Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I don't have a debit card. Have 1 credit card, mostly for online shopping. Limit is $5,000; seldom go over $250 unless I go on vacation and use it for lodging.
Just be aware that cutting them up does NOT close your accounts. As far as the card companies, banks, etc are concerned you've still got them.
(Referring to the credit cards-never had a debit card so don't know about that)
I'd keep an active debit card, since you can use that to book travel etc. It isn't a good plan to rely on your girlfriend for plastic. You do not have to use it frequently, but you should have it available.
I believe FICO credit scores only go up to 850 or so. So, what do you plan to do when you need to rent a car or a hotel room? Other than that, I have no problem with the concept of living on cash.
Book through a third party site like Expedia. Most of them will let you use a prepaid card.
I'm done with credit cards too! Congrats. I still use a debit card for stuff like gas (it's a hassle paying inside), car rentals, hotels,airplanes, and online shopping. If you close all of your cards, you're credit score will eventually go away BUT the only reason that should matter is if you plan to borrow more money and it sounds like you don't. And you don't need a card "for emergencies" once you save up a decent emergency fund of around 6 months of expenses.
So to try a change of how I spend and save, I decided to cut up my cards, the only money I have is the cash in my wallet and change in my car. I paid off half my debt today and plan to pay it all by June. I chose this time because I'm getting rid of my apartment and bills associated with it. I also plan to sell my car and save a load there.
you don't need to cut up your credit cards....that's for people who have no self control or concept of how credit cards 'should' be used.
Credit cards are wonderful, if you know how to use them!
- Just don't put anything on a cc that you can't buy with cash,
- pay off the balance when the statement comes in
- enjoy the benefits (after choosing the right card of course)
So far, over the past 5 years, we've used our credit cards for every day purchases, and as a result, have gotten enough miles/points to travel to Europe Twice, Hawaii once, Florida 3 times, and Spain (upcoming), FREE for TWO people each place.
Quote:
Originally Posted by PAhippo
Just be aware that cutting them up does NOT close your accounts. As far as the card companies, banks, etc are concerned you've still got them.....
LOLOLOL
reminds me of "The Office" episode where Michael Scott 'declared bankruptcy' by going to the office and yelling "I....DECLARE.....BANKRUPTCY!!!!!!!!!!!"
LOLOLOLOL
Last edited by Thinking-man; 05-01-2011 at 09:42 AM..
It will hurt your FICO score, but if your done with borrowing money, who cares. The only issue that would concern me is insurance premiums increasing. Many are basing premiums on your FICO.
My business teacher told me how she flew all these places with the points she earned on her creditcard but I found out that u need to spend like crazy to get enough for a plane trip. I don't have that kind of money to spend so I'm not gonna use it for that. I normally do the cash reward, which might add up to 100. Not enough considering all the interest I've paid chase.
My business teacher told me how she flew all these places with the points she earned on her creditcard but I found out that u need to spend like crazy to get enough for a plane trip. I don't have that kind of money to spend so I'm not gonna use it for that. I normally do the cash reward, which might add up to 100. Not enough considering all the interest I've paid chase.
Believe me, you'd be surprised!
So, as i mentioned, we've been to Europe together 3 years ago (50k miles each), then i used 50k miles to send my wife there 2 years ago, then we used 40k miles each to go to hawaii, and then now we're using 50k miles each to go to spain. we also went to FL 3 times (25k per person each time).
that's a total of 405k miles. Holly Cow! this is the first time i did the math and i'm actually dumbfounded.....i had to double check my math.......
i know for a fact that we haven't spent 400k dollars on cc over the past 3 years.......i do know that we signed up for a couple of credit cards and got 30k initial sign up points, then cancelled after a year, and re-applied and got the points again (this worked only for a year or so...before they didn't let us do that anymore).
Also, my credit card gives 1 point for regular purchases, and 3 points for the top 6 categories that i spend in. This means that since January, i've gotten 36k points (which translates to 30k united miles).
and i haven't paid a penny in interest or late fees.
my point is that the credit cards aren't the problem. The way you use them is the problem!
I don't get it. Why do you need to get rid of it. Just don't use it or put it somewhere safe and inconvenient so that you are not tempted to use. People who ditch credit cards clearly don't travel overseas. You will get killed on exchange fees through bank or forex if you deal with cash. Credit or debit cards are by far superior and not to mention safer than paying cash (if you can even do that) for airline tickets, rentals, vacations packages as you have recourse if something goes wrong.
And yes, if you canceled all your cards, your credit scores will get hurt as you will no longer have a long term record of payments. Furthermore, you have no way of tracking expenses with cash unless you are very careful and save all the receipts. Overall, it is not a move I would make but to each his own.
just curious-why does getting rid of credit cards hurt your credit rating?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
