Have you sworn off credit cards??

[rpg1977]

I have survived 3 years so far without credit cards, why start again? Its a headache. I am saving money for big home repairs and I have a small emergency fund for unexpected repairs. Credit cards are an invitation for over spending and justifying purchases one might not normally make. I applaud those who only use it for emergencies and pay them off every month. Most people don't do that, though.

[TheBajan]

Wow! There are so many great comments and perspectives here! I really appreciate the input. A lot of food for thought. Keep it coming please! I would really like to hear more!

Cheers.... ;)
The Bajan

[tradinglife]

I have survived 3 years so far without credit cards, why start again? Its a headache. I am saving money for big home repairs and I have a small emergency fund for unexpected repairs. Credit cards are an invitation for over spending and justifying purchases one might not normally make. I applaud those who only use it for emergencies and pay them off every month. Most people don't do that, though.

Yep, it's funny when someone has a credit card with a $1,000 to be used only for emergency. Last time I checked, cash can also still be used for emergencies. Man, if I had to do it over again I would never have started a credit file, cash only. My granparents and uncle all did it that way, what a cool way to live. And to believe I used to laugh at my uncle for not having credit cards (think of all the credit card points the poor guy missed out on, not). I tried to give him investment advice several times, thank goodness he didn't follow it, just listened to me and smiled.

[keepmine]

When I was first discharged, I had the same thought as many. No more cards-no more credit!
But, as time rolled on, I changed my opinion.
Right off the bat, with mortgage rates on generational lows, and prices low, this is a great time to buy a home and for that, you're going to need credit. Plus, if you have no desire desire to drive around in a $1000 clunker so eventually you'll likely need a car loan.
So, a few months post bk I started reestablishing credit. I have 4 cards with a combined limit of $13,500. I really only use 1 {a rewards card}. The others have some recurring charges on them. All are paid in full every month.
I did need to buy a car in Aug. of 07-nearly 2 years post bk. My wife and I bought a year old car and finacned $10K at 48 months through the Cap1 Blank Check program at 8.20%.
I hope to buy another car next year. I intend to have enough of a downpayment that I'll only need 36 month financing.
Bottom line-for me there are no absolutes in life. If you're content to never finance a home or car then, I doubt you need credit.

[basketsbears]

We do not plan to ever have credit cards again. Hopefully, once we either pay off the vehicles we have or turn them in after we file (not sure what we are doing yet) we will only have mortgage and student loan debt.

I want to start socking money away as soon as this is over.

Great post!

[lillymarlene]

I'm in a chapter 13, which of course prevents me from getting any credit cards. Though I do have small accounts with a few business vendors, which I pay in full each month. I never want to fall into that overspending trap again. Sometimes I'm surprised at how little I actually need.

[katztoo]

I plan to get one when we are discharged because of car rentals. We have not had problems reserving hotel rooms with a debit card but did have issues getting a rental car when our was being fixed. They would only take a debit card with a credit check which we failed! The car was being paid for through insurance but they needed our credit card to get it anyway (I guess in case we stole it or something!).

[pamkev]

This is a interesting topic and thanks for starting in Bajan. Interesting thing happened this weekend took my daughter and nieces up to Boston to my sister and we got a hotel through hot wire with our debit card went to check in and I knew what was coming (asking for a cc )the look on the clerks face when we said we don't have cc was priceless he didn't know what to do. I said I have cash only. He did ask if we have a debit card which he used and in hindsight probably should have not given it to him. I did check my bank account this am and everything seems fine. We are a credit driven society which sad to say we fell into and not to sure we will have cc after this is all over and done with although DH would like one with a very low limit for cases like we encounter above, me I'm not to sure . Pam

[keepsmiling]

We recently had to stay in a hotel. Found out after the fact that they put a hold on our debit card for $60 after check in.... JUST IN CASE we ran up any charges. It took a long time to come off, even with a bunch of phone calls to the bank and the hotel. Huge shock and could have really screwed me up on bills... we just don't have an extra 60 in our checking acct. I understand this is getting to be common practice and is often for much more.

Times like this I really get upset about not having a cc. I have to get a prepaid debit card for this kind of stuff.

[pamkev]

We recently had to stay in a hotel. Found out after the fact that they put a hold on our debit card for $60 after check in.... JUST IN CASE we ran up any charges. It took a long time to come off, even with a bunch of phone calls to the bank and the hotel. Huge shock and could have really screwed me up on bills... we just don't have an extra 60 in our checking acct. I understand this is getting to be common practice and is often for much more.

Times like this I really get upset about not having a cc. I have to get a prepaid debit card for this kind of stuff.

I will keep checking and what happened to you is what I'm leery of and never should have given him the debit card. I guess we also will go get a prepaid debit card to have on hand for cases like this. Pam

[LadyInTheRed]

I have not sworn off credit cards. I have sworn off carrying a balance and charging more than I can pay in cash at the moment. But, I have another 3 years of being forbidden credit card use to solidify the habit of living within my means.

[jange]

I have 2 1/2 years to go on my 13, but I am not in any hurry to get another credit card. I have 2 debit cards, the 2nd is tied to my savings and I only move money into the checking when I plan on using it. For hotels I use the 2nd one that way if they put a hold on it it does not effect my main checking account.

[TheBajan]

I have 2 1/2 years to go on my 13, but I am not in any hurry to get another credit card. I have 2 debit cards, the 2nd is tied to my savings and I only move money into the checking when I plan on using it. For hotels I use the 2nd one that way if they put a hold on it it does not effect my main checking account.

I really like that idea. A few years ago we stopped at a hotel and used our debit card to reserve the room. They ended up double charging us for two rooms and two nights tying up the checking account funds for about a week before we got it resolved. It was a bit of a mess! Your solution is a good alternative to CC for dealing with those sort of situations. Thanks for posting!

[HRx]

This thread cannot be converted into a poll. I have created a poll regarding this thread/question and have made it a sticky.

Click on the following link to be taken to the poll.

http://www.bkforum.com/showthread.php?76340-Have-You-Sworn-Off-Credit-Cards

[TheBajan]

There are so many great responses here that I want to address. There were a couple of people who said simple that they haven't sworn them off as CC were not the problem that brought on the BK. I love that! I may be reading it wrong but it comes across as a statement of taking personal responsibility rather than blaming the BK on the CC's. Awesome!

Then there were a few of you who have decided to never use CC's again and I applaud your resolve. In a society that makes not using CC's sometimes very inconvenient, that is [in my opinion] a brave and hard stand to take. It is wonderful to reach a point where we find out how little we really "need" and how enjoyable living simply can be.

Several people here seem to be looking for or have decided upon a middle ground of using CC's on a limited basis [within self restricting guidelines] to keep a decent credit score, specific purchases, or for emergencies.

To all of you, thanks for sharing! I don't think there is a blanket right or wrong about this. Everyone is unique with different circumstances and needs that dictate what is best in their situation. For myself and my husband.... we are undecided right now as to whether we will use CC's again after BK. I can say it's a toss up between swearing them off entirely or each of us obtaining a card in our individual names with no higher than $1000. limits. IF we decide to use cards, it will be for the sole purpose of maintaining a reasonable FICO score to keep insurance rates at bay and to use while we travel to avoid the potential problems we've have before when using debit.

Before I met my husband I lived without CC's and now that we have filed BK and we no longer have them, I don't know how to express the peace I am experiencing NOT HAVING THEM. My husband though has had them his whole adult life and he is feeling somewhat insecure without one. Over the next 36 months, hopefully, he will find peace in living with just a cash reserve rather than relying on the cards for the unexpected. We'll see. Thanks again for everyone's input. I welcome any other comments along the way.

Cheers!
The Bajan