Low Credit Scores (1 Viewer)

[Franknbeans]

anyone try this on purpose?

 

[Mario Kart]

I'm trying to get mine over 400. It's at 360 right now.

 

[Baloney Sandwich]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

 

[jon_mx]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

 

[Run It Up]

Afraid to check my credit score, no idea how no debt from 15-24 years old and then 250k+ in outstanding debt (going on 6 months now) in a month reflects.

 

[Dippa]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

Yeah, I was thinking pretty much the same. The "living within your means" part of it is good, but what happens if you actually really need a loan?

Seems more like they couldn't handle the temptation to overspend, so they overcompensated and eliminated it completely.

 

[jon_mx]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

Yeah, I was thinking pretty much the same. The "living within your means" part of it is good, but what happens if you actually really need a loan?

Seems more like they couldn't handle the temptation to overspend, so they overcompensated and eliminated it completely.

I think they are trying to make a statement against our credit-based economy. Everyone is using credit cards and other types of credit, which is driving the cost of doing business up having to add a credit company in the middle of every transactions and the associated fees with them.

 

[Baloney Sandwich]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for

certain things with credit and pay it off each month.

why use credit at all?

Paying for everything in cash is a pain, especially for big purchases. So say they use a debit card, safer to make purchases with a credit card. Plus, who knows what type of life event might come down the road that might require one to have a credit line. Again, I think it is a great idea to wipe out all your debt (I only have debt from my home) but why not optimize your ability to obtain money if ever needed?

 

[Sarnoff]

I'm trying to get mine over 400. It's at 360 right now.

Eminence alias?

 

[The General]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

 

[None_More_Black]

There is no way the guy who payed off all his stuff in 2008 would then a have a "no score" credit profile. He would probably have to wait 10 years from closing everything to get that.

 

[jon_mx]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

 

[Dippa]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

Yeah, I was thinking pretty much the same. The "living within your means" part of it is good, but what happens if you actually really need a loan?

Seems more like they couldn't handle the temptation to overspend, so they overcompensated and eliminated it completely.

I think they are trying to make a statement against our credit-based economy. Everyone is using credit cards and other types of credit, which is driving the cost of doing business up having to add a credit company in the middle of every transactions and the associated fees with them.

Where did you get that idea from? Nothing in the article suggests that. Either way, I wouldn't be willing to potentially risk my financial well-being just to prove a point about the overall economy. Ultimately, you're paying the same prices regardless of what you do.

 

[The General]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

I suppose but unless the business offers a discount for paying cash that doesn't really matter.

 

[jon_mx]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

I suppose but unless the business offers a discount for paying cash that doesn't really matter.

Unfortunately, credit card companies have successfully stopped businesses from offering cash discounts.

 

[The General]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

I suppose but unless the business offers a discount for paying cash that doesn't really matter.

Unfortunately, credit card companies have successfully stopped businesses from offering cash discounts.

How's that?

 

[jon_mx]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

I suppose but unless the business offers a discount for paying cash that doesn't really matter.

Unfortunately, credit card companies have successfully stopped businesses from offering cash discounts.

How's that?

Credit card companies for decades banned the use of cash discounts through contracts with vendors. Congress stopped that practiced, but did mandate that merchants could not add a surcharge for credit cards. Credit Card companies work hard to twist arms through laws and contracts and other practices to keep the price of cash and credit the same. They were largely successfully in creating that as a standard business practice, although some of their old practices are no longer legal.

 

[parasaurolophus]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

I don't believe this to be true.

Retailers take credit cards in order to stay on a competitive level with other retailers. There was a time when lots of places didnt take credit cards. Eventually some started doing it to accommodate the market. People didn't want to carry cash, wanted to live beyond their means, etc. They didn't automatically slap 4% onto all their prices because the other places that hadnt started taking credit cards didnt slap 4% onto their prices.

You don't need to look any further than fast food restaurants or gas stations. Fast food was the last to come on the credit card system and their prices didn't change at all when they did(at least it doesnt seem like it). Most gas stations offer a cash discount of .05 per gallon. With gas prices where they are, that is what ,1.4%? I get better bonuses than that for buying gas so I would be a fool to use cash.

There are places that only take mastercard and visa and a competitor may take discover and amex as well. The place that takes all 4 can't just charge more money because they have higher credit card costs. They take all 4 because they feel it gives them a competitive advantage over the place that only takes 2 so the higher monthly costs are worth it. The costs in this situation are offset because they have more revenue.

I could buy into the argument that credit cards rise in popularity inflated prices due to inflated demand and increased buying power. However that damage was done already and that pressure has to have subsided due to the loss of spending power caused by the added expense of interest payments.

In the end though the real important fact is that credit cards are here to stay. They are convenient. They make people feel safer with big purchases and not carrying tons of cash. Only a fool would avoid using them and taking advantage of the rewards they can bring.

The southwest promos will get us about 30 free round trip tickets for a total credit card spend of about $15,000 and 500 bucks in annual fees. If we paid 4% of that 15k in increased pricing I would still be ok with that.

 

[IvanKaramazov]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Because credit cards are convenient, and most young people can't just write a check for a house.

 

[tikigods]

Having one daughter finishing her undergrads and another in med school, my credit is official screwed.

 

[Grady Wilson]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

 

[Grady Wilson]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

Only a fool would avoid using them and taking advantage of the rewards they can bring.

 

[Grady Wilson]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Because credit cards are convenient, and most young people can't just write a check for a house.

I understand most young people can't buy a house. Credit cards are convenient, especially for those that don't have money and put stupid purchases on a credit card that they honestly can't afford. I've known and read dozens of people that have used credit cards for items, like a $1,000 purse or $300 pair of shoes, that they absolutely no business purchasing. They have less than that saved in retirement, but those high priced items are going to really help them out.

If someone doesn't have the cash for something, then don't get it. I honestly don't understand how difficult that is to grasp.

 

[Mario Kart]

The rewards are so diluted now, they aren't even worth it. Find me a good reward card and I will switch. I was getting 5% back on groceries, gas, hotel all year before Chase cut these drastically. Now, I get 5% in one quarter and 5% in another quarter on groceries. All purchases are 1% back now. Chase is doing a huge circle jerk on all its customers.

 

[Juxtatarot]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

Only a fool would avoid using them and taking advantage of the rewards they can bring.

"Fool" is a bit strong but I'd rather get 1+% back than nothing. I don't see anything laughable about that.

 

[Juxtatarot]

There is no way the guy who payed off all his stuff in 2008 would then a have a "no score" credit profile. He would probably have to wait 10 years from closing everything to get that.

Not true. The article even quotes FICO on this.

 

[The General]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

Thank you for your concern.

I travel for work pretty extensively and use cards for everything and pay off balance every month. Hotel chain cards tied to an AMEX, Airline cards for my flights. The rewards pile up very quickly.There is no way I'm using cash in for any of that stuff because I can't, but why would I? I really don't use cash for anything unless I absolutely have to.

What am I missing out on exactly by paying in cash?

 

[The General]

I've known and read dozens of people that have used credit cards for items, like a $1,000 purse or $300 pair of shoes, that they absolutely no business purchasing.

There are people out there, they probably number in the dozens, that pay off credit card balances every month.

 

[Dragons]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

Thank you for your concern.

I travel for work pretty extensively and use cards for everything and pay off balance every month. Hotel chain cards tied to an AMEX, Airline cards for my flights. The rewards pile up very quickly.There is no way I'm using cash in for any of that stuff because I can't, but why would I? I really don't use cash for anything unless I absolutely have to.

What am I missing out on exactly by paying in cash?

Potential debt.

 

[Dragons]

I think paying off debt and only buying things you can afford right now makes a lot of sense. Doing it while dropping off the FICO grid may be useful to those who can't control their spending (although they probably just need to cut up credit cards, not get rid of a mortgage), but I don't think it's really a viable long term plan. As was mentioned in the article, other things depend on FICO score (insurance, some jobs) that make keeping a reasonable score important.

I don't understand the "chasing the score" idea, though.. People chasing a higher score don't have big, bloated debts because they're chasing the score. They have big, bloated debts because at some point prior to chasing the score, they weren't.

“So many of them have big, bloated debts and mortgages, all because they are chasing that score. It just doesn’t make sense to me,” said Chaffee, a financial blogger and stay-at-home father of three children."

 

[Grady Wilson]

I've known and read dozens of people that have used credit cards for items, like a $1,000 purse or $300 pair of shoes, that they absolutely no business purchasing.

There are people out there, they probably number in the dozens, that pay off credit card balances every month.

I think it's pretty safe to say there are more that are in credit card debt that aren't is my point. Just because it's convenient doesn't mean it's smart.

 

[mr roboto]

Just like most financial advice, it depends on the individual. Mortgage interest is tax deductible. Paying off a balance every month gives rewards that can be meaningful. Businesses expand using credit.

If everyone spurned credit, we would see a depression the likes of which would probably permanently cripple the economy.

 

[Grady Wilson]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

Thank you for your concern.

I travel for work pretty extensively and use cards for everything and pay off balance every month. Hotel chain cards tied to an AMEX, Airline cards for my flights. The rewards pile up very quickly.There is no way I'm using cash in for any of that stuff because I can't, but why would I? I really don't use cash for anything unless I absolutely have to.

What am I missing out on exactly by paying in cash?

Good for you. If you pay off every single credit card every single month and have absolutely no balance at all then you are in the very extreme minority. A lot of research and articles have been written how people don't become wealthy because of the frequent flier miles they accumulate. To say spending actual cash is not practical in many instances is just not smart. There's reasons why so many tens of thousands of people are deeply in credit card debt each and every year. The common sense reason is they use it as a so called "convenience" because they don't have the cash.

 

[Juxtatarot]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

Thank you for your concern.

I travel for work pretty extensively and use cards for everything and pay off balance every month. Hotel chain cards tied to an AMEX, Airline cards for my flights. The rewards pile up very quickly.There is no way I'm using cash in for any of that stuff because I can't, but why would I? I really don't use cash for anything unless I absolutely have to.

What am I missing out on exactly by paying in cash?

Good for you. If you pay off every single credit card every single month and have absolutely no balance at all then you are in the very extreme minority. A lot of research and articles have been written how people don't become wealthy because of the frequent flier miles they accumulate. To say spending actual cash is not practical in many instances is just not smart. There's reasons why so many tens of thousands of people are deeply in credit card debt each and every year. The common sense reason is they use it as a so called "convenience" because they don't have the cash.

Let's not get carried away now.

 

[Grady Wilson]

Just like most financial advice, it depends on the individual. Mortgage interest is tax deductible. Paying off a balance every month gives rewards that can be meaningful. Businesses expand using credit.

If everyone spurned credit, we would see a depression the likes of which would probably permanently cripple the economy.

Not saying people shouldn't ever have credit. We're stupid enough right now to have a car loan and I still kick myself for that. We'll soon have a mortgage which is something that I think is what I would call "good" credit. I realize most people can't afford to pay cash. I'm also not saying using up all cash to buy things. There's has to be a limit. To say though that people should use credit as a convenience instead of paying cash for something that they can't afford is just dumb. A good friend of mine puts about two or three thousand on credit every Christmas. She thinks she has to get two big screens, an XBox for her son, laptop for her daughter, etc when she has mounds of other debt accumulated. She used her cards for "convenience". Oh, she had every intention of paying off the cards, but she didn't. She then took out a loan to pay off the credit cards. It was the classic dog chasing its tail.

 

[Ursa M]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

You get a lot of free things paying with credit card then paying off each month.

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

Partly true, but nothing is free. The credit card company has swindled their way into getting 4% of every transaction. So you may get 1% back or whatever, but the credit card companies have added 4% to the cost of the goods.

I suppose but unless the business offers a discount for paying cash that doesn't really matter.

Unfortunately, credit card companies have successfully stopped businesses from offering cash discounts.

How's that?

Credit card companies for decades banned the use of cash discounts through contracts with vendors. Congress stopped that practiced, but did mandate that merchants could not add a surcharge for credit cards. Credit Card companies work hard to twist arms through laws and contracts and other practices to keep the price of cash and credit the same. They were largely successfully in creating that as a standard business practice, although some of their old practices are no longer legal.

My local craft beer store gives a 3% discount for cash. The owner simply prices everything with a credit card markup, then, if you use cash, he reduces the price to the "real" one.

 

[Ursa M]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

Thank you for your concern.

I travel for work pretty extensively and use cards for everything and pay off balance every month. Hotel chain cards tied to an AMEX, Airline cards for my flights. The rewards pile up very quickly.There is no way I'm using cash in for any of that stuff because I can't, but why would I? I really don't use cash for anything unless I absolutely have to.

What am I missing out on exactly by paying in cash?

Good for you. If you pay off every single credit card every single month and have absolutely no balance at all then you are in the very extreme minority. A lot of research and articles have been written how people don't become wealthy because of the frequent flier miles they accumulate. To say spending actual cash is not practical in many instances is just not smart. There's reasons why so many tens of thousands of people are deeply in credit card debt each and every year. The common sense reason is they use it as a so called "convenience" because they don't have the cash.

I feel pretty good about being in this particular minority. My CC gives my 1.25% cash back on everything, unlimited by time, spend, type or whatever. I use my CC for everything. The trick is not to spend stupidly and make sure your spending is backed by dollars in the bank so you can pay it off at month end, that's all. CCs are good things that stupid people have access to.

 

[The General]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

Thank you for your concern.

I travel for work pretty extensively and use cards for everything and pay off balance every month. Hotel chain cards tied to an AMEX, Airline cards for my flights. The rewards pile up very quickly.There is no way I'm using cash in for any of that stuff because I can't, but why would I? I really don't use cash for anything unless I absolutely have to.

What am I missing out on exactly by paying in cash?

Good for you. If you pay off every single credit card every single month and have absolutely no balance at all then you are in the very extreme minority. A lot of research and articles have been written how people don't become wealthy because of the frequent flier miles they accumulate. To say spending actual cash is not practical in many instances is just not smart. There's reasons why so many tens of thousands of people are deeply in credit card debt each and every year. The common sense reason is they use it as a so called "convenience" because they don't have the cash.

So back to my original point, which you edited in your response, if you pay off the balance of card each month there is no reason to pay in cash.

You are missing out on rewards that credit card companies offer.

 

[IvanKaramazov]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Because credit cards are convenient, and most young people can't just write a check for a house.

I understand most young people can't buy a house. Credit cards are convenient, especially for those that don't have money and put stupid purchases on a credit card that they honestly can't afford. I've known and read dozens of people that have used credit cards for items, like a $1,000 purse or $300 pair of shoes, that they absolutely no business purchasing. They have less than that saved in retirement, but those high priced items are going to really help them out.

If someone doesn't have the cash for something, then don't get it. I honestly don't understand how difficult that is to grasp.

I charge probably 99% of the stuff I buy, in dollar terms. I pay cash for fast food, and that's pretty much it. Everything else -- gas, groceries, prescription meds, clothing, frivolous entertainment, etc. -- all go on the card. I've never carried a balance in my life. Not once, ever. I get that some people have a problem with over-spending, but I don't have that problem. For me, my credit card is a fantastic convenience and gives me free stuff at Amazon. It's objectively better than cash in every imaginable way.

 

[Grady Wilson]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

Thank you for your concern.

I travel for work pretty extensively and use cards for everything and pay off balance every month. Hotel chain cards tied to an AMEX, Airline cards for my flights. The rewards pile up very quickly.There is no way I'm using cash in for any of that stuff because I can't, but why would I? I really don't use cash for anything unless I absolutely have to.

What am I missing out on exactly by paying in cash?

Good for you. If you pay off every single credit card every single month and have absolutely no balance at all then you are in the very extreme minority. A lot of research and articles have been written how people don't become wealthy because of the frequent flier miles they accumulate. To say spending actual cash is not practical in many instances is just not smart. There's reasons why so many tens of thousands of people are deeply in credit card debt each and every year. The common sense reason is they use it as a so called "convenience" because they don't have the cash.

Let's not get carried away now.

Not getting carried away at all. The poster said he uses his credit card a lot every month and pays it off every month. If he does then I stand by my original comments that he is in an extreme minority. Obviously, if someone only has $50 on their Visa to keep it active I'm not talking about them. I'm talking about the group that the poster was in that uses their credit cards extensively each and every month. From what I've read, heard, and actually seen, it's very rare than people that charge a lot their purchases every month turned around and pay them off within 30 days. If you think otherwise please let me know.

 

[Grady Wilson]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Paying with cash for majority of things is just wasted opportunity to getting free stuff and not practical in many instances.

lol. I hope you really don't believe this. I really hope.

Thank you for your concern.

I travel for work pretty extensively and use cards for everything and pay off balance every month. Hotel chain cards tied to an AMEX, Airline cards for my flights. The rewards pile up very quickly.There is no way I'm using cash in for any of that stuff because I can't, but why would I? I really don't use cash for anything unless I absolutely have to.

What am I missing out on exactly by paying in cash?

Good for you. If you pay off every single credit card every single month and have absolutely no balance at all then you are in the very extreme minority. A lot of research and articles have been written how people don't become wealthy because of the frequent flier miles they accumulate. To say spending actual cash is not practical in many instances is just not smart. There's reasons why so many tens of thousands of people are deeply in credit card debt each and every year. The common sense reason is they use it as a so called "convenience" because they don't have the cash.

So back to my original point, which you edited in your response, if you pay off the balance of card each month there is no reason to pay in cash.

You are missing out on rewards that credit card companies offer.

Like I said, if you do then you're in the minority and most don't. There have been many times when I've purchased something with cash I've gotten an extra discount. Not every time, but a lot.

 

[Grady Wilson]

Okay. We all could argue on and on until the cows come home. My personal belief is to pay cash where feasibly possible. I don't make purchases for stuff unless I have the cash except as I mentioned for a car and our soon to be mortgage. I've utilized my cash and buying power elsewhere and I'm fairly content. Others want to use credit cards...to each their own. Like Dave Ramsey has said, he hasn't met a millionaire that built their wealth by building up frequent flier miles and hotel perks.

 

[The General]

Okay. We all could argue on and on until the cows come home. My personal belief is to pay cash where feasibly possible. I don't make purchases for stuff unless I have the cash except as I mentioned for a car and our soon to be mortgage. I've utilized my cash and buying power elsewhere and I'm fairly content. Others want to use credit cards...to each their own.

I'm not arguing with you. You just make a lot of assumptions. Paying cash each month for everything to me and many others is not possible and I don't see any benefit to doing so.

Obviously I agree that people shouldn't load up cards with debt they can't pay.

 

[Ursa M]

Okay. We all could argue on and on until the cows come home. My personal belief is to pay cash where feasibly possible. I don't make purchases for stuff unless I have the cash except as I mentioned for a car and our soon to be mortgage. I've utilized my cash and buying power elsewhere and I'm fairly content. Others want to use credit cards...to each their own. Like Dave Ramsey has said, he hasn't met a millionaire that built their wealth by building up frequent flier miles and hotel perks.

I agree - you need to be backed by cash to use a CC. However, if you are then using a CC instead of cash makes perfect sense.

 

[The General]

I applaud the folks getting out of debt but not really sure I understand the focus with going off the credit score grid. In terms of an optimal financial position, I would think you want zero debt and a great credit score. Just pay for certain things with credit and pay it off each month.

why use credit at all?

Because credit cards are convenient, and most young people can't just write a check for a house.

I understand most young people can't buy a house. Credit cards are convenient, especially for those that don't have money and put stupid purchases on a credit card that they honestly can't afford. I've known and read dozens of people that have used credit cards for items, like a $1,000 purse or $300 pair of shoes, that they absolutely no business purchasing. They have less than that saved in retirement, but those high priced items are going to really help them out.

If someone doesn't have the cash for something, then don't get it. I honestly don't understand how difficult that is to grasp.

I charge probably 99% of the stuff I buy, in dollar terms. I pay cash for fast food, and that's pretty much it. Everything else -- gas, groceries, prescription meds, clothing, frivolous entertainment, etc. -- all go on the card. I've never carried a balance in my life. Not once, ever. I get that some people have a problem with over-spending, but I don't have that problem. For me, my credit card is a fantastic convenience and gives me free stuff at Amazon. It's objectively better than cash in every imaginable way.

Exactly.

 

[Mario Kart]

The one card I use, my limit is $900. I haven't asked for it to be raised in ~5+ years. If I near my limit two weeks into the 4 week month... I pay it before midnight one night, then my limit is reset. Not difficult at all and I assume most do some sort of payment like this periodically. Watching my dad pay his bills, I'm under the assumption most older people wait for a bill and pay at the end of each month (billing period). People who know technology, I assume, pay off cards like I do more so than how my dad pays them off.

As far as rewards go. 1% is bogus given that rewards used to be 3%, 4%, and 5% on purchases. Too many people think 1% is good. Nope.

 

[thecatch]

The one card I use, my limit is $900. I haven't asked for it to be raised in ~5+ years. If I near my limit two weeks into the 4 week month... I pay it before midnight one night, then my limit is reset. Not difficult at all and I assume most do some sort of payment like this periodically. Watching my dad pay his bills, I'm under the assumption most older people wait for a bill and pay at the end of each month (billing period). People who know technology, I assume, pay off cards like I do more so than how my dad pays them off.

As far as rewards go. 1% is bogus given that rewards used to be 3%, 4%, and 5% on purchases. Too many people think 1% is good. Nope.

Unless you need to open up credit, it's better to wait for the bill. All things equal, I'd rather maximize the amount of time the money is in my account earning interest.

 

[Politician Spock]

The one card I use, my limit is $900. I haven't asked for it to be raised in ~5+ years. If I near my limit two weeks into the 4 week month... I pay it before midnight one night, then my limit is reset. Not difficult at all and I assume most do some sort of payment like this periodically. Watching my dad pay his bills, I'm under the assumption most older people wait for a bill and pay at the end of each month (billing period). People who know technology, I assume, pay off cards like I do more so than how my dad pays them off.

As far as rewards go. 1% is bogus given that rewards used to be 3%, 4%, and 5% on purchases. Too many people think 1% is good. Nope.

Unless you need to open up credit, it's better to wait for the bill. All things equal, I'd rather maximize the amount of time the money is in my account earning interest.

What interest?

 

[Mario Kart]

The one card I use, my limit is $900. I haven't asked for it to be raised in ~5+ years. If I near my limit two weeks into the 4 week month... I pay it before midnight one night, then my limit is reset. Not difficult at all and I assume most do some sort of payment like this periodically. Watching my dad pay his bills, I'm under the assumption most older people wait for a bill and pay at the end of each month (billing period). People who know technology, I assume, pay off cards like I do more so than how my dad pays them off.

As far as rewards go. 1% is bogus given that rewards used to be 3%, 4%, and 5% on purchases. Too many people think 1% is good. Nope.

Unless you need to open up credit, it's better to wait for the bill. All things equal, I'd rather maximize the amount of time the money is in my account earning interest.

What interest?

If you pay from checking/savings account, each account can earn interest. Something like 0.000000022% so paying "early" or paying on time doesn't really matter overall, imo. But, some interest can be earned.

 

[Politician Spock]

The one card I use, my limit is $900. I haven't asked for it to be raised in ~5+ years. If I near my limit two weeks into the 4 week month... I pay it before midnight one night, then my limit is reset. Not difficult at all and I assume most do some sort of payment like this periodically. Watching my dad pay his bills, I'm under the assumption most older people wait for a bill and pay at the end of each month (billing period). People who know technology, I assume, pay off cards like I do more so than how my dad pays them off.

As far as rewards go. 1% is bogus given that rewards used to be 3%, 4%, and 5% on purchases. Too many people think 1% is good. Nope.

Unless you need to open up credit, it's better to wait for the bill. All things equal, I'd rather maximize the amount of time the money is in my account earning interest.

What interest?

If you pay from checking/savings account, each account can earn interest. Something like 0.000000022% so paying "early" or paying on time doesn't really matter overall, imo. But, some interest can be earned.

"Waiting until the bill was due earned me an extra $0.02."