# Not a credit type of person.



## bbqjoe (Feb 10, 2017)

I'm really not a credit person.
I did have a 25 year mortgage on my land, which I paid off.
When I owned my business, I always paid my bills on time.

I've almost always had a credit card with a few thousand in line of credit, but if I use it, I pay it off well before it accrues a cent of interest.

I did buy a tall lit sign for my biz at one time on credit, and paid that off over time.
I do buy something every now and then on credit just to have proof of good standing, just in case I need it. But I don't know from much of anything else, I just pay for what I need.

Recently I flipped microsoft the bird, and went Apple shopping.
Apple offered me 18 months of deferred interest on a new computer, so I went for it. I currently pay them way more than the minimum every month, and should have it paid off in 9 mo.

But here's a nice little gotcha, that I suppose credit people know all about.
It's all new to me.

They've recently upped my line to a grand or so. I was thinking about buying a program that clocks in at about $300.
I considered adding it onto my card, and called those folks to see how it would work.
They offered me 6 mo deferred on the purchase. I thought cool!!! Until I asked how the payments would be applied.

Nothing get's applied to the $300, until the first purchase of 2 grand is payed off.
So what that means to me, is it makes my first purchase needing to be paid off within 6 months, so I can make payments on the $300, which will already accrue interest if I wait until after six months to pay it all off.

What A pile of horse pucky!

So.....I'll just pay cash like I normally would.


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## ZoomZoom (Dec 18, 2009)

My wife and I use credit a lot. #1 rule is the bill must be paid in full every month so we don't pay interest.

We choose credit cards carefully, selecting those with perks that best meet our lifestyle and purchases.
E.g.
We do a lot of traveling. My wife's cards are with airlines and hotel chains. From the airlines, the big perk is a free companion pass for a year. (Buy 1 ticket and the 2nd person flies free for a full year). For hotels, she gets reduced rates and free nights. (We went out west for 8 nights, 3 or 4 of the nights were free).

I do most purchases on Amazon now. I use their card which gives me 5% back on all purchases with them and 1-3% off all other purchases.


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## bbqjoe (Feb 10, 2017)

Here's one thing that I found not many people know.

Your bank doesn't really like you or think you're cool and just give you their cash for being a good little spender.

That money you are getting back or whatever, comes out of the merchants pocket when you use your happy cash back card.
On top of the transaction fee, and processing fee, and the percentage charged, the credit card company takes that 2% from the merchant as well.

So if you really like the guy that provides you your favorite place to eat, be a nice guy, and do him a favor; pay with cash.

If you don't like him, charge to the hilt.

Even the smallest of transactions can cost a merchant almost a dollar right off the bat.

I used to have people come in and try to buy a soda with a credit card. If that's all they had, I'd just give it to them.
It cost me more money to sell them the soda, than to just eat it on the cost of it.


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## hiwall (Jun 15, 2012)

There is nothing wrong with credit. Credit helps many many people. Every High School should have mandatory classes on credit to teach young people all about it. Many people just do not seem to understand interest and penalties along with credit scores and how those scores effect many things in your life besides credit.


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## ZoomZoom (Dec 18, 2009)

bbqjoe said:


> Here's one thing that I found not many people know.
> 
> Your bank doesn't really like you or think you're cool and just give you their cash for being a good little spender.
> 
> ...


I do use cash at most of my local mom-and-pop shops.

Most merchants jack all prices a couple percent to cover credit card fees. So, if you're paying cash, you're giving that merchant a couple extra percent. They like that but won't be losing money if you use credit.


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## Tweto (Nov 26, 2011)

Understanding credit and using it correctly is just another tool that a prepper needs to master. Having credit cards with high limits is accentual in an emergency. Yes, cash is accentual too, but let's face it, if you are away from home when the SHTF happens, carrying thousands of dollars around with you is not likely and you may need to buy a few big ticket items on the spur of the moment depending on the emergency.

An example of this is if there is a large natural disaster like the Yellowstone eruption or a nuclear war you can stop and pick up additional generator(s) or even another vehicle as spares on the way home from work. 

Because of this I keep two charge cards both with limits more then $20,000 with me at all times. I pay them off every month, so it's not a risk to me.

It's is always a good idea to have excellent credit but to also have limited or no liabilities.


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## bkt (Oct 10, 2008)

hiwall said:


> There is nothing wrong with credit. Credit helps many many people. Every High School should have mandatory classes on credit to teach young people all about it. Many people just do not seem to understand interest and penalties along with credit scores and how those scores effect many things in your life besides credit.


There's nothing wrong with credit in the same way there's nothing wrong with dynamite: provided you know how to effectively and safely use it, it can help you. However, way too many people lack self control and put themselves in debt to the tune of hundreds of thousands of dollars and effectively ruin themselves financially for life.

Yes, it would be nice if kids were taught the perils of getting into debt unnecessarily or without a means to pay it off. Parents are supposed to do that but evidently too few do so effectively. Or maybe the push by banks for easy credit is too much for kids to resist.


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## readytogo (Apr 6, 2013)

hiwall is right on the money here not only high schools but parents also ,kids go to college and come home loaded in debt from plastic and on the news all the time many professional athletes come home broke by not handleling their money right ,they can`t read or write either ,is sad really.


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## BillS (May 30, 2011)

I couldn't care less what my credit score is. I just want to make good financial decisions. Right now we're debt free. I want to keep it that way.


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## drfacefixer (Mar 8, 2013)

hiwall said:


> There is nothing wrong with credit. Credit helps many many people. Every High School should have mandatory classes on credit to teach young people all about it. Many people just do not seem to understand interest and penalties along with credit scores and how those scores effect many things in your life besides credit.


Exactly right. I bought my first house completely on credit. 2nd mortgage for the down payment because the market was good. Lived in it a while, converted it to a rental and now it's passive income. I still don't own it clear and free but I don't need to. Rent in the area will bring in more than I pay out in mortgage so it looks great for the balance sheet. In a few more years when it's paid for its self, I will sell it and role the money over tax free to a larger investment.


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## hiwall (Jun 15, 2012)

BillS said:


> I couldn't care less what my credit score is. I just want to make good financial decisions. Right now we're debt free. I want to keep it that way.


Your credit score effects the price you pay for many things. A poor credit score will increase what you pay for insurance for instance.


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## TheLazyL (Jun 5, 2012)

I was rejected as a cosigner for the Daughter's college loan. I had only one credit reference and two was needed.

I got a second line of credit. A credit card that has points/cash back. If a Gun Shop doesn't give discounts for cash then the purchase goes on the CC.

Dad bought a new car every ten years with cash. It was his hobby, studying the options and features for a few years before the purchase. Yes he lost money driving it off the lot. Considering it was his only "hobby" and I'm sure most of our hobbies lose money. Anyway, I think it was the year gas hit $1 and car manufactures couldn't sell cars. Car Manufacturers were trimming their inventory with 0% interest loans. Dad came home with his new car and a loan payment book. The cash he would have spent on a car he invested for a good return. First debt (and last) Dad every had.


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## TheLazyL (Jun 5, 2012)

Caribou said:


> ... "Oh yeah, I forgot who I was married to."


Mom's growing up years she was raised by Grandparents. The only income was a small pension that barely was enough for the grandparents, then add four grand kids on top. They were very dirt poor.

Mom tells a story about soon after her and Dad were married. They drove over to a neighboring town. Mom waited in the car as Dad went into the creamery. Dad came out with a whole case of butter, cheaper by the case! Mom never had butter growing up and asked if they could stop on the way home at her grandparents to give them a pound of butter? That is when mom realized she had married a "rich" man.

Dad was never "Rich" in the sense he was loaded with cash. But he could pinch a penny awful hard to make it stretch. "Don't spend today what you'll wish you had tomorrow."


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