Add myself as auth. user to wife's card vs trying to get 2nd card right now?

[dman]

People keep saying on here they people should not be a slave to their credit score...totally agree. I also believe they should not be a slave to pinching every single penny they possibly can. Now, that's just me...and I know its not popular opinion.

Well, I think it's popular opinion to leave lean at least until you have a decent emergency fund. After that, I say make a budget and as long as you can stick to it, no worries! If you give yourself $50/mo to spend on whatever the heck you want, and you blow it on cappuccinos, so be it! Or maybe you save it up and buy a new iphone every year. Whatever floats your boat. Me...I'd just look for a cappuccino machine in a thrift store AND buy a 6mo old Android phone

Basically...I'm of the mindset that it's better to put your money to work for you, than to work for your money. Think of what you want to do, figure out the best way to go about it, and go for it. Vs the extreme of doing whatever you can to make the most money.

I dunno maybe I'm wrong, but you guys that are "cash only"... how long could you survive without any income whatsoever? What exactly is the breaking point for someone doing everything perfectly in your eyes... I know the economists say you should have enough saved to live without money for like 3 months... but what happens after 3 months or more? At some point, in bad times, everyone needs a bit of assistance.

Well, with one of us drawing unemployment at a tad over $400 a week, we were able to pay all our bills and have some left over each month. We "could" cut expenses even further if we had to; I figure $1,000/mo would have us living lean, but semi-comfortably. If we were poorer than that, some essential bills would be reduced or eliminated (i.e. we'd qualify for free healthcare so there goes one $200/mo bill; probably some kind of assistance with the electric and phone bills, maybe food stamps, etc.). I'd drop DSL, and possibly the entire phone line. Netflix would definitely be out (not very useful without internet). We'd have to keep paying car insurance but we'd take everything off but one vehicle, and drop it down to liability (right now it's a bit under $600 per 6 months for a van with full-coverage, liability on an antique-ish car, and full-coverage on an old RV). Heck, we'd stop paying house insurance if it came down to either that or food on the table.

With no mortgage or auto loans (or ANY loans for that matter), our monthly expenses are pretty low. What would be a three month emergency fund for many, would fund our entire family for over a year. If things got bad, and assuming our retirement accounts didn't take a big hit...I think we have enough now to last us 2-3 years (that's with no unemployment income). If one of us got UI and the other got a minimum wage job...minimum wage would be enough to sustain us, so the UI would just go direct to savings. And this time last year, we were way in the hole...so I imagine in another year or two we'll be even better off.

And I totally agree with Logan ... there is no slippery slope. Its just like living cash only... if you don't have the cash for it...don't charge it. Now, if having the credit card is just too much temptation and you're not disciplined enough to use them wisely, then ya don't use them.

But that's the slope...the temptation to use them...see? In reality, we can truthfully only say that we WERE disciplined enough to not to carry a balance in the past. We may THINK we're disciplined enough to not do so in the future, but until the future happens.... Put another way, how many people who end up with tens of thousands in credit card debt, started off thinking they were disciplined enough to never carry a balance? They were 100% sure that they wouldn't become a statistic. Then they did. So, sure you THINK you're disciplined enough, want to put a wager on it? Wait, no...gambling is yet another slippery slope

[Amy26]

LOL... ok well I can see this is a losing battle here. I don't have a temptation to use them just because. In fact, its not a temptation at all... it's simply to use them to my advantage. As explained, they are used just like it was cash. I don't need to put a wager on it because I've been living it quite some time. How is only charging what you have the cash to buy any different than only purchasing what you have the cash for? And then getting cash back on top of it. And I didn't become a statistic just because I carried balances. Again, is this stigma only placed on those that have filed for bankruptcy or is this a universal stigma?

Perhaps I'm giving the population more credit than they deserve... but isn't assuming the worst in everyone and all situations the same as guilty until proven innocent?

[dman]

LOL... ok well I can see this is a losing battle here. I don't have a temptation to use them just because. In fact, its not a temptation at all... it's simply to use them to my advantage. As explained, they are used just like it was cash. I don't need to put a wager on it because I've been living it quite some time. How is only charging what you have the cash to buy any different than only purchasing what you have the cash for? And then getting cash back on top of it. And I didn't become a statistic just because I carried balances. Again, is this stigma only placed on those that have filed for bankruptcy or is this a universal stigma?

Ok, so you DID carry a balance? Curious if this was due to an oversight, or perhaps one of those 0% deals that you did a cash withdrawal and let the money sit in a savings account for a bit? Or did you use the card as an emergency fund...or some other reason?

BTW, the whole wager thing was just a tongue-in-cheek thing, was not meant to be taken seriously. In my mind, having a card that you will use only for points, or to rebuild credit, or whatever is a bit of a gamble...you think you have enough self-control, and perhaps you do. But if you don't...you likely won't find out until it's too late.

Perhaps I'm giving the population more credit than they deserve... but isn't assuming the worst in everyone and all situations the same as guilty until proven innocent?

Assume the worst, hope for the best...sorry dunno why that phrase came to mind. I can think the best of people (I generally try to), but the whole credit thing is stacked against you. Offering tons of credit to a person fresh out of bankruptcy (or even before discharge...or heck even at the first signs that they're in financial trouble) is kinda like giving a beer to everyone at an AA meeting. They want to get/keep you hooked because it helps their bottom line. So, running with that analogy...some of us are addicted at various levels to credit (think of the rush you get when you get approved for a nice shiny card). Some of us should never have a card again, because it just takes one charge to fall off the wagon. Others of us know that there can be some moderate benefits to using credit responsibly and they are able to charge responsibly; but even those who aren't yet addicted need to know that it's possible to become addicted and have their charging get out of control (and adversely affect family and loved ones). So, treat credit with respect, know what power it can have over you, and be careful.

What was the original topic again? Oh yeah, AUs...I say go for it.

[Logan]

LOL... ok well I can see this is a losing battle here. I don't have a temptation to use them just because. In fact, its not a temptation at all... it's simply to use them to my advantage. As explained, they are used just like it was cash. I don't need to put a wager on it because I've been living it quite some time. How is only charging what you have the cash to buy any different than only purchasing what you have the cash for? And then getting cash back on top of it. And I didn't become a statistic just because I carried balances. Again, is this stigma only placed on those that have filed for bankruptcy or is this a universal stigma?

Perhaps I'm giving the population more credit than they deserve... but isn't assuming the worst in everyone and all situations the same as guilty until proven innocent?

Yep Amy, they're all right and we're wrong. At least I got over $500 cash back last year by using my credit card. I wonder what these guys got in cash back for spending their money?

Logan

[dman]

Yep Amy, they're all right and we're wrong. At least I got over $500 cash back last year by using my credit card. I wonder what these guys got in cash back for spending their money?

What the hey, I'll respond for the heck of it.

You gambled and won. Maybe the odds you'd lose (i.e. spending get out of control, lots of interest paid, other problems related to charged up card,s etc.) were very low, so it made financial sense to you to make that gamble. Good for you, and I'm not trying to be sarcastic.

Me, I can't find a card that would pay out enough to make it worth it. Yeah, get 5% cash back on certain purchases for a limited time does not equal 5% cash back on every dollar you spend. I think a card that AVERAGES 2% would be a pretty decent find. If you found one that averaged 3% on everything you bought, I'd be a bit skeptical (is it 3% on everything you buy period, or just a 3% average of what you charge to that particular card...what's the annual fee...etc.).

Now, if your card(s) average 3% cash back, you'd have to charge nearly $17,000 to get $500 ($17k would give you $510 to be exact). A more realistic 2% means you had to charge $25,000 to get that $500. Not counting purchases that could NOT be charged to a card, we didn't spend that kind of money last year. Without taking a couple hours to get the exact numbers, this is how a rewards card probably would have looked like for us last year. $10,000 at 2% cash back (even that's doubtful, it'd probably average to 1.5% or so) = $200. Subtract annual fee of $20 = $180. Subtract the piddly cash back we DID receive (such as 1% for gas with Wal-Mart Money Card, and remember target lets you have a red card that's attached to your checking account to get your 5%), and you're looking at around $150-$160. That's how much having a rewards card MIGHT have saved me. Could have been even less.

That $150 or so, to me, was not worth the gamble/hassle.

[Amy26]

Ok, so you DID carry a balance? Curious if this was due to an oversight, or perhaps one of those 0% deals that you did a cash withdrawal and let the money sit in a savings account for a bit? Or did you use the card as an emergency fund...or some other reason?

No, I was quoting what you said. I did not carry a balance.

And to the last thing... wow... its not a "gamble" at all. There is no gambling. You're going to be spending the money regardless. Whether you pay cash for it or not... its that simple. There is absolutely no difference in paying for everything with cash then having the money for it, charging it and then paying it off immediately. You were going to spend it anyways! Its not like freak purchases that you buy for no reason. Whether I pay cash for my groceries or charge them, I'd much rather run the charge through my credit card and MAKE MONEY ON IT. Sure, I'm not making thousands of dollars...but its SOMETHING and guess what it helps my credit whoopie. As I said before, I run about 3,000 to 5,000 a month through my rewards card... and I usually make back between 50 and 100 bucks a month. I'm not paying interest, I have no annual fee... its a win win... you cannot argue this point. There is no difference at all between paying for something with your credit card that you were going to buy with cash anyways... you have to come home and move the money to it of course, but as I said before its so easy a kid could do it.

Sure people could fall back into bad habits... but its not our place to keep tabs on the population and its not my place to judge people when they ask credit rebuilding questions. All you can do is educate people when they ask questions, hope they know what the hell they are doing and then mind your own business.

I'm not really gonna respond anymore cause I feel like we're beating a dead horse and I feel like most of what I say is going in one ear and out the other anyways. And when I ask a question it doesn't really get answered.

I also do not akin using my credit cards to alcohol addiction. Perhaps someone with a spending addiction could be considered like an alcoholic at an AA meeting but using common sense and using your credit does not match up to that analogy to me.

[dman]

No, I was quoting what you said. I did not carry a balance.

Fair enough.

And to the last thing... wow... its not a "gamble" at all. There is no gambling. You're going to be spending the money regardless.

The gamble is in the temptation. No credit card = no temptation to carry a balance. No temptation to just charge that vacation you can't afford but definitely deserve. No temptation to not have an adequate emergency fund because if your car breaks down, you'll just charge the repairs. There's other scenarios too, but those are the biggies to me.

Sure people could fall back into bad habits... but its not place to keep tabs on the population and its not my place to judge people when they ask credit rebuilding questions. All you can do is educate people when they ask questions, hope they know what the hell they are doing and then mind your own business.

Check my posts...I don't come crashing into every thread asking for credit rebuilding tips and yell NONONONONO! This topic was already off course, and I jumped into the current conversation.

I'm not really gonna respond anymore cause I feel like we're beating a dead horse and I feel like most of what I say is going in one ear and out the other anyways. And when I ask a question it doesn't really get answered.

You don't have to respond, that's fine. But we're really not in total disagreement. Perhaps the I'm not wording something quite right, or you're reading it a bit wrong...yeah there's a difference of opinion, but I don't think it's actually that huge? And what question isn't getting answered?

I also do not akin using my credit cards to alcohol addiction. Perhaps someone with a spending addiction could be considered like an alcoholic at an AA meeting but using common sense and using your credit does not match up to that analogy to me.

No, that particular analogy would be credit cards = alcohol. There can be benefits to both if done properly. One should be aware of advantages and disadvantages of using both. Both can lead to a serious addiction, and excessive use can damage relationships with friends, family, even yourself. And companies on both sides want you to keep using their product, even if you do have a problem.

[Amy26]

"Check my posts...I don't come crashing into every thread asking for credit rebuilding tips and yell NONONONONO! This topic was already off course, and I jumped into the current conversation."

I never meant to imply that you did personally. Most of what I have said is usually directed at "them" and the "others". And what I have seen over the years on this board. You just happen to be the only one responding. ;)

Ugg... I didn't wanna reply but I will say this one last thing... I'm not talking about charging extravagant things like vacations and emergency car repairs. I'm talking about every day stuff that you're gonna buy no matter what... your utilities, groceries, sundries...etc. Temptation lies in life... you cannot escape it. There is a temptation to eat that cheesecake but do you resist it? Do you adjust your life to eat healthy? There is temptation in regard sex etc... we must deal with temptation everywhere. We can't lock ourselves up... if you can resist eating the last piece of chocolate cake I hope it would be much easier to resist charging a 3,000 cruise. And I guess we do agree on some things because if people cannot discipline themselves enough to not do these things then sure... take away the temptation by not using/seeing it. But do not liken our (I'm referring to people not you and me) own personal problems to credit is evil or bad... cheesecake is not evil either... but eating the whole thing isn't good for you.

[Logan]

What the hey, I'll respond for the heck of it.

You gambled and won. Maybe the odds you'd lose (i.e. spending get out of control, lots of interest paid, other problems related to charged up card,s etc.) were very low, so it made financial sense to you to make that gamble. Good for you, and I'm not trying to be sarcastic.

Me, I can't find a card that would pay out enough to make it worth it. Yeah, get 5% cash back on certain purchases for a limited time does not equal 5% cash back on every dollar you spend. I think a card that AVERAGES 2% would be a pretty decent find. If you found one that averaged 3% on everything you bought, I'd be a bit skeptical (is it 3% on everything you buy period, or just a 3% average of what you charge to that particular card...what's the annual fee...etc.).

Now, if your card(s) average 3% cash back, you'd have to charge nearly $17,000 to get $500 ($17k would give you $510 to be exact). A more realistic 2% means you had to charge $25,000 to get that $500. Not counting purchases that could NOT be charged to a card, we didn't spend that kind of money last year. Without taking a couple hours to get the exact numbers, this is how a rewards card probably would have looked like for us last year. $10,000 at 2% cash back (even that's doubtful, it'd probably average to 1.5% or so) = $200. Subtract annual fee of $20 = $180. Subtract the piddly cash back we DID receive (such as 1% for gas with Wal-Mart Money Card, and remember target lets you have a red card that's attached to your checking account to get your 5%), and you're looking at around $150-$160. That's how much having a rewards card MIGHT have saved me. Could have been even less.

That $150 or so, to me, was not worth the gamble/hassle.

Actually, the credit card was at 1.25%. I'm pretty good at gambling since this year I'm earning more.
Dman, why don't you checkout Perkstreet.com. I just switched to them because the cashback beats my credit card. 2% back no fees.....can't beat that!!!

Logan