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Old 07-30-2020, 05:24 AM   #21
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And here I thought I'd be the only one to say that!

I didn't have any credit cards at all for the first 16 years after my divorce (which could have been aptly described as financial Armageddon and made me wish that there was no such thing as credit).

Then the good people on this board persuaded me I should at least dip my toe in that (credit card) water back in May of 2014. ER Forum member FIREd mentioned his Amazon card, and it seemed like such a good fit to my Amazon-addicted lifestyle. I was feeling reckless so I applied for it online, and much to my shock I was accepted in about a minute I guess. I have it connected to my checking account and automatically paid off each month.

It's been great to get those rewards now and then. I haven't felt any need to have more cards, though. Like OldShooter, for me two is too many.

My credit is 770 which isn't as great as the others here, but maybe that is because I haven't borrowed money for decades except for my credit card which is automatically paid off every month. Anyway it is high enough that I do not care.
Did you use debit cards before you applied for the credit card?
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Old 07-30-2020, 05:28 AM   #22
Thinks s/he gets paid by the post
 
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I would close all but two cards after you buy the house. I have two that is enough. You score will drop for a few months put then pop back up. That is what I did. I try to make my financial life as simple as I can.
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Old 07-30-2020, 05:31 AM   #23
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I have 2 cards. Both Visas. Primary card is the Fidelity Signature Visa which gets me 2% cash back on any and all purchases with no limits. I use this card for pretty much everything.


I have a second Visa Signature card through my credit union that is for emergencies.


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Old 07-30-2020, 09:30 AM   #24
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.....
2-cut up and send back whatever cards you close. ....
No Need, and frankly a bad idea.

I never send back a CC, why risk it being "lost" in the mail.
Simply shred it in the paper shredder (that is what the little card slot is for).
Or cut up into many small pieces into your kitchen (smelly) garbage.
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Old 07-30-2020, 10:36 AM   #25
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Originally Posted by FANOFJESUS View Post
Quote:
Originally Posted by W2R View Post
And here I thought I'd be the only one to say that!

I didn't have any credit cards at all for the first 16 years after my divorce (which could have been aptly described as financial Armageddon and made me wish that there was no such thing as credit).

Then the good people on this board persuaded me I should at least dip my toe in that (credit card) water back in May of 2014. ER Forum member FIREd mentioned his Amazon card, and it seemed like such a good fit to my Amazon-addicted lifestyle. I was feeling reckless so I applied for it online, and much to my shock I was accepted in about a minute I guess. I have it connected to my checking account and automatically paid off each month.

It's been great to get those rewards now and then. I haven't felt any need to have more cards, though. Like OldShooter, for me two is too many.

My credit is 770 which isn't as great as the others here, but maybe that is because I haven't borrowed money for decades except for my credit card which is automatically paid off every month. Anyway it is high enough that I do not care.
Did you use debit cards before you applied for the credit card?
Yes, my bank provides a debit Mastercard for ATM access, and I used it at gas stations and on Amazon also. But otherwise, hardly at all, and I had no credit cards.
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Old 07-30-2020, 12:06 PM   #26
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I like keeping at least one VISA and one MasterCard, just for those very rare cases (Costco and a trip to Germany long ago come to mind) where only one of them is accepted.

I use two cards regularly, both Fidelity VISA's. One for everyday use and one for automatic monthly subscriptions and other bills that can be paid by credit card. The everyday card has been replaced two or three times after strange charges appeared. The monthly payments card has not had that problem. Costco had a problem with my card last time. Not sure why, but always good to have a spare.

I have an airline card that was about break even with fees and cash benefits. Also no foreign transaction fees, which has been handy when traveling and online ordering. But if we don't travel by air a little more it probably won't be worth it. This is one I would consider canceling to avoid the fee. It is my only card with a yearly fee.

I have an Amazon card that is used only for Amazon purchases, with nice discounts.

Then I have a couple of older cards that I never got around to canceling. One is now ignored. One I keep active with one automatic monthly bill payment. No fees, so it costs me nothing to hang on to them. I keep them stashed away at home rather than carrying them around.
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Old 07-30-2020, 12:21 PM   #27
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Chase Sapphire Preferred
One of the few cards that gives you Rental Car insurance (Collision Damage Waiver) almost anywhere on this planet. Limit is I think 75k (Pretty high)

It has an annual fee of 95 USD. Well worth it if you rent car in US or during international travel.
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Old 07-30-2020, 02:00 PM   #28
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My car insurance covers rental cars in the USA.
Many people's auto insurance already covers rentals, worth checking out.

Issue with many coverage (CC or auto) is the lack of coverage for what is claimed by rental car company as missing rental time while car is being fixed.
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Old 07-30-2020, 02:23 PM   #29
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They look at your income, and your ability to repay your debt.

They might note that one of the cards is towards its limit, but if your debt to income is reasonable it would not matter.

I have like at east 12 to 20 open at one time, I've bought homes and refinanced...but my income was always decent so they didnt blink with my lower monthly debt to income levels. In other words they knew I was low risk debtor since I had lots of room to take on more.

That is the most important thing. That and enough cash to close on hand,
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Old 07-30-2020, 02:37 PM   #30
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We use 2 credit cards--one as a backup when we travel. Same with the ATM--one as a backup only used when we travel.

Trying to cash flow numerous credit cards is just too difficult, even if they rebate one European flight per year.
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Old 07-30-2020, 03:10 PM   #31
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Yes, my bank provides a debit Mastercard for ATM access, and I used it at gas stations and on Amazon also. But otherwise, hardly at all, and I had no credit cards.
Ok that was what I thought. A person really does not need a credit card. A debit card will work great. Just a few extra $$ if you do have a cash back credit card. Now they are coming out with cash back debit cards.
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Old 07-30-2020, 03:24 PM   #32
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Ok that was what I thought. A person really does not need a credit card. A debit card will work great. Just a few extra $$ if you do have a cash back credit card. Now they are coming out with cash back debit cards.
A debit card could give a hacker access to your entire bank account. A credit card gets hacked, you're only out $0-50. I had a credit card number hacked overseas, and the credit card company refused the charges (from out of the country, not where I was). I had a new card within two days.

I have two cards. I use one, the other is a backup and has no fees overseas (of course we're going this year.) My main card is a miles card. I use it for everything, even my Cobra payment. By the time we travel again, we'll go to Europe first class, round trip.
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Old 07-30-2020, 03:29 PM   #33
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A debit card could give a hacker access to your entire bank account. ...
Sort of true. A debit card does not have the legal protections that a credit card does, but most issuers (maybe all) indemnify the card holder against fraudulent use. Mine is from Schwab and is covered by their broad blanket indemnification.

Any concern, check with the issuer to determine their indemnification policy.
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Old 07-30-2020, 04:02 PM   #34
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Sort of true. A debit card does not have the legal protections that a credit card does, but most issuers (maybe all) indemnify the card holder against fraudulent use. Mine is from Schwab and is covered by their broad blanket indemnification.

Any concern, check with the issuer to determine their indemnification policy.
Sure, but your bank account is now empty as the debit card withdraws your money, while the issuer works on your case.

While a Credit card fraudulently used, didn't touch your bank account, so you have all your money while the issuer works on your case.
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Old 07-30-2020, 04:06 PM   #35
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Sure, but your bank account is now empty as the debit card withdraws your money, while the issuer works on your case. ...
Low probability event, easily handled. The ability to use ATMs worldwide without being charged CC interest as a "cash advance" is far more important to me than that small risk. YMMV.
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Old 07-30-2020, 04:11 PM   #36
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Ok that was what I thought. A person really does not need a credit card. A debit card will work great. Just a few extra $$ if you do have a cash back credit card. Now they are coming out with cash back debit cards.
I get a LOT more than a few extra dollars, so far this year, without travel, I've collected $825 in real money.

By using my Credit card for groceries alone, I have collected $110 in cash.

Basically I get around $1,000 per year from credit cards.
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Old 07-30-2020, 04:14 PM   #37
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Low probability event, easily handled. The ability to use ATMs worldwide without being charged CC interest as a "cash advance" is far more important to me than that small risk. YMMV.
I was talking USA centric.

I agree, in the case of getting cash while in a foreign country, I'll use my Schwab debit card.

Everywhere else I use my CC worldwide, unless they only take cash.

My connected Schwab account has limited funds in it, so even if emptied, I could get cash via another bank.
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Old 07-30-2020, 07:14 PM   #38
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If you have ever been in a foreign country and had a CC denied at the hotel due to some data link being temporarily out, or you forgot to notify them you were travelling, You will appreciate having a 2nd or even a 3rd card.

Another time I had a Discovercard not accepted by a hotel clerk at check in because they didn't recognize the logo/name. All I had to do was turn over the card and show the "PULSE" (or maybe it was the "Diners Club"?) logo and all was OK! They ran the card and it worked just fine.

I have only 3 CC's active now. I just cancelled my 4th, an airline CC that cost me an annual fee but got me one companion fare per year and free checked luggage. I still have miles on the airline's frequent flier that I probably never use again. DS just left Alaska, probably forever.
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Old 07-30-2020, 09:17 PM   #39
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Credit Card Conundrum

Crlls, you may wish to donate your Alaska Air miles to a charity rather than have the expire unused n
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Old 07-30-2020, 09:20 PM   #40
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Originally Posted by OldShooter View Post
Sort of true. A debit card does not have the legal protections that a credit card does, but most issuers (maybe all) indemnify the card holder against fraudulent use. Mine is from Schwab and is covered by their broad blanket indemnification.

Any concern, check with the issuer to determine their indemnification policy.

I see your point, but after my own experience and those of others who tried to get deposits refunded based upon the company’s stated policy, and finding they did not honor the policy when the going got tough, I prefer to have the law on my side by using an actual CC.
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