It only draws interest if you don't pay in full, on time.
I always use credit and never do I pay a charge.
i just got credit bump
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It only draws interest if you don't pay in full, on time.
I always use credit and never do I pay a charge.
Between the wife and myself we have $80,000 in credit avaliable to us from credit cards, and $60,000 on a heloc. (and I can write a check from my credit line anytime anywhere)
so in total we have $140,000 credit line avaliable of which we have a total outstanding balance of $3000
In theory I could pay off my mortgage with my credit line.
You're doing ok for yourself B. you should look into increasing your limits on other cards of yours too. It helps lower your %utilization of your credit avaliable to you. helps with the credit score too.
so in total we have $140,000 credit line avaliable of which we have a total outstanding balance of $3000
In theory I could pay off my mortgage with my credit line.
You're doing ok for yourself B. you should look into increasing your limits on other cards of yours too. It helps lower your %utilization of your credit avaliable to you. helps with the credit score too.
Right now I'm funneling ALL of my expenses through my credit card. It's a good way to repair your credit rating too.
I'm not a "I want I want, that costs a lot" spender. So, no it doesn't make sense to me. You have the money in the bank, you cannot wait to purchase your 8000 dollar item right now on a saturday... just so you can make your 80 dollars cash back. whoopty do.
Really, you don't need a credit line of 22,000 dollars. I don't care what kind of money you make back on it with large purchases, it's still unnecessary to have that much credit.
Citizen_Insane
Senior Member
If he can handle it, why are you bitching at him? It's his decision, seems like Jeff is mature enough to handle it himself, maybe you arn't.
Because your opinion is slanted and absent minded when it comes to financial reasoning. I've seen your posts on subjects like this before and your opinion is always the blue collar opinion of, "I don't need it, why should you."
When the fact is that it comes down to common sense. It builds your credit rating which will help in the future when he would like to finance a house. It will help when he buys his next car and has a lower interest rate than you or I. It will earn him rewards for purchasing items on credit. It gives him the option to make a purchase on a whim should he like to make a purchase on a whim.
There's all these advantages and whats the disadvantage(s)? The chink in the knight's armor as you see it is will power? Thats your major disadvantage? Thats like saying you can't have crack on the table infront of you because you might be tempted to smoke it. Who's fault is that? Your own, right?
I just turned 21 in recent months and have about $10,000 available credit. I make a point to purchase virtually everything on credit, even though I always have cash around due to the nature of my cash based business. I can and usually do have $2,000 laying around but I'll spend $20 and put it on credit. Why? I earn money back, I build my credit, I have the money available to pay the balance off in full before the statement is due, and it gives myself the availability to invest my money and make my money work for me between the time that the purchase occurs and the balance is due.
But yes, if you spend $20,000 on credit and CANNOT pay it back. It is like putting that crack and crackpipe infront of someone with no will power - bad things will happen.
My point here isn't to say that you can't have your own opinion but to point out that your rationale isn't logical.
Slanted blue collar eh? Well so be it, I'm a blue collar worker. But then again so is nearly everyone here. I'm not saying "i don't need it why should you" I'm saying why do you need it? His credit rating is already pretty damn high if his card company is raising his limit out of the blue.
How is it logical to buy large high priced items on credit when you have the cash?
Sure, 'it builds credit'. But so does (hypothetically speaking here) buying all your gas or food on it one month and paying it off every month. Spending, what? a couple hundred if that a month.
My point wasn't to say that credit is all evil, and that you shouldn't use it or get rid of your cards, my point was that why is it necessary to have 22 grand in credit?
Never once did I say everyone was irresponsible enough to run up the tab on impulse buying sprees.
I have 4800 in credit, I never use my cards and I always make my payments on time.
I also have a credit rating of 647, If Capital one starts to increase my limit, I'm going to tell them to decrease it back down right where it was.
How is it logical to buy large high priced items on credit when you have the cash?
Sure, 'it builds credit'. But so does (hypothetically speaking here) buying all your gas or food on it one month and paying it off every month. Spending, what? a couple hundred if that a month.
My point wasn't to say that credit is all evil, and that you shouldn't use it or get rid of your cards, my point was that why is it necessary to have 22 grand in credit?
Never once did I say everyone was irresponsible enough to run up the tab on impulse buying sprees.
I have 4800 in credit, I never use my cards and I always make my payments on time.
I also have a credit rating of 647, If Capital one starts to increase my limit, I'm going to tell them to decrease it back down right where it was.
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How is it logical to buy large high priced items on credit when you have the cash?
You just explained why and how its logical to buy large high priced items, its even more logical to buy those items on credit than the "stuff that only amounts to a few hundred a month" because the rewards and credit building will be greater.
I ran up $3,000 on my card of car parts, alone, the other month. What happened? The credit card company bumped my credit limit, it probably moved myself into a new credit rating bracket and I made extra cash out of the deal.
It doesn't matter if its $3,000 or $22,000.
If he wants to buy a "beater" of a Civic Si and he has $20,000 in the bank, he can put it on his card and invest that $20,000 for a month and make his money "work for him". He'll make money by leaving that cash in the bank for an extra month and he'll make money from the rewards that that large purchase on credit brings him.
Wow, look at that. He just made money from both aspects of the deal, while helping to build his credit.
Where's the downside?
You just explained why and how its logical to buy large high priced items, its even more logical to buy those items on credit than the "stuff that only amounts to a few hundred a month" because the rewards and credit building will be greater.
I ran up $3,000 on my card of car parts, alone, the other month. What happened? The credit card company bumped my credit limit, it probably moved myself into a new credit rating bracket and I made extra cash out of the deal.
It doesn't matter if its $3,000 or $22,000.
If he wants to buy a "beater" of a Civic Si and he has $20,000 in the bank, he can put it on his card and invest that $20,000 for a month and make his money "work for him". He'll make money by leaving that cash in the bank for an extra month and he'll make money from the rewards that that large purchase on credit brings him.
Wow, look at that. He just made money from both aspects of the deal, while helping to build his credit.
Where's the downside?
All this because I asked what the point was. He 'could' make money doing it. Sure. Is he? doubt it.
And the point is, why the heck would you not take advantage of an opportunity?
Why would you be so foolish to call your bank and tell them to lower your limit?
There's no good reason. You're bashing your head against a brick wall here.
hcivic.com
Senior Member
why have a lower limit? Fruad simply put. they get that card and you don't notify the credit card comp thats 22G lost. I have access to credit but why use it? I have a daily debit limit of 15G and if that is not enought Im sure it can wait till monday ( or pay 15 friday and 11 on saturday like I didi with the car )
Because I think it's pointless. Never in your life will you actually NEED to use 22 grand in credit if you have that kind of money in the bank.
Why are you being thick headed?
I just showed you why its BENEIFICIAL.
Any finnacial analyst would tell you the easiest way to make money is to "put your money to work."
As for fraud, thats a good point but you'll be just as screwed if someone racks up 10k on stolen cards, then if they rack up 100k on stolen cards. With today's identity theft protection programs the card holder will more than likely only be held liable for $500 or so.
Lets face it, if the purchase is huge, they're probably going to want a photocopy of your license and to call the credit card company before the transaction is complete.
I'm being thick headed because you're trying to convince me that my opinion is purely wrong. Not everyone has cards which give them bonuses, cash back and interest working for them on purchases .
My entire point was that IN MY OPINION, nobody really needs that much credit. I know what it can do for you, but seeing as that wasn't my point in the first place, I don't care. lol
My entire point was that IN MY OPINION, nobody really needs that much credit. I know what it can do for you, but seeing as that wasn't my point in the first place, I don't care. lol
More credit is always better- it puts you in a better position for interest rates, mortgages etc.
