NEW CREDIT CARD LAWS!!!

[FISH]

Re: NEW CREDIT CARD LAWS!!!

I doubt your credit score is 800, but I know what you mean..LOL just messing.

[RubenDouglas]

Re: NEW CREDIT CARD LAWS!!!

That's not exactly it. What the government did is raise the minimum payment. If anything, credit card companies will lose money. Before you were paying 1-2% of your balance, now it'll be 3-4%. The interest stays the same.

Example, if you have 10K on a credit card (hope you don't!) and were paying $200 a month, you'll now be paying around $400 a month. So where before you were paying 200 and 175 was going towards interest, you are now paying 400, with still 175 going towards interest.

EDIT - I swore you had something else there that I quoted before..LOL

ohh 2% of your BALANCE.. i didnt get that part. I dont need or have a credit card/ I thought he was talking about 1-2% of your previous balance, which wouldve been like 2% of 200 dollars.

[Graphik]

Re: NEW CREDIT CARD LAWS!!!

i learned a hard lesson in college: DONT USE CREDIT CARDS! Since my sophmore year (9-10 years ago, man im getting old!), i have never once had another credit card. While it only took me a year or so to pay it all off, i just realized there was no way i was going to do it again. People today live outside their means, and we are a society in constant debt. I understand that their are circumstances in which you have to go into debt, but alot of the people I know who are put themselves in that postition by buying too much, or buying the wrong items. Why buy a 25000 car when you could have got along fine with a 9000 one? Live within your means, and you will be fine.

Exactly. Getting a credit card was probably my biggest mistake last year. I've been paying the minumum mayslef all this time and the interest kills me. I already planned on paying the entire thing off with my taxes and burn the card.


Never again.

[Graphik]

Re: NEW CREDIT CARD LAWS!!!

I doubt your credit score is 800, but I know what you mean..LOL just messing.

Our card is an American Express where our interest rate is 2.9%, so even if we left a balance, it wouldn't cost us much of anything extra.

My gf's credit score is over 800. She can walk into a car lot and drive out with a H3 in about 15 minutes. Hell, credit card companies send her cards with 2 grand already on it. She just cuts them up and throw them away.

[RockinDaMike]

Re: NEW CREDIT CARD LAWS!!!

Maybe people should try living within their means instead of racking up enormous debt. I love it when people say, "This is why I'll never own a credit card," or, "I learned my lesson, don't use credit cards!" Obviously people without the discipline or self control to use credit cards shouldn't be using them, but for people such as myself and many others who are able to live within their financial means while using credit cards for added convenience for things like online shopping and not having to tote a bunch of cash around with them at all times, credit cards are a great thing.

I think the problem is that many people hear the word "credit" and think, "Wow, I don't have to pay this thing off for years if I don't want to!" We pay our cards off at the end of every month and never leave a balance on them. If your finances are tight enough such that you have to leave a balance on your card, chances are high that you're living outside the means you can reasonably afford. But it's always kind of amusing to me when I hear that people are distrustful and have a low opinion of credit cards just because they prey on people who aren't disciplined enough to live within their means. Don't make yourself an easy target and you won't have any problems with credit cards....

I agree with you man i'm the same way. But word of advice you should leave a balance on your cards and make payments on them, it builds your credit faster. Not leaving a balance means the Credit Card company is not making any money from you and will give you a lower credit score. I know it wouldn't make sense now, but i'm not sure if your a home owner but it definitley will lower your interest rate in the future credits like car loans , mortgages and also future credit cards.

[Stu]

Re: NEW CREDIT CARD LAWS!!!

I agree with you man i'm the same way. But word of advice you should leave a balance on your cards and make payments on them, it builds your credit faster. Not leaving a balance means the Credit Card company is not making any money from you and will give you a lower credit score. I know it wouldn't make sense now, but i'm not sure if your a home owner but it definitley will lower your interest rate in the future credits like car loans , mortgages and also future credit cards.

True. Some Companies will even close your account if you never leave a balance on your card.

[mjb2124]

Re: NEW CREDIT CARD LAWS!!!

Not really a concern.

I've always lived by the theory that if I don't have the money in the bank/money market/mutual fund, it's not something I can afford to buy. Hence why my CC is paid off every month and I've never had a balance carry over in the 10 years I've had my CC.

[nyisles16]

Re: NEW CREDIT CARD LAWS!!!

I agree with you man i'm the same way. But word of advice you should leave a balance on your cards and make payments on them, it builds your credit faster. Not leaving a balance means the Credit Card company is not making any money from you and will give you a lower credit score. I know it wouldn't make sense now, but i'm not sure if your a home owner but it definitley will lower your interest rate in the future credits like car loans , mortgages and also future credit cards.

thats what i have heard too.. i leave a little balance on my cc, but 99% of the time use my debit card for purchases...

[Stu]

Re: NEW CREDIT CARD LAWS!!!

I don't have a problem with the law since it doesn't really affect me. I use a CC but pay most of the balance every month regardless. Its effectively trying to help the consumer. By raising the minimum payment, they are reducing the total amount you end up paying. If you can't afford this increase, you really shouldn't be using the cards to begin with.

[fishepa]

Re: NEW CREDIT CARD LAWS!!!

Not really a concern.

I've always lived by the theory that if I don't have the money in the bank/money market/mutual fund, it's not something I can afford to buy. Hence why my CC is paid off every month and I've never had a balance carry over in the 10 years I've had my CC.

It's a shame not everyone is like you. America is such a now now now society. Even if they can't afford it, they just put it on a credit card. That's where they get themselves in trouble.

[Stu]

Re: NEW CREDIT CARD LAWS!!!

It's a shame not everyone is like you. America is such a now now now society. Even if they can't afford it, they just put it on a credit card. That's where they get themselves in trouble.

It's amazing how much money people waste by doing this. 9% may not sound like much, but it adds up quickly if you leave your balance on there.

[RockinDaMike]

Re: NEW CREDIT CARD LAWS!!!

Not really a concern.

I've always lived by the theory that if I don't have the money in the bank/money market/mutual fund, it's not something I can afford to buy. Hence why my CC is paid off every month and I've never had a balance carry over in the 10 years I've had my CC.

really?! have you checked your credit score? i hope its good, you could have been doing yourself injustice by clearing it every month. Plus check how your other interest rates for other things (car loans, mortgage) and see if you get the best interest rates, because if you aren't then you've been building incorrectly. hopefully you've done other things to help build your credit though besides a CC.

[mjb2124]

Re: NEW CREDIT CARD LAWS!!!

It's a shame not everyone is like you. America is such a now now now society. Even if they can't afford it, they just put it on a credit card. That's where they get themselves in trouble.

I know you're the same way as me. It boils down to people living within their means. It's a shame to see people in CC debt because most of the time, it is avoidable.

[ExtremeGamer]

Re: NEW CREDIT CARD LAWS!!!

really?! have you checked your credit score? i hope its good, you could have been doing yourself injustice by clearing it every month. Plus check how your other interest rates for other things (car loans, mortgage) and see if you get the best interest rates, because if you aren't then you've been building incorrectly. hopefully you've done other things to help build your credit though besides a CC.

I pay mine off every month, my house loan was a 4.7% interest rate. My credit score is 753.

[fishepa]

Re: NEW CREDIT CARD LAWS!!!

really?! have you checked your credit score? i hope its good, you could have been doing yourself injustice by clearing it every month. Plus check how your other interest rates for other things (car loans, mortgage) and see if you get the best interest rates, because if you aren't then you've been building incorrectly. hopefully you've done other things to help build your credit though besides a CC.

I don't think you're right about that. Everything I've heard says you should pay off your balance every month.

Here is an excerpt from credit.com

Specifically Tip #2 at the bottom.

How to [Re-]Build Credit

You need credit history before you can get credit, but can't establish history without having the credit to start with. So what comes first, the credit or the egg.

Difficulty Level: Hard Time Required: Not Applicable

Here's How:

1. Correct errors on your credit report. Your report must prove to the lender that he will get his money back.
2. If turned down for credit within 30 days, you can get a free copy of your report to find out why. Otherwise you can get a copy for $8 from the credit bureau.
3. One option to build credit history is to piggy-back onto someone who already has a good credit and is willing to co-sign. Just remember that if you default, their credit suffers.
4. With co-signing, you make payments on or before the due date. Do not pay in full untill the bill actually arrives since this completes the billing cycle and establishes "pays on time" on your report.
5. Ask the co-signer to repeat the generosity (if necessary). Then create a debt, wait until the first bill comes, pay it off in full. Keep repeating until you no longer need the co-signor.
6. Another method to create history is to locate a financial group who offers a "secured credit card". With this option you deposit money into a savings. Your credit limit then equals your savings.
7. Using the secured credit, create a debt on the new card; wait until the first bill comes; pay the bill off in full or make payments; repeat until you can establish unsecured credit.
8. Some retail and gasoline credit cards are not revolving (do not carry a monthly balance) and sometimes are easier to obtain than regular cards. Over time they can help establish history.

Tips:

1. Eliminate the need for the co-signer or secured card savings as soon as possible. You'll be much further ahead.
2. If you are a follower of this site, you know that I advocate not having credit as your way of life. That having been said, I highly recommend to pay off your balance IN FULL, every month.
3. Once credit is established and to maximize your credit score, maintain your credit balance below 30% of your maximum.