C.C. opinions

[ActYourWage]

Well the real reason DR needs to say what he says? Have you looked at his followers?

They are a MESS. Total and complete financial mess. They can even overspend using cash.

When you lack self-control, you need to take the simplest path. That path typically is cash. When it runs out you can't buy more.

I am sorry but it's insane to pay cash for GAS for a CAR! I mean how do you overspend on gas? You put it in, you go where you need to go, and THEN you refill! OMG!

But these people do. They cannot even use a prepaid gas card or debit! Why? Because they have no self-control. They can barely go into a gas station and not buy a soda or candy bar.

This has NEVER happened to me. Why? I don't bother going in. I charge it. But more than that, it's GAS. My gosh, who needs to stop for gas and treats daily?

Is it so hard to pack your own? And even paying the most expensive price of individual packages, which I do! for convenience, it's still cheaper than going in.

But they need cash. They can only fill up $40/week on gas and that way they know they can drive X, Y, and Z, and no extras.

That sort of craziness is really needed to help people who have no control over their spending. It makes a lot of sense.

But in general, if you live on a budget, it shouldn't matter how you pay.

I make around $2k/year in cash rewards. I charge my DH's tuition for the past 3 years. That's $75k on the credit card. Um, if it's not paid he's not going to school...So why not get the rewards?

Yeah why would I pay cash for something absolutely necessary? Stupid. I'd be someone would say I'm overspending, yeah right.

I am a DR follower and I not a mess. You have your own preconceived view of DR and his "followers". If you don't like it, don't comment on DR. He has like 4-5 million listeners....he must be doing something right.

[ActYourWage]

I think frugal people lose touch with reality(not that it is bad) with the fact MOST people on the outside of frugal living DO NOT handle their CCs correctly. How do you think these CC companies stay in business?

Also, using CCs do make one spend more money than not using them. For example, say you charge 20k to a CC in a year and get 3 free nights at a hotel, sure you get 3 "free" nights, but you will spend more money while you are enjoying your stay. So, indeed, one does spend more when using CCs in the end, if not upfront. Again, we are talking about REALITY, not the frugal people here.

[Broken Arrow]

Haha, I bought a gun on my credit card this weekend...

No fair, I wanna do that!

[am_vanquish]

Haha, I bought a gun on my credit card this weekend...

My LOL of the day ... thanks!

[disneysteve]

Also, using CCs do make one spend more money than not using them. For example, say you charge 20k to a CC in a year and get 3 free nights at a hotel, sure you get 3 "free" nights, but you will spend more money while you are enjoying your stay.

That is only true if you use the free points to take a trip you wouldn't otherwise be taking. With my Marriott Visa, we have been averaging a free vacation about every other year. Last year, for example, we got 10 nights free in New Hampshire. Two years before that, 5 nights free in San Francisco. Two years before that, 5 nights free in Boston.

They were all trips that we would have taken anyway except that without the reward points, we would have paid for the hotels. This way, we got them free. Having the reward points and credit card didn't cause us to spend any extra money. It has actually saved us thousands of dollars over the years.

[wincrasher]

The trick is to use credit cards, not have them use you.

I enjoy DR's show. As other's have said, most of the callers are in pretty dire straits. He's averse to debt in general, even for business opportunities. I've read many books that basically say the same thing - there is a whole philosophy that wealth is built from savings, not debt.

I tend to agree with that, but sometimes there is the right opportunity and money is available at the right rate. You just have to be able to do a proper risk analysis. In this life, you don't often get reward without some measure of risk.

So far this year, I've earned about 68,000 points on my Amex Blue and have not paid a penny of interest. Now that my big purchases have pretty much settled down, I need to start paying my regular utility bills with it to earn points. Too bad you can't pay your mortgage with Amex!

[Stuartthomas]

actually i hold a different approach for this issue .but as you said that your are not failed to pay for the last 4 years ..so i would like say nothing about this...

[thekid]

3. Never charge more than 25-30% of your credit limit.

Why is that? For the rewards, I've put big ticket items on it and then paid it back in full a few days later. I must have come close or exceeded that percentage a few times.

Does it have an impact on credit score?

[Slug]

Why is that? For the rewards, I've put big ticket items on it and then paid it back in full a few days later. I must have come close or exceeded that percentage a few times.

Does it have an impact on credit score?

It's not a big deal as long as it isn't a constant issue. Your utilization rate of your revolving credit does play a role in your considered credit worthiness.

For me, I just ask for bigger limits. I haven't done that lately because I haven't had the need, but that's the general approach if your typical utilization is a bit high.

[thekid]

It's not a big deal as long as it isn't a constant issue. Your utilization rate of your revolving credit does play a role in your considered credit worthiness.

For me, I just ask for bigger limits. I haven't done that lately because I haven't had the need, but that's the general approach if your typical utilization is a bit high.

Thanks.

Just out of curiosity, do you know (i) if too low utilisation rates are also harmful to credit score and (ii) is utilisation rates considered on a card per card basis or total available credit.

[Slug]

Thanks.

Just out of curiosity, do you know (i) if too low utilisation rates are also harmful to credit score and (ii) is utilisation rates considered on a card per card basis or total available credit.

I don't know anything about too low of utilization hurting you. It's hard to imagine a scenario where it would, but there probably is somewhere. I would certainly be guilty of it. I charge one low cost coffee or the equivalent each year so Discover doesn't cancel my card and its high limit, even though I never really use it otherwise.