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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.
Does anyone still live without using debit or credit cards? Is it becoming impossible in this day or just a little inconvenient at times?
Now I'll never have to waite for gas stations to post the transaction. I won't have to log into my bank account to monitor my balance. I won't have a creditcard payment soon. I plan to completely stop using my bank. My credit is 900 or something like that almost as good as it gets. Will that be hurt?
Well, they say you're supposed to have some kind of credit line in order to keep your credit rating. For example, I've heard you're supposed to keep 1/3 of your max limit on your card. In other words, if you have a credit line of $1500, you should have a running balance of $500 at all times and pay it on time every month.
I've done without credit cards and debit cards and it was great. I made the huge mistake of getting cards again and now I'm trying to pay them off. Once I do, they will be history. I'll keep one for emergencies only. Other than that. None.
Well, they say you're supposed to have some kind of credit line in order to keep your credit rating. For example, I've heard you're supposed to keep 1/3 of your max limit on your card. In other words, if you have a credit line of $1500, you should have a running balance of $500 at all times and pay it on time every month.
I've done without credit cards and debit cards and it was great. I made the huge mistake of getting cards again and now I'm trying to pay them off. Once I do, they will be history. I'll keep one for emergencies only. Other than that. None.
Cool that you can pay yours off by June!
Yea the weather's warm now. I'm gonna have to live in a tent or my father's house but I think its worth it. Its the only way I can get out of this cycle and really start preparing for the future. That 1/3 thing is crazy. I've had a 1/3 balance plenty of times which could go to 2/3 in one day, then 3/3, back to sq one. I rather just not have one. Or leave it at home.
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.
Does anyone still live without using debit or credit cards? Is it becoming impossible in this day or just a little inconvenient at times?
Now I'll never have to waite for gas stations to post the transaction. I won't have to log into my bank account to monitor my balance. I won't have a creditcard payment soon. I plan to completely stop using my bank. My credit is 900 or something like that almost as good as it gets. Will that be hurt?
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.
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.
Yea I forgot about those 2 things. Its ashame u can't rent a car with cash, well actually u can from private rentals, I'm sure. And as far as hotels, I normally do motels and walk in if anything. I can use my g/fs card for that stuff. Since I'm the one who buys everything I think it works good if she has her card and I have the cash.
Congrats. I'm working on paying off my credit card and after that, I won't be using it any more. I can't see myself without my beloved debit card though. Plus I work in the debit card industry so I probably should hold onto it.
I've never heard anything about keeping 1/3 of your limit as a balance, and I can tell you from experience it isn't necessary to have an excellent score. As to whether it might help or hurt, I can't say for sure. I think it is probably "keep NO MORE" than 1/3 of your limit as a balance."
I keep a 0 balance other than my house and have for years now, and my credit score is in the high 700s. My parents pay off all their balances other than a couple of mortgages every month, and their credit scores are in the low 800s.
As a landlord, the best credit scores I have seen have been from older people with a ton of credit lines, and no balance on any of them.
It may hurt your score to go cash only if the card companies start cancelling your accounts for non-use. I had that happen on two cards. Fortunately, they were "young" cards, but if it happened to my oldest cards, it would lower the "age" of my credit history, which would drop my credit score.
I make sure to use each of my cards at least once per year, and then just go home and pay off the balance, just to keep them open.
Yea I forgot about those 2 things. Its ashame u can't rent a car with cash, well actually u can from private rentals, I'm sure. And as far as hotels, I normally do motels and walk in if anything. I can use my g/fs card for that stuff. Since I'm the one who buys everything I think it works good if she has her card and I have the cash.
Keeping your bank debit card does not affect anything but amount of cash in checking account. I use only my debit card and I am able to rent cars and stay in Motels when traveling.
I got way over my head 4 yrs ago and lost my good credit and it went as low as 350. Now 4 yrs later and no credit cards my score is a 610. My credit union loans me money when I need it for a large item so not that worried about high score.
When my score was in the high 700's I was unable to get an unsecured loan but now on a much, much lower income I am able to get one.
My credit is 900 or something like that almost as good as it gets. Will that be hurt?
The answer is YES, your score will be hurt -if you mean to actually close your accounts.
Your score is based on a variety of metrics that center around your various credit-bearing accounts. Part of the factor is the longevity of those accounts. If you actually close all of your credit-bearing accounts, then how do you expect the agencies to assess your score? They won't be able to do it, and your only basis of creditworthiness will be increasingly older history from the time when you had the accounts. If you don't ever care about trying to obtain credit or a loan at any point in the future, then that won't be a problem for you.
I personally would keep one no fee card for REAL emergencies and to keep your credit current. Pay it off in full every month but use it to let your credit build back up. You never know when you might really need that card and it would be a real bummer to have to scrounge around getting cash from others. After all, that is what credit cards were meant to be in the first place.
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