LOL @ Cap1 APR Reduction

[SnackTrader]

Stralem,

Point well-taken, and I appreciate your comments. I think that my comments in this thread can be taken as being intolerant of ANYONE who carries a balance, but that is indeed not my feeling. The aggregate of my comments on this topic (I write about this a lot here) usually discuss that life can sneak up on us. Medical bills, home repairs, car repairs, etc. all occur from time to time and can often be handled quite responsibly with credit cards. You explained one of those situations just now.

However, my comments above discussed those who carry balances regularly. That is, those who consistently live beyond their means and use credit cards to fund that lifestyle. That does not mean everyone in debt lives in a mansion and take vacations. In fact, quite the opposite. Many people in debt in this country live very modest lives, but STILL cannot afford what they have. I have no solution for this problem, but in general I would warn anyone who comes on this forum with minimal income that they will not be able to afford many of the great consumer products available - and credit cards aren't going to change that. In fact, for these individuals, rewards credit cards might not make much of a difference at all since a certain level of spending is needed to optimize many great rewards cards.

Those who live in mansions and take international vacations and fund their lifestyle with credit cards are a completely different segment of the population. I try not to express my general thoughts on this segment of the population in a public forum.

At the end of the day your situation presents a much different problem than regular balance carrying, but your problems probably put you more at risk than other segments of the population to overextend yourself while carrying those balances and end up in a debt cycle. I'm sorry to hear about your medical bills, and I wish you luck in paying down the debt.

[Anonymous]

Personally, I closed my Cap1 Platinum with a $500 limit because they would never give me a CLI. And whenever I would want to use it , I couldn't because it would put me over 50% util for that card. And it had no rewards, so it was really a pointless card for me.

So even though it was my oldest card, by about 6 months, I decided that it was in my best interest to close it and replace it with a better card. I don't see the point of hanging onto cards that serve you no purpose.

[Anonymous]

I hate them with a passion. I really do. I would close it, but I like the tradeline. I know it will still report for 10 years.. but rather than having a 7 year old account reporting for 10 years.. in 10 years, I'd rather have a 17 year old account reporting.. you know?

[bluescale]

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@Stralem wrote:

But on the wider issue of advocating responsible credit usage, no argument from me. Maxing out cards to go on vacations or buying big-ticket items that you don't need is just foolish, and we all know what they say about a fool and his money. I'm fairly certain this is the group of people you had in mind when you posted, though.

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Hey now!  I maxed out my credit card for my vacation.  Of course, that's becase I wanted the cashback rewards and my card doesn't charge international transaction fees.  My credit union charges 1% for international transaction, while Cap1 gives me 1.5% back.  I didn't pay a cent of interest, however, since I had money sitting in the bank waiting to pay off the Cap1 every couple of days.  That was my main motication for asking for a CLI from Cap1.  I got tired of logging in every few days to pay off the card while I was on vacation.

[Anonymous]

Well regardless, in my opinion, there is a huge difference between living beyond one's means and utilizing credit for what it's for. Credit was orginally designed to purchase things you would not otherwise be able to without. It's a tool. Any tool can be abused. Credit cards are a financial tool, just like a mortgage, car loan or personal loan. How many people here bought their first house or even current house without a mortgage? In theory, if you can't purchase a house without a mortgage, you're living beyond your means, correct? Regardless, a credit card is a financial tool that people use in leu of other types of financial tools such as personal loans or installment loans. If a person rather purchase something for $20k and put it on a credit card rather than take out a loan for it, that is their perogative. So loan as they obide by the terms and conditions of that card and keep it current, what is the problem with keeping a balance? That is the business agreement between the customer and the financial institution. They could have a $100 in their bank account or $2M.. it really doesn't matter so long as they make their payments on time. Not everyone who has excellent credit pays off everyone of their cards every month, nor do people who have the ability to. If you live in the theory of not being able to charge what you can't pay for, then you shouldn't mortgage a house, purchase a car on loan or even go to school with student loans. A mortgage is nothing more than a one time use credit card, without the card. Any loan is. So long as people use it responsibly, it doesn't matter. If you could purchase something on a credit card to make your life that much better, and you keep up on your payments.. the credit card company is making money, the customer is happy, and so is the merchant.