Reply
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Credit Card Reponsibility


wmarat wrote:

1. I do not buy if I do not have money to pay it off.

2. I do not rich enough to revolve balances, so always PIF.

3. I PIF 2 days before statement cut.

4. Read my signature.




wmarat signed:
IN VINO VERITAS
So, does this mean that this is a good night for a glass of wine? :smileyvery-happy:

But that pretty well sums up the way I think we should handle credit.

The only account on which I carry a balance is a 0% BT account, and I shoved over some money from the HELOC. This is money that had already been borrowed (for home repairs and DD#2's college tuition), so I figured that I might as well pay it back at 0% as at 4.05%.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007

Re: Credit Card Reponsibility

A glass of red dry wine is a must every night.

 

Do not have balances to BT.

IN VINO VERITAS.
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008

Re: Credit Card Responsibility

[ Edited ]
ab·sti·nence:
1. forbearance from any indulgence of appetite, esp. from the use of alcoholic beverages: total abstinence.
2. any self-restraint, self-denial, or forbearance.
3. Economics. the conserving of current income in order to build up capital or savings.
4. the state of being without a drug, as alcohol or heroin, on which one is dependent.

 

 

I am going to go back to your original point. Abstinence from the use of credit is not a recipe for FICO success. Neither is over indulgence. Maximum FICO success is achieved thru the prudent use of credit. You do achieve maximum FICO success by having more credit rather that less. That means higher CL's, more accounts and a wider mix of credit (revolving, installment, mortgage). FICO success also means lower utilization and never being late!

 

Many who have come to this forum seeking advice have or have had credit problems. Many others have the problem of never having had credit. In today's world, and the world as the majority of people now active in the economy have ever known it, it is very difficult to operate without a credit card. Many in these positions are saddled with starter or rebuilder cards with low CL's and high fees. Those with damaged credit may be totally unable to obtain new TL's at all. They all want to improve their lot as quickly as possible. Many humans are not blessed with an over abundance of patience. They want to get where they want to be quickly. This is to be anticipated.

 

What many, particularly those with damaged credit, frequently do not realize is that while cleaning up credit reports, obtaining new credit, increasing CL's on existing accounts and other active undertakings will improve their situation, eventually it will come down to patiently waiting for time to pass to achieve optimum FICO success.

 

Every economic circumstance has it challenges. Today's economic climate is especially challenging. The roll here for those of us with greater experience and knowledge is to help those who ask to be helped in the most appropriate manor. At times this may mean helping in the way they need to be helped and not in the way they want to be helped. Delivering facts along with the frequently unwelcome exhortation to remain patient in the face of adversity is usually best. All of that assistance of course to be administered as patiently as possible.

 

“Pain is hard to bear,” he cried,
“But with patience, day by day,
Even this shall pass away.”

Theodore Tilton (1835–1907)

Message Edited by jmbfl on 11-04-2008 02:41 AM
Frequent Contributor
manyquestions
Posts: 291
Registered: ‎10-20-2008

Re: Credit Card Responsibilbity

ddd wrote:


 

I do not mean total Abstinence I mean abstain from buying anything that you could not pay for in cash. I just think that if we preached this more and more maybe so many people would not be in credit trouble.

 

 


My impression is that is what posters preach here. 

Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Credit Card Responsibilbity


manyquestions wrote:

ddd wrote:

I do not mean total Abstinence I mean abstain from buying anything that you could not pay for in cash. I just think that if we preached this more and more maybe so many people would not be in credit trouble.
My impression is that is what posters preach here. 


And the preaching is just about as successful as that on any given Sunday morning.

People are only going to hear what they want to hear, and change their ways if they want to change their ways.

I can't tell you how many threads I've read that begin, "I just did the dumbest thing: even though I almost had my score up to 700, I app'd for a rewards Visa from Bendover & Cough Bank. And I got it, but it has a crappy CL, plus there's an annual fee, and I didn't get the rewards card, just the straight one. I've already lost 5 points on EX, and that's just the inq --the card hasn't even reported yet! And it's such a useless card, a tank of gas will ruin the util; I can't believe I blew my chance of breaking 700 for another 4 months for such a stupid thing."

And there will be one post in reply saying ouch, sorry to hear it, live and learn, and then will come the posts asking, What was your CL? What's the fee? Did you ever burn them in the past? How quick are they to give CL's? I had a late 4 months ago, do you think they'll take me? --and on and on.

Until people get a vision of what they want their credit profile to look like, and work out a plan to get there, and a timetable to go with that plan, and then apply the determination and self-discipline to stick with the plan and timetable, everything will take two or three times as long to improve.

And yes, I've closed the $500 B&N MC! :smileyvery-happy: --my only what-the-hell app, and immediately regretted.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
PurpleHaze
Posts: 717
Registered: ‎03-05-2008

Re: Credit Card Responsibilbity


haulingthescoreup wrote: 

"... Bendover & Cough Bank...."

      There was obviously useful information in what all of you posted, but I liked this the most :smileyhappy:


Starting Score: EQ: 633 (12/31/09) TU: 651 (12/31/09)
Current Score: EQ:633 TU: 651
Goal Score: EQ: 700 TU:700


Take the FICO Fitness Challenge
Regular Contributor
calichik555
Posts: 177
Registered: ‎04-28-2008

Re: Credit Card Responsibilbity

A lot of you preach to only use credit cards if you know you have money in the bank to pay for it.  To me, this defeats the purpose of credit cards.  i use my credit cards for bigger purchases that i cannot pay for immediately, but can over the next few months. For instance, buying a new laptop for school, and/or furniture for a new house. I do not use my credit cards for small, everyday uses (IE: groceries, gas, etc.).  Perhaps this is backwards but this is what has worked for me for years.

 

There are a variety of reasons people get into debt and it is not as easy of a fix as you think to just say "don't use it unless you can pay for it." Some people have to use it to survive but it's still a decision that they make.  I believe the responsibility we should be preaching is that people should educate themselves more in what using/not using/paying/not paying their credit cards will do.  The fine print is their for them to read, and all too often then not we discard this information. It's about being held accountable for the consequences you bring upon yourself.  This is the biggest lesson we can teach to the youth of the credit world.

03/2009 - TU: 679 EQ: 670 EX: 670
7/2 - TU: 666 EX: 668 EQ: 673

"If at first you don't succeed...skydiving isn't for you."
Community Leader
Senior Contributor
laz98
Posts: 4,291
Registered: ‎09-06-2008

Re: Credit Card Responsibilbity

kudos to you, calichik!  i agree 100%.  personally, i use my chase debit card for everyday purchases & for paying many of my bills, because of the points i get from using it.
Latest scores: Walmart TU: 766. MyFICO TU: ---. DCU EQ: 741. PSECU EX: 756.
Member
momx2
Posts: 16
Registered: ‎10-13-2008

Re: Credit Card Responsibilbity


haulingthescoreup wrote:

manyquestions wrote:

ddd wrote:

I do not mean total Abstinence I mean abstain from buying anything that you could not pay for in cash. I just think that if we preached this more and more maybe so many people would not be in credit trouble.
My impression is that is what posters preach here. 

 


And the preaching is just about as successful as that on any given Sunday morning.

People are only going to hear what they want to hear Wizard's first rule (T.Goodkind), and change their ways if they want to change their ways.

I can't tell you how many threads I've read that begin, "I just did the dumbest thing: even though I almost had my score up to 700, I app'd for a rewards Visa from Bendover & Cough Bank. And I got it, but it has a crappy CL, plus there's an annual fee, and I didn't get the rewards card, just the straight one. I've already lost 5 points on EX, and that's just the inq --the card hasn't even reported yet! And it's such a useless card, a tank of gas will ruin the util; I can't believe I blew my chance of breaking 700 for another 4 months for such a stupid thing."

And there will be one post in reply saying ouch, sorry to hear it, live and learn, and then will come the posts asking, What was your CL? What's the fee? Did you ever burn them in the past? How quick are they to give CL's? I had a late 4 months ago, do you think they'll take me? --and on and on.

Until people get a vision of what they want their credit profile to look like, and work out a plan to get there, and a timetable to go with that plan, and then apply the determination and self-discipline to stick with the plan and timetable, everything will take two or three times as long to improve.

And yes, I've closed the $500 B&N MC! :smileyvery-happy: --my only what-the-hell app, and immediately regretted.

 

Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007

Re: Credit Card Reponsibility

Is not it what DR preaches?


ddd wrote:
I dont think anyone likes to talk about this topic but I feel its the most important one of them all. I know this entire forum is dedicated to reactive advice about fixing Fico Scores. How about being proactive and being an advocate for responsible credit card usage. I truly belive that ABSTINANCE will get you a way better score than after the fact problem solving. What do you guys think?

 

IN VINO VERITAS.

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+