do you carry a CC balance?

[Patriotsfatboy1 1,432]

Never carried a balance. If an issue happens, I have a savings account to pull from instead of taking on CC debt. I carry an occasional car payment (low rate, short-term) and a mortgage. Pay everything else off each month. I use my CC for the cash back and nothing else.

[WhiteWonder 2,171]

Now triple it with a wife and two kids.

 

Bert, bandrus, WW, Strike, yourself. Most everyone posting in this thread is not married or don't have kids.

 

A credit card is a necessary evil on occasion. That's the real world. At least to those who choose to be richer in other areas of life.

 

Still, why would the married with kids people, if they are home owners, carry any CC debt when you can take out a home equity loan and consolidate that CC debt into a credit vehicle with 1/4th the interest rate?

 

i cant imagine all married with kids people have bad credit or no equity in their homes

 

i think its much less about married or not / kids or not and much more about spending habits. sure, having a wife and kids brings with it a higher risk of an "oh shiit" moment, but generally if you've grown up practicing sound financial habits, you're likely to continue them.

[NorthernVike 2,080]

I never carry a balance, I hate paying interest. Hit black status last year after paying for a Disney trip.

[DankNuggs 305]

Just make extra payments. I never understood why anyone would get a 15 year mortgage. A very small interest rate deduction?

Go run a couple amortization schedule scenarios with 15 vs 30 year debt. The difference is how huge in total interest paid.

[vuduchile 1,941]

When I was young and dumb I had a cc balance for a couple years.

 

I've carried a ton of CC balance while I was getting my biz off the ground. I had 7 different cards maxed out at one point. It was a very expensive way to jumpstart a biz, but banks and investors weren't exactly waiting in line to give me money 5 years ago.

 

Now I have one card that sits at home. I can't remember the last time I used it.

[posty 2,296]

Never once in my life. I use a card for almost every purchase I make. And pay in full every month. And then happily collect my 3% cash back every few months.

I have always wondered about the "cash back" item... One has to declare the "cash back" on your taxes, correct?

[patweisers44 697]

I have in the past as I'm sure pretty much everyone did. I use them often now and for the most part pay them off every month. The thing that stops me is laziness. Our day-to-day account is on-line, however our secondary accounts (savings, emergency fund, etc) I have set up at a credit union and purposely not signed up for on-line access. Knowing I have been undisciplined in the past FORCES me to drive to a B&M place to conduct business there. At times a carry a balance from month to month only because I would rather pay $25 in interest on the card than drive to my Credit union. Lazy, I know, but it works for me.

[WhiteWonder 2,171]

I have always wondered about the "cash back" item... One has to declare the "cash back" on your taxes, correct?

I'm not a tax expert.. i do my own...but I've never seen a place where I've needed to list my cash back rewards for the year

[patweisers44 697]

I have always wondered about the "cash back" item... One has to declare the "cash back" on your taxes, correct?

I would imagine it would have to be over a certain amount, but I don't really know. I would say just treat it like you treat the "cash" income from your various DJ gigs.

[Patriotsfatboy1 1,432]

I have always wondered about the "cash back" item... One has to declare the "cash back" on your taxes, correct?

 

No, the IRS views it as sort of a rebate on a transaction. It is not income. It is just a discount that you get and they already taxed you on the money that you are paying with.

[WhiteWonder 2,171]

 

No, the IRS views it as sort of a rebate on a transaction. It is not income. It is just a discount that you get and they already taxed you on the money that you are paying with.

This makes sense. It's not interest income. It's more like a mail in rebate which if you ever do you don't list on your taxes.

[edjr 5,557]

carry a balance. HAH!

 

where do you think you are?

 

fantasyfootballghetto?

 

GTF out of here. a balance

[BLS 313]

I have probably 12-15 credit cards, none have a balance.

Aside from my 2016 truck, I have no debt, and the only reason I have the truck is to keep my credit score from tanking.

 

I used to live that way (with credit card debt)...never again.

[penultimatestraw 473]

I have probably 12-15 credit cards, none have a balance.

Aside from my 2016 truck, I have no debt, and the only reason I have the truck is to keep my credit score from tanking.

 

I used to live that way (with credit card debt)...never again.

why so many cards?

[bandrus1 413]

although i dont agree with BLS on many things I think he is a smart dude... would like to hear why so many cards open

[edjr 5,557]

although i dont agree with BLS on many things I think he is a smart dude... would like to hear why so many cards open

 

I have like 10 open.

 

My credit is perfect, well 800+, not perfect.

 

doesn't hurt to have them open.

[bandrus1 413]

 

I have like 10 open.

 

My credit is perfect, well 800+, not perfect.

 

doesn't hurt to have them open.

 

 

but what is the benefit? open accounts are just opening the possibility of identity theft

[Kanil 519]

Generally no, but I have had a couple emergencies pop up that required it.

[WhiteWonder 2,171]

 

 

but what is the benefit? open accounts are just opening the possibility of identity theft

An open CC with paperless statements that you never use and don't carry around with you is probably at very minimal risk for identity theft.

 

Likely people with that many cards don't want to close them because they have been conditioned to think it will ruin your score

[parrot 789]

No balances. Usually only use them for larger purchases or online. Pay them off every month. Mostly use a debit card for daily purchases. Probably kind of dumb not to take advantage of rewards programs, but I hate how credit card fees hammer businesses.

[Frozenbeernuts 1,652]

For those who pay cash, does it affect your credit never having a card?

[edjr 5,557]

Have to love the geek board

[WhiteWonder 2,171]

For those who pay cash, does it affect your credit never having a card?

Only in the sense that if you've never had a credit card or loans of any kind you would have 0 credit history which is about as good as having poor credit.

 

I believe if you've built up a good credit score I the past and then stop using all form of credit completely, your score will slowly go down.

[vuduchile 1,941]

For those who pay cash, does it affect your credit never having a card?

I'm sure it might, but revolving cc debt is only a part of your credit score. Auto loans, mortgages, home equity loans etc are all factors.

 

My score has been all over the board in the past 5 years. When I had all the cards maxed out, the score dropped a bunch due to high utilization.

[Hardcore troubadour 12,627]

Go run a couple amortization schedule scenarios with 15 vs 30 year debt. The difference is how huge in total interest paid.

Sure, but if you're making the extra payments that has to be factored in. If you just do a side by side comparison it's not really accurate. Also, I would say you're better off with the 30 If you're not maxing out your 401k. Put the difference in there, and get a tax reduction through the years, and hopefully a good return on the investment .

[parrot 789]

Only in the sense that if you've never had a credit card or loans of any kind you would have 0 credit history which is about as good as having poor credit.

 

I believe if you've built up a good credit score I the past and then stop using all form of credit completely, your score will slowly go down.

 

This happened to us. We were 800+, then we paid off the house and didn't have any car loans for a couple years and it started to creep down a little. It was still high 700s but it was kind of strange to see out credit score dip when we had no debt at all. Luckily the wife bought a new rig last year.

[mobb_deep 917]

 

Still, why would the married with kids people, if they are home owners, carry any CC debt when you can take out a home equity loan and consolidate that CC debt into a credit vehicle with 1/4th the interest rate?

 

i cant imagine all married with kids people have bad credit or no equity in their homes

 

i think its much less about married or not / kids or not and much more about spending habits. sure, having a wife and kids brings with it a higher risk of an "oh shiit" moment, but generally if you've grown up practicing sound financial habits, you're likely to continue them.

 

 

I have kids and a mortgage, etc. etc. It's about living within your means, tracking your expenses, budgeting, blah blah. I'm not going to sit here and say I've never carried a balance, because I have. But I try to use my CC only for emergency issues, and pay it off as quickly as possible. I don't even carry a CC in my wallet.

[Thornton Melon 544]

I don't think I've carried a credit card balance in over 15 years. I don't even think about it...just pay it every month. Anything we were gonna spend anyway and can put on the card, we do: gas, groceries, car repairs, cell phone bill, cable/internet, propane, whatever. Always try to maximize the cash back rewards without going crazy.

[cyclone24 1,814]

For those who pay cash, does it affect your credit never having a card?

Im sure a little but who cares if it drops a little when you have the cash?

I mean we bought a minivan cash...so we didnt need the credit.

I dont intend that to be a hey look how much $ we have...i mean its a minivan...but we just for us hate owing money.

[DankNuggs 305]

Sure, but if you're making the extra payments that has to be factored in. If you just do a side by side comparison it's not really accurate. Also, I would say you're better off with the 30 If you're not maxing out your 401k. Put the difference in there, and get a tax reduction through the years, and hopefully a good return on the investment .

both good options

[bandrus1 413]

both good options

 

 

Agreed... there are a lot of different paths to take

[tanatastic 2,061]

Usually 2k or less.

[BLS 313]

although i dont agree with BLS on many things I think he is a smart dude... would like to hear why so many cards open

 

Numerous reasons, and I actually closed some as I was paying them off, and it ruined my credit for the short term.

So I left them open. Plus I get some benefits on some cards, so I'll use them to buy things, and then I just pay the balance each month.

 

I'm not in 'gaming' cards, in an effort to earn points, etc. But I use them to save on purchases at certain stores etc.

 

I have about 6 months worth of bills/living expenses in savings, and contribute about 15% into my 401k each pay check (but I did that WAY too late).

 

I made a metric shitton of mistakes when I was younger, and I'm feverishly trying to make up for that. Time will only tell.

I'm sure I'll make more mistakes along the way. It is what it is.

 

ETA: My credit score is about 780

[penultimatestraw 473]

I have like 10 open.

 

My credit is perfect, well 800+, not perfect.

 

doesn't hurt to have them open.

 

It increases the likelihood of identity theft/fraud, as well as your junk mail.

[penultimatestraw 473]

This happened to us. We were 800+, then we paid off the house and didn't have any car loans for a couple years and it started to creep down a little. It was still high 700s but it was kind of strange to see out credit score dip when we had no debt at all. Luckily the wife bought a new rig last year.

 

I'll be in the same boat I suppose, but I don't plan on taking out any loans for the foreseeable future, so I guess it doesn't matter?

[tanatastic 2,061]

Shocker, everyone has perfect credit (after overcoming personal heroic hardship of course, Focking eyeroll) and no one owes anything. Sure.

[edjr 5,557]

It increases the likelihood of identity theft/fraud, as well as your junk mail.

 

 

I get no junkmail and all my statements are electronic.

 

 

 

https://www.consumer.ftc.gov/articles/0262-stopping-unsolicited-mail-phone-calls-and-email

[BLS 313]

Shocker, everyone has perfect credit (after overcoming personal heroic hardship of course, Focking eyeroll) and no one owes anything. Sure.

 

My credit score isn't perfect. I have debt on my truck, but that's it.

I rent currently so no mortgage. If I had purchased a house, then yes, I would have a mountain of debt.

 

Don't believe me, do you?

 

Wanna bet?

[edjr 5,557]

 

My credit score isn't perfect. I have debt on my truck, but that's it.

I rent currently so no mortgage. If I had purchased a house, then yes, I would have a mountain of debt.

 

Don't believe me, do you?

 

Wanna bet?

 

 

you dont have a mortgage?

 

#poorpeopleproblems

[BLS 313]

 

 

you dont have a mortgage?

 

#poorpeopleproblems

 

I rent currently. Saving for a significant down payment on a house.