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Reply With QuoteSeveral! But a majority of them are sitting with low balances or none. We keep them open to keep our credit score high.
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Re: Credit cards how many do you have??? If you do not pay the monthly minimum on the balance transfer on time each and every month the credit card company will kick the interest rate up, sometimes up to 30%!Originally Posted by shrup
If you continue to use the credit card that you used for the balance transfer please be aware that your monthly payment first goes toward the charged amount for that month and THEN to the minimum required on the balance transfer. This can be tricky and how most people end up getting switch over into paying the high interest rate, so I would not continue to use your credit card after the balance transfer is made. Put the card away in your sock drawer until the balance transfer is completely paid off!
You need to make sure you pay off the balance transfer by the end of the introductory period. After the period expires, the rates will be jacked up, sometimes up to 30%!
As always, read and completely understand the fine print for the credit card before you do any kind of balance transfer. You could call the customer care department of the credit card company to ask questions, but the representatives on the other side don’t always have the latest facts and if a mistake is made, you will be the one to pay.
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Re: Credit cards how many do you have??? 2-part answer
1) Mortgage, etc is also basis of score.
2) Long term objective = no debt (including mortgage), therefore does not matter.
(Dave Ramsey states he has a FICO score of zero, as he has had no debt in more than 7 years - do not know the veracity of this statement, BUT it does shift the thought pattern, if you make a plan for no debt, it does not matter what your FICO score is)
Also, there is an option for manual underwriting (not FICO lending) - usually smaller banks, etc.
Re: Credit cards how many do you have??? Unless he has an underlying problem with compulsive spending or lack of discipline, I have hard time believing in his statement.
Well, depends what he calls a debt:
He doesn't use credit cards at all or pay balances in full?
He has less then 1 debt to assets ratio?
Re: Credit cards how many do you have??? I can not speak for the veracity of the statment.
But - DR states he owns no credit cards, no debts. (only debit card).
We only have 1 debt - mortgage for a few more years. I do not share his thought on credit card vs debit card.
Re: Credit cards how many do you have??? In 10 years I'm hoping to have just a mortgage and thats it-- my student loans go another ten years. But our credit cards should be gone in three, unless I find a job that pays what I made before then they will be gone in about a year (7600 not so bad) and our car lease will be up in August 2009 and we don't want to buy new or lease again need to find out if we can trade our lease in and buy a used car from the dealer with cash (early trade in type offer) KWIM :)
Re: Credit cards how many do you have??? If I'd be a bank, I'd love to have customers like DR if what he said about his money use is true. In order to cover his expences he has to keep good amount of money on his checking accounts all the time, or to pay fees to connect it to his savings. Since no interest is usually paid on checking, this is good for the banks, not the account holder. That's an advice from a frugal money guru to people scrambling for every dollar to let the banker, not you, make $$$ on your earnings?? People, this is a conspiracy against average Jo and Jane! :Nod:
I also find it hypocritical of him not to reveal why he doesn't recommend credit cards. IMO, the underlining is users discipline, lack of it to be exact. DR sings in tune of the people who put a blame on CC, but keep forgetting that it was no one but the users who handed CCs to the cashiers and signed on the dotted line. First, people waved that cards at every occasion they've got, but when the debt had been accumulated beyond their paying ability they claim that CC is a devil. :rolleyes:
What is a next step? Pronouce debt as a sin?Unfortunately your banker is not as forgiving as your preacher, just keep it in mind. :Nod:
Re: Credit cards how many do you have??? If you have $2000 in your total monthly expences and charge it to a credit card instead of paying by directly from your checking, it will give you an extra $8 in interest (keep your $2000 25 days longer on your savings account @ 5%APR) and $20 if your card gives you 1% back in perks. At least $28 each and every month, without any work at all. For DR this is payment for 1/2 min or less of his show, for many of us it is 2+ hrs with the families instead of working.
What is $28 for us? 9 gallons of gas? Half of your phone bill? Lunch out? Or it will go back into saving?
Wanted to add:
It is understood that your credit card bill must be paid in full every month. By charging your daily expences you are giving yourself a month of free use of bank's money, while your own is earning interest for you.
Re: Credit cards how many do you have??? I got myself in trouble with credit cards in my early 20's. That was actually a GOOD thing cause now I won't carry a balance at all. They get paid off EVERY month. I'm like a drill sergeant with them. LOL I live on my AmEx, but like I said, it gets paid off every month (love their points system). Have 2 other visa/mastercards but they have no balances and are for REAL emergencies.
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