Unsecured Credit Cards - Never Again

[Penny Less]

2 months 21 days and counting into my new years resolution...I am never never ever ever getting or using an unsecured credit card ever again.

How does it go...better to die on your feet then to live on your knees?

[Minnymouth]

That's great if you think you can live without one....

Problem is a lot of things have to be secured by a credit card whether you pay in cash or not...

Such as airline tickets, motel rooms, concert tickets, etc...

Most people have at least one credit card (keep a low balance) and use it to help restore their credit score.

Good, sensible use of a credit card (say buy your gas on it, pay it off each month) will help boost your credit score.

Just use it wisely, for gas or emergencies only, and stay below 1/3 of the balance of credit that they allow you. Make sure payments are timely and current each month.

Our society revolves around credit and its very hard to survive without at least one credit card.

[Cassiopeia]

Excellent advice and I concur, Minny!

[Penny Less]

I used my paypal debit card to buy plane tickets a few weeks ago. There are ways around everything.

I feel I've had such a bad experience I don't want to give them business.

[emoney]

Credit is a tool. Just like a hammer or a hoe. All of these tools can be used for good things or bad.
It depends on your traning. It is too bad schools do not have classes on the proper use of credit.
regards,
emoney

[Penny Less]

Just use it wisely, for gas or emergencies only, and stay below 1/3 of the balance of credit that they allow you. Make sure payments are timely and current each month.

Our society revolves around credit and its very hard to survive without at least one credit card.

This is true. I had to use mine for insurance premiums and medication co-payments payments while I was sick and that lead to the situation I am in now at 30% apr with no way to pay back.

If I had had a savings account equal to the value of the cards I wouldn't have needed them.

[emoney]

I have used the Dave Ramsey plan to help me plan my financial needs. Works great and its free, unless you want to buy a book or attend and event.
regards,
emoney

[One Half Full]

Most people have at least one credit card (keep a low balance) and use it to help restore their credit score.

What about the news items about CC companies ditching people who "pay on time?" and pay off their balance each month.

I personally think that after this credit shake-up, a lot of people will be saying No to credit cards. I know I will be.

[justplaintired]

People like us who filed cause of cc debt should never have a cc. I am only here because of cc debt. Trying to make minimum payments, having nothing left over out of our checks because of it and using the cards for food, gas, and everything else left us in over our heads.

See, we were in our late 30's before we got our first card. Before that we lived fine, yeah we paid cash for everything, but I slept good at night. We had everything we needed. Not new cars, not new everything, but we were happy, so why is we need a cc? So in 10 years, we can file again? Nope not us. You won't see us here again, I am going to live like people lived before evil cc took over. See people don't need all these things, they just think they do. Things will never make anyone happy, maybe for a little bit, or until the cc bills come rolling in.

[Stilltheone]

When I first filed, I was exactly like the OP....."I never want to see a piece of plastic in this house AGAIN"....

BUT, unfortunately, I know we will have to get another cc someday. I know we will have to buy another car someday, another house someday...and the only way to build up credit is having an unsecured card.

Going through this whole experience has made me a lot wiser in the fact that I know I can't handle a card with high limits.

[ichb]

Just say No!

We will be among those people who are treating credit cards like an addiction, we can't have just one. I have impulse issues and get a euphoric feeling from available credit and my husband doesn't like to tell me no.

I am betting my husband that we will be able to get a mortgage when we are ready without acquiring new unsecured debt to increase our scores. I think that given a decent sized down payment, being able to show wise investments and a good income will go a long way toward getting us a mortgage.

I'm just talking about us here, not at all trying to push our views on others.

[arkienurse]

We will be among those people who are treating credit cards like an addiction, we can't have just one. I have impulse issues and get a euphoric feeling from available credit and my husband doesn't like to tell me no.

I am betting my husband that we will be able to get a mortgage when we are ready without acquiring new unsecured debt to increase our scores. I think that given a decent sized down payment, being able to show wise investments and a good income will go a long way toward getting us a mortgage.

I'm just talking about us here, not at all trying to push our views on others.

According to Dave Ramsey, you should try to find a company that does manual underwriting on mortgages. They don't look at the credit score, but instead look at you personally- where you work, how much you make, what debts you have. So you would be more likely to get a mortgage.

I too plan to never have a credit card again. Finished in Oct, so far shredding all the apps unopened. Have a little bit of savings, and only my student loan and mortgage for ongoing payments. We shall see if I cave or not

[jp2861]

This is just my opinion, but I think it's crazy not to use every tool available to rebuild credit. If the stress created by filing bankruptcy hasn't drawn the clue bird to land on ones shoulder, nothing will. Those folks will find a way to get back in financial trouble, credit cards or not.

As far as credit cards are concerned, nobody is saying you must have tens of thousands in available limits. Keeping it simple is the way to approach it. For me, $2,000 in available limit is fine. Maintaining the "live on cash" philosophy can still be the way to go, even using credit cards. Buy a tank of gas...next week pay it off. Buy your groceries...next week pay it off. If you come up with a system of paying for normal (key word being normal) cash expenses with a card, and then paying it, or 95%, shortly afterwards, it becomes very manageable. Especially with online bill payments and such. It's really just a matter of coming up with a system and sticking to it.

We can blame the banks all day, but until we discipline our habits nothing will ever change. So much of our daily lives revolves around credit these days that it's almost unrealistic to think we can get away without establishing a good history.

[poor@budgeting]

With the advent of Debit Cards with VISA & MasterCard association, it is now easier to live without a 'normal' credit card or AMX charge.

But there are still downside in using just Debit cards, e.g.,
- Lodging charges puts a 'hold' in excess of your normal fee;hotel might charge the actual bill as seperate while the 'hold' clears a few days later - puts a strain on the checking account.
- Same for car rentals. Some won't even allow without CC, which could be actually the cheapest rate.


There are just too many advantages of having a CC/good credit. The trick is to learn from the mistakes that got all of here.

[sisterfunkhaus]

I have used the Dave Ramsey plan to help me plan my financial needs. Works great and its free, unless you want to buy a book or attend and event.
regards,
emoney

We are reading his book now. We live with my parent and they actually want us to stay even after I go back to work. If we could manage that, we could pay off $120,000 in student loans in less than 5 years, pay off our current car, and be in amazing shape financially. Even after this five years if we got our own apartment, we could afford to save up a very large down payment on a house. With our student loans, car payments, a good rental history, and 20% down payment, I'm pretty sure we'd be just fine without a credit card. I like what he says about living like no one else will allow you to live like no one else.