I understand why the store would want to offer their own credit card - I just can't figure out why any consumer would get one.
U.S. banks to make $38 billion from overdraft fees
- Thread starter Tilted
- Start date
I understand why the store would want to offer their own credit card - I just can't figure out why any consumer would get one.
ProfMoneyWise
Member
Because it hurts to spend cash. And it is even harder to spend cash that one does not have.
Larry Gude
Strung Out
Which is why tax withholding should be eliminated. Yesterday.
Larry Gude
Strung Out
Like what? You buy a house with borrowed money. It appreciates. Simple.
What could go wrong?
Larry Gude
Strung Out
I got an American Eagle card one time while shopping with the girls. It was 25% off and told them to go to town.
$500 later I'd saved $125 off of what we were gonna spend anyway. Paid the bill when it came and called and cancelled the card.
Larry Gude
Strung Out
mAlice
professional daydreamer
We did that at Hechts when they had a store closing once. We had every intention of spending a lot of money, getting the discount, paying in full, then cancelling the card. Then we couldn't find a phone number to call and cancel. So, we don't do that anymore.
Larry Gude
Strung Out
We did that at Hechts when they had a store closing once. We had every intention of spending a lot of money, getting the discount, paying in full, then cancelling the card. Then we couldn't find a phone number to call and cancel. So, we don't do that anymore.
Even then, you just cut it up and never use it again.
But it's still on your credit report and can goof you up.
Larry Gude
Strung Out
It can goof you up a little IF your credit is shady to begin with. One or two is no big deal, especially if it's a low limit on the card. If you have numerous VISA's and store cards, then it starts looking bad. Even then, paying your bills on time is more important.
Remember Cotton 'won' the Southwest Airline in flight contest for most credit cards, ever?
She has something like 36 and her credit is better than Bill Gates.
ProfMoneyWise
Member
Like one guy I know who used borrowed money to buy stock. Worked for awhile then something went wrong. Still not sure on that one, I'll have to think about it a bit.
As I recall though he had a pretty sophisticaled tone on him when he explained it all to me at the time.
I felt so unworthy. But I'm used to the feeling so I just did things my old boring way.
Larry Gude
Strung Out
That's for people whose idea of relaxing is building bombs, smoking and drinking. At the same time.
GWguy
*
I seem to remember reading, maybe even here, that there is a "right" way and a "wrong" way to cancel credit cards. Just canceling a credit card can still have a negative impact on your rating, but I don't really recall why...
Here:Seems that cancelling an OLD credit card is bad...
Affects of Canceling Credit Cards on Your Credit Score
Canceling Credit Cards Affects Credit Score | ThinkGlink
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ProfMoneyWise
Member
FICO Score Composition:
Payment History – 35%
Total Amounts Owed – 30%
Length of Credit History – 15%
New Credit – 10%
Type of Credit in Use – 10%
FICO is a "how am I at borrowing and paying" score. You close your accounts you eventually end up with a zero FICO score. A clean credit report but a zero FICO.
Millionaires who do not borrow money have zero FICO scores.
I know which camp I want to be in. Zero FICO, Clean Credit.
If I find a place will not do business with me because I do not have a FICO score I will call the local newspaper . . . and still take my business elsewhere.
If I have an applicant for employment who has clean credit but zero FICO and that applicant is competing with someone who has a high FICO. Hmmmmmmm, I like debt-free employees. They "want" to be at work not "have" to be at work.
The great FICO score has become way to much of a focus. No where in the score is being financially prepared and fully funded factored into the equation.
GWguy
*
Absolutely. Found that out when my insurance went up because I didn't have a car loan history. Being fiscally responsible has no meaning.
Pete
Repete
Sears does discounts and other things. They do a bunch of 0 payments, 0% interest on appliances and big ticket items quite often. I got a stove, patio set, a mower and a 50 inch TV on my Sears card 0 payments, 0 interest for 12 months. I enter it in Quicken to pay off the month before it comes due to be sure because interest on these deals is typically retroactive.
I waited for GM to do 0% on vehicles and bought my truck when it came out, I also got a $2K mattress for 0/0 for 15 months.
I just wait around until they do these free money deals and do them. I leave the money in my savings until they are due then pay it off with my Visa, cop the points, then transfer the money onto the VISa the next day.
Pete
Repete
If you carry the balance yes because they typically charge 23% interest.
Pete
Repete
They now claim having multiple revolving credit accounts is a good thing for your FICO.
If they are interested in some good financial reform they should make the big 3 disclose whay mystical friggin formula they use to determine FICO. the way it is now it is just a hodge podge of opinions and methods. One year the rule is to close everything you do not use, the next year it is the opposite.
ProfMoneyWise
Member
FICO Score Composition:
Payment History – 35%
Total Amounts Owed – 30%
Length of Credit History – 15%
New Credit – 10%
Type of Credit in Use – 10%
FICO is the Fair Issac Corporation and the Big 3 use this model for their FICO scores. The formula has stayed pretty steady. As for the rules and the like they stay pretty steady as well. It seems to be the opinions about the rules (and how to apply them) are what are all over the map.
Choosing to not participate in any of this is an option some have chosen. The result is a bit higher insurance rates but all in all it beats being jerked around by lending institutions, credit card companies, etc.. Hard to jack around the payment date, interest rate, billing cycle, etc, if you don't play along at all.