Unsecured Credit Cards - Never Again

2 months 21 days and counting into my new years resolution...I am never never ever ever getting or using an unsecured credit card ever again.

How does it go...better to die on your feet then to live on your knees?

That's great if you think you can live without one....

Problem is a lot of things have to be secured by a credit card whether you pay in cash or not...

Such as airline tickets, motel rooms, concert tickets, etc...

Most people have at least one credit card (keep a low balance) and use it to help restore their credit score.

Good, sensible use of a credit card (say buy your gas on it, pay it off each month) will help boost your credit score.

Just use it wisely, for gas or emergencies only, and stay below 1/3 of the balance of credit that they allow you. Make sure payments are timely and current each month.

Our society revolves around credit and its very hard to survive without at least one credit card.

Excellent advice and I concur, Minny!

I used my paypal debit card to buy plane tickets a few weeks ago. There are ways around everything.

I feel I've had such a bad experience I don't want to give them business.

Credit is a tool. Just like a hammer or a hoe. All of these tools can be used for good things or bad.
It depends on your traning. It is too bad schools do not have classes on the proper use of credit.
regards,
emoney

Just use it wisely, for gas or emergencies only, and stay below 1/3 of the balance of credit that they allow you. Make sure payments are timely and current each month.

Our society revolves around credit and its very hard to survive without at least one credit card.

This is true. I had to use mine for insurance premiums and medication co-payments payments while I was sick and that lead to the situation I am in now at 30% apr with no way to pay back.

If I had had a savings account equal to the value of the cards I wouldn't have needed them.

I have used the Dave Ramsey plan to help me plan my financial needs. Works great and its free, unless you want to buy a book or attend and event.
regards,
emoney

Most people have at least one credit card (keep a low balance) and use it to help restore their credit score.



What about the news items about CC companies ditching people who "pay on time?" and pay off their balance each month.

I personally think that after this credit shake-up, a lot of people will be saying No to credit cards. I know I will be.

People like us who filed cause of cc debt should never have a cc. I am only here because of cc debt. Trying to make minimum payments, having nothing left over out of our checks because of it and using the cards for food, gas, and everything else left us in over our heads.

See, we were in our late 30's before we got our first card. Before that we lived fine, yeah we paid cash for everything, but I slept good at night. We had everything we needed. Not new cars, not new everything, but we were happy, so why is we need a cc? So in 10 years, we can file again? Nope not us. You won't see us here again, I am going to live like people lived before evil cc took over. See people don't need all these things, they just think they do. Things will never make anyone happy, maybe for a little bit, or until the cc bills come rolling in.

When I first filed, I was exactly like the OP....."I never want to see a piece of plastic in this house AGAIN"....

BUT, unfortunately, I know we will have to get another cc someday. I know we will have to buy another car someday, another house someday...and the only way to build up credit is having an unsecured card.

Going through this whole experience has made me a lot wiser in the fact that I know I can't handle a card with high limits.

We will be among those people who are treating credit cards like an addiction, we can't have just one. I have impulse issues and get a euphoric feeling from available credit and my husband doesn't like to tell me no.

I am betting my husband that we will be able to get a mortgage when we are ready without acquiring new unsecured debt to increase our scores. I think that given a decent sized down payment, being able to show wise investments and a good income will go a long way toward getting us a mortgage.

I'm just talking about us here, not at all trying to push our views on others.

We will be among those people who are treating credit cards like an addiction, we can't have just one. I have impulse issues and get a euphoric feeling from available credit and my husband doesn't like to tell me no.

I am betting my husband that we will be able to get a mortgage when we are ready without acquiring new unsecured debt to increase our scores. I think that given a decent sized down payment, being able to show wise investments and a good income will go a long way toward getting us a mortgage.

I'm just talking about us here, not at all trying to push our views on others.

According to Dave Ramsey, you should try to find a company that does manual underwriting on mortgages. They don't look at the credit score, but instead look at you personally- where you work, how much you make, what debts you have. So you would be more likely to get a mortgage.

I too plan to never have a credit card again. Finished in Oct, so far shredding all the apps unopened. Have a little bit of savings, and only my student loan and mortgage for ongoing payments. We shall see if I cave or not :unsure:

This is just my opinion, but I think it's crazy not to use every tool available to rebuild credit. If the stress created by filing bankruptcy hasn't drawn the clue bird to land on ones shoulder, nothing will. Those folks will find a way to get back in financial trouble, credit cards or not.

As far as credit cards are concerned, nobody is saying you must have tens of thousands in available limits. Keeping it simple is the way to approach it. For me, $2,000 in available limit is fine. Maintaining the "live on cash" philosophy can still be the way to go, even using credit cards. Buy a tank of gas...next week pay it off. Buy your groceries...next week pay it off. If you come up with a system of paying for normal (key word being normal) cash expenses with a card, and then paying it, or 95%, shortly afterwards, it becomes very manageable. Especially with online bill payments and such. It's really just a matter of coming up with a system and sticking to it.

We can blame the banks all day, but until we discipline our habits nothing will ever change. So much of our daily lives revolves around credit these days that it's almost unrealistic to think we can get away without establishing a good history.

With the advent of Debit Cards with VISA & MasterCard association, it is now easier to live without a 'normal' credit card or AMX charge.

But there are still downside in using just Debit cards, e.g.,
- Lodging charges puts a 'hold' in excess of your normal fee;hotel might charge the actual bill as seperate while the 'hold' clears a few days later - puts a strain on the checking account.
- Same for car rentals. Some won't even allow without CC, which could be actually the cheapest rate.


There are just too many advantages of having a CC/good credit. The trick is to learn from the mistakes that got all of here.

I have used the Dave Ramsey plan to help me plan my financial needs. Works great and its free, unless you want to buy a book or attend and event.
regards,
emoney

We are reading his book now. We live with my parent and they actually want us to stay even after I go back to work. If we could manage that, we could pay off $120,000 in student loans in less than 5 years, pay off our current car, and be in amazing shape financially. Even after this five years if we got our own apartment, we could afford to save up a very large down payment on a house. With our student loans, car payments, a good rental history, and 20% down payment, I'm pretty sure we'd be just fine without a credit card. I like what he says about living like no one else will allow you to live like no one else.

2 months 21 days and counting into my new years resolution...I am never never ever ever getting or using an unsecured credit card ever again.

How does it go...better to die on your feet then to live on your knees?

There is nothing wrong with unsecured credit cards; it's how they are used that leads to the problems...none of us were/are forced to sign for them or obtain them. If one travels on business or needs to rent cars or stay in hotels, one is definately needed unless it is provided by one's employer. But I admire your resolution and hope you stick with it.

I do think the credit card companies are to blame at least in part. They encourage irresponsible borrowing. I do believe them to be predatory.

but thats just it. Credit cards are completly unneccesary. Without the cards you can easily have enough in your checking account that your debit card is attached to cover car rentals or hotel rooms or airline tickets up front without usung any credit cards. If your work does not provide you enough income to make this true then perhaps a job where all that travelling is not required is in order. Credit is completly unnecesarry, Rent until you can afford to buy or get the Mortgage from the Underwriter directly. That will keep it to a reasonable part of your income. A mortgage should be the only thing any of us borrow money for. If we all teach our kids this from the start they will lead much less stressfull lifes I think. Just my opinion. Not worth much but I am gonna file and get rid of my cards and my truck will either go back or be paid off next May. Tehn all thats left is a very cheap mortgage and that will be paid as soon as possible. Not meaning to offend anyone, but credit cards and for the most part credit in general is never a good idea.

Rob

I, too will never have another credit card again. The last time that I used a credit card was in December 2004. Don't miss it, don't miss the games that banks play and certainly don't miss the monthly bills. And when I complete my payments and get discharged, I will finally get this credit card monkey off my back for good. And I can promise everyone, I won't miss being in bankruptcy neither. :cool:

but thats just it. Credit cards are completly unneccesary. Without the cards you can easily have enough in your checking account that your debit card is attached to cover car rentals or hotel rooms or airline tickets up front without usung any credit cards. If your work does not provide you enough income to make this true then perhaps a job where all that travelling is not required is in order. Credit is completly unnecesarry, Rent until you can afford to buy or get the Mortgage from the Underwriter directly. That will keep it to a reasonable part of your income. A mortgage should be the only thing any of us borrow money for. If we all teach our kids this from the start they will lead much less stressfull lifes I think. Just my opinion. Not worth much but I am gonna file and get rid of my cards and my truck will either go back or be paid off next May. Tehn all thats left is a very cheap mortgage and that will be paid as soon as possible. Not meaning to offend anyone, but credit cards and for the most part credit in general is never a good idea.

Rob

Clap, Clap, Clap!!! and the post below too. Yes it is a habit. When you do not see green leaving your hand, you do not equate the expense involved. I disagree that they are preditory, with a caveat. They do not want you to bk as they lose. They want you to use THEIR card ergo the big special deals. After bk you will get many junk credit offers. The weak will bellie up and the circle starts again. I shall never have a CC card, again. One debit card for emergencies. BTW it is a very good idea to have a $100.00 bill folded small and hid in your wallet and FORGET IT. Ms. Cat and I took a wrong turn once and in FL in the Ocala forest we hit a road of sugar sand and the car stopped going forward and went down to the chassis. We called 911 on a phone not is service (by law 911 will always work) and got a tow truck out. When I gave him a credit card, he said cash. When I showed him a check, he said cash. Fortunatly we had fifty bucks. I bargained that here is fifty here is a check for 50 cash. He accepted this but he would have left us if we did not compromise. It was a scary lesson. Cash talks Credit walks. 'Hub

I will add to this in that do NOT write checks either, expecting that the 'float' will cover them. I've noticed that we have gotten into that habit and have racked up several $30.00 NSF charges because we were depending on the deposit to come in a day or two. NOT GOOD! :cry:

Using debit cards for online purchases can be dangerous, whereas with a credit card you're afforded a measure of protection. If your account number is found and used fraudulently with a CC you can dispute the charge and not owe that amount.

Though most banks offer some level of fraud protection, once the money' gone it's gone, and then you have to get the bank to put it back into your account.

There are electronic security breaches happening daily, and debit cards don't offer anywhere near the consumer protection of credit cards: http://www.privacyrights.org/fs/fs32-paperplastic.htm

Would you tell an alcoholic that wine is necessary, that they just need to learn to drink in moderation? Some people just cannot have access to credit, just as some people cannot drink a single drop of alcohol, and if they are self-aware of this and choose that they would rather have the inconviences that go along with no credit cards, I totally support that choice. Other individuals make different choices, but criticizing those that decide to abstain trying to scare them into thinking they can never travel, etc., is unhelpful. I have been in my CH 13 for a year now. In May flew to Kansas, rented a car, got a hotel room, all with cash. Two weeks ago went to the east coast for 9 days for work, again, used no credit cards. Those who think it is impossible maybe aren't really trying to work around it.

Would you tell an alcoholic that wine is necessary, that they just need to learn to drink in moderation? Some people just cannot have access to credit, just as some people cannot drink a single drop of alcohol

SOME people, certainly not ALL. I think it's an outlandish example to compare the two.

Other individuals make different choices, but criticizing those that decide to abstain trying to scare them into thinking they can never travel, etc., is unhelpful.


WHOA. Right there, back that bus up.

I see no one criticizing anyone's choice. Because I pointed out a couple of areas to watch for, that's criticizing? I'd say you need to adjust your comfort meters.


I have been in my CH 13 for a year now. In May flew to Kansas, rented a car, got a hotel room, all with cash. Two weeks ago went to the east coast for 9 days for work, again, used no credit cards. Those who think it is impossible maybe aren't really trying to work around it.

Now who's "criticizing" who? If we all don't live and handle credit exactly as you have chosen to do, we're wrong?

Thanks so much for sharing your opinion, it's been ever so enlightening.

I used my paypal debit card to buy plane tickets a few weeks ago. There are ways around everything.

I feel I've had such a bad experience I don't want to give them business.

I'm with you penny I never used CC's and never had a hard time doing things. I guess I am going to buck the system and pay cash or do with out.