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This is the Danger Zone!

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youngandcreditwrthy
Senior Contributor

Re: This is the Danger Zone!

It's all about personal finance.
It's comforting to know I could potentially spend tens of thousands of $$$, but it's quite discomforting to think I could bankrupt myself by being a greedy, indulgent moron.

Don't even view high limits as spendable. I keep just about every card I have in the sockdrawer, except Amex BCE/Freedom.
The other accounts are just tools to manage my creditworthiness.
:-)
Please be careful everyone! Credit genuinely can be great for your fiscal health or detrimental to it.
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 21 of 29
tinuviel
Moderator Emeritus

Re: This is the Danger Zone!

Thanks for sharing your experience, Booner. It takes a lot of courage to speak out and I applaud you for that. It is easy to get caught up in getting approved and getting higher and higher limits. The thing that we need to remember is that it takes discipline to manage the accounts well.

 

I like to compare credit cards to tools. Used responsibly, they can be a great benefit. Used carelessly, they can cause great damage. They offer convenience, rewards, payment security and many other benefits. As one of the others on this thread mentioned, there's much that can be gained from playing the rewards game. But, it's essential to PIF in order to come out ahead; it does no good to get from 1%-5% back on purchases if you're paying interest from carrying balances. And it can be all too easy to dig a hole that becomes difficult to get out of. It takes careful management to use them well, and the ability to differentiate between needs and wants -- credit is not extra cash that's lying around; it must be repaid.

 

You deserve respect for recognizing your situation and taking responsibility for it. I wish you all success with your plan to pay the balance down on your remaining card. I promise that you'll feel so much better when you reach that point. Best wishes to you.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Message 22 of 29
phillyguy12
Frequent Contributor

Re: This is the Danger Zone!

Two weeks ago I was approved for a 10K Visa Platinum Rewards at the local CU with a 720 TU score.  I transferred all the balances (no cost) and CLOSED the cards.  I do agree that you shouldn't close credit cards unless they cost you money -  or you can't stop using them.   Even knowing they were paid off, I don't trust myself, or my husband, to not go out and do this again.

 

This is a very expensive game to play if you lose.  I lost.  I'm sharing to hopefully help someone else avoid the trap I fell into!


congrats on all, i think we all get caught up in rebuilding mode and even get addicted to that approval feeling, while i am frustrated with my current toy limits i have said the only good thing about them is they really make me think before i buy. i can't wait to hit the 5k mark on a single card but hope i dont fall back into bad habbits. i think getting a charge card really changed how i view credit cards, and trained me to pay in full.  i saved my fee crazy sub prime cards that were the start of my rebuilding to remind myself to never burn my credit because i never want to have to resort to using companies like them ever again!

Amx BCE-25k,Amx Zync-NSPL
Barclay's Mastercard-13.5k
Credit Union Visa-1k
Discover-24k, Khols-2k
Message 23 of 29
omskillet
Regular Contributor

Re: This is the Danger Zone!


@SnackTrader wrote:
I'm glad you shared this, Booner.

I was on this site rather religiously from last June as a reader to this April as a contributor. It is a wealth of knowledge on how to attain cards, but does little to educate on spending habits. I expect this is because everyone is in a very different place financially, and my spending habits are very different from others'. Regardless, without good self-control, and even more importantly, strict budgets, many on this site have paid hundreds or thousands in unnecessary interest. It has made me sad, and has in part caused me to back away from this forum to remain positive. It was rather depressing to go to bed frustrated at someone's out of control spending or applying, especially since many on this forum don't recognize how destructive their habits can be. I just want to scream at many to say TAKE IT SLOW and re-evaluate things. But it would be out of line and would receive fierce criticism from many who would say I am jumping to conclusions. However, your post, Booner, shows just how destructive all sorts of behavior advocated on thIs forum can be.

Please, EVERYONE read the horror stories and remember that you won't know what is happening until it is TOO LATE! Since joining this forum last June I have made almost $12,000 in extra payments on my installments loans and I have increased my savings by nearly $3,000 as well. Ask yourself, are you in a better situation than when you started?

+100000000

 

It took me about a year to get over the "app envy" that can come from being on the forums. The best posts are indeed the honest ones. The balance on this site...in particular this CC part of the site...is providing people with the important info they need to apply for or use their cards most appropriately. Its tough when you "know" the best info but don't have the best habits. We should always remind each other that credit it a tool. Its not a status symbol. This is the struggle we face day in and day out. We live in a consumerist society. That can work to our benefit and to the opposite of our benefit. 

 

Booner definitely always remember this forum is here to hear about your success and your stuggles. No one is alone in their credit struggles or their credit success. 

Message 24 of 29
myjourney
Super Contributor

Re: This is the Danger Zone!


@Booner72 wrote:

I came to MyFico in 2011 to fix my credit and buy a house.  I lived here on the forum.  Once the house was bought, I wandered over to the CC section.  I applied for this, that, and the other.  I wasn't disciplined enough to PIF each month.  I had balances going on everything, spreadsheets, due dates, the works.

 

Two weeks ago I was approved for a 10K Visa Platinum Rewards at the local CU with a 720 TU score.  I transferred all the balances (no cost) and CLOSED the cards.  I do agree that you shouldn't close credit cards unless they cost you money -  or you can't stop using them.   Even knowing they were paid off, I don't trust myself, or my husband, to not go out and do this again.

 

This is a very expensive game to play if you lose.  I lost.  I'm sharing to hopefully help someone else avoid the trap I fell into!


Bravo for sharing

A big kudo for finding a way to better control your spending and budget

Best wishes

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 25 of 29
Booner72
Senior Contributor

Re: This is the Danger Zone!

I am honestly surprised at the positive responses.  I thought I was going to get my head chewed off for this post.  In fact, I stayed away from MyFico for the last year because of the shame of by cc balances!

 

But I wasn't out buying things I didn't need (well, of course I was sometimes) - DH works concrete and gets unemployment thru the winter.  We were living on 270 a week for  a family of four.  He was buying groceries at Walmart which I didn't know about (30% interest) and I was using the Old Navy Visa (29%) to buy gas and other daily needs as I was going back and fro to work.  270 is nothing. 

 

Thanks everyone!!!  I guess here's a post you can show someone who you see being nuts with apps, etc.  I hope others come forward with their "shame" - it does feel good to get it out!

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 26 of 29
parakleet
Valued Contributor

Re: This is the Danger Zone!

 

@BlueNightStar wrote:

@SnackTrader wrote:
I'm glad you shared this, Booner.

I was on this site rather religiously from last June as a reader to this April as a contributor. It is a wealth of knowledge on how to attain cards, but does little to educate on spending habits. I expect this is because everyone is in a very different place financially, and my spending habits are very different from others'. Regardless, without good self-control, and even more importantly, strict budgets, many on this site have paid hundreds or thousands in unnecessary interest. It has made me sad, and has in part caused me to back away from this forum to remain positive. It was rather depressing to go to bed frustrated at someone's out of control spending or applying, especially since many on this forum don't recognize how destructive their habits can be. I just want to scream at many to say TAKE IT SLOW and re-evaluate things. But it would be out of line and would receive fierce criticism from many who would say I am jumping to conclusions. However, your post, Booner, shows just how destructive all sorts of behavior advocated on thIs forum can be.

Please, EVERYONE read the horror stories and remember that you won't know what is happening until it is TOO LATE! Since joining this forum last June I have made almost $12,000 in extra payments on my installments loans and I have increased my savings by nearly $3,000 as well. Ask yourself, are you in a better situation than when you started?

I wish people like you would speak out more often. I personally feel there needs to be a little more balance of posting (with viewpoints like yours) and there is a way to phrase things that doesn't come off as condescending or critical. Someone will always take it the wrong way but a constant stream of false positives without a reality check really does no one any favors.

 

My favorite posts are by people that are conveying geniune honesty and concern for the long term financial health of other people. Most of us that have been around the block a few times can see the trouble brewing and I think it's important to share our thoughts when appropriate. You never know the people you may have a positive influence on that aren't posting but reading what you write and taking it to heart.

 


+1 This. 

 


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Message 27 of 29
hausfrau
New Contributor

Re: This is the Danger Zone!

There isn't any shame in having to utilize credit. It's not like you are vacationing on a card and then just letting it go into collections because it served it's purpose for fun.

I'm on myFico because our credit got out of control for a lot of reasons. Loss of income during a deployment, not paying enough attention to the cards, and some was flat out stupidity. It's not the mistakes in life that define a person, it's what they do afterwards that shows their character. In everything, from finance to romance.

Starting my rebuild!


Message 28 of 29
MovingForward_2012
Valued Contributor

Re: This is the Danger Zone!

I have a reserved budget for a card that strictly charges nonrecurring expenses or wants. I pay 10% of the balance each month and when it hits zero again, it is time for some new shoes, clothes, home decor, etc. There is Best Buy and then my other cards. My other cards are used for everyday expenses and I have put soft limits on them. $1000 limit cards can have a max $500 balance and $2500 limit cards have a max balance of $1100. I rotate between two $2500 rewards cards and two $1000 rewards cards each month so they get usage and rewards. The spending caps are based on my income and bills. If I overshoot those spending caps, I know savings will be required to PIF. The best thing you can do is make a budget and make sure you truly have savings...not $25 just to keep the account open (been there done that). Savings is your best friend and may help you dig out of an unexpected hole. Setup auto transfer from checking to savings every pay day. I'm currently transferring $600 per month. Before I closed on the house in Feb, I had so much disposable income that I did not have to keep a detailed budget. Every month I came in under budget. Now with the house, I do have to keep a detailed budget in order not to overshoot. Any days that you don't have to make a charge is a good day.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 29 of 29
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