@lg8302ch wrote:
@peaceonearth wrote:
@lg8302ch wrote:
@peaceonearth wrote:
@subwaysandwich wrote:
I have a FICO score of 730 (without micromanaging) and I find that I spend too much when I have credit cards (not that I'm in debt or anything). Would I still have good FICO if I were to cancel all my cards? Thanks!+1
I had more money when I was only using my Debit card and no credit cards.
This is the part I do not understand. It is just the method of payment that changed for me not the spending
On the contrary with cards I get some cash back with debit plain nothing...above statement is a mystery to me.
edit: make a budget, stay on that budget and then payment method does not change anything
Even these days, most Debit cards have no Rewards. A plain no gain..
That's the only I love is the Miles, my average Monthly spending on credit cards goes up to $30,000.00 and I make sure it is paid off in full each Month.
I do believe in Credit but frankly, Credit sometime can be a headache.
So far no lender prevents the use of credit cards in the same way as debit cards...so simply get the rewards and do not pay attention to the word CREDIT ...think of it as DEBIT and get these rewards !
Good point.
peaceonearth wrote:
+1
I had more money when I was only using my Debit card and no credit cards.
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I can't speak for anyone else, but I have found this has been true for me (albeit with a small sample size). I track everything on Quicken, including cash purchases.
Since my app spree 3 months ago and shift to using my credit cards to pay for basically everything except my mortgage, my overall spending has increased about 5.5%. I figured this out by comparing my avg monthly spending from July 2013- Feb 2014 (before cards) to March 2014- current. Part of that increase is due to trying to meet minimum spends on various cards.
I will be curious to see if this pattern (+5%) holds. So far the sample size is way too small to make any definitive statement. I PIF everything so I am attempting to use my CCs similarly to a debit card and rack up the rewards.
+1
I had more money when I was only using my Debit card and no credit cards.
_____________________________________
I can't speak for anyone else, but I have found this has been true for me (albeit with a small sample size). I track everything on Quicken, including cash purchases.
Since my app spree 3 months ago and shift to using my credit cards to pay for basically everything except my mortgage, my overall spending has increased about 5.5%. I figured this out by comparing my avg monthly spending from July 2013- Feb 2014 (before cards) to March 2014- current. Part of that increase is due to trying to meet minimum spends on various cards.
I will be curious to see if this pattern (+5%) holds. So far the sample size is way too small to make any definitive statement. I PIF everything so I am attempting to use my CCs similarly to a debit card and rack up the rewards.
@eagle2013 wrote:
@Dw4250 wrote:
@peaceonearth wrote:
+1
I had more money when I was only using my Debit card and no credit cards.
_____________________________________
I can't speak for anyone else, but I have found this has been true for me (albeit with a small sample size). I track everything on Quicken, including cash purchases.
Since my app spree 3 months ago and shift to using my credit cards to pay for basically everything except my mortgage, my overall spending has increased about 5.5%. I figured this out by comparing my avg monthly spending from July 2013- Feb 2014 (before cards) to March 2014- current. Part of that increase is due to trying to meet minimum spends on various cards.
I will be curious to see if this pattern (+5%) holds. So far the sample size is way too small to make any definitive statement. I PIF everything so I am attempting to use my CCs similarly to a debit card and rack up the rewards.Also true for me as well.
Eagle- I have read this is a true statement for many, which is why I am tracking my spending very closely (and will adjust if needed). The credit card companies aren't dumb; they realize people are more apt to be looser with their spending using credit cards v. cash/checking account. Whoever the cog was in the banking machine who thought of "reward" points/miles/cash ought to be a rich man/woman. It's absolute genius.
While 5% extra spending may not seem like much, say your monthly spending is ~ $5000/month using cash (this is about what I spend). Add 5% to that...$5250. Multiply that extra $250/month by 12...that's an extra $3000/year that could be going to savings, IRA account, whatever but are instead going to cc purchases. So it's not an insignificant amount of money.
Ultimately, my goal is to stay "even" using the cards while racking up the rewards. But if I find that I am consistently spending 5% or more above cash spending, I may ramp down my card usage as well (pretty sure I will not earn $3000/year in rewards...lol!)
@subwaysandwich wrote:
I have a FICO score of 730 (without micromanaging) and I find that I spend too much when I have credit cards (not that I'm in debt or anything). Would I still have good FICO if I were to cancel all my cards? Thanks!
OP, as others have already said, no, don't cancel all of them, bad idea.
With that said, I think you should keep your oldest credit card, put recurring bills on it, then SD it. Cancel the rest. Then open up a charge card and a LOC tied to your checking account. First of all, it's a hassle to book a room or rent a car with a debit card, so you want something to carry with you in emergencies. That's where the charge card comes in. You won't be as tempted to overspend on a charge card since you know you can't just extend payments later on (and be sure to reject all offers for Pay Over Time). And with a LOC, you only access it when you run out of money in the bank (assuming you're not tempted to use the convenience checks).
That's 3 tradelines to maintain a good FICO with minimal temptation for impulse spending.
