses to it, except utilities, mortgage and vehicle payments. Food, fuel, Target/Wally World runs, Rob's toys (Best Buy, etc) all get put on the card. The interest rate is horrible and I would never carry a balance on it. We average about $2000-$2500 a month on the card but pay it off every month. When we got the card, they had a promotion for 20,000 miles if you made some purchases. So we got that plus over 2000 miles a month. You only need 25,000 miles to redeem for a free ticket. Works well for us, but again one word: DISCIPLINE.

EDIT: I keep track of my expenses using Quicken. As soon as I make a purchase on the M/C, I subtract that amount out of my checking account because I know I have to pay that amount at the end of the month. That way, I can make sure that my M/C expenditures do not exceed what is available in my checking account. I would recommend a program like Quicken or MS Money to keep track of expenses.

Good luck,
~Rob

Sidewinder

I have credit cards with very high interest rates but I don't care. They both have have no fees and offer some rewards for use. The reason I don't care what the interest rates are, is - I never pay interest!! Just pay the balance off (IN FULL) every month and who cares what the rate is. That allows me to choose the card that has all of the best features I want. If I can't afford to pay it off something that month, I don't buy it! Sort of like using cash.

Remember - the credit card companies are out to make money! BUT if they loose on some customers they will still make up for it and more on others. It's the other guy that is subsidising my rewards.

I PASS GAS

It's all about selft control. If you don't want to be overweight, you don't eat the doughnut. If you don't want cancer, you don't smoke cigerettes. If you can't afford it, don't buy it! I don't understand how someone with multiple maxed out credit cards can blame the CC company...look in the mirror.

I'm 24 and am getting ready to buy a home for the first time. As it was mentioned before this can be used as a tool. I'm sure I would not get much of a home loan if I had not taken the effort to build my credit. In the last year, my credit score has upped itself over 100 points.

Besides that, I have received about $800 in rebates just by using it. Sounds like a great deal, huh? Had I been paying interest by not paying off the statements in FULL, that would have been going right back to the CC compnay...but it's mine oh, mine! Who wouldn't want that?

Another issue I have...it's 2007 people! Cash is out dated. Why would you go for a day of shopping carrying all these filthy bills, and have to break a 20 for a $16.37 purchase? Now you have more weight to carry in your pockets, and have ticked the guy off behind you by holding him up. Haven't you seen the commercial??? Swipe the card, and walk away! At the end of the month, log into the CC's website, and in about 10 clicks, the bill is paid. Just remember to pay in full...

irocpractice

Hon and a couple of others are on the mark.As a small business owner I want to leave an audit trail just in case IRS wants to hassle me.BUT I also want to have a win win situation for me.So,if I use the flying J fuel card for a discount and,pay the account with an American Express rebate card,I have lowered my fuel bill by .06 per gallon for no extra driving or effort.Right now I happen to use American Blue Cash and Discover cards.Discover is one of the easier cards to obtain.BUT the only way any of these suggestions or ideas are going to work is FOR YOU TO ASSUME THE RESPONSIBILITY TO PAY THE ACCOUNT IN A TIMELY FASHION each and every pay cycle without exception.All the best to you.

D2 Cat

Hohn is spot on! One additional benny is with your CC you have someone to back you up when you contest a purchase.

Few years back had some auto work done in Boulder, Co. by a recommended shop. Replaced an O2 sensor. Got 150 miles down the road and had the light come on again. When I got home I contacted the shop with the only solution to them was to bring the vehicle back to replace again. CC company went to bat for me. I had it fixed locally and didn't pay twice.

I charge virtually everything on CC, pay off each month, no interest paid in at least 14 years. DISCIPLINE yourself-or THEY will!

BlackSunShyne

Ahh yes, the old, "credit cards are evil" speel. Holds almost as much water as the "all guns are bad" Hooplah.

They are both the same in the fact that if you respect them, and use them wisely you have a great tool.

Get a credit card that fits YOUR financial situation, use it, but with the thought in mind that you are paying cash. In that I mean that you should already have the cash to pay out the balance at the end of every month. You benifit from building credit, and have to pay no interest fees.

Rampage1967

Let's put it this way . . if you have it, use it responsibly.
If you are the kind who considers toys a necessity . . skip the card. You will be happier without it. My own personal rule is, if i can't reasonably afford it . . I do without it. (learned the hard way)
As far as building credit goes . . it you want to . . take out a bank loan & pay it off responsibly.

Timmay2

Good points..

I personally set a new rule not to buy anything on credit that depreciates in value!

This is going to be interesting.

whitebuffalo

20% on 1000 is 200 dollars, not 20.

that being said, credit cards are fine as long as u dont build up a large balance. they get out of control quick with those high rates.

also, fwiw, i would never use a debit card for online purchases. if someone gets ahold of those numbers (and it DOES happen) you are responsible for the lost money. On a credit card, you are NOT responsible. i have one card that i strictly use for online purchases so i can keep an eye on its charges just in case.

i have another card i use for fuel that gives 5% back or 1%, depending. every little bit helps.

AggieJustin

You can use credit cards (and get some decent rewards) as long as you use the credit card like it was cash. Just because you have a $5000 credit line, doesn't mean you have $5000 to spend. I used to use my debit card for everything, but recently switched back my credit card to pick up rewards. But I don't put anything on the credit card that I can't afford to pay off that month. The interest charges pile up way too fast. If I do go for a big purchase somewhere, it will usually be when the store has their own special financing offer running so I'll use their better rate instead of sticking it on the credit card.

If you don't have the discipline to spend wisely and pay it off the same month, just put the cards away and stick to cash.