Reply
Established Member
colnagoflight
Posts: 22
Registered: ‎06-15-2012
0

CASH

 

has anyone just considered just paying cash for everything?  I feel like I am in a cat and mouse game .... only the banks win?  

 

 

I think they constantly change the credit formula just to keep us guessing and buying more products?  thoughts?

 

 

Moderator
Revelate
Posts: 9,750
Registered: ‎12-30-2011
0

Re: CASH

[ Edited ]

colnagoflight wrote:

 

has anyone just considered just paying cash for everything?  I feel like I am in a cat and mouse game .... only the banks win?  

 

 

I think they constantly change the credit formula just to keep us guessing and buying more products?  thoughts?

 

 


If you pay cash for everything, you lose the game completely unfortunately.

 

People who left their cash-based existence behind almost never go back.  You never, ever want to have your tradelines discounted (or outright closed) for inactivity... or worse, go back to being a thin-file which unquestionably sucks.  

 

Also any spend that you do via cash doesn't count as potential profit for any other lender which looks as you for a credit card application.  Don't throw away FICO and future credit advantages for something which is becoming more and more reactionary in today's society.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


Take the myFICO Fitness Challenge
Valued Contributor
Crashem
Posts: 3,096
Registered: ‎01-26-2012
0

Re: CASH

Bad idea for several reasons.  Unless you can pay for big purchases (house, car), you will pay a premium for loans, if you can even get one, with little no credit history.  Second, if you pif, you pay no interest and can get rewards which equal after tax rebate for living your life.  Three, credit cards offer more protection for the consumer against merchant fraud/dissatisfaction.  Four, too many purchases require some kind of deposits such as hotels which is bad for cash flow without credit cards.   Even if you can't control your use of credit cards, I would still get cards and put some small recurring charges on it and set up auto pay and then sock drawer the cards (hell rip them up if you want).

               LIMITS IN CARD DESCRIPTIONS
Frequent Contributor
MarcinXP
Posts: 307
Registered: ‎09-06-2011
0

Re: CASH

Why use Cash when you can use Credit as Cash and actually make money. In addition to what everyone said, the rewards themselves are worth it. Currently my favorite credit card is Best Buy RewardZone Mastercard. My limit is decent so I put everything on it from groceries, gas, restaurants, bills, I mean everything.. I earn around 700-800 points per month and in process earned RewardZone silver membership with best buy which gives me 60 day return policy/price guarantee. In addition I have saved up about 4000 points which is $80 bucks in last 5 months and I'm going to spend it and treat myself to Indiana Jones Blu-Ray set so it's like a gift.

 

Best of all I spent $0 in interest since I PIF every single month like clockwork. Only downside from my opinion is the fact that I can't use the card for like 3 days around the time when the statement cuts because I don't want a balance to report on my credit. Then I use my other card. Now I'm trying to earn around 5000 points before Black Friday and use it for any sales that might come. After that I might switch to Hilton Rewards as we are taking a trip next year so a free stay would be nice.

 

In my mind if you make the credit work for you and not the other way around then YOU win and not the bank. Cash is outdated and overrated. It's funny and I hate to be stereotypical and not in anyway suggesting this towards you, but everytime I go out with friends and aquiantances there is always one here and there that starts bad mouthing credit world, banks and how he pays cash for everything and does not use credit....I start thinking that this guy probably has bad credit and feels burned....what I really want to tell him is that without credit here you are cheating yourself. Credit is everything...without it you don't rent places, buy houses, cars....heck...you can't even get cable with DVR as you might have to pay a deposit without good credit.

 

it's the way to go....just have to be smart about it!

NFCU Visa Sig $25k / Fidelity Amex $12.5k / Chase Freedom Visa $8k / BOA - BBR MC $7.5k / Chase Sapphire Preferred $7k / Best Buy Platinum MC $3K / Barclay Rewards MC $2.25k / Discover IT $1.5k / SY Lowes $8k / SY Walmart and Amazon $5k / Target RedCard - $300 / NO CAPONE IN MY WALLET ANYMORE!
Established Contributor
migliogiorni
Posts: 657
Registered: ‎06-27-2012
0

Re: CASH

Like the previous poster said used the credit to your advantage and take advantage of the rewards.  I use my More and Freedom cards to get cash back pif'ing so i don't loose money.  With cash you can't get anything, so why not use a credit card and earn some money back then use your cash to pif on the card? thats what I like

 

BOA: 8.9k
CSP: 5k
Discover: 5k
Citi TY Preferd: 5k
Wally: 5k
JCP: 4.9k
citiForward: 4.7k
ChaseFreedom: 4.5k
DFS: 2k
Regular Contributor
HenryJumbo
Posts: 143
Registered: ‎07-21-2012
0

Re: CASH

[ Edited ]

I think you guys are hyping up credit cards while downplaying cash.

You can't bargain with a CC like you can with cash. Example if you are buying something outright in some cases cold hard cash can lower the price. Let's say you don't have a premium card service and want tickets to a concert. You can try online, but let’s say the concert is tomorrow and purchasing the tickets online and having it overnighted to you will cost too much; you can perhaps find a ticket scalper and bargain NOT with a CC but with cash.  

 

Some small stores don’t take CC.

 

Some small stores will want you to make a minimum purchase (with is against the merchant agreement) and will refuse sale to you if you don’t.

 

Many foreign stores don’t take CC.

 

Some cabs don’t take CC.

 

You can’t trace cash purchases.

 

Cash transactions are instantaneous.

 

Starting Score: EX: 736 FAKO | TU: 757 FICO | EQ 730 FICO
Current Score: EX: 736 FAKO | TU: 750 FICO | EQ 730 FICO
Goal Score:     EX: 750 FICO | TU: 750 FICO | EQ: 750 FICO
In my wallet:  $16,000  $8,000
Valued Contributor
Crashem
Posts: 3,096
Registered: ‎01-26-2012
0

Re: CASH

Henryjumbo, your argument is really just saying only cash can be used in certain times.  Or that you can use cash to negotiate discounts.  This is all true.  However, I don't think this is the essence of op's question.  He us asking why shouldn't he live an all cash lifestyle or as close to it as he can.

               LIMITS IN CARD DESCRIPTIONS
Regular Contributor
HenryJumbo
Posts: 143
Registered: ‎07-21-2012
0

Re: CASH


Crashem wrote:

Henryjumbo, your argument is really just saying only cash can be used in certain times.  Or that you can use cash to negotiate discounts.  This is all true.  However, I don't think this is the essence of op's question.  He us asking why shouldn't he live an all cash lifestyle or as close to it as he can.


Oh well that's unpossible :catsurprised:

 

Starting Score: EX: 736 FAKO | TU: 757 FICO | EQ 730 FICO
Current Score: EX: 736 FAKO | TU: 750 FICO | EQ 730 FICO
Goal Score:     EX: 750 FICO | TU: 750 FICO | EQ: 750 FICO
In my wallet:  $16,000  $8,000
Valued Contributor
Crashem
Posts: 3,096
Registered: ‎01-26-2012
0

Re: CASH

Haahaa yeah.  Probably wrong board for him to ask that question on.

               LIMITS IN CARD DESCRIPTIONS
Mega Contributor
LS2982
Posts: 15,436
Registered: ‎04-09-2011
0

Re: CASH


colnagoflight wrote:

 

has anyone just considered just paying cash for everything?  I feel like I am in a cat and mouse game .... only the banks win?  

 

 

I think they constantly change the credit formula just to keep us guessing and buying more products?  thoughts?

 

 


I'll never go back to cash, and allow the banks to screw me on NSF fees and get no money back for paying bills.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}