CREDITCARD ACT OF 2009 how does it affect you?

[bu villain]

I use no CC of any kind. I learned my lesson got into huge debt and went bankrupt. Since then I have never even applied to get another and will never. I know some people like them but I do not. Just my personal preference, I do just fine without one.

I'm glad that you learned from your mistake. Unfortunately with the way the system works, you'll be subjected to higher interest rates whenever you take out a loan. Additionally, I use my credit card constantly which builds up my rewards so I get free plane tickets. If you don't have a credit card, you are missing out on these kinds of rebates that are basically free if you always pay your bill at the end of the month. I'm not saying this to say your choice is wrong, just that credit has become a big part of our financial system and if you learn to use it responsibly, it is very beneficial.

[TSiFTW]

I'm glad that you learned from your mistake. Unfortunately with the way the system works, you'll be subjected to higher interest rates whenever you take out a loan. Additionally, I use my credit card constantly which builds up my rewards so I get free plane tickets. If you don't have a credit card, you are missing out on these kinds of rebates that are basically free if you always pay your bill at the end of the month. I'm not saying this to say your choice is wrong, just that credit has become a big part of our financial system and if you learn to use it responsibly, it is very beneficial.

My credit is just fine. There is a lot more to credit then credit cards. Most people do not pay their bills every month and the credit card companies rely on that. Therefore all those rewards are just gimmicks to get the average person to use their card. If it works for you that is fine. Just not for me.

[bu villain]

My credit is just fine. There is a lot more to credit then credit cards. Most people do not pay their bills every month and the credit card companies rely on that. Therefore all those rewards are just gimmicks to get the average person to use their card. If it works for you that is fine. Just not for me.

I agree with everything you are saying but I just think its unfortunate that not having a credit card is a disadvantage in the current system. For example, many stores charge higher prices because they know roughly 3% of their profit is gone due to credit cards. So basically if you only pay cash, you are subsidizing all those credit card users rewards in many instances. That's why I recommend everyone to use credit cards if they can do so responsibly. I know not everyone can though and its okay as well.

[ahabion]

I'm glad that you learned from your mistake. Unfortunately with the way the system works, you'll be subjected to higher interest rates whenever you take out a loan. Additionally, I use my credit card constantly which builds up my rewards so I get free plane tickets. If you don't have a credit card, you are missing out on these kinds of rebates that are basically free if you always pay your bill at the end of the month. I'm not saying this to say your choice is wrong, just that credit has become a big part of our financial system and if you learn to use it responsibly, it is very beneficial.

Going to play devil's advocate on this post... sorry bu!

Credit has be marketed to us with such ferocity and guise that the banks and creditors literally have people banging down their doors, begging "Please sell me your product." (honestly, how many businesses out there literally have millions of people begging for your products as if it were life or death) It just does not make sense to spend more money to bow at the feet of the the great FICO only to have to continue to "borrow" money to pay it back for more than you borrowed (interest)... only to have a score that allows you to borrow more money and pay more interest...

What if instead of spending say... $5000 on your credit card to get your "free" air miles, you just paid $500 for a plane ticket... you would have already made an instant saving of potentially $4500 (or atleast never spent).

I've subscribed to a debt-free living. Wife and I are working our way out of debt and will never ever take out another loan again (with exception perhaps a mortgage... but even then, we'll pay it off in 6 years). Credit cards and debt is stupid... and I can admit to stupid.

[bu villain]

Going to play devil's advocate on this post... sorry bu!

Credit has be marketed to us with such ferocity and guise that the banks and creditors literally have people banging down their doors, begging "Please sell me your product." (honestly, how many businesses out there literally have millions of people begging for your products as if it were life or death) It just does not make sense to spend more money to bow at the feet of the the great FICO only to have to continue to "borrow" money to pay it back for more than you borrowed (interest)... only to have a score that allows you to borrow more money and pay more interest...

What if instead of spending say... $5000 on your credit card to get your "free" air miles, you just paid $500 for a plane ticket... you would have already made an instant saving of potentially $4500 (or atleast never spent).

I've subscribed to a debt-free living. Wife and I are working our way out of debt and will never ever take out another loan again (with exception perhaps a mortgage... but even then, we'll pay it off in 6 years). Credit cards and debt is stupid... and I can admit to stupid.

I think you misunderstood me. Everyone has to spend money (food, groceries, insurance, etc.) and the fact is that credit cards do exist and they have benefits when used properly, therefor people may as well take advantage of them as long as they can do so responsibly. By responsible I mean not spending more than you have in your bank account and always paying them off on time. Basically think of it as a debit card that just has a 25 day delay before it shows up to your bank account. Of course some people can't help but overusing them so I completely agree not everyone should have one. I am only an advocate of credit cards for those who understand how they work and have the discipline to use them appropriately.

Congratulations on being debt free by the way. I am also debt free as of last month when I paid my final car payment. Of course I'll be buying a house soon so that will be a short lived achievment.