topic Re: Credit Card Reponsibility in Credit Cards

Credit Card Reponsibility

Anonymous — Mon, 03 Nov 2008 20:54:19 GMT

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?

Re: Credit Card Reponsibility

Anonymous — Mon, 03 Nov 2008 21:17:05 GMT

I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).

What's best for you might not make the highest FICO score.

Message Edited by writemikep on 11-03-2008 01:17 PM

Re: Credit Card Reponsibility

Anonymous — Mon, 03 Nov 2008 21:26:20 GMT

I find that using my Amex Platinum card really does help me from spending more than I should. With the threat looming of PIF, it keeps within what I can afford and away from temptation.

Re: Credit Card Reponsibility

Uniqua — Fri, 07 Nov 2008 16:49:43 GMT

I agree, ddd. Far too often I see people here encouraging people already in debt with high util to apply for new credit. I also see people giving advice to others about which CCs they are SURE to get based on their credit scores specifically, which is bad advice because your score is NOT the only option creditors weigh on. I appreciated that tid bit of advice when I first got it, but I have learned the hard way!

I also see people app'ing like it's "in style" and pushing the button for others to get on the "app" frenzy bus. But, what I can't stand the most is those here who seem to think CCCs owe them something after 1-2 months of PIF history so they harass them to get CLIs. It just amazes me the number of threads on "asking" for CLIs or threatening to cancel their CCs if they don't get one. Why can't some of us just wait? Patience is a virtue, you know?! Then again, some of us NEVER learn!

I think we need more threads on credit gardening especially the way the CC world is today.

Sorry and forgive me. Had to vent!

Message Edited by Uniqua on 11-07-2008 11:48 AM

Message Edited by Uniqua on 11-07-2008 11:49 AM

Re: Credit Card Reponsibility

Anonymous — Mon, 03 Nov 2008 21:47:16 GMT

@Anonymous 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?

I have to disagree. After being removed from the workforce due to illness, I decided since I had no job, (a severe cut in income), and was also going through a divorce(an even greater reduction in income), I closed out all of my accounts. I did not have any clue on what affected my credit scores at that time. So, I went years without opening new credit, because I didn't think I could. Not using credit did not help improve my score, this is certain. Now I am 38 and having to start all over again. Thankfully with these forums, I have a better understanding of what makes up my FICO and what I can do to be sure I have the best one possible. Simply not using credit at all is not going to help FICO.

And who here is not advocating responsible use of credit cards? PIF, not maxing out your cards is not sound advice? That seems to be the 2 most mentioned here.

Re: Credit Card Reponsibility

Anonymous — Mon, 03 Nov 2008 22:13:38 GMT

@Anonymous wrote:
I find that using my Amex Platinum card really does help me from spending more than I should. With the threat looming of PIF, it keeps within what I can afford and away from temptation.

I agree my Charge Card makes me think 3 times before I purchase somehting.

Re: Credit Card Responsibilbity

Anonymous — Mon, 03 Nov 2008 22:18:02 GMT

@Anonymous wrote:
I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).

What's best for you might not make the highest FICO score.

Message Edited by writemikep on 11-03-2008 01:17 PM

No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. 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.

Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.

Re: Credit Card Responsibilbity

Anonymous — Mon, 03 Nov 2008 22:46:45 GMT

@Anonymous wrote:
@Anonymous wrote:
I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).

What's best for you might not make the highest FICO score.

Message Edited by writemikep on 11-03-2008 01:17 PM
No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. 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.

Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.

Not spending more than you can afford to pay back immediately is pretty much common sense. Having available credit doesn't equal debt, unless a person decides to spend beyond their means. I do not need a forum to tell me that I may have $$$ in available credit and only $$ in income that if I were to spend up to all of my available credit that there is going to be a serious problem. But yes, I do believe in a budget and I do spend accordingly so that there isn't a problem.

Re: Credit Card Responsibilbity

Anonymous — Mon, 03 Nov 2008 23:21:42 GMT

I agree with Stef. Since I started reading and then posting here, I have quadrupled my CL's, added new credit cards to my portfolio and raised my scores over 100 points. While I have access to MUCH more credit now, I currently have $37 reporting on my credit reports. I don't owe anybody a dime. Never buy more than I can afford and PIF every month.

Re: Credit Card Reponsibility

laz98 — Mon, 03 Nov 2008 23:25:03 GMT

i think you all are right on...

but i also don't see the problem in say, taking advantage of a 0% offer at best buy to buy a nicer tv or whatever then you would have cash for, & paying it off over 3 months. as long as you are actually taking care of your debt, i don't see the big deal.

Re: Credit Card Responsibilbity

haulingthescoreup — Tue, 04 Nov 2008 00:17:26 GMT

ddd wrote:

@Anonymous wrote:
I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).

What's best for you might not make the highest FICO score.

Message Edited by writemikep on 11-03-2008 01:17 PM
No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. 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.

Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.

I always tell people to regard their CC's as debit cards, and not to use them if they don't have the money in the bank to pay them off, or if it will be there in the next paycheck.

I just get tired of typing it.

Re: Credit Card Responsibilbity

Anonymous — Tue, 04 Nov 2008 01:15:26 GMT

@haulingthescoreup wrote:

I always tell people to regard their CC's as debit cards, and not to use them if they don't have the money in the bank to pay them off, or if it will be there in the next paycheck.

I just get tired of typing it.

I am new to the world of credit and have been following precisely this strategy. In my view, my credit lines do not allow me to spend money I don't already have, they simply allow me to keep that money in a savings account a few days longer (plus earn cash back on things I would have bought anyway!).

What I did was actually set up a special savings account to pay my cards from. Each time I make a purchase from the card, I transfer the money from my checking account into savings. As far as my checking account is concerned, the money is "spent" immediately when I make the purchase, BUT I get the bonus of earning a bit of interest on the money while it sits in savings until I pay the credit card.

Re: Credit Card Responsibilbity

Anonymous — Tue, 04 Nov 2008 01:47:39 GMT

@haulingthescoreup wrote:
@Anonymous wrote:
@Anonymous wrote:
I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).

What's best for you might not make the highest FICO score.

Message Edited by writemikep on 11-03-2008 01:17 PM
No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. 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.

Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.

I always tell people to regard their CC's as debit cards, and not to use them if they don't have the money in the bank to pay them off, or if it will be there in the next paycheck.

I just get tired of typing it.

OMG this is exactly what I am saying. Abstain from buying outside your means becuase you end up trouble.

Re: Credit Card Reponsibility

Anonymous — Tue, 04 Nov 2008 01:48:11 GMT

@Uniqua wrote:
But, what I can't stand the most is those here who seem to think CCCs owe them something after 1-2 months of PIF history so they harass them to get CLIs. It just amazes me the number of threads on "asking" for CLIs or threatening to cancel their CCCs if they don't get one. Why can't some of us just wait? Patience is a virtue, you know?! Then again, some of us NEVER learn!

I do remember a thread a while back in which someone was ranting and raving (and did seem VERY angry indeed) because they'd had some or other card for three months and "hadn't defaulted" (their words) and yet were turned down for a CLI. CLIS are nice and all, but that one did leave me a bit, errr, shocked!

Re: Credit Card Responsibilbity

Anonymous — Tue, 04 Nov 2008 01:54:57 GMT

@Anonymous wrote:
I agree with Stef. Since I started reading and then posting here, I have quadrupled my CL's, added new credit cards to my portfolio and raised my scores over 100 points. While I have access to MUCH more credit now, I currently have $37 reporting on my credit reports. I don't owe anybody a dime. Never buy more than I can afford and PIF every month.

I'm the same - much higher credit lines, and yet lower ACTUAL (not %) debt by far than when I started posting here. As in "none" (well, other than the mortgage, that is). I didn't owe that much to begin with, but now the thought of a nasty Scorewatch alert telling me I've been dinged a few points for actually (gasp!) having a balance report on any of my cards that I don't CHOOSE to let report (and even then, the balances I allow to report are VERY minimal, and the cards are PIF'd anyway) is more than enough to put me off spending more on my cards than I can afford to pay off pretty much immediately.

Message Edited by fevmlo on 11-03-2008 08:54 PM

Re: Credit Card Reponsibility

Anonymous — Tue, 04 Nov 2008 01:53:53 GMT

@Uniqua wrote:
I agree, ddd. Far too often I see people here encouraging people already in debt with high util to apply for new credit. I also see people giving advice to others about which CCs they are SURE to get based on their credit scores specifically, which is bad advice because your score is NOT the only option creditors weigh on. I appreciated that tid bit of advice when I first got it, but I have learned the hard way!

I also see people app'ing like it's "in style" and pushing the button for others to get on the "app" frenzy bus. But, what I can't stand the most is those here who seem to think CCCs owe them something after 1-2 months of PIF history so they harass them to get CLIs. It just amazes me the number of threads on "asking" for CLIs or threatening to cancel their CCCs if they don't get one. Why can't some of us just wait? Patience is a virtue, you know?! Then again, some of us NEVER learn!

I think we need more threads on credit gardening especially the way the CC world is today.

Sorry and forgive me. Had to vent!

I agree 100% you are right on money. It seems that some of these poast encourage irresponsibility. If you need to apply for a secured you need to sit down and figure out if you really need it or not. I'm a poits freek I play the points all the time. But you can only get so many FIRST time offers so I'm pretty much done playing games.

All this ranting about canceling cards is going to be done SOON. All companies want to cancel risky credit swiftly. My thought behind the process if you only got a 1-3K limit ti's for a reason. You should be patient nurture make sure you are ok before you start percing increase button.

Irresponsiblity is way to common I know mistakes I have MADE many. I just think personal responsibiblity should be excersided. The problem is everyone feels somebody owes them something.

Re: Credit Card Responsibilbity

Anonymous — Tue, 04 Nov 2008 01:56:53 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).

What's best for you might not make the highest FICO score.

Message Edited by writemikep on 11-03-2008 01:17 PM
No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. 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.

Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.
Not spending more than you can afford to pay back immediately is pretty much common sense. Having available credit doesn't equal debt, unless a person decides to spend beyond their means. I do not need a forum to tell me that I may have $$$ in available credit and only $$ in income that if I were to spend up to all of my available credit that there is going to be a serious problem. But yes, I do believe in a budget and I do spend accordingly so that there isn't a problem.

Really? What forum are you on? This forum contains 90% post about rebuilding due to some kind of default. You may not but read the the rest of the Post day in and day out. Thats why our stock market is going down the toilet. People tend to get crazy and over extend themselves with available credit. Look at the Mortage problem.

Re: Credit Card Responsibilbity

Anonymous — Tue, 04 Nov 2008 02:07:36 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).

What's best for you might not make the highest FICO score.

Message Edited by writemikep on 11-03-2008 01:17 PM
No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. 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.

Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.
Not spending more than you can afford to pay back immediately is pretty much common sense. Having available credit doesn't equal debt, unless a person decides to spend beyond their means. I do not need a forum to tell me that I may have $$$ in available credit and only $$ in income that if I were to spend up to all of my available credit that there is going to be a serious problem. But yes, I do believe in a budget and I do spend accordingly so that there isn't a problem.

Really? What forum are you on? This forum contains 90% post about rebuilding due to some kind of default. You may not but read the the rest of the Post day in and day out. Thats why our stock market is going down the toilet. People tend to get crazy and over extend themselves with available credit. Look at the Mortage problem.

Well you're here, aren't you? And your tone (if you can have 'tone' when typing) would indicate you don't count yourself among the kind of people you mention. And you're not alone, either. Not everyone on here is horribly in debt, and of those who are, for every poster who by their own admission made unwise spending/credit decisions, there's another who's found themselves out of their depth through no fault of their own. The one common theme is that the vast majority are trying to improve that situation... some may not have quite got the message (and appear to be increasing their debts at the same rate or faster than their credit limits), but most who have less than perfect credit are trying to do something about it. I think most of the people we see on here who have got themselves into a credit mess would now consider themselves older and wiser!

Re: Credit Card Responsibilbity

Anonymous — Tue, 04 Nov 2008 02:37:30 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I believe FICO is geared towards using credit responsibly (because it's supposed to be an indicator of the risk an individual will default), so abstaining completely will not give you as good a score as using it a little and PIF'ing each month. If you don't use your cards, FICO has a harder time determining that. Also, I think FICO wants to see how you deal with a variety of credit, so to max out the score you probably need mortgage and installment (car) loans in your credit history (not sure they have to be open accounts tho).

What's best for you might not make the highest FICO score.

Message Edited by writemikep on 11-03-2008 01:17 PM
No that was not my point when I used ABSTINENCE. I used when it comes to Irresponsible spending or spending more than what you can afford to buy. 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.

Instead of looking for banks that aprpove a certain score we should be tlaking about what can you possibly afford to spend on your specific budget. Can I affford X instead of I have enough credit to buy this I can pay it later.
Not spending more than you can afford to pay back immediately is pretty much common sense. Having available credit doesn't equal debt, unless a person decides to spend beyond their means. I do not need a forum to tell me that I may have $$$ in available credit and only $$ in income that if I were to spend up to all of my available credit that there is going to be a serious problem. But yes, I do believe in a budget and I do spend accordingly so that there isn't a problem.

Really? What forum are you on? This forum contains 90% post about rebuilding due to some kind of default. You may not but read the the rest of the Post day in and day out. Thats why our stock market is going down the toilet. People tend to get crazy and over extend themselves with available credit. Look at the Mortage problem.

PP- you posted this in the credit card forum. If it was in rebuilding or BK, maybe I could understand you.

Usually we discuss what is going on with credit cards on a day to day basis. I'm usually here every day and if I am not actively participating, I am usually reading different post.

Yes- I have noticed that some people here are trying to get back on their feet after who knows what knocked them down. Should I preach to these people to never apply for a credit card because they could potentially default again? It's not my place! If they have been over in the BK and rebuilding forum and come here after they have felt they are ready to take the next step and start rebuilding, then why should I feel the need to ask if they are now responsible to take out a new credit card? I do not know what life event caused the default to begin with. I don't know if the person was totally irresponsible and defaulted, but it doesn't really matter as that is not what they are asking help for in THIS forum.

I can only offer help/advice on what I have experienced. What people chose to do with it is solely up to them.

Re: Credit Card Reponsibility

wmarat — Tue, 04 Nov 2008 02:45:49 GMT

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.

Message Edited by wmarat on 11-03-2008 06:45 PM