Do You know Your "Fico" (Credit Card Rating)?

[Ladskater]

Tonight on Frontline on PBS a most informative show about The History of The Credit Card was shown.

I don't have many credit cards - only 3 - one Visa the other 2 are the Bay and Sears. I hardly use any of them. I just don't believe in credit cards. They are good for emergency use or one time large purchases, but my general rule is: If I can't afford to pay cash for the item at the time of purchase then I can't really afford the item or do not really need it. It's amazing how deeply in debt one can become in a short period of time.

Here is more info about the program:

http://www.pbs.org/wgbh/pages/frontline/shows/credit/

 

[Longhornliz]

I am such a frontline dork!!! I havent gotten a chance to watch this episode yet because I was working on a paper last night, but I taped it and i'm looking forward to relaxing and catching up on all my tv shows when i graduate next week.

 

[Doggygirl]

I'm with you 100%!!!

Tonight on Frontline on PBS a most informative show about The History of The Credit Card was shown.

I don't have many credit cards - only 3 - one Visa the other 2 are the Bay and Sears. I hardly use any of them. I just don't believe in credit cards. They are good for emergency use or one time large purchases, but my general rule is: If I can't afford to pay cash for the item at the time of purchase then I can't really afford the item or do not really need it. It's amazing how deeply in debt one can become in a short period of time.

Here is more info about the program:

http://www.pbs.org/wgbh/pages/frontline/shows/credit/

As one who has personally experienced the stuggles of over-charging things, hefty monthly interest charges, and the subsequent "paycheck to paycheck" living that behavior created.....it is so FREEING to be out of that. Wish I had learned that lesson a bit sooner in life, but there is no time like the present and it's never too late.

It took radical change to GET free of it, but the tight budget and effort it took to GET free were SO worth it. Like you Ladskater, we still have credit cards but they are used as a convenience and available for emergencies, not to finance stuff. We also take advantage of using our Discover card for all "househould incidentals" (i.e. gas, groceries, etc) as they offer 1% cash back. It adds up over the course of a year. Since we pay the bill in full everymonth, we pay no interest and pay 1% less than "retail" on most everything.

We do still carry a mortgage, but we are aggressively working to get rid of that (it's our only "credit" thing).

Financial freedom is a beautiful thing! Even in terms of the downright silly. As an example, when my boss really pi$$es me off (often) I have the comfort of knowing that I really could quit my job without going into an absolute panic over it. Same deal if he fired me. I'm no where near "retirement" yet, but just knowing my life can go on for at least some reasonable period of time without a paycheck makes a sometimes nasty boss much easier to deal with IMO. I guess I don't feel completely powerless in the situation.

Cheers to all who are pusuing, or on, a similar path!

DG

 

[show 42]

About six months ago, my school district offered a credit protection plan for a small monthly deduction (less than 20 bucks). It tracks your credit use, updates if anything unusual occurs, (identity theft), and sends you your "Fico" rating.......42

 

[gezando]

I don't have many credit cards - only 3 - one Visa the other 2 are the Bay and Sears. ...... They are good for emergency use or one time large purchases, but my general rule is: If I can't afford to pay cash for the item at the time of purchase then I can't really afford the item or do not really need it.

For the longest time, I did not believe in credit cards, I only bought with cash, including cars.Then I discovered a lot of cards give rebates e.g a certain percentage for gasoline etc. I started using the cards and loved it. I pay off the entire amount every month, so I am using their money for up to 25 days,plus rebates. I only use cards that do not have any annual fees. 3 years ago when I bought my car, the dealer allowed me to charge $7,000.00 ( I wrote them a check for the balance). 1% rebate on $7,000.00 = $70 of free gas.

I think it is a good idea to check our credit reports once a year.

 

[STL_Blues_fan]

Hmm..

I got my first credit card when I was 18 and never looked back. I never use cash, only credit cards. I know what my budget is and I always pay off my balance at the end of the month. At the end of the year, I get a summary statement how much and where I spent my money. Whith cash I never know where it goes, I never have more than $10 for soda, snacks, etc.. My Visa is affiliated with an airline and I get at least one free ticket a year. I think it's a pretty sweet deal!! I never paid a cent of finance charges or interest. In fact, exept for our house and college loans, we don't pay any interest at all.

I came from a cash only society (USSR) so the concept of a credit card to me was about the same - spend only what you can afford once your bills such as rent, gas, phone etc..have been paid off. It is easier to track your spending and don't have to worry about carrying cash.

I don't mean to sound harsh and judgemental, but I think the concept is very clear. It amazes me that people don't get it and get into debt upto their ears. If somebody told me that I will have to pay upwards of %25 interest on something, why would I do that??? People who think that they can splurge and then not pay (apparently a common campus problem) shock me!

Some blame this on parents who don't educate thier kids, but I never had the "lecture" since my parents and I qualified for credit cards at the same time. Somehow we didn't ruin our financial future.

anyways, I think that credit cards are great - as long as you know the rules.

Yana

 

[Ladskater]

As one who has personally experienced the stuggles of over-charging things, hefty monthly interest charges, and the subsequent "paycheck to paycheck" living that behavior created.....it is so FREEING to be out of that. Wish I had learned that lesson a bit sooner in life, but there is no time like the present and it's never too late.

It took radical change to GET free of it, but the tight budget and effort it took to GET free were SO worth it. Like you Ladskater, we still have credit cards but they are used as a convenience and available for emergencies, not to finance stuff. We also take advantage of using our Discover card for all "househould incidentals" (i.e. gas, groceries, etc) as they offer 1% cash back. It adds up over the course of a year. Since we pay the bill in full everymonth, we pay no interest and pay 1% less than "retail" on most everything.

We do still carry a mortgage, but we are aggressively working to get rid of that (it's our only "credit" thing).

Financial freedom is a beautiful thing! Even in terms of the downright silly. As an example, when my boss really pi$$es me off (often) I have the comfort of knowing that I really could quit my job without going into an absolute panic over it. Same deal if he fired me. I'm no where near "retirement" yet, but just knowing my life can go on for at least some reasonable period of time without a paycheck makes a sometimes nasty boss much easier to deal with IMO. I guess I don't feel completely powerless in the situation.

Cheers to all who are pusuing, or on, a similar path!

DG

Good For you! That is great. Yes, credit cards are handy, but in the wrong hands they can be detrimental. I am glad to hear you have recovered so well - so many don't.

The main reason I chose not to go the credit card path was due to a course I took in High School - in home economics - my teacher warned us of the dangers of having a credit card. I decided then and there that if I lacked self-control, then it would be better to not have one. So for years I did not. Now I am able to control my spending habits and if I do catch myself slipping then the scissors are handy.

Take care.

 

[Ladskater]

Hmm..

I got my first credit card when I was 18 and never looked back. I never use cash, only credit cards. I know what my budget is and I always pay off my balance at the end of the month. At the end of the year, I get a summary statement how much and where I spent my money. Whith cash I never know where it goes, I never have more than $10 for soda, snacks, etc.. My Visa is affiliated with an airline and I get at least one free ticket a year. I think it's a pretty sweet deal!! I never paid a cent of finance charges or interest. In fact, exept for our house and college loans, we don't pay any interest at all.

I came from a cash only society (USSR) so the concept of a credit card to me was about the same - spend only what you can afford once your bills such as rent, gas, phone etc..have been paid off. It is easier to track your spending and don't have to worry about carrying cash.

I don't mean to sound harsh and judgemental, but I think the concept is very clear. It amazes me that people don't get it and get into debt upto their ears. If somebody told me that I will have to pay upwards of %25 interest on something, why would I do that??? People who think that they can splurge and then not pay (apparently a common campus problem) shock me!

Some blame this on parents who don't educate thier kids, but I never had the "lecture" since my parents and I qualified for credit cards at the same time. Somehow we didn't ruin our financial future.

anyways, I think that credit cards are great - as long as you know the rules.

Yana

Many Americans and Canadians do not have self-control when it comes to spending. That is why credit cards can be dangerous for some. If one is able to use common sense then credit cards can be handy. I use them for large purchases and for emergencies mainly. I do not use them for my everyday purchases - such as chewing gum, etc. I cringe at work when I see students buying gum and junk food items on their Visa or Master Card. Then they wonder why the card does not go through when they buy their books - which are very expensive. Most of them don't even want to take their transaction record with them. I don't know how they balance their budgets.

I keep track of my transactions - debit card ususally by keeping a record of transactions in my cheque book. It's a bit time consuming, but that way I know what cash I have on hand. Works for me.

Sounds as though, you keep pretty good control of your spending and good records. Good for you. Thanks for the reply.

 

[STL_Blues_fan]

Many Americans and Canadians do not have self-control when it comes to spending. That is why credit cards can be dangerous for some. If one is able to use common sense then credit cards can be handy. I use them for large purchases and for emergencies mainly. I do not use them for my everyday purchases - such as chewing gum, etc. I cringe at work when I see students buying gum and junk food items on their Visa or Master Card. Then they wonder why the card does not go through when they buy their books - which are very expensive. Most of them don't even want to take their transaction record with them. I don't know how they balance their budgets.

I keep track of my transactions - debit card ususally by keeping a record of transactions in my cheque book. It's a bit time consuming, but that way I know what cash I have on hand. Works for me.

Sounds as though, you keep pretty good control of your spending and good records. Good for you. Thanks for the reply.

I always spend about the same every month - I try hard to buy only what I need, and I always shop during sale events, clearance, etc.. I guess it comes naturally to me and I really feel for people who can't always say no to a very expensive pair of shoes or a pricey pocket book. I always "paid myself first" - and during my high school days I always had a nice stash in the bank from my babysitting money and Micky D's (3.5 years of torture.... just kidding

I think the most important thing to do - regardless wheather you use credit cards or not - is to check your credit score at least once a year. Identity theft is becoming a huge problem in US (not sure about Canada) and personal info is picked up from things like left behind transaction slips, thrown away credit card offers. Don't throw away things like that - put them through a shredder or burn in a fire place!

Good luck to everybody...for some great financial advice, check out Rich Dad - Poor Dad book series, these are really informative.

 

[Doggygirl]

Hi Blues Fan...

I always spend about the same every month - I try hard to buy only what I need, and I always shop during sale events, clearance, etc.. I guess it comes naturally to me and I really feel for people who can't always say no to a very expensive pair of shoes or a pricey pocket book. I always "paid myself first" - and during my high school days I always had a nice stash in the bank from my babysitting money and Micky D's (3.5 years of torture.... just kidding

I think the most important thing to do - regardless wheather you use credit cards or not - is to check your credit score at least once a year. Identity theft is becoming a huge problem in US (not sure about Canada) and personal info is picked up from things like left behind transaction slips, thrown away credit card offers. Don't throw away things like that - put them through a shredder or burn in a fire place!

Good luck to everybody...for some great financial advice, check out Rich Dad - Poor Dad book series, these are really informative.

ITA on Rich Dad / Poor Dad. A friend of mine who used to be part of the same "corporate life" I am about to exit recommended that book a couple years ago. My husband had always wanted to start his own company, but that book really helped us put a fire under our butts to achieve that goal. I would recommend that book to anyone who wants to understand more about achieving financial success. We're a long way from the end goal, but that book sure helped us figure out what we want the end goal to be.

ITA as well on the VERY important point of checking credit scores regularly to watch for unauthorized activity. We are signed up with Equifax for a service that we really like. EVERY time there is an inquiry on our credit, we recieve an e-mail notification. So if someone were trying to get a credit card (or buy a car, or whatever) using our names and SSN's, we would know immediately. Also they e-mail you if there is a significant activity change on any credit card accounts. Then there are other benefits like regular credit score updates, periodic provision of your complete credit report, etc. The annual fee is well worth in IMO just for the peace of mind those e-mail notices bring. If anyone wants to check it out, go to www.equifax.com.

Here's to all of us getting smarter and smarter about managing our finances!!

DG

 

[Johar]

I've noticed that credit card companies give a customer less time to pay a bill than in years past. A friend with a business degree said the late fees are one of the ways they get more money off of people.

I only use mine if I have to--ordering online at Amazon.com for Christmas.

 

[Ptichka]

It is always important to keep track of your rating. This way you know what you can expect if you need a car loan, a mortgage, etc. While I like debit cards a lot, the problem is they don't protect you against theft as well as credit cards do.