Credit Cards

[knight_shadow]

Originally Posted by amanda6035

I don't think it's useless. I think this tool could be used for someone young, who hasn't had a run in with borrowing money to establish credit, and also for people who are "recovering" from bad credit.

I meant useless in that specific context (someone who doesn't manage his/her finances well). Obviously, it fills a niche or it wouldn't be in existence

[MysticCat]

Originally Posted by amanda6035

Yes, a bill that you have to pay...with interest.

Well, as others have said, not if you pay it off each month.

Originally Posted by ADqtPiMel

I think it's ridiculous to say there's no reason to have a credit card. Just because people misuse them all the time doesn't make them horrible.

My parents opened a credit card in my name when I was young and used it to pay bills, and then paid it off in full every month without fail. They gave me the physical card when I turned 18 and took over paying for everything myself. So as a young adult, I had a nice long established credit history. I still pay off the card in full (almost) every month and I have outstanding credit scores.

My father did something similar, putting my name along with his on a credit card when I was in college. I used it, he got the bill. Nothing like knowing your dad will get the bill to make you careful about how you use it.

I have three or so credit cards, not counting one for work expenses. I don't use any of them very often -- just often enough that they know I'm there and still paying my bills.

[KSUViolet06]

Originally Posted by MysticCat

Well, as others have said, not if you pay it off each month.

This.

The "omg credit cardz are the devilllll" thing is ridiculous. They really are a great way to build your credit if you're using them responsibly and not treating them like they're "free money."

Originally Posted by AlphaFrog

Whether I come out ahead on my credit score in the end, I've now got some windfall financially for NYC.

Credit cards aren't windfall, though. I don't mean to be rude, but I hope you're not planning to finance an NYC move all on credit cards.

[PiKA2001]

Originally Posted by KSUViolet06

This.

The "omg credit cardz are the devilllll" thing is ridiculous. They really are a great way to build your credit if you're using them responsibly and not treating them like they're "free money."





Credit cards aren't windfall, though. I don't mean to be rude, but I hope you're not planning to finance an NYC move all on credit cards.

PREACH!! I raised an eyebrow myself when I read that. Quite the dangerous path there....

IMHO credit cards are like alcohol, the only "bad" thing about them is that most people abuse them. I have about 9 credit cards and my main problem is the banks closing some accounts due to lack of activity on my part. I just don't use them. A few of my cards are store cards (Best Buy, Crate and Barrel, Mattress Firm) but I only use(d) them because of the no interest financing they offer. I paid all of them off before the promotion ended and didn't pay a penny of interest. It's kind of nice not having to drop $2,000 in one day. Best Buy is particularly good with 18 months of no interest on most larger purchases.

[ree-Xi]

Originally Posted by PiKA2001

PREACH!! I raised an eyebrow myself when I read that. Quite the dangerous path there....

IMHO credit cards are like alcohol, the only "bad" thing about them is that most people abuse them. I have about 9 credit cards and my main problem is the banks closing some accounts due to lack of activity on my part. I just don't use them. A few of my cards are store cards (Best Buy, Crate and Barrel, Mattress Firm) but I only use(d) them because of the no interest financing they offer. I paid all of them off before the promotion ended and didn't pay a penny of interest. It's kind of nice not having to drop $2,000 in one day. Best Buy is particularly good with 18 months of no interest on most larger purchases.

I had this happen to me first with a Major CC. The CC companies do not have to notify the customer, either. I had physically lost one of my cards and called the CC company to send me a new one. They told me they would send a new card with a new number, without sacrificing my history. While waiting, a letter had crossed in the mail stating that my account was being closed due to inactivity. When I called the CC company to complain - why couldn't they have warned me when I had to reorder a physical card? - they said that they didn't know at the time - a difference of about four or five days. They also said it's not their policy to warn customers.

It's annoying as hell, because we work really hard to not carry large balances, and the companies punish you for not wracking up huge amounts of debt. This card had a high limit, no fee and low interest rates, and I was proud of my history with them (10 years!). I get it, they are for-profit entities, but it's poor service to dump customers without notice. If I wanted to reopen the account, I would have to reapply and essentially "start over" with them. No thank you, I said.

I now make sure to use my other cards once in a while to ensure they don't get closed.

[AlphaFrog]

Originally Posted by KSUViolet06

Credit cards aren't windfall, though. I don't mean to be rude, but I hope you're not planning to finance an NYC move all on credit cards.

Oh, heck no. I've got enough in my account to pay for the move and a few month's rent, etc. I'll put it on a card, but then pay it off right away. I just meant that if I got into an emergency situation, I'll have a bit of backup.


I just had a monkeywrench thrown into the works, though. The appraiser on my re-fi appraised my house TWENTY FREAKING THOUSAND DOLLARS less than it was appraised for in 2009 when we purchased it from my parents. And the Tax Value is $6000 higher than the 2009 appraisal. Even Zillow says my house is worth $11,000 more than this appraisal. It doesn't make sense, though, since he noted in his report that prices were trending UP in my neighborhood. I think what really hurt us was that I had paid my parents rent for almost 5 years before we bought it from them, so they counted that money towards the purchase and so the selling price was extremely low. I now have to research and present them three similar properties in my neighborhood that are higher value that what he appraised this for.

[Mevara]

Originally Posted by AlphaFrog

I just had a monkeywrench thrown into the works, though. The appraiser on my re-fi appraised my house TWENTY FREAKING THOUSAND DOLLARS less than it was appraised for in 2009 when we purchased it from my parents. And the Tax Value is $6000 higher than the 2009 appraisal. Even Zillow says my house is worth $11,000 more than this appraisal. It doesn't make sense, though, since he noted in his report that prices were trending UP in my neighborhood.

Don't use zillow as a reference but as a starting point to appraising a house. As much as they try there is too many variables they don't/are not taking into account. Also the tax assessor will almost always raise your property taxes without verifying if you property is actually worth what they claim it is worth. Right after the bubble burst and my condo had dropped at least $20k the tax assessors were trying to raise my taxes!!