Does anyone else eschew credit?

@maporsche,

maporsche wrote:

Here's a decent looking place for $280k.

http://realestate.sfgate.com/homes/listing/219-350071/San-Francisco-CA-USA/2-beds/CONDO-type/0-300000-price/104-350262--219-350071-ls/2-t

Well, that's in San Fran, and not Berkeley; but granted that is cheaper than what I had written about.

Of course, it's in a bad area of town (like most good deals). I could find cheaper places in Oakland or Richmond, but my girl couldn't walk outside by herself, so...

Cycloptichorn

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@Cycloptichorn,

Cycloptichorn wrote:

Sure. I just hate paying interest. I hate it. I don't like seeing what I owe go up over time, I don't like paying part of my monthly payments to interest instead of principal.

A perfectly reasonable position and one you should stick with until favorable circumstances (for acquiring debt) come along.

Cycloptichorn wrote:

It's just a personal choice I s'pose. Part of the reason I bring it up is that people don't seem to think you can save for a house, when the math seems to work out almost even to me.

I think aidan summed it up very well in a post above. It depends on your own goals, objectives and preferences.

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@roger,

roger wrote:

Unless you fall for an adjustable rate mortgage. Interest rates are as low as I've ever seen, but I bet people are still going for it.

Yup.

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@DrewDad,

DrewDad wrote:

roger wrote:
Unless you fall for an adjustable rate mortgage. Interest rates are as low as I've ever seen, but I bet people are still going for it.

Yup.

They haven't regulated those things out of the industry yet?

Cycloptichorn

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credit cards make sense to us . we have little cash on us or at home . don't have to worry much about being shortchanged or given countertfit money - it's circulating every now and then , and you'd be stuck with it once you accept it .
the debit card is only used for the odd cash withdrawal at the bank .
the total monthly bill is withdrawn about 17 days after we receive the monthly statement - plenty of time to check all bills .
most hotels will not even let you register without a credit card - or a LARGE deposit .

btw when looking for a hotel at expedia , i note the price and compare it to the rate offered by the hotel . if the expedia rate is lower than the advertised rate , i'll phone the hotel and ask if they are willing to match the expedia rate - some happily do - others rather pay expedia for the booking and refuse to match expedia - it's their choice , but i can't understand it .
hbg

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You know, i think my original answer was bogus. While rarely using our credit card for anything outside of business, I do use my debit card for most purchases. I rarely carry cash now. There was a time when it was unheard of not have any cash on hand but now neither my husband nor I will have a paper dollar between us most times if asked. I swipe the debit card everywhere.

1 Reply

@eoe,

A lot of restaurants around here are cash-only. Convenience stores too. I end up having to carry cash almost all the time.

Cycloptichorn

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Really? And I'm surprised more and more often by the ever-growing number of businesses accepting debit cards now, from the post office to the drive-thru window at Popeye's.

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@Cycloptichorn,

Really? I can't think of a store in Farmington that is cash only. Even McDonalds takes plastic. Hey, the place I buy water from takes it, and refilling a 3 gallon bottle costs under $1.50. That's not a charge I would make, but some do.

In restaurants, if I charge, I use cash for tips. Since it is voluntary, my feeling is that it's more nontaxable gift than earned income. IRS may have a different viewpoint.

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@roger,

I can't think of any either.

If I happen to run across a place that doesn't take credit, I leave. If the business doesn't want to accept my money, then I'll oblige them.

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@roger,

roger wrote:

Really? I can't think of a store in Farmington that is cash only. Even McDonalds takes plastic. Hey, the place I buy water from takes it, and refilling a 3 gallon bottle costs under $1.50. That's not a charge I would make, but some do.

In restaurants, if I charge, I use cash for tips. Since it is voluntary, my feeling is that it's more nontaxable gift than earned income. IRS may have a different viewpoint.

Many of the places here are independent and rents can be high; it's a combination which makes them not want to pay for the transaction fees associated with credit cards. However, almost every store selling physical goods takes plastic other than food.

Working in the restaurant industry quickly taught me that reporting tips was strictly verboten.

Cycloptichorn

1 Reply

Two credit cards, but I never paid a cent in interest. They just keep upgrading my credit limit trying to tempt me to go beyond my purchasing power, but I have no desire to do so.

However, I guess having established credit will be nice come the day I buy a house.

Meh.

I don't really care for credit, but I play along. I never spend money I don't have (sans college loans).

T
K
O

1 Reply

@Cycloptichorn,

Cycloptichorn wrote:

roger wrote:

Working in the restaurant industry quickly taught me that reporting tips was strictly verboten.

Cycloptichorn

Very true.

I always pay tips in cash. Well, unless I just can avoid it, like if I accidently didn't have some cash on me.

I'd encourage everyone, when eating at a restaurant, getting some kind of service, to make the tip in cash.

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@Diest TKO,

Diest TKO wrote:

Two credit cards, but I never paid a cent in interest. They just keep upgrading my credit limit trying to tempt me to go beyond my purchasing power, but I have no desire to do so.

However, I guess having established credit will be nice come the day I buy a house.

Meh.

I don't really care for credit, but I play along. I never spend money I don't have (sans college loans).

T
K
O

One word on that diest.

The time may come where you'll need to call a credit card company and ask them to lower your limit.

When someone is looking to lend you money, they will look at your credit lines and say that you have the potential to one day go insane and charge all your cards up to the max.

It's a balancing act.

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@chai2,

Hmmm... Interesting. Thanks for the heads up. Is there like a golden credit limit to shoot for?

T
K
O

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@chai2,

I don't think they do that any more. According to Clark Howard, it's your credit utilization ratio (how much balance you carry compared to how much credit you have) that affects your credit score.

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http://www.myfico.com/crediteducation/whatsinyourscore.aspx

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I have NEVER had a credit card, of any type.
I do have my debit card, but I rarely use it.

I was taught at a young age that its always better to pay cash, then to have to worry about making payments.
As my dad says..."if I cant pay cash, I dont need it"

There are only 2 things that I am making payments on, my house and my car.
Everyhing else was paid for on a cash basis.
Yes, it means I dont get to go out and "impulse buy", but it also means that I dont have a house full of useless crap.

1 Reply

@mysteryman,

A person can use a credit card and never pay interest.
Only charge what you can pay off when the bill comes due.

This allows you to keep earning interest on your money until you must pay the bill. And, depending on the credit card, can earn you points and money back. And is a great way to build a good credit rating.

Credit cards are only as bad as the people who use them.

Don't charge what you can't afford.

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I agree with R Genteel.
I have used just one credit card for 20 years and never paid one penny in interest.
This is simply because I only use the credit card to spend money I already have saved, and pay off the total every month automatically.

I get free insurance on goods over £100.
I get free statements of how much I have spent and where and when.
I can't have cash-in-pocket stolen.

I do accept that all goods and services possibly increased in price when credit cards became available, but paying cash does not mean a discount can be obtained (generally).
I also suppose that those who do pay interest on credit cards may be paying for my advantages. That is for them to consider - not me!

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Does anyone else eschew credit?

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