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Capital One took money out of my bank account without authorization...


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#16 ARSEN

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Posted 05 March 2013 - 08:25 AM

Only a good suggestion if you don't have the dedication and intelligence to pay it off every month.

Given the cash back options...frequent flyer point options...etc on credit cards, you are better off putting everything you can on your card and then paying it off at the end of every month.

This only gets in trouble if you can't budget and ensure that you don't charge items AND spend the money needed to pay it off.

This is just like people who think it is a good idea to be getting a tax refund. Dumbest thing you can do with yoru taxes. you just gave the gov't your money interest free.

Best way to do it is to have as little as possible witheld (right up to the point of payign a penalty for under witholding)....put the extra money in an account each month....then use the money to pay your tax bill at the end of the year. You get the time value benefit of the money.


I think its because people live paycheck to paycheck and they afraid to not have the money to pay the g'ment.

#17 Brokenbad

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Posted 05 March 2013 - 08:27 AM

Only a good suggestion if you don't have the dedication and intelligence to pay it off every month.

Given the cash back options...frequent flyer point options...etc on credit cards, you are better off putting everything you can on your card and then paying it off at the end of every month.

This only gets in trouble if you can't budget and ensure that you don't charge items AND spend the money needed to pay it off.

This is just like people who think it is a good idea to be getting a tax refund. Dumbest thing you can do with yoru taxes. you just gave the gov't your money interest free.

Best way to do it is to have as little as possible witheld (right up to the point of payign a penalty for under witholding)....put the extra money in an account each month....then use the money to pay your tax bill at the end of the year. You get the time value benefit of the money.


Hatter,

I often think of you as a grumpy old meanie, but you are VERY VERY wise.

I have much respect for you.

#18 ARSEN

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Posted 05 March 2013 - 08:39 AM

Lol, Hatter ain't old. He's a party animal.

#19 thatlookseasy

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Posted 05 March 2013 - 08:42 AM

Not only are there monetary perks, using a credit card (and paying it off) is also good for your credit score.

Of course, the reason credit card companies can offer such good deals is that 90% of the people using them are idiots and get behind on their payments and end up paying out the ass for interest

#20 MadHatter

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Posted 05 March 2013 - 08:44 AM

Hatter,

I often think of you as a grumpy old meanie, but you are VERY VERY wise.

I have much respect for you.


Appreciate the comments.

I am not a grumpy meanie (but I am getting old)....I just don't hesitate to give my opinion (and I have some strong opinions about certain thing) and argue with those who continuously show their lack of knowledge or understanding of finance and economics.

#21 MadHatter

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Posted 05 March 2013 - 08:45 AM

Of course, the reason credit card companies can offer such good deals is that 90% of the people using them are idiots and get behind on their payments and end up paying out the ass for interest


That is EXACTLY why they do it.

People think the credit card companies should be chastized and ashamed of themselves for this. But, I believe in personal accountability and not making laws to protect stupid people from themselves.

#22 Panthro

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Posted 05 March 2013 - 08:57 AM

If it didn't look bad to cancel credit cards I would be free of capital one.

I had a couple while I built my credit back up from the pits of hell 8 years ago.

#23 Delhommey

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Posted 05 March 2013 - 08:58 AM

Hatter, you're very sheltered.

#24 Panthro

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Posted 05 March 2013 - 09:00 AM

Arsen I would also look into joining one of the credit bureaus. These guys f up all the time...I just had one hit me with a 30 Day late report and because I monitored it I saw that it was one that I had closed and paid the balance on. I disputed it and the world was restored.

#25 Cary Kollins

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Posted 05 March 2013 - 09:12 AM

For those saying Capital One credit card is so bad, why is that? I've had mine for a couple of years with no problems, but this is the first credit card I've ever had. I have read that the rewards are pretty good compared to other cards.

Just last week I found fraudulent activity on my account and they were great in handling it.

#26 ARSEN

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Posted 05 March 2013 - 09:21 AM

I am a member of one. I track this poo on weekly basis. I got bunch of alerts set, my credit is locked from viewing and fraud alert is on 24/7 plus I got $1,000,000 insurance policy in case of fraud.

#27 Delhommey

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Posted 05 March 2013 - 09:34 AM

If it didn't look bad to cancel credit cards I would be free of capital one.

I had a couple while I built my credit back up from the pits of hell 8 years ago.


It's also nice to have lines to emergency lines of credit should you need them.

Of course that's not all that great if you cut up the actual cards.

#28 Panthro

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Posted 05 March 2013 - 09:36 AM

I was thinking of putting them in my safe along with other important docs and some cash.

#29 KSpan

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Posted 05 March 2013 - 10:05 AM

Only a good suggestion if you don't have the dedication and intelligence to pay it off every month.

Given the cash back options...frequent flyer point options...etc on credit cards, you are better off putting everything you can on your card and then paying it off at the end of every month.

This only gets in trouble if you can't budget and ensure that you don't charge items AND spend the money needed to pay it off.

This is just like people who think it is a good idea to be getting a tax refund. Dumbest thing you can do with yoru taxes. you just gave the gov't your money interest free.

Best way to do it is to have as little as possible witheld (right up to the point of payign a penalty for under witholding)....put the extra money in an account each month....then use the money to pay your tax bill at the end of the year. You get the time value benefit of the money.


Agree 100% about the tax refunds, but I doubt most people see and/or redeem enough points or miles to make the hassle and additional risk, as described in the OP, worthwhile. Also, studies have shown that people in general spend more money when using credit than when using cash, and I'd be willing to bet that the related increase in spending negates any gains in miles or "rewards". I'd be willing to bet that on an annual basis the discounts I get on things when I use cash coupled with less spending is at least equal to these programs, and my finances are simpler and easier to manage.

I made close to $1k in rewards in 2012 just for using credit cards.


My above point applies here as well, and while I'm not sure of your situation this amount seems unusual. Assuming a 2% reward rate (I'm sure there are higher out there), you'd have to spend $50,000 to get that. I bet most people don't have enough qualifying expenses to "earn" nearly that much.

Not only are there monetary perks, using a credit card (and paying it off) is also good for your credit score.

Of course, the reason credit card companies can offer such good deals is that 90% of the people using them are idiots and get behind on their payments and end up paying out the ass for interest


I haven't used a credit card since 2006 and have been completely debt-free other than my mortgage (opened mid-2009) since 2008, and when I checked my credit 2 months ago my credit score was 835. Too many people get caught up in the FICO game.

#30 thatlookseasy

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Posted 05 March 2013 - 10:09 AM

I haven't used a credit card since 2006 and have been completely debt-free other than my mortgage (opened mid-2009) since 2008, and when I checked my credit 2 months ago my credit score was 835. Too many people get caught up in the FICO game.


Thats solid. But as a 21 year old, I can tell you its much more difficult to build credit in the first place than it is to maintain. Got to play the game at some point or you wont be qualified to get a car/ home loan when you need it

Also, I'm pretty sure your credit score takes a penalty if you have no credit cards (or too many)


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