Quote:
Originally Posted by flamesfever
I'm sorry for your troubled experiences with credit cards However, for those that want to some day grow beyond the low income category, it is important that they establish a credit rating...preferably with one banking institution IMO. The simplest way to organize your finances, is to arrange to have the balance deducted from your bank account at the end of every month. Of course this is assuming you have a stable and predictable source of income.
I have always understood that the more credit cards you have, the lower your credit rating. When you take out new card, I believe it stays on your record for 5 or more years, even if you don't use it.
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Credit scores are over rated.
If you responsibly use credit you will have a good credit score. If you irresponsibly use credit you won’t.
Having a credit card you occasionally use is enough. I think what you suggest of having an amount automatically deducted at the end of the month requires way more money management skills then many have.
You need to be doing the old check book balancing every transaction to understand how much you are spending. The idea of just having an automatic payment taking care of the balance is the least important part. No one has a problem paying the bill on time. People have problems because they spent more than they can afford to pay.
Most people would be better off paying for every transaction as it occurs.