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Advisor

Started canceling credit cards

I was just reviewing interest rates on credit cards and decided its time to start cancellig them. Nobody needs to pay 20%, especially when you've been paying your bills for almost a decade.

If you need money, Goto a bank. You can get 10k unsecured for 8-9% vs **bleep** credit card companies. Or I can if needed. Besides if you really dig yourself into trouble, then you can fix it at a bank with a real loan, not some stupid card

Cards are just a crutch that you think will help you during a time period of short cash, but some people never get out of it, and it brings the pain onto them. It's like growing a crack addiction: more crack doesn't make your life better at all. Not one **bleep**ing bit.

I'm going down to 1 card and a 5000 limit. If they can't do 10% then **bleep** them I'll have no credit cards. I'll get 5000 of my own money as a deposit against a low int card at a bank.

Don't pay 20% on a single dollar, especially when you can get land money at 2.8%.
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Honored Advisor

Re: Started canceling credit cards

We have made it a policy for decades to pay off the credit card bill every month, even if it takes savings to do so. I cannot remember doing that, unless it was for a big purchase that was charged for convenience, then we wrote the check.

Credit cards give the illusion that you have more than your worth...a very bad illusion to fall for, for sire. Bankers will admit that they make most of their money off of the folks who are struggling the most...credit card interest, overdraft fees, etc.

it is a predatory industry, and I agree with you on cutting them off of blood supply whenever I can!
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Advisor

Re: Started canceling credit cards

I use 1 card that pays me 1% on every dollar. Pay the balance every month so the card pays me to use it. This is the only way to use a credit card IMHO.
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Honored Advisor

Re: Started canceling credit cards

Our card is a cash back one, too. It does add up!
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Senior Reader

Re: Started canceling credit cards

I farm and have a small business in town that accept credit cards that 1% back from the card company actually comes from the stores were the cards are used.  If a card has 1% back the clearing company keeps more from our account every card transaction is line item listed on our monthly statement

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Veteran Contributor

Re: Started canceling credit cards

In this day and age you need a credit card. Hotels-rental cars-airlinetickets all require or want you to charge on a credit card. As long as it gets paid off each month its a great way to earn extra money. I have 3-aDelta card so we don't have to pay baggage fees-one trip more than pays the yearly fee-aChase for business which has 3 percent cash back at home improvement-gas-and office supplies. This is for 2400.00 per month then everything else is 1 percent. You remodel a house and see how fast 3 percent adds up and  personal card that has 1.5 percent cash back. I often felt a simple math class should be a requirement for each student at every high school. The amount of student loan and credit card debt is this country is way beyond my comprehension. 

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Honored Advisor

Re: Started canceling credit cards

I guess you have to tell yourself that 99% of thoseales is better than none.
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Advisor

Re: Started canceling credit cards

I'd only need it for parts and online orders.

But I mean, just having it makes it easy for people to get exploited in a moment of weakness.. Maybe someone has a major traumatic event they can't cope with, and it's easy to lean on these things to get through it..

I jus don't think you can keep your defenses up forever guys... Those 1% rewards Will eventually attract balances..

You can put a big fancy cake on your kitchen table and say that your not going to eat it for a very long time... Eventually you'll crack, everyone does... But if that cake never existed, you never had the risk of eating it.

What I am saying with that last example is tht your risk of carrying stupid debt is 0% if you don't have a credit card. By having a card, even I'd you pay now, you may eventually start carrying a balance. That's not a risk I'm willing to take
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Senior Contributor

Re: Started canceling credit cards

I see what you are saying, that the card can be tempting.   However, it is nigh on impossible to get anything done, without a credit card of some sort, these days, when you have any kind of business.

I can order parts online, but I need a credit card to do it.   If I only went to the local dealer, I suppose I might not, but why would I pay an extra 10% to get the part through them, often with a freight charge on top of that (if it is not a 'stock order' part), and then still have to drive a half hour to pick it up, when I can order the same exact thing through a reputable online merchant, without the extra 10-15% markup, often with free freight, and have it delivered right in front of the shop door (UPS guy knows if it goes to 'Husker' it goes in the house, if it goes to 'Husker Farms', he leaves it at the shop door.

Myself, I have a Cabela's card.   I know it isn't the same as cash back, but it is a no fee rewards card, that gives as high or higher reward than I could get elsewhere, and both Cabela's and the bank behind the card have their HQ in Nebraska.   Besides, what red-blooded guy couldn't use something 'free' from Cabela's every now and again.  
So far, had the card for over 10 years, and only once did I carry a balance, which I paid off in full by the end of the following month.  

However, you are right.   If one 'always' has a balance, they would be better off, getting a loan from the bank, and zeroing out the credit card, and pay 1/3 the interest.   Problem with that, is too often people will just charge the card again, and have the credit card fees on top of a bank loan payment in a few months.

One thing I will NOT do, is have a debit card, tied to my personal or business bank accounts.   If I ever do have one, it will be on a separate account that will be used only for debit card purchases, and nothing else.   If your credit card gets hacked, you are out for $50, if you catch (and report) it within 30 days, with a maximum of $500 if you catch/report it within 6 months.   If your debit card gets hacked, you are on the hook for the full amount, unless they can trace down exactly who took the money, and you can get it out of them in court (hard to do if they are an anonymous hacker in another country).

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Honored Advisor

Re: Started canceling credit cards

For many years, I have kept one debit card, with on,y so much money in that account, just for emergency use. I will " spend" off of it at only one merchant, which is a place I like to browse at and buy something small from every six months or so. Using the card that way, I am comfortable that I remember the PIN, and always know exactly the only place it has been used, in case of a hacking incident.

Would have hated to have used a debit card on a main checking account at someplaceblike Taeget last winter. Have an online friend who worked for them at the time, and her family's checking got hit for $3000. I think they got made whole, but the impact of that major hacking event was that store employees got hours cut in half, so she's left that company for now. I wonder if the company will survive without reorganizing, longterm.

One other way we use the credit card for convenience is to have all the recurring service bills, like phones, cell phones, electricity, alarm services, satellite Internet, etc., billing to a dedicated sub-account. The only card on our credit account does is pay those monthly bills. It is in my nickname, where the primary card matches my driver's license, so if I am asked for ID in a place of business, it is the same name.

I decided to establish the autopay sub-account after the primary card got hacked several years ago. It took half a day to update all the autopay accounts with the substituted card number. Now, the accounts all go to utility companies and such, which have presented no problems in many years of doing this.

When the card reaches its expiration date, some automatically extend it for three years, which matches the card's dating cycle, while others mail a request for new expiration date. They have finally realized that this is the easiest way to assure they steady flow of revenue, I suppose.

This system saves me having to cut and mail close to twenty payments each month. That is a lot of postage and expensive checkstock, and I pay once online in a minute or less.

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