topic Re: Credit Card addiction - how do you stop your self? in Credit Cards

Credit Card addiction - how do you stop your self?

Want2BDebtFreeNow — Sun, 02 Aug 2009 15:07:54 GMT

In September it will be three years since I opened my last credit card account, in the last year and a half I have been really good about paying down debt, not applying for any car loans and I am seeing the rewards with my credit scores going up from 630's a year ago to about 703 & 709 today.

Now I have this itch of applying for a credit card just to see if I get approved and get a 0% BT offer. I know this is not a good reason and I don't want to throw away 3 years down the drain. I want to pay off the remainder of my CC debt down to 0 and I have about a year to a year and a half before I can do that at the current interests (praying they don't change them on me to something out of this world). What I really want is to qualify for a mortgage, and to do that I am going to have to trade my car in but I have to wait until I pay off some of the negative equity.

I keep thinking of my long term financial health but every time I come to the forums I see paying saying I got approved for this or that and I want to take my chances to see if I my hard work has paid off. How do you keep your self from applying for credit? What do you use as motivation? BTW I am 29 and this is the long I have ever gone without applying for a new cc.

BTW I think all the cc's I have open would be considered "prime" with the exception of one..

Amex - 2001

BofA Amex - 2006

Chase x 3 - 2006

HSBC - 2006 ? what was I thinking? lol this was before I knew

Best Buy - 2006 to take advantage of a 0% 3 year offer that expires next month (I already set up a payment to pay it off before it expires) If not it would rollover 1400 in deffered finance charges) whew.

Re: Credit Card addiction - how do you stop your self?

Anonymous — Sun, 02 Aug 2009 15:23:13 GMT

You have a good mix of revovling plus auto. You don't actually need anything else to improve your score.

Adding another low APR card would probably not hurt you much. It would pull your AAoA down a few months, but FICO rounds down anyway, which means it would merely delay your 4 year AAoA a few more months.

Unless you are going to apply for the home mortgage in the next 6 months, adding a new account won't hurt it UNLESS you just run up more CC debt.

But if you can get a 0% BT or maybe 3-5% BT for life of transfer, this could help in several ways.

1. It would improve your utilization percentages (more available credit in relation to current balances)

2. It would reduce the amount of interest you pay, letting you pay more toward principle

3. Eventually this would become another good TL credit reference.

4. It provides some protection and backup in case of an APR rate hike by one or more of current CC's.

5. It would scratch that itch you got. LOL

If used to reduce interest, improve utilization and thus pay down debt faster, then adding another good card may not be a bad thing. I recommend a good CU card so that you can have more long term stability in the APR rate.

If you qualify in any way for NFCU, this is where you want to go for the highest CL and 7.9% fixed.

PenFed has a 2.99% BT for life of transfer, though standard rate is 13.99. Addison Avenue has CC's as low as 5.24% standard rate, not promo.

Just pick one good one which will give you a good CL, good rate.

Good luck

Re: Credit Card addiction - how do you stop your self?

marty56 — Sun, 02 Aug 2009 15:42:06 GMT

National City used to offer a 0% BT for 15 months and they sent you the check so you dont need to close anything. I dont know if they still do since it was 2 years ago.

Re: Credit Card addiction - how do you stop your self?

MarineVietVet — Sun, 02 Aug 2009 15:47:41 GMT

How do you keep your self from applying for credit?

I just tell myself I have enough credit. That's not to say I won't apply sometime in the future especially if more CCC's start closing down accounts but for now I'm satisfied. Does that make sense?

7/09 (myfico)
TU-742
EQ-779

Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

Re: Credit Card addiction - how do you stop your self?

Watchmann — Sun, 02 Aug 2009 16:08:24 GMT

I remind myself that applying for a credit is really a negative as it is a potential debt that would have to be paid back if used. IMO there is too much applying for credit with the view of it being a positive action and some sort of affirmation of one's self worth. To me it is just the opposite. Unless really needed it shows weakness. Just my opinion.

Re: Credit Card addiction - how do you stop your self?

Anonymous — Sun, 02 Aug 2009 16:14:03 GMT

I think that OP might benefit cause he has higher balances and may help the utilization and maybe get a better BT rate. If so, then debt is paid faster, cause OP said can't pay off for a while.

Re: Credit Card addiction - how do you stop your self?

Anonymous — Sun, 02 Aug 2009 17:27:08 GMT

Re: Credit Card addiction - how do you stop your self?

There are two types of addictions (or inappropriate behaviors) described here

1- Aquiring/Apping the credit cards (which is a personal badge of honor self worth thing)

Thats actually NOT so bad as long as you can control your use of the card and you do not APP so much that you are tanked for getting other credit you do need when that time comes up. But again- you can app so much you have a negative impact on your file.

2- Actually spending money/Charging.

You can have a stable of cards that if you use judiciously you are ok.

It is the spending/charging issue that is a problem.

If you think you have a problem, you probably have a problem.

You could easily have hit a wall in the past and that has caused you to back off and be good, but one falling off the wagon moment can KILL all the inroads you have made in your balances. (much like a weekly "Cheat Day" if not done under control can cause you to consume more calories then you limited yourself from all week)

Most people with compulsive shopping/spending issues have aother addictive behaviors married with them such as alcohol, food, drugs, hoarding, or gambling.

If you think you have a problem 12 step and some type of addiction behavior programs can help.

if you think you have a problem I do NOT recommend a BT to a new account as that will open up an unused card and make you want to use it.

if you think you have a problem only you can get help. Many people do not as in the case of any bad behavior we do not like to admit we have a problem.

Re: Credit Card addiction - how do you stop your self?

haulingthescoreup — Sun, 02 Aug 2009 17:38:08 GMT

I don't apply for stuff, because I have long-term plans. My credit is hurt by short AAoA, and every individual application drops my age and keeps me further from my goals. Since my planned app spree in spring 2008, I have gotten an AmEx Blue to replace my Gold (inq but no new account hit), and I accepted a line of credit from PenFed, just to have as a reserve (new account hit, but no inq.) It appears that Chase is closing their Boarders Visa card program, and they're supposed to be changing my card to a Freedom, yay, which is something I was hoping for.

When I first got started here, I made a plan on Notepad on the laptop, listing all the CC's that I wanted one day, why I wanted them, what it would take to get them, and so forth. I kept modifying the list as I learned things and as my goals changed. Whenever I got an itch, I'd go back and re-read the list, and that kept me on track.

Make a plan, figure what it will take to reach your goal, break it down into steps and milestones, and follow it.

And if you get really tempted, stay off of the Credit Cards board for a while.

Re: Credit Card addiction - how do you stop your self?

FocusOnFICO — Sun, 02 Aug 2009 17:49:04 GMT

Hauling's advice, as usual, is right on. Credit cards and applications are hopefully a part of a bigger plan.

It is difficult to think that you have what you need and then see something out there. I thought that I was done for 3+ years because I did a similar thing with a plan and list. My low interest cards (4.25% and 7.25%) in back-to-back days changed their terms and I needed to fill in (Addison).

In the end it's important to follow the good guidance about only applying for credit you need and ensuring that your major plans are not compromised. Patience can be tough to learn, but will be the ultimate advantage when building great credit scores and keeping them.

Re: Credit Card addiction - how do you stop your self?

Anonymous — Sun, 02 Aug 2009 18:17:12 GMT

BTW, you having gone 3 years without applying for any new credit shows that you are not an addict. Temptation is human nature. Controlling that is the defining characteristic....and you have shown restraint.

I still think that you could possibly benefit by a good CU card with a nice rate and CL to build a relationship in this new credit era.

This is subject to you not applying for a home loan in the next 6-8months so that any new account is beyond 6 months and preferable a year old.

The cards you have, the CCC's have been erratic, hiking rates, CLD and closing accounts. So you can't really count on these even if your credit has been perfect.

CU's are more stable and I recommend diversification into at least 1 good CU, even if you don't apply for credit, at least open a checking/savings.

Addison Avenue and NFCU only SOFT pull your credit for membership/savings, etc. and only hard for credit. Addison pulls EX and NFCU pulls EQ.

Alliant and PenFed are possibilities too, but they hard pull EQ for membership.

Message Edited by txjohn on 08-02-2009 11:17 AM

Re: Credit Card addiction - how do you stop your self?

Want2BDebtFreeNow — Sun, 02 Aug 2009 18:24:29 GMT

Thank you all for the responses. I was having a weak moment. I got up and left the house :-) and now its gone. I just have to keep thinking to my long term goal: Be a first time homeowner in 2 years!

Re: Credit Card addiction - how do you stop your self?

Anonymous — Sun, 02 Aug 2009 18:39:01 GMT

Having a goal and a plan really helps shoot down those random "can I get it" app's. That doesn't mean you can't take advantage of something when it comes along, but in order to even be considered it has to fit into a larger picture. I am on a similar path to HTSU. Every app I make has to be meaningful: "No Wasted App's!" At this point I am also not interested in app'ing for any major CC's that are not capable of reaching five digit CL's within 2 years. There is just no point. Beyond that another CU or two and maybe one other store card. Otherwise I am letting things age and waiting for the last of the baddies to fall off. (Two to three more years!) By then I should be in high FICO land (760+) across the board!

Re: Credit Card addiction - how do you stop your self?

Anonymous — Sun, 02 Aug 2009 22:54:43 GMT

To me it is pretty simple. First, do I have sufficent available credit to meet any REALISTIC NEEDS we may have? The answer is yes.

Am I worried about "changes" to my Credit lines, interest, etc? NO. This is simply because I have a long enough history and have proven I have the "3 C's of Credit" (something many of you younger people have never heard of but was the standard for credit granting for years).

I see no need to shop around for another credit product, looking for a better deal. Experience has taught me that I can walk into my bank, with whom I have established a LONG TERM RELATIONSHIP with and because of my track record, they will offer to match anything that another lender offers me.

It has been proven to me it is far easier and quicker to get what you need when dealing with someone who has had experience with you.

Re: Credit Card addiction - how do you stop your self?

Karatz — Mon, 03 Aug 2009 00:05:15 GMT

@haulingthescoreup wrote:
I don't apply for stuff, because I have long-term plans. My credit is hurt by short AAoA, and every individual application drops my age and keeps me further from my goals. Since my planned app spree in spring 2008, I have gotten an AmEx Blue to replace my Gold (inq but no new account hit), and I accepted a line of credit from PenFed, just to have as a reserve (new account hit, but no inq.) It appears that Chase is closing their Boarders Visa card program, and they're supposed to be changing my card to a Freedom, yay, which is something I was hoping for.

When I first got started here, I made a plan on Notepad on the laptop, listing all the CC's that I wanted one day, why I wanted them, what it would take to get them, and so forth. I kept modifying the list as I learned things and as my goals changed. Whenever I got an itch, I'd go back and re-read the list, and that kept me on track.

Make a plan, figure what it will take to reach your goal, break it down into steps and milestones, and follow it.

And if you get really tempted, stay off of the Credit Cards board for a while.

Pretty Darn Good Advice.

Re: Credit Card addiction - how do you stop your self?

medicgrrl — Mon, 03 Aug 2009 00:43:42 GMT

When temptation hits go over to the mortgage forum and read that for awhile! LOL Just remember your goals and focus on those instead

Re: Credit Card addiction - how do you stop your self?

Anonymous — Mon, 03 Aug 2009 02:53:56 GMT

@Anonymous wrote:
Am I worried about "changes" to my Credit lines, interest, etc? NO. This is simply because I have a long enough history and have proven I have the "3 C's of Credit" (something many of you younger people have never heard of but was the standard for credit granting for years).

I see no need to shop around for another credit product, looking for a better deal. Experience has taught me that I can walk into my bank, with whom I have established a LONG TERM RELATIONSHIP with and because of my track record, they will offer to match anything that another lender offers me.

It has been proven to me it is far easier and quicker to get what you need when dealing with someone who has had experience with you.

Your definition of long and proven must be different than mine. I was a B of A customer for over 10 yrs. Checking and savings included. FICOs upper 700s to low 800s. Util under 10%. Still they CLD me by nearly 20k! Naturally I no longer do business with the bank I had a long term and proven track record with. Np though as I went out and got other deals. Consider yourself fortunate not to have been treated poorly by your long term bank yet. They're not our friends.

Re: Credit Card addiction - how do you stop your self?

Anonymous — Mon, 03 Aug 2009 03:03:03 GMT

@Anonymous wrote:
@Anonymous wrote:
Am I worried about "changes" to my Credit lines, interest, etc? NO. This is simply because I have a long enough history and have proven I have the "3 C's of Credit" (something many of you younger people have never heard of but was the standard for credit granting for years).

I see no need to shop around for another credit product, looking for a better deal. Experience has taught me that I can walk into my bank, with whom I have established a LONG TERM RELATIONSHIP with and because of my track record, they will offer to match anything that another lender offers me.

It has been proven to me it is far easier and quicker to get what you need when dealing with someone who has had experience with you.

Your definition of long and proven must be different than mine. I was a B of A customer for over 10 yrs. Checking and savings included. FICOs upper 700s to low 800s. Util under 10%. Still they CLD me by nearly 20k! Naturally I no longer do business with the bank I had a long term and proven track record with. Np though as I went out and got other deals. Consider yourself fortunate not to have been treated poorly by your long term bank yet. They're not our friends.

"Yet" is the key word in that sentence. Money center banks are no one's friends.

Re: Credit Card addiction - how do you stop your self?

Anonymous — Mon, 03 Aug 2009 04:36:56 GMT

@Anonymous wrote:
@Anonymous wrote:
Am I worried about "changes" to my Credit lines, interest, etc? NO. This is simply because I have a long enough history and have proven I have the "3 C's of Credit" (something many of you younger people have never heard of but was the standard for credit granting for years).

I see no need to shop around for another credit product, looking for a better deal. Experience has taught me that I can walk into my bank, with whom I have established a LONG TERM RELATIONSHIP with and because of my track record, they will offer to match anything that another lender offers me.

It has been proven to me it is far easier and quicker to get what you need when dealing with someone who has had experience with you.

Your definition of long and proven must be different than mine. I was a B of A customer for over 10 yrs. Checking and savings included. FICOs upper 700s to low 800s. Util under 10%. Still they CLD me by nearly 20k! Naturally I no longer do business with the bank I had a long term and proven track record with. Np though as I went out and got other deals. Consider yourself fortunate not to have been treated poorly by your long term bank yet. They're not our friends.

Sorry you had a problem with them. I am sure if you took the time to sit down with your branch manager and ask for an explanation you would get one.

Credit is changing and the days of large amounts of unsecured credit being extended is coming to an end and actually, that is a good thing.

I think as time passes we will certainly see more cuts in CL"s and much tighter criteria in granting new credit.

I am sorry but I have to disagree when you make the broad statement, "They're not our friends". It seems to many people a "friend" is someone who will bend to their every wish where id someone says no, they are not a friend. I don't see it that way.

Glad you found other products you are happy with and hope they work out for you.

Re: Credit Card addiction - how do you stop your self?

Lyythine — Mon, 03 Aug 2009 12:39:48 GMT

@Anonymous wrote:
Re: Credit Card addiction - how do you stop your self?

There are two types of addictions (or inappropriate behaviors) described here

1- Aquiring/Apping the credit cards (which is a personal badge of honor self worth thing)

Thats actually NOT so bad as long as you can control your use of the card and you do not APP so much that you are tanked for getting other credit you do need when that time comes up. But again- you can app so much you have a negative impact on your file.

2- Actually spending money/Charging.

You can have a stable of cards that if you use judiciously you are ok.

It is the spending/charging issue that is a problem.

If you think you have a problem, you probably have a problem.

You could easily have hit a wall in the past and that has caused you to back off and be good, but one falling off the wagon moment can KILL all the inroads you have made in your balances. (much like a weekly "Cheat Day" if not done under control can cause you to consume more calories then you limited yourself from all week)

Most people with compulsive shopping/spending issues have aother addictive behaviors married with them such as alcohol, food, drugs, hoarding, or gambling.

If you think you have a problem 12 step and some type of addiction behavior programs can help.

if you think you have a problem I do NOT recommend a BT to a new account as that will open up an unused card and make you want to use it.

if you think you have a problem only you can get help. Many people do not as in the case of any bad behavior we do not like to admit we have a problem.

USMC,

I laughed so hard I almost spit out my juice while reading this... Im not sure if you meant it that way - but its one of those days and this just made it better...

I smoke cigarettes... and I love apping - indicating an addictive personality? I think so... but ill live with it - but not for too long considering the first habit - the second is much less harmful

Re: Credit Card addiction - how do you stop your self?

Anonymous — Mon, 03 Aug 2009 13:20:30 GMT

@Lyythine wrote:
USMC,
I laughed so hard I almost spit out my juice while reading this... Im not sure if you meant it that way - but its one of those days and this just made it better...
I smoke cigarettes... and I love apping - indicating an addictive personality? I think so... but ill live with it - but not for too long considering the first habit - the second is much less harmful

Correct Trading One Addiction for Another