topic Re: CC mentality/philosophy in Credit Cards

CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 03:38:54 GMT

So I've been doing a lot of reading on here over the past few months, but just signed up. I'm curious what people's thoughts are regarding CCs after having dealt with paying down debt/raising their scores. One thing that I see a lot is excitement over getting new CCs but also sometimes like it's a status thing. I'm not judging at all here. I'm genuinely curious where people are coming from. See I've been on a DMO for the past 2.5 years where I had to close all my CCs so have operated on a stictly cash basis. I've sort of grown a healthy distain for banks. Don't get me wrong, I fully understand that it was my own mismanagement that got me into debt. But I'm not a fan of some of the predatory (albeit legal) practices. So now that I'm working on trying to build my credit back up I'm finding myself still very reluctant to "play the game" so to speak and try to open a CC for the utilization ratio benefit. Currently I only have one open account (student loan) of about 6.5k on my report. That's it. I'm curious to hear if other folks found themselves in the same mindset when they were back in a position to apply for a CC again.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 03:42:03 GMT

Whoops! DMP, not DMO.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 03:56:26 GMT

You know, I'm trying to think about this from someone else's point of view who has good cash flow, good discipline, and passed out of their bad credit score into good credit score zone. I suppose I could see where it could become a game where the goal is to get the "best" card/benefits to game the gamers. It just seemed odd to me when I first started noticing it. I'm not sure I'm ready/willing get to ease up on my dislike of CCs/banks yet, but I think I get it.

Re: CC mentality/philosophy

creditnocash — Thu, 27 Dec 2012 04:10:39 GMT

well i dont know if i qualify as having good cash flow but i make around 1700 dollars take home after taxes and 401k deductions. (mind you im a 21 year old college student/work full time)

going from only 2-3 store cards and paying everything with a debit card or cash it is defintly a different mind set.

i haven't really paid down debt like in a dmp. but i have had some high balances in regards to my cc limits.

seeing my scores in the 700's was a rush but now that my util is a little higher at 20% instead of my 4% my score tanked almost 35-40 points.

although ive never missed a payment so im sure once i pay down the cards and not have 2-3 cards showing as maxed out next month my score will recover for the better.

but a good rule of thumb to follow is if you dont have it in your checking dont put it on your card.

i mostly use the cards just for the cash back as for on a debit card or cash you get nothing.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 04:28:25 GMT

Well, my credit sucks, so I am definitely NOT the audience you are seeking to respond to this; however, I do get your point, and what you are saying. Me, personally, I look at all of these people with these great CL's and multiple times their income limits and think that it's fantastic that a. they can keep all of it straight (those spreadsheets and programs for cc management seem to help them);and b. those (especially the people who filed for BK's like me), who are able to get back to even better and higher scores than they had before they filed BK (granted, with a lot of time and energy).They are a source of inspiration to me, because they have proven that anything is possible with discipline and time.

With that being said, I did what my attorney recommended and opened these (awful) subprime cards, even before my BK was discharged (in order to start the rebuilding process), and I have to say; the year and a half I went without any cc's actually was much better than the past year and a half after my BK with these bad cards. I wrote this somewhere else, that I wish I had found this site when I first filed (or before), as I would have handled things a LOT differently. I'm not saying my attorney was wrong, but I would have preferred to open secured cards instead and the just gone from there. I know a lot of people don't prefer secured cards, and like to have unsecured cards/loans, but given my past experience; I really am going to move away from credit card as much as reasonably possible and go back to cash.

I will retain 3 cards and get an installment share secured loan at some point, but otherwise, I want to keep the credit to a minimum and work on rebuilding my emergency account; 6 months to a years' living expenses account, and finally, a savings account for a future condo purchase in about 3-5 years.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 04:29:39 GMT

@Anonymous wrote:
You know, I'm trying to think about this from someone else's point of view who has good cash flow, good discipline, and passed out of their bad credit score into good credit score zone. I suppose I could see where it could become a game where the goal is to get the "best" card/benefits to game the gamers. It just seemed odd to me when I first started noticing it. I'm not sure I'm ready/willing get to ease up on my dislike of CCs/banks yet, but I think I get it.

Well, I have sometimes posted things that are a little "strange" about this forum. The universal "Congratulations" given to people when they obtain cards or CLIs, when we really don't know if this is a good thing, particularly those that have had bad credit in the past. In my more cynical moments, I convert this to an Alcoholics Anonymous forum where members are congratulating eachother on finding a way to get drinks from the barman.

I think the question is whether you need credit. As others have said, if you pay cash or use debit cards, you are losing rewards you could get with credit cards, but if you have a strong dislike of banks and credit cards, I don't think that is enough of a reason to change.

So that leaves stuff you will need to buy on credit, hopefully just big ticket items such as house and maybe car (and just buy what you can afford in cash for everything else). If you think you will someday need a mortgage, then it makes sense, as soon as you are ready, to get one or more credit cards, and not use them, to get the history. And then quit the forum till nearer the time!

Re: CC mentality/philosophy

loviedovie — Thu, 27 Dec 2012 04:37:49 GMT

@Anonymous wrote:

Well, I have sometimes posted things that are a little "strange" about this forum. The universal "Congratulations" given to people when they obtain cards or CLIs, when we really don't know if this is a good thing, particularly those that have had bad credit in the past. In my more cynical moments, I convert this to an Alcoholics Anonymous forum where members are congratulating eachother on finding a way to get drinks from the barman.

I was just thinking about this... also olderwiser as you said, people sometime seem to be getting new credit as a status symbol.. I have read a few older posts about people excited to get in the 6 figures of available credit. And I wonder...

is there any advantage to having 100k of available credit line?

is it really an issue of, the more credit the better?

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 04:40:10 GMT

Thanks for the replies. And I'm glad to hear that I'm not the only one who's noticed this. In the long term, yes, a house is something that I'd like to buy so that would be the main reason I'd be willing to play the game of trying to raise credit scores. But otherwise, I actually like paying for things in cash. Sort of like some people get a rush out of posting that they have the new shiny card, I get a bit of a rush knowing that I'm spending what I've already earned and am in a better financial position/being more disciplined than the majority of other people in the checkout lines around me. (Sure that's a generalization and there obviously lots of people that are in a far better place than I am.)

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 04:43:10 GMT

@loviedovie wrote:
@Anonymous wrote:

Well, I have sometimes posted things that are a little "strange" about this forum. The universal "Congratulations" given to people when they obtain cards or CLIs, when we really don't know if this is a good thing, particularly those that have had bad credit in the past. In my more cynical moments, I convert this to an Alcoholics Anonymous forum where members are congratulating eachother on finding a way to get drinks from the barman.

I was just thinking about this... also olderwiser as you said, people sometime seem to be getting new credit as a status symbol.. I have read a few older posts about people excited to get in the 6 figures of available credit. And I wonder...

is there any advantage to having 100k of available credit line?
is it really an issue of, the more credit the better?

That combines several active threads! Probably CL/Income is a better ratio, if you earn 700K, the answer to whether 100K credit is enough is different than it is to someone who earns 30K.

The more credit you have, up to a point, the lower any utilization so the better the score. Obviously, GETTING the extra credit can also reduce your score with inquiries etc. And some lenders that matter, such as mortgage companies, may eventually decline you if you have too much available credit, as there is the perceived risk that you will use it and not have enough cash flow to pay them.

Re: CC mentality/philosophy

creditnocash — Thu, 27 Dec 2012 04:45:04 GMT

I actually went to a store and the clerk said how are you free (referring to the chase freedom) when your tied down with debt?

I simply just pay in full.

Like stated I budget my money just like I would my debit card. (sure there's the extra days where you don't have to pay but I always keep that in mind)

I do use a spread sheet and update it every couple days with balances and due dates and such.

Then I just set the full amount in my bank and push the payment a couple days before its due and don't use that card until the statement cuts.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 04:46:01 GMT

@loviedovie wrote:
@Anonymous wrote:

Well, I have sometimes posted things that are a little "strange" about this forum. The universal "Congratulations" given to people when they obtain cards or CLIs, when we really don't know if this is a good thing, particularly those that have had bad credit in the past. In my more cynical moments, I convert this to an Alcoholics Anonymous forum where members are congratulating eachother on finding a way to get drinks from the barman.

I was just thinking about this... also olderwiser as you said, people sometime seem to be getting new credit as a status symbol.. I have read a few older posts about people excited to get in the 6 figures of available credit. And I wonder...

is there any advantage to having 100k of available credit line?
is it really an issue of, the more credit the better?

Yeah I don't think I'd ever want a 100k limit. Even when I had excellent credit before the 2008 downturn I never had anywhere near that and I still got into trouble. I'd like to have a healthy emergency fund and then maybe a single card (max two) to use to work on raising scores. I'm sure there are foks out there that can an do have those huge limits and never get into trouble. But I'd be curious to know how many. Sort of like yo-yo dieters.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 04:51:02 GMT

@creditnocash wrote:
I actually went to a store and the clerk said how are you free (referring to the chase freedom) when your tied down with debt?
I simply just pay in full.

Like stated I budget my money just like I would my debit card. (sure there's the extra days where you don't have to pay but I always keep that in mind)
I do use a spread sheet and update it every couple days with balances and due dates and such.
Then I just set the full amount in my bank and push the payment a couple days before its due and don't use that card until the statement cuts.

I currently do the same thing with a spreadsheet. I even have it projected out for roughly the next year with paychecks coming in, fixed bills and average variable bills like electricity/gas going out. That way I know what I have to spend at any given point. Not sure how I'd fit a CC into that other than to treat it sort of like a utility bill. Log the expense when it's incurred and pay it off right away, or log it in the future a few days before it needs to be paid so I continue operating on the $ amount in my spreadshet vs what my bank account says.

Re: CC mentality/philosophy

Swapmeet — Thu, 27 Dec 2012 05:35:04 GMT

@Anonymous wrote:
@loviedovie wrote:
@Anonymous wrote:

Well, I have sometimes posted things that are a little "strange" about this forum. The universal "Congratulations" given to people when they obtain cards or CLIs, when we really don't know if this is a good thing, particularly those that have had bad credit in the past. In my more cynical moments, I convert this to an Alcoholics Anonymous forum where members are congratulating eachother on finding a way to get drinks from the barman.

I was just thinking about this... also olderwiser as you said, people sometime seem to be getting new credit as a status symbol.. I have read a few older posts about people excited to get in the 6 figures of available credit. And I wonder...

is there any advantage to having 100k of available credit line?
is it really an issue of, the more credit the better?
Yeah I don't think I'd ever want a 100k limit. Even when I had excellent credit before the 2008 downturn I never had anywhere near that and I still got into trouble. I'd like to have a healthy emergency fund and then maybe a single card (max two) to use to work on raising scores. I'm sure there are foks out there that can an do have those huge limits and never get into trouble. But I'd be curious to know how many. Sort of like yo-yo dieters.

I think you have a bit of a misconception of people that seek credit. Most of these people here use credit cards for one purpose -- to get the most out of each dollar that they spend. They don't get into any trouble and are not like yo-yo dieters because they use their credit responsibly. They have the money but since money is getting spent regardless, why not get some reward for spending it? People get different rewards with different cards, so people get the cards that reward them for spending money on the things that they already spend money on. If I am going to buy a washing machine, for instance, and it is $1,000; if I pay cash then I will be minus $1,000 and plus a washer. Now, if I buy it with a card that is offering 5% cash back on appliances, then I am out $1000 and plus a washer -- plus $50 back, so I can buy the washer and then some detergent; some bleach; a clothes basket; some fabric softener; and then all this shopping makes me hungry, so I can go out to a nice lunch. The same day that I buy the washer I can pay $1,000 on my cc. In both instances $1,000 was spent that day, but the $1,000 got me a lot more in the second scenario.

So some of it is playing the game and trying to game the gamers. Some of it probably has to do a bit with the status associated with the elite cards (notice that these are the cards with the best rewards e.g. BCE, CSP, cash +...etc). Some is the competition to achieve the highest credit score or the rush associated with getting approved for that credit limit in the tens of thousands, or more. But, having said all of this, these are the people who are using the same dollars to buy multiple things. This is how the rich get richer: they can do more with less.

Sorry for the length, but that is my $.02.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 05:36:54 GMT

No apology necessary. That was a very good explanation actually. Thanks, that helps me better understand where people are from. From the outside looking in it sometimes seems very odd. But I'm sure it wasn't helping that I was bouncing around from CCs to Fixing credit where people are generally in pretty different places.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 06:05:21 GMT

@Swapmeet wrote:
re foks out there that can an do have those huge limits and never get into trouble. But I'd be curious to know how many. Sort of like yo-yo dieters.
I think you have a bit of a misconception of people that seek credit. Most of these people here use credit cards for one purpose -- to get the most out of each dollar that they spend. They don't get into any trouble and are not like yo-yo dieters because they use their credit responsibly. They have the money but since money is getting spent regardless, why not get some reward for spending it? People get different rewards with different cards, so people get the cards that reward them for spending money on the things that they already spend money on. If I am going to buy a washing machine, for instance, and it is $1,000; if I pay cash then I will be minus $1,000 and plus a washer. Now, if I buy it with a card that is offering 5% cash back on appliances, then I am out $1000 and plus a washer -- plus $50 back, so I can buy the washer and then some detergent; some bleach; a clothes basket; some fabric softener; and then all this shopping makes me hungry, so I can go out to a nice lunch. The same day that I buy the washer I can pay $1,000 on my cc. In both instances $1,000 was spent that day, but the $1,000 got me a lot more in the second scenario.

So some of it is playing the game and trying to game the gamers. Some of it probably has to do a bit with the status associated with the elite cards (notice that these are the cards with the best rewards e.g. BCE, CSP, cash +...etc). Some is the competition to achieve the highest credit score or the rush associated with getting approved for that credit limit in the tens of thousands, or more. But, having said all of this, these are the people who are using the same dollars to buy multiple things. This is how the rich get richer: they can do more with less.

Sorry for the length, but that is my $.02.

Mmm, deleted my text somehow!

I think that what you say may be true of some/most of the posters some of the time. But a lot more is going on. People are encouraged to get new cards and/or CLIs well above what is needed for day to day reward spending, and of course carrying a balance negates all gains. Often the reason to do this is to improve FICO scores, although many can't really say why they want to do this other than as an end in itself. I don't think the situtation here is as rosy as you suggest. For most, it's not: "I will need to buy an X soon. My budget is Y, what card could maximize my reward?" It's "What card should I get next and when should I ask for a CLI?" People respond without regard to the posters budget, goals, needs etc, and often just suggest their favorite card of the day.

Also, we don't know if some posters here will get (back) into trouble. Hopefully not, but I think some of the atmosphere here encourages over-extension.

Re: CC mentality/philosophy

Revelate — Thu, 27 Dec 2012 06:15:35 GMT

@Anonymous wrote:
No apology necessary. That was a very good explanation actually. Thanks, that helps me better understand where people are from. From the outside looking in it sometimes seems very odd. But I'm sure it wasn't helping that I was bouncing around from CCs to Fixing credit where people are generally in pretty different places.

To be honest, the Credit Cards board isn't quite the same in many respects as the other ones on this forum (each have their own personality / style).

It doesn't surprise me as being labelled odd, strange, or any other synonym one can use; I've been reading this particular board consistently for the past year, and I'll be the first to admit that the constant "Approved!" messages do occasionally tempt me and almost assuredly others in awkward directions.

Being approved for anything can be psychologically exciting, and often when people are excited, they want to share that with others. Nothing unusual about that, and it's not restricted to credit card approvals; however, this being a board dedicated to credit cards, their use, their management, and also their acquisition it's reasonable that it's shared here.

Granted, the "glitter and lights" of the shiny new credit cards people receive can be distracting and for some individuals and in some cases addiction might be an appropriate word (layman use), which is why everyone is encouraged to have a plan, and stick to it. Some places here, such as the monthly Garden thread, strive to keep that first and foremost in the sea of approval threads that you've noticed.

That all said, there's a tremendous amount of useful information to be found here both on the forums in general, and the Credit Cards board in particular; however, it's absolutely recommended to keep perspective on it.

Re: CC mentality/philosophy

Cdnewmanpac — Thu, 27 Dec 2012 15:00:50 GMT

First, this is a forum populated mostly by people who are rebuilding their credit. Many of those people got into trouble originally due to poor impulse control, so to see the same phenomenon during the rebuilding phase is to be expected. Of course people on here apply for cards they don't need, as witnessed by the seasonal "I'm cancelling my amex charge card" threads.

That being said, the "game" you refer to isn't a game, its sound economics. The advantages to revolving credit are:

-it allows you to purchase items when they are least expensive, rather than when you have cash on hand (increasing the value of your money)

-it allows you to use items when they are most useful to you, rather than when you have cash on hand (increasing the value of the item)

-it allows you to take advantage of short term "float" to maximize your spending power (similar to first two, but without interest involved)

-it allows you to obtain lower interest rates when you do need to borrow money long term (house, car, medical procedure, home improvement, grad school, etc.)

-you can take advantage of the incentives card issuers offer to use their products, whether points, cash back, perks, etc.

Having a high FICO score offers real world advantages (having had a high one, then a very low one, now a medium one): we recently had a baby. It was unexpected (though very much wanted) and caused us to have to change some plans rather dramatically. We had to move up the time table for building a 2nd bathroom in our house, had to obtain a second car (my bus/scooter/bike method doesn't work if the kid gets a fever at daycare) and had to pay off some hefty medical bills (pregnancy and delivery were complicated). All of these things were less costly and less stressful to obtain because of my wife's credit score (>760) and harder for me to obtain (around 700). The truth is that she could not have gotten her score to where it is without obtaining (and using responsibly) revolving debt.

While you can probably get by with just a student loan, you are going to struggle to get into the 700s even when DMP is finished. You will have a harder time getting a mortgage and will pay more in interest. Obtaining two to three cards, boosting your score and taking advantage of situations where revolving debt makes economic sense will give you more value for the money you earn and more flexibility in how you deploy that money.

Re: CC mentality/philosophy

Swapmeet — Thu, 27 Dec 2012 18:27:30 GMT

@Anonymous wrote:
@Swapmeet wrote:
re foks out there that can an do have those huge limits and never get into trouble. But I'd be curious to know how many. Sort of like yo-yo dieters.
I think you have a bit of a misconception of people that seek credit. Most of these people here use credit cards for one purpose -- to get the most out of each dollar that they spend. They don't get into any trouble and are not like yo-yo dieters because they use their credit responsibly. They have the money but since money is getting spent regardless, why not get some reward for spending it? People get different rewards with different cards, so people get the cards that reward them for spending money on the things that they already spend money on. If I am going to buy a washing machine, for instance, and it is $1,000; if I pay cash then I will be minus $1,000 and plus a washer. Now, if I buy it with a card that is offering 5% cash back on appliances, then I am out $1000 and plus a washer -- plus $50 back, so I can buy the washer and then some detergent; some bleach; a clothes basket; some fabric softener; and then all this shopping makes me hungry, so I can go out to a nice lunch. The same day that I buy the washer I can pay $1,000 on my cc. In both instances $1,000 was spent that day, but the $1,000 got me a lot more in the second scenario.

So some of it is playing the game and trying to game the gamers. Some of it probably has to do a bit with the status associated with the elite cards (notice that these are the cards with the best rewards e.g. BCE, CSP, cash +...etc). Some is the competition to achieve the highest credit score or the rush associated with getting approved for that credit limit in the tens of thousands, or more. But, having said all of this, these are the people who are using the same dollars to buy multiple things. This is how the rich get richer: they can do more with less.

Sorry for the length, but that is my $.02.
Mmm, deleted my text somehow!

I think that what you say may be true of some/most of the posters some of the time. But a lot more is going on. People are encouraged to get new cards and/or CLIs well above what is needed for day to day reward spending, and of course carrying a balance negates all gains. Often the reason to do this is to improve FICO scores, although many can't really say why they want to do this other than as an end in itself. I don't think the situtation here is as rosy as you suggest. For most, it's not: "I will need to buy an X soon. My budget is Y, what card could maximize my reward?" It's "What card should I get next and when should I ask for a CLI?" People respond without regard to the posters budget, goals, needs etc, and often just suggest their favorite card of the day.

Also, we don't know if some posters here will get (back) into trouble. Hopefully not, but I think some of the atmosphere here encourages over-extension.

You are making an awful lot of assumptions here that would be very difficult to back up. There is some truth to the two following philosophies: 1. One needs to get credit before they need it -- which leads to 2. Banks only lend money to people that don't need it. CLIs can be tools that are used to show lenders "hey, you can trust me with your money, like these others do." I think that most people on these boards use credit the right way, and very few do not. I further think that having a high Fico score is important. These boards talk about responsible use of credit cards. Are there going to be people that misuse them here? Of course, but these boards are here for them too -- to help them figure out how to get out of the trouble that they got into and use their credit more responsibly in the future. I would agree that improving ones fico score is sometimes an end in itself, but I would also add that it is a means to the end of getting the credit that one wants as well.

Re: CC mentality/philosophy

Jutz — Thu, 27 Dec 2012 18:06:53 GMT

@Anonymous wrote:
@Swapmeet wrote:
re foks out there that can an do have those huge limits and never get into trouble. But I'd be curious to know how many. Sort of like yo-yo dieters.
I think you have a bit of a misconception of people that seek credit. Most of these people here use credit cards for one purpose -- to get the most out of each dollar that they spend. They don't get into any trouble and are not like yo-yo dieters because they use their credit responsibly. They have the money but since money is getting spent regardless, why not get some reward for spending it? People get different rewards with different cards, so people get the cards that reward them for spending money on the things that they already spend money on. If I am going to buy a washing machine, for instance, and it is $1,000; if I pay cash then I will be minus $1,000 and plus a washer. Now, if I buy it with a card that is offering 5% cash back on appliances, then I am out $1000 and plus a washer -- plus $50 back, so I can buy the washer and then some detergent; some bleach; a clothes basket; some fabric softener; and then all this shopping makes me hungry, so I can go out to a nice lunch. The same day that I buy the washer I can pay $1,000 on my cc. In both instances $1,000 was spent that day, but the $1,000 got me a lot more in the second scenario.

So some of it is playing the game and trying to game the gamers. Some of it probably has to do a bit with the status associated with the elite cards (notice that these are the cards with the best rewards e.g. BCE, CSP, cash +...etc). Some is the competition to achieve the highest credit score or the rush associated with getting approved for that credit limit in the tens of thousands, or more. But, having said all of this, these are the people who are using the same dollars to buy multiple things. This is how the rich get richer: they can do more with less.

Sorry for the length, but that is my $.02.
Mmm, deleted my text somehow!

I think that what you say may be true of some/most of the posters some of the time. But a lot more is going on. People are encouraged to get new cards and/or CLIs well above what is needed for day to day reward spending, and of course carrying a balance negates all gains. Often the reason to do this is to improve FICO scores, although many can't really say why they want to do this other than as an end in itself. I don't think the situtation here is as rosy as you suggest. For most, it's not: "I will need to buy an X soon. My budget is Y, what card could maximize my reward?" It's "What card should I get next and when should I ask for a CLI?" People respond without regard to the posters budget, goals, needs etc, and often just suggest their favorite card of the day.

Also, we don't know if some posters here will get (back) into trouble. Hopefully not, but I think some of the atmosphere here encourages over-extension.

I think you're being overly cynical, as well as generalizing. First, I'll answer your criticism by saying that yes, I think there is a fair bit of playing up the aethetics of good cards, and good credit as a whole. I saw someone recently who was approved for, and accepted, both an AMEX Green and Gold, which makes almost no sense. Obviously this would be against most advice given here. However, I went the last five years of my life dreading anything credit related. It affected where I've lived, what I've driven, what I've saved. If I feel like making it a goal to have cards that are of high "status" is that really the worst thing?

As far as the idea that encouraging credit growth, specifically credit card growth, will encourage over-extension and falling back into bad habits, that isn't something that is controlled by the board. I've never seen anyone suggest carrying a balance, outside of something small to report if you'll be applying soon for new credit. More often than not, falling back into debt is due to environmental factors. I think that most regular members of this board are at least far more educated than your average consumer.

Re: CC mentality/philosophy

Anonymous — Thu, 27 Dec 2012 18:21:33 GMT

@Swapmeet wrote:

You are making an awful lot of assumptions here that would be very difficult to back up. There is some truth to the two following philosophies: 1. One needs to get credit before they need it -- which leads to 2. Banks only lend money to people that don't need it. CLIs can bee tools that are used to show lenders "hey, you can trust me with your money, like these others do." I think that most people on these boards use credit the right way, and very few do not. I further think that having a high Fico score is important. These boards talk about responsible use of credit cards. Are there going to be people that misuse them here? Of course, but these boards are here for them too -- to help them figure out how to get out of the trouble that they got into and use their credit more responsibly in the future. I would agree that improving ones fico score is sometimes an end in itself, but I would also add that it is a means to the end of getting the credit that one wants as well.

Sorry but I do find this amusing. My awful lot of assumptions are hard to back up, whereas your assumptions, that most people are using them correctly to use reward spending and that most people are using credit responsibly, are apparently obviously true.

I agree the board does contain a lot of useful information, but I also think that some posters, unintentially of course, encourage potentially poor decisions by cheerleading successful apps and CLIs without knowledge of need and means. That's all. And there is at least as much evidence of that as there is for your assumptions.