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Daily Links: Deal or No Deal Edition Print
Tuesday, 29th April 2008 (by J.D.)This article is about Spare Change
I’ve received several questions about credit cards recently, and have been struggling with how to handle them. When I started Get Rich Slowly two years ago, I was firmly in the anti-credit card camp. I still believe credit cards are dangerous, but now recognize that they can be cool tools if used responsibly. (”Credit cards don’t buy crap — people buy crap.”) But am I really ready to write a post about the best rewards credit cards, as Howard wants me to do? I don’t know.
What do you think? Would you like to see more information about responsible credit card use? Or would you rather I maintained my current policy of “credit card silence”?
For example, Jim at Blueprint for Financial Prosperity recently posted a list of credit card offers, in which he shares those accounts currently offering sign-up bonuses of $50 or more. Do you find lists like this useful?
In other, non-credit card related news, the Mighty Bargain Hunter posted an interesting Earth Day rant. “I’m firmly convinced that we won’t do nearly enough to save this planet unless we have absolutely no other choice,” writes MBH. “Because being green is inconvenient and expensive, and we like things easy and cheap.” This reminds me of our discussion last week of the ecology of commerce.
Over at Ask Metafilter, one users wonders, “Did you receive any financial education in school?” The answers are interesting. Most respondents had no financial education. At my high school, seniors were required to take one semester of personal finance, but the class was lame. The instructor was lame. All I remember learning is how to write a check, and how the Federal Reserve operated. They should have taught us compounding!
Finally, SVB from The Digerati Life crows that “saving money is in!” Quoting from several mainstream articles (including a piece that I’m in the process of summarizing for GRS), SVB explores the shift to frugal living, listing several techniques to make the adjustment from lavish lifestyle to sensible spending.
I’m out the door now. Time for me to head south for my lecture to college seniors on the importance of personal finance. Wish me luck!
April 29th, 2008 at 6:39 pm
Some other blogs (maybe consumerism commentary, but I can’t be sure) post lists of credit cards that are good for (insert benefit here)… but those post are always prompty deleted from my RSS feeds. I’m not anti-credit cards, and I enjoy the perks of rewards cards, but one person can only justify having so many credit cards (and still be financially smart). So just because someone is offering 50 free dollars this month for signing up for a credit card doesn’t really make it beneficial for me to sign up, in the long run.
April 29th, 2008 at 6:45 pm
I was ‘forced’ to take business law in my senior year(of high school)by my guidance person because I already had two study periods when I dropped 4th year of math after 2 weeks of classes. It was the best move I ever made because I wound up as a business/accounting major in college due to my first and only’business’ course in high school.
April 29th, 2008 at 6:47 pm
there are plenty of credit card review blogs out there. Stick to the topics and content you fully back. You have a great blog here and it would be a shame if became yet another credit card reviewer blog.
April 29th, 2008 at 6:56 pm
I think if you’re disciplined, you should absolutely be using a credit card. Having a good credit score pays off when you try to get a mortgage, or even apply to get an apartment, and what better way to build your credit than having a credit card and making your payments?
I have an American Express Blue Cash, ( http://snipr.com/26epo ) and I love it. I get 1.5% cash back, and 5% cash back on groceries, pharmacy purchases, and gas purchases (a moot point without a car). I just make all of the purchases I can with it in a given month, and then pay it off at the end of the month.
I set up my Emigrant Direct account to automatically fund my checking account with the correct amount a couple of days before the auto-payment that I set up with American Express. So, in the end I build credit, get cash back, and earn more interest on my savings. Why not?
April 29th, 2008 at 7:03 pm
I agree with Kaila. The $50 free for signing up is not a big bonus…it’s a short-term, immediate reward. Frankly, it’s the kind of reward that people who spend too much and get into credit problems would probably be really interested in. For a long time, I was anti-credit cards. I used only a debit card for almost 10 years. Then a friend intro’d me to the Amazon rewards card, which I loved for about a year. Then a post by Timothy Ferriss on his 4HWW blog about the AmEx Platinum card got me thinking that the “experiences” offered by that card were even better than the “possessions” I got from the Amazon card. My practice is to pay off the credit card every two weeks the same day I get my paycheck. I know how much I save and how much by bills come to, so I know the amount I have to spend on “discretionary” items that go on the card every two weeks. I can log into my account at anytime to see how I’m tracking to that standard. Seems to work for me!
April 29th, 2008 at 7:08 pm
My check card has all the reporting (basically export to Excel) that I need, I’ve got a $1,250 reserve loan set up with very low fees (less than $10 a year), no need for a credit card. I figure I’ll be sick enough of credit cards after paying one down for five years.
April 29th, 2008 at 7:23 pm
Well it seems like most readers don’t enjoy those posts…
Personally, I find them helpful and useful for comparison purposes. Then again, I am credit-educated so these lists don’t send me the wrong signals like they may others…
I vote “yes” but it’s really up to you. Like you mentioned, credit cards are very positive once you learn how to utilize them correctly.
So rather than “silence,” I think it would be beneficial if you were able to teach people the proper way to handle them. The world needs more credit-educated people to say the least. I think you have the opportunity to help out with that definitely.
Good luck with your decision!
April 29th, 2008 at 8:07 pm
If you want to run credit card posts then go ahead. I think that bloggers that don’t run Adsense or won’t run certain type of ads (payday loans etc) are underestimating the intelligence of their readers.
Ads are everywhere - tv, billboards, magazines and blogs. It’s just part of the medium.
Mike
April 29th, 2008 at 8:12 pm
JD, your personal finance course marks you as a true Oregonian! Ours was lame as well, but we did learn the rule of 72 and we saw that great episode of “The Cosby Show” about earning money on your own.
April 29th, 2008 at 8:24 pm
Our family is a great example of responsible credit card use. We have one credit card only, that gets paid at the end of the month in full.
It does take discipline: but once you learn how to use a credit card to your advantage, it’s actually profitalbe to use it.
I’ll give you an example: we purchase everything (and I literally mean that: if I can pay with my credit card, I do it). This way, I have a record of everything I purchased, I don’t need to carry cash in my purse, and don’t have to worry about running pout of cash. We have a Chase card that earns us miles, and in the past 2 years we accumulated enough points to save $2400 off a trip of $10000 to Australia (6 of us are going).
In the 15 years we’ve carried a credit card, we only paid interest for a couple of months, when we purchased my husband’s car a few yers ago. That’s right: we purchased a car wiht a credit card, and paid the card off in 2 months.
If you ever need to interview someone who is living debt free for several years now, I would love to talk to you. BTW, we came to US 18 years ago with $95 in our pocket and 2 pieces of luggage.
April 29th, 2008 at 8:25 pm
Credit card companies only push those ’special offers’ because they are making money. I don’t see what is so special or why we need lists of great rewards cards, but that’s just me.
I suppose you can make a few bucks using a rewards card, but that isn’t the road to financial freedom either.
April 29th, 2008 at 8:40 pm
I hypothesized about a “Credit Card Continuum” here: http://www.dontfeedthealligators.com/blog/the-credit-card-continuum
I, for one, would not mind seeing more posts about credit card rewards. One can take advantage of credit card bonuses without spending unnecessarily or taking on more debt.
I was in the airport yesterday (3 of the, actually) and was tempted by a credit card offer that promised a free round trip ticket just for activating the card. I did not sign up, by may still. The way I figure it: Since I have enough self-discipline, why not profit from the credit card company offers?
April 29th, 2008 at 8:41 pm
I throw everything on my card. I get all sorts of perks, including 2% back. I make money by using the card. If I invest that, I’ll have an extra $70k at retirement.
April 29th, 2008 at 8:45 pm
if you were going to allow credit card discussion, I would feel more comfortable wit a guest poster who has proven experience with long-term credit card success.
Not to sound abrasive or cruel JD, but you’re probably the first person I’d trust with *practical* advice and the *last* person I’d trust with a post about credit cards, only because I’d feel like your life story doesn’t include positives about credit cards (that I’m aware of). Now, a *very* careful selection of a guest poster could be useful. . .
April 29th, 2008 at 8:53 pm
We, too, pay our card off at the end of every month, and we frequently use it for big purchases and things we could easily pay cash for immediately, but choose not to. Why? Aside from the obvious convenience and safety (yes, safety!) of the card, we earn points. Last year, I cashed in a year’s worth of points for gift cards. Then, I used those gift cards to do about 75% of my Christmas shopping. It was awesome! This year, we need a new dishwasher. Our current one is threatening to die on us at any moment, and while we could pay cash for a new one if we had to, we’re trying to score a “free” (or at least heavily discounted one) by accumulating enough points to get $400 in Sears gift cards.
April 29th, 2008 at 9:03 pm
I’d like to see the occassional post on credit cards, but not like the post that you linked to. I wouldn’t like that at all. I’m interested in low interest rates and not one-time sign-up rewards.
I use credit cards for what they’re meant to do: Vacations and unexpected situations. Things happen and sometimes you need credit for a month or two. I’ve been there and was glad I had credit because I would have been screwed otherwise.
In general, my credit score suffers from lack of credit use, and when I do use my card I pay it right off. Every now and then, though, I have to carry a balance for a couple of months, usually after an annual convention trip.
I like low interest rates for when those situations arise.
April 29th, 2008 at 9:21 pm
Good luck with the lecture, let us know how it goes. Do you get paid for these speaking gigs, or do you do it just for fun and notoriety?
I’m in the anti-CC camp myself. I don’t think I’ll ever own one, and even if I miss out on some “deals”, I’m ok with that. The occasional article explaining your point of view is cool, but I’ll cast a vote against CC feature postings.
Thanks for taking into account our opinions!
April 29th, 2008 at 11:07 pm
We anticipate that we have saved over 800 dollars by switching to a zero balance transfer card.
That said, credit cards, are very, very tricky. It does not make sense to involved with them if you have better alternatives. In this case, for us, it was the cheapest, and therefore best place to park our money.
April 29th, 2008 at 11:39 pm
Thanks for this question. I love my credit cards. I have 2 primary cards: one pays 3% cash back for eating out, 2% for travel. So I use it for all travel and eating out. The other pays 3% cash back at grocery stores, gas stations, and drug stores, so I use it for all those purchases. All other purchases earn 1% back on either card. Both have no annual fee. I charge virtually everything.
I made several hundred dollars last year in tax free cash just for spending stuff I would have spent anyway to gas up the car or feed the family.
The trick is to be exceedingly disciplined in paying them off EVERY month, without exception. If you can do that, I highly recommend using CCs. Also you have to watch your spending so you aren’t buying more than you normally would.
I think CCs can be a useful tool for living a frugal lifestyle, but like everything else, they have to be used correctly and carefully.
April 29th, 2008 at 11:55 pm
All I can say is this:
I use my Alaska Airlines Visa card for everything, but pay it off every month so I never have to pay interest. I signed it up for all the bonus miles programmes such as extra miles at Safeway, certain restaurants, &c. It’s all added up to quite a few frequent flyer miles and despite the $75.00 annual fee (compared to the miles that got me what would have been a $600.00+ it would have cost me to buy a flight to eastern Canada), I have definitely saved a LOT of money on airfare using the miles that I earn from using my card. Very good deal.
But it’s all about not spending more than you have. Don’t view it as a credit card, view it more as a debit card or writing a cheque.
April 30th, 2008 at 12:32 am
Thanks for the feedback.
From my perspective, my presentation went…okay. It wasn’t great. It wasn’t terrible. I’m new to the whole public speaking thing, and need to get the kinks out. At times, I felt like I was doing well, but then I’d lose my way.
I think my big problem continues to be an over-reliance on notes. I need to have fewer notes. I need to take just an outline, and know each point of my outline well enough that I don’t need to refer to notes. On the way home, I was thinking I need to develop “modules” of information that can be prompted from just a few words on a piece of paper. For example, “lifestyle inflation” might allow me to go into a (much-better prepared) description of what that means. (I hadn’t prepared a definition of lifestyle inflation before my talk, and so I became flumoxed mid-sentence. Very awkward.)
Anyhow, not a failure, but not a success. An excellent learning experience regardless.
April 30th, 2008 at 12:47 am
I would love to see more info on credit cards. One of the goals of your blog is to teach people to be financially responsible adults and being able to handle a credit card is part of that. It’s all part of the bigger “if you don’t have it, don’t spend it” picture and you can end up in the plus using a credit card, meaning you get the cash back points and never pay a single cent of interest.
I’m lucky that I was raised in a culture that until a few years ago didn’t even have the easy option of “charge now, pay off in small portions” and I’m glad! I have a credit card now, for cenvenience and also to be able to make money off my purchases. And while I have emergency funds in place that I would use if needed it’s also reassuring that if anything should happen I have the card at 4% to help me out.
April 30th, 2008 at 4:04 am
JD, wouldn’t the post on responsible credit-card use be pretty short and sweet? Something like: if you use a card, pay it off in full and take advantage of cash-back or other rewards like travel.
The end?
April 30th, 2008 at 4:34 am
I vote that, yes, some posts on responsible credit card use would be beneficial as opposed to sign up for this card and you get this one time bonus. Mostly because in life, it’s probably not realistic to be without a credit card. To rent a car, to reserve a hotel room (I’ve tried to pay for rooms with debit cards before and they take more than the room costs right out of checking in case there is damage and sometimes it takes a few business days to put back after you’ve checked out), in case you have a family emergency and have to get on a plane in the middle of the night.
I have two kids who need braces and if I paid all at once, I got a discount so I put it on a 0% interest card, got my discount and paid it off in the allotted time thereby overall saving money.
Also, if you are responsible as several other posters have said, you can get dividends back…my husband uses his card for work expenses when he travels and we’ve been getting back a nice amount with gas and hotel stays.
Because of that, I’m considering starting to use it for our personal fuel expenses and paying that off at the end of every month to get some cash back on that expense that just seems to be going up lately.
April 30th, 2008 at 4:52 am
I vote against a credit card post unless the post is really generic. Otherwise, it always makes me feel like the blogger is putting in free advertisement for cc companies.
April 30th, 2008 at 5:33 am
I am going to give a mild no to the credit card posts. My only justification for saying this is that I feel other PF bloggers have the information covered pretty thoroughly. That said, if you had something new to bring to the topic, then it could be an interesting post. I don’t really care to see more posts about which reward cards are the best or how to maximize your rewards in just a few cards.
April 30th, 2008 at 5:42 am
I vote no for the credit card posts. I think we’ve heard it all before, 2% back or 3% back or whatever, it’s not that interesting, and it’s true that info is available elsewhere.
April 30th, 2008 at 6:42 am
I have to voice a strong “no” vote to any positive-use credit card posts (although they are useful for spreading glue and contact cement…)
I am completely anti-credit. I got into the financial mess I am in because I did NOT have the discipline (my fault, not theirs), but now that I have financial discipline, I choose instead to discipline my spending and urges.
One of my extra jobs is at Home Depot, which is always running a credit card “special” commonly referred to as a “no-no” (no interest, no payments for X months). I simply say it’s a “no-no” (as in never going to happen) because I already have a “no-no” payment plan: if I no have the money, I no buy the object.
As for “responsible” CC use: can you earn points, deductions, and cash-back? Yes. Are you “getting one over” on the CC companies? NO. Would the CC companies offer this if they didn’t make money on it? NO - they still make money from the vendors that accept the card and the networks, banks, and other middle men. It costs my company more when customers purchase with a CC (around 3%). Are they interested in fostering “responsible” credit use? NO - they want people beholden to them, and the longer the better.
So even using a CC responsibly supports their business. Supporting their business is tacit approval of their tactics and policies which only benefit them - never the consumer. Personally, I refuse to do so any longer, and I’d prefer not to read about it here.
April 30th, 2008 at 6:45 am
My husband and I use credit card for everything possible (even coffee for $1.50). I got my first cc at 18, and now I’m 31, and have never carried a balance. We like the convenience, and being able to track our spend each month. I’m afraid we’d be spending too much if we are not able to track what we spend via statements each month. I used to have a card that gave me money back, but now we accumulate miles, and so far we’ve used our miles on one trip to Europe, and already 3 x 2 domestic trips - that’s a lot of free trips that justify the $85 annual fee (the trips would’ve cost us over $3000.
So in short, I think if used properly, users can milk the credit card companies and use it to their advantage, and I would like to see more tips on it.
April 30th, 2008 at 6:45 am
I think credit card usage is a personal decision we all must make. It comes down to your personality and financial maturity.
Also, some people should never have a card. Let’s use alcohol as a metaphor. Most people can stop at one beer. An alcoholic will just keep going. One beer derails their entire life. Credit cards are similar.
Pro
-It can fill in for your emergency fund until it is built. One card locked away in a safety deposit box.
-You can use it to help build your credit.
-Cash back. We pay $0 annual fee and $0 interest as we pay in full monthly.
-If you can run your bills (electricity, phone, etc) through the credit card, bill paying is easier. Also the cash back adds up pretty fast.
Con
-If you have problems with self control, it can put you back in trouble.
-Using a card is just too easy. You will spend less using cash.
-If you are slightly late, the interest and fees can quickly overcome any benefits like cash back. AMEX is the worst about this.
-It’s easy to say “I can’t buy it” when you have no cash in your wallet. If you have a credit card that excuse goes away and spending goes up.
April 30th, 2008 at 7:03 am
The offers are endless, and unless you enjoy tracking them, I don’t see the point in wasting your time posting, unless you’re keeping up with them anyway. If it feels like a chore, then it wouldn’t be one of your better posts.
I already have my card of choice, pay the balance every month and stick to my budget. With the points I’ve accumulated on my card, I have already taken 2 free flights and have enough points to cash in for a third whenever my next vacation happens to be.
April 30th, 2008 at 7:08 am
Credit cards are useful — maybe even almost essential if you want to hold a hotel reservation and similar stuff, and I think the occasional post discussing credit card use (and how to ensure that you’ll pay it off each month, etc) isn’t a bad idea. But I’m with those who say don’t become a shill for the companies, no need to point out great rates etc…
On the public speaking, I’m sure you will be getting more and more invitations. One thing that always annoys me when I’m in an audience [especially those times when I've been sent as part of my work day....] is when a speaker makes no effort to engage the group, nor to try to quickly figure out what the audience already knows and to adjust to where they are, so my ideal opening is: “Thanks, X, for that great introduction. I’m really excited about the conversation we’re going to have. Now, before I start talking, please pull out a piece of paper –yes, there’s a quiz! [expect some nervous laughs]. OK, I’m going to read the names of the topics I’m going to be talking about today. Please write down three lists as I read them, one of the topics you already know everything about, one of the topics you don’t know anything about and one of the topics you probably only think you know about. So, does anyone have all the topics in column A? I could use you up here to help me out… No, Ok, well, my hope is by the end of today you’ll all be able to move some of the unknowns into the known column. Now, this is a huge group [if it is or] we aren’t a large group today [if it is] but [or "so] feel free to stop me if you don’t understand something; I do want to hear from you.”
And, no matter what the size, you can keep them engaged. One of the econ profs at my university would have people do two minutes very small group discussions for example, “just turn to the person next to you and share a story about a “sunk cost” event in your life” which gives you a moment to look over your notes… or you can give a handout to fill out right then and there; maybe a “how much money do you think someone needs to earn to be “middle class” or “how much debt do you think the average american has on a credi card” and then you can have people call out their answers, etc…
Do bring handouts or prepare powerpoint slides. People do learn with both eyes and ears…
April 30th, 2008 at 7:11 am
J. D.
My vote is no credit card posts.
As far as your presentation. You sound like you are on the right track. As you make more of these, you will find that you will need your notes less and less.
I used to teach a computer course which lasted four hours a night. One of the students was amazed that I didn’t use notes. He just happened to have been in one of my later classes. I used notes at first and then moved to an outline format like you described. Pretty soon, I could just list my topics and didn’t even need the outline.
You’ll find what people respond to and what they don’t. Include them in the presentation through examples and analogies. Make them active participants.
Lastly…start presenting to everyone you can. Schools, garden groups, boy scouts meetings, etc. You’ll get more confident and then you’ll get better which brings more confidence.
Good luck.
April 30th, 2008 at 7:57 am
We were anti-credit card during out debt pay down project (paid off $55,500 in 12 and a half months following the Dave Ramsey plan). And presently we still do not use credit cards for day to day spending as we find better control over our budgeting by using debit cards. On the other hand, we have started to use credit when it makes sense for us (i.e. 0% offers from Home Depot for our real estate biz expenses). I think its helpful to hear about how you and others are using credit to benefit them. I don’t think credit is evil but I do generally agree with Dave Ramsey that using credit leads to increased spending.
April 30th, 2008 at 8:18 am
I don’t care about lists of credit card offers, but I do think it would be beneficial to readers for you to have occasional blogs about credit cards and proper use. As you said, credit cards are not evil if used wisely. Unfortunately, too many people get one then us it unwisely. A post on wise credit card use, how they can be good for tracking spending, etc as long as you pay the balance EVERY month might help people.
Perhaps focus on how to set up reminders with your credit card company to make sure you do not spend too much. For example, email alerts when a purchase is over X amount and alerts when your total bill gets to Z. Setting these up can help prevent overspending by giving CC users a reminder that $$ HAS been spent.
April 30th, 2008 at 8:19 am
they do teach compounding… remember Pe^rt (continuous compounding), principal * e (2.78) to the power of (rate*time)? yeah, they taught that from middle school on
April 30th, 2008 at 9:57 am
I am not interested in reading anything about credit cards at this time.
As far as learning personal finance, we did not even have a week devoted to it in any of our classes. I sure wish we had have. If I had understood the concept of compounding, I would be in a better place right now! It’s my fault that I didn’t seek that information until my late twenties, but I really didn’t know to seek it. Now that I’m in my early forties I look back and think what I could have if I’d just invested a small percentage of my earnings from my first job!
April 30th, 2008 at 10:59 am
An occasional CC relate article might be good.
We use ours as a buffer and to keep track of our spending (by putting everything we can on it).
We put most of our money into a money market account, and try to leave it there till there’s enough for a CD (and later, for stocks or other fun stuff).
We leave just a couple hundred in the checking account each pay period for places that don’t take credit cards, then use the credit card for everything else. We pay off the card with the next pay check, put more money into savings and keep going.
We make money a) With our money in the money market account instead of being spent or in a checking account and b) with the % back on the credit card.
The cash is all still there if we need it, and we’ve only carried a balance twice in the four years we’ve been married. (oops, forgot to pay it off).
April 30th, 2008 at 1:30 pm
J.D. I think you’re obsessed with compounding. It’s just as well I think it’s brilliant to.
On credit cards, I don’t mind seeing posts relating to your evolving journey with credit cards, but I’m really not interested in a list of great credit cards - I know where to go if I want to find things like that already.
As for the presentation, I expect that it went better than you think it did. Your idea of having a modules is a good one. Maybe a practised elevator pitch length description of compounding, lifestyle inflation, and other savvy ideas would be helpful.
April 30th, 2008 at 2:03 pm
I was in your boat as well JD when it came to credit cards but I came to realize that if you really watched your spending and was able to pay the bill off in full each month, you really could take advantage! I just don’t think some people can grasp this concept.
April 30th, 2008 at 8:00 pm
Credit cards and charge cards can be another weapon in the arsenal of the frugal if used judiciously. For instance, certain stores with charge cards offer sales and percentage cost reductions to charge card users. So a good way to use them is to take the card out of mothballs, swipe when you get to the store, get that reduction, and pay it off immediately when you get home. I have paid off charges before they have registered on the payment site and claimed my sometimes substantial savings.
Also, I use a credit card to have many of my expenses (internet, cable tv bill, cell phone bill) charged to it to build up the cash back rewards. It saves effort in paying those bills now and I get a little extra cash every now and then. If not for the cash back reward, I would still be paying those expenses yet getting nothing in return.
Credit cards definitely have their place, but you just have to be disciplined with them and keep your focus on exploiting them to your advantage, not theirs.
May 1st, 2008 at 6:14 am
JD-Good job on the public speaking. At first it can be scary, but it gets easier. I recommend reading up on it and joining Toastmasters.
I have to admit I’m jealous. I love getting up in front of a group and speaking. I spent a few years as an instructor and had a blast. Now I only get to do it every quarter or so. The ironic thing is that I’m normally an introvert…
May 1st, 2008 at 11:27 am
I had my credit card (Visa) for six years now, starting from a 300$ limit for student to a 5000$ limit. I did accumulate a debt on it during the last two years cause of poor managment of an unemployement period. Else, I do just fine.
I use my credit card for regular needs and bills like grocery, car maintenance, clothes shopping, phone bills, Internet bills, etc.
At the end of the month, I pay all the debt on the card. It’s possible cause I don’t spend any of the income money that come to my bank account.
I think that paying with my card is more convenient and I don’t need to worried if I have enough on my bank account between paycheck. Also, I get “Bonidollars” from the reward program. 1% of every purchase. I can exchange it for travels, goods or (now it’s get better) financial product like an IRA. Last year, I transfer 500$ worth of “Bonidollars” to my IRA. It had take me 3 years to accumulate it, but I like that option (and I don’t regret not getting a Wii instead)
So now, I seek to pay most of my regular bills with my credit card.
It still required self-control to not purchase unregular stuff and be debt loaded (like I did).
May 1st, 2008 at 12:22 pm
A list of credit card offers would be of no use to me whatsoever. No company in the business of making money (so, no company) would offer a signing bonus big enough that I would sign up just for the bonus.
I have two credit cards, one of which is a Visa I’ve had for 10 years, use regularly and pay off monthly, and the other of which is a MasterCard I’ve had for 6 or 8 years and which I might use in an emergency if I couldn’t use my Visa.
Signing up for credit cards right and left is a bad idea. Even if you never use them, it’s bad for your credit. Get one or two cards. Use them responsibly. Stick with them over the long haul. The benefits you will get through a good credit score far outweigh any stupid $50 sign up bonus.
May 2nd, 2008 at 9:07 am
I think of credit cards like a gun. After all, credit cards don’t drive people into debt, people drive people into debt. Providing they are used correctly, credit cards can even have some advantages via the rewards programs. I have two credit cards that I pay off monthly (if not sooner) that I use for the rewards benefits. But they are only for those that have the ability and the discipline to pay them off (or those foolish enough to want to pay someone 19+% interest and if that is the case, let me know, I will lend you some money!). It took me several years before I had the spending discipline to use a credit card properly. During that time I simply did not have one. A great tool to figure out if you are ready is your debit card. If you consistently overdraw your account, then you aren’t ready. If you stay within your budget then one may be worth considering. As for the posts, I check what offers are out there from time to time, but I have two cards that work very well for my needs and habits and I have no plans to switch or to jump from card to card in the future. There is something to be said about consistency.
May 2nd, 2008 at 11:20 pm
On the subject of financial education in school, we had business class through Junior Achievement. We had to set up a business model, create a board of directors, have a ceo, etc. We created an account with our school district and sold shares in our company and sold a product. The person in charge of our money with the school district confused our money with some other school district money and we made 300% profit on a 15% markup. I did not take away any information that helps me with money today, but when companies face financial ruin I am never surprised.
I love the feedthepig.org commercial where the salesman is selling the great features of a tv and the other guy says “I’ll take it”. When he gets his wallet out, the weird pig creature slaps his hand. It made me look up the website!
June 5th, 2008 at 5:32 am
Personally, I am able to use credit cards wisely. So when I am looking at getting a new one, I only look at rewards cards (the rate doesn’t matter if you have a $0 balance).
The trouble is that it is very difficult to weed out the introductory rewards programs from those that are more permanent. Acknowledged that nothing is permanent in an agreement where one party can change the contract whenever they want. But you know what I mean. I’ve been burned by introductory-only rewards programs before.