Improve Scores-Increase Current Secured Credit Card Limit Or Open Additional Card?

[justbroke]

Then there is risk you must protect your finances from risk. Accidents, injuries, unemployment, break downs, recessions, pandemics.

Agreed. We all have different risk profiles as well. Combine this with environment, location, and political climate, this further complicates things. Let's not even start to talk about a pandemic.

[shipo]

Then there is risk you must protect your finances from risk. Accidents, injuries, unemployment, break downs, recessions, pandemics.

Once again you are showing your lack of understanding of credit and debt. Using the example I made a day or two ago, of the $85,000 I've "charged" on "credit" cards, I have never for even a single minute been in "debt"; zero debt, zero risk, simple as that.

To me, this discussion is no different than one of the arguments the Women's Christian Temperance Union used to make, and probably still do, regarding alcohol and alcoholism; their belief is if you drink, you'll become an alcoholic. The only way to prevent literally everyone in the world from becoming an alcoholic is to ban alcohol entirely. Of course we all know this is nonsense; true, some folks are more inclined to becoming alcoholics than others, and the same applies to what I'll call spendoholics, if they have a tool to spend with, they'll use it, and what you advocate is effectively a ban on credit for everyone simply because some folks cannot control their urges; this argument is just as nonsensical as the one for banning alcohol; treating the symptom and not the cause.

You also seem to like to cast one big blanket net suggesting those of us who've declared bankruptcy are by definition not to be trusted with credit; this couldn't be further from the truth. Speaking strictly for myself, I have virtually always lived well within my means, however, my (now former) business partner ran up over $200,000 of debt in my name, unbeknownst to me, and I had no choice but to file as there was no way I could pay back the money he'd borrowed. Look through these and other forums, my story isn't unique, many folks are victims of bad divorces where the former spouse ran up huge debt causing the "victim" to seek the protection of bankruptcy.

Long story short, you may not trust yourself with credit, please do not measure the rest of us by your inability to use credit wisely.

[5yrplan]

When debt free you don’t have open credit accounts. Why bother earning pennies on the dollar? That’s not going to make you wealthy. Leveraging adds risk that you must add to the equation. Vehicles are one of your largest controllable expenses why pay more. With low expenses and no debt payments and a fully funded emergency fund you can comfortably invest a good portion of your income into retirement accounts, save for your kids college and pay down your mortgage early.

[shipo]

When debt free you don’t have open credit accounts. Why bother earning pennies on the dollar? That’s not going to make you wealthy. Leveraging adds risk that you must add to the equation. Vehicles are one of your largest controllable expenses why pay more. With low expenses and no debt payments and a fully funded emergency fund you can comfortably invest a good portion of your income into retirement accounts, save for your kids college and pay down your mortgage early.

You continue to show you do not understand how money works, debt, credit, savings, investments, or anything else for that matter.

I'll address "leveraging" here...

• I am going to buy food, clothing, services, and household goods, regardless of whether I shell out greenbacks, use a debit card, or a credit card. There is zero benefit and zero risk for the first two, for the third there is a benefit of a small, but tangible, cash reward, and still no risk.
• Like I wrote earlier, the $0.00 in interest I've paid on my credit cards over the last two years is offset by the greater than $1,200 cash rewards I've earned; how much have you earned on your purchases? It sounds like $0.00.
• To paraphrase something you've said a few times now, "I won't pay bank any interest, I'll pay it to myself." Honestly, that makes no sense.
• On the other hand, many folks, myself included, have the banks pay me, and while I admit, $1,200 isn't much money, it is way better than the $0.00 you've earned.

You said, "Vehicles are one of your largest controllable expenses why pay more."

• I'm not sure what point that statement is supposed to convey; here are a couple of stabs at it:
  • If "paying more" means buying a more expensive vehicle than what one currently has, well, it is an individual's choice to do so, so why not pay more?
  • If "paying more" means financing it versus paying cash, your "pay cash" argument holds no water as you can invest the money you'd otherwise spend on the vehicle and then finance it. Over the course of the term of the loan, your investments will earn more than the interest charges, so by that logic, "paying cash" is in fact "paying more".

You said, "With low expenses and no debt payments and a fully funded emergency fund you can comfortably invest a good portion of your income into retirement accounts, save for your kids college and pay down your mortgage early."

• What does any of that have to do with the smart use of credit? Answer: nothing.
• I use credit cards regularly (for virtually everything except rent and utilities) and I have low expenses; my monthly "nut" to house, feed, cloth, and entertain my family is less than 20% of my monthly gross income, and yes, I invest a very significant portion of my income.
• My kids have their college educations all but paid for, my son did a stint in the Navy and the GI Bill is ready and waiting if/when he opts to use it (in the meantime he's working and earning a very significant income). My daughter earned her undergraduate degree last year (at the time her student loans totaled $6,000, since paid off), magna cum laude if you must know, and her university is now covering the cost of her Masters in Economics program AND paying her a monthly stipend to live on.
• Oh, and I don't have a mortgage (but am considering buying a new house in the next year or three).

[crazytimes]

After 3 years I applied for a Navy FCU secured card and received one for $200. A few months later it was increased to $600. Six months after that it was changed to an unsecured cash rewards card for $1,000. I am 4 months away from my final ch13 payment and my card was increased to $5,000 about a month ago. I use it here and there and pay it off each month. I earn rewards which is money back to me. There is no need for me to have another card. My credit score is 766 which I am shocked it is that high but my score didn’t drop much when the ch13 was posed to my credit report. I found out my score from a soft pull Ford did a week ago when I was looking at a car but said I need to wait until my ch13 closes. Credit Karma is close to that score as well. Seems having the secure card then it becoming unsecured with limit increases has helped increase my score.