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A credit card is neither bad nor good, despite what some on here will say. It's what you do with it that matters.
While a debit card functions in largely the same way, there will be some times in your life where you need to make a purchase and don't have the cash in your checking account to cover it. Mind you, the operative word there is "need." As in car repairs and things such as that. A new article of clothing or beer doesn't qualify as a need. Those are wants.
That's what you have a savings account for.
(And not in the last 29 years...)
Quote:
Originally Posted by cpg35223
I think everybody needs to have a credit card, just the same way every business needs to have a line of credit. It's not there to buy movie tickets and the like. It's there as insurance in case the unpredictable happens.
As stated, not in the last 29 years... and that's why you SAVE money!
(What a novel concept!)
That's what you have a savings account for.
(And not in the last 29 years...)
As stated, not in the last 29 years... and that's why you SAVE money!
(What a novel concept!)
Oh, good grief. There always has to be some pious, holier-than-thou person on here.
I haven't carried a balance on a credit card in twenty years myself, and put back several thousand dollars every month. But there are times when you need to have a credit card. For example, I travel a LOT on biz for my clients. The last thing I want to do is suck the airfare, hotel, and meals out of my business checking account. I turn my receipts in to my client, get remittance in time to pay my credit card, and that's that.
What's more, I'm an established professional. What about a college student who has almost no margin for error in his or her financial life? What if the hard drive on his or her computer crashes? What if the car's transmission drops out? What if some unanticipated expense comes up in his or her academic life? Even the most prudent college students don't exactly have extra cash lying around. And the parents might not be in any financial position to help, either.
Hell, when I was in college, I squeezed a dime until the thing practically screamed, and kept money in savings. But I still had times when I was completely and utterly tapped out and had to put fifty bucks on a credit card for a textbook. I always managed to pay it off in a month or two.
So, again, a credit card is a good backup for things you really, really need. Not beer. Not partying or bling. But to have in case you have an awful month. Makes all the difference in the world.
Originally Posted by cpg35223 A credit card is neither bad nor good, despite what some on here will say. It's what you do with it that matters.
While a debit card functions in largely the same way, there will be some times in your life where you need to make a purchase and don't have the cash in your checking account to cover it. Mind you, the operative word there is "need." As in car repairs and things such as that. A new article of clothing or beer doesn't qualify as a need. Those are wants.
Quote:
Originally Posted by cpg35223
Oh, good grief. There always has to be some pious, holier-than-thou person on here.
I haven't carried a balance on a credit card in twenty years myself, and put back several thousand dollars every month. But there are times when you need to have a credit card. For example, I travel a LOT on biz for my clients. The last thing I want to do is suck the airfare, hotel, and meals out of my business checking account. I turn my receipts in to my client, get remittance in time to pay my credit card, and that's that.
What's more, I'm an established professional. What about a college student who has almost no margin for error in his or her financial life? What if the hard drive on his or her computer crashes? What if the car's transmission drops out? What if some unanticipated expense comes up in his or her academic life? Even the most prudent college students don't exactly have extra cash lying around. And the parents might not be in any financial position to help, either.
Hell, when I was in college, I squeezed a dime until the thing practically screamed, and kept money in savings. But I still had times when I was completely and utterly tapped out and had to put fifty bucks on a credit card for a textbook. I always managed to pay it off in a month or two.
So, again, a credit card is a good backup for things you really, really need. Not beer. Not partying or bling. But to have in case you have an awful month. Makes all the difference in the world.
If you are an established professional you should be able to differentiate between "Want" and "Need" ESPECIALLY when you articulate it so well!!!!!
As to your 'if your a broke student' excuses.
BTDT, didn't NEED a credit card.
Next question.
Now if you WANT it... no matter what... knock yourself out.
But I get so tired of these sanctimonious individuals assuring others that because of THEIR personal choices (Which I do not care about) that OTHER people "NEED" to shackle themselves in debt!
If you are an established professional you should be able to differentiate between "Want" and "Need" ESPECIALLY when you articulate it so well!!!!!
As to your 'if your a broke student' excuses.
BTDT, didn't NEED a credit card.
Next question.
Now if you WANT it... no matter what... knock yourself out.
But I get so tired of these sanctimonious individuals assuring others that because of THEIR personal choices (Which I do not care about) that OTHER people "NEED" to shackle themselves in debt!
What can I do to help your reading comprehension?
I did not say to carry a balance. I did not say to make normal purchases on it. To me, a credit card is for emergency use only, something to be used in dire circumstances and paid off as quickly as possible. A prudent person always has access to money beyond what he or she can save--just in case. The only person being sanctimonious here is you.
I'd venture that the bulk of students are cash heavy ..... my last couple of years of college I was working a pretty good job for 25-30 hours a week ...... made enough for rent, groceries and other things I needed and was even able to put some aside (which was often swallowed up when I would have to buy education related expenses in bulk all at the same time)
if it was right after the start of a term and I was loaded up on fresh textbooks, recently paid rent and the next check hadn't come in yet ... even a relatively minor $200 shock bill would have caused great distress and I was in a better situation than many I knew
also, so much right now is predicated on credit scores in both your ability to obtain future loans (auto, home), your insurance rates, your employment, finding a place to rent, etc.
at times it can be a good life decision to be disciplined in using a CC to build that credit - especially when walking out of college when you have virtually no other history
then there are also things like hotels - the amount that is reserved for incidentals is usually a pretty high number and it doesn't always release back to you right when you check out ....... no way I want to have a sum of money from my checking account tied up in such a fashion
I've seen it a million times. People like Themanwithnoname bragging about how they never NEEDED credit and never USED credit, like it was a virtue.
Then they score a nice fat government contract for their business. One catch, the government wants to see they have a line of credit available (not a savings account mind you, a line of credit). So they come to me. I tell them they have no verifiable credit history and they don't qualify. At this point, they begin hurling obscenities because they see that government contract (sometimes multi millions) disappearing before their eyes.
Yes, get a credit card, not just for the unexpected, but for the completely unpredictable and unforseen turns your life can take.
I was in your same situation. Even 6 months into my first professional after college job, I was still being denied a credit card because I had no credit. So I bought a car and financed it. Voila, after a few payments, I had credit, enough to get the credit card.
(Unlike yours) My reading comprehension is excellent, I can recognize the difference between "need" and "Want" when you specifically state those differences in plain English.
Perhaps it is not your comprehension, but your denial which is suffering...
Quote:
Originally Posted by cpg35223
I did not say to carry a balance. I did not say to make normal purchases on it. To me, a credit card is for emergency use only, something to be used in dire circumstances and paid off as quickly as possible. A prudent person always has access to money beyond what he or she can save--just in case. The only person being sanctimonious here is you.
That would necessitate carrying a balance.
As to "a prudent person" so are you saying that Bill Gates NEEDS credit (He may choose to use it) this is ridiculous.
As I have said... if you WANT and CHOOSE to use it, knowing the cost... go for it.
But these LIES people say to convince others (And mainly themselves) that it is NECESSARY to have credit to survive, are a disservice to all.
Live on less than you make, save your money, and you'll have $ for when things happen.
If you choose to service debt, and NOT have a prudent amount of savings put back... that's your CHOICE, But please... understand it's a choice.
Quote:
Originally Posted by Finger Laker
I'd venture that the bulk of students are cash heavy ..... my last couple of years of college I was working a pretty good job for 25-30 hours a week ...... made enough for rent, groceries and other things I needed and was even able to put some aside (which was often swallowed up when I would have to buy education related expenses in bulk all at the same time)
if it was right after the start of a term and I was loaded up on fresh textbooks, recently paid rent and the next check hadn't come in yet ... even a relatively minor $200 shock bill would have caused great distress and I was in a better situation than many I knew
also, so much right now is predicated on credit scores in both your ability to obtain future loans (auto, home), your insurance rates, your employment, finding a place to rent, etc.
at times it can be a good life decision to be disciplined in using a CC to build that credit - especially when walking out of college when you have virtually no other history
then there are also things like hotels - the amount that is reserved for incidentals is usually a pretty high number and it doesn't always release back to you right when you check out ....... no way I want to have a sum of money from my checking account tied up in such a fashion
I REALLY don't understand why someone would get a car loan (Or buy new... but again, that's your CHOICE, not a necessity) With NO credit history it's NEVER been an issue for me to find a place to rent, we have been over and over and when you delve deep enough you see that it's BAD credit which blocks you from jobs, not NO credit.
And my insurance is cheap for my demographic despite having several tickets.
-Credit cards 'build' your credit in the minutia, and can hurt it drastically.
Hotels usually hold about $100... that's not a high number.
Quote:
Originally Posted by Book Lover 21
I've seen it a million times. People like Themanwithnoname bragging about how they never NEEDED credit and never USED credit, like it was a virtue.
Then they score a nice fat government contract for their business. One catch, the government wants to see they have a line of credit available (not a savings account mind you, a line of credit). So they come to me. I tell them they have no verifiable credit history and they don't qualify. At this point, they begin hurling obscenities because they see that government contract (sometimes multi millions) disappearing before their eyes.
Yes, get a credit card, not just for the unexpected, but for the completely unpredictable and unforseen turns your life can take.
Oh, yes, the old 'I WILL find a way to PROVE you need credit' line
Even IF what you say is true (And I've seen enough Government contracts to have seen PLENTY which don't have ANY mention of the company's credit line (And if this WERE the case, a coresponding pile of cash would work also...matter of fact I can't think of one which specified a line of credit... Gov might be concerned the company can remain solvent while they take forever to pay... that's about it.) You are talking about CORPORATE credit, NOT personal credit.
Whenever i open one of my LLC's a am deluged with credit card offers for the LLC.
This has NOTHING with a Kid getting a credit card.
Nice try though.
It's very simple:
$10,000 cash > $10,000 credit card limit...
If you CHOOSE not to save the money and would rather service the debt...
No problem, but please do not keep lying and disagree with the underlined above.
Sure, Savings accounts are wonderful. Everyone should have a source of cash like that. BUT. If you are away from home, the car dies and you need transportation....it's hard, if not impossible, to get to the bank to get the money from savings. Think about things like a trip to the ER at a local hospital. Expenses on a vacation trip....credit card or a wad of cash from your savings account?
A credit card is the answer to problems like these. It's better than a checking account. Certainly more accessible than a savings account. In this day and time, it's just not wise to carry a lot of cash. Get a credit card and pay it off each month. Don't fall for the "minumum payment" BS. You will never get out of debt if you do.
Don't neglect a savings account. Certificates of Deposit are even better.
Most hotels hold way more than $100 - if he rents with a rental agency for cars (there are a few that will even rent to under 25) they will also hold a lot (often more) due to age
As someone coming out of school, credit history can be very important in getting a rental ..... your experience is meaningless as it's not relevant to today ... whatever you were able to do when you got out of school is not analagous
Also, if you are so great with money/investments then you could surely understand a lease/loan/purchase decision
Also, no credit is pretty much looked at as bad credit
Although I'm done wasting my time with this "discussion" as it goes beyond what the OP was asking for.
I think cpg summed it up best
Quote:
There always has to be some pious, holier-than-thou person on here.
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