Do You Believe in Credit Cards?

[Sherri]

I know that Dave Ramsey really teaches against credit cards period, no exceptions. I have credit cards, but pay them off faithfully at the end of each month. I get lots of airline and hotel points, so I feel like it's good stewardship, rather than bad. But Dave says that you're letting man's system have your money, even if it's for less than a month, and he thinks that's wrong.

What think ye?

[AbundantGrace]

Originally Posted by Sherri

I know that Dave Ramsey really teaches against credit cards period, no exceptions. I have credit cards, but pay them off faithfully at the end of each month. I get lots of airline and hotel points, so I feel like it's good stewardship, rather than bad. But Dave says that you're letting man's system have your money, even if it's for less than a month, and he thinks that's wrong.

What think ye?

Please don't mess up my prophetic credit card ministry!

Seriously, I believe that Credit Cards can easily lead a person into bondage and slavery and I definitely believe that goes against God's will and plan for His children. However, like you, I have several cards that I use each month, specifically for particular usages; Gas Card; Office Supplies; Study Materials; etc. I make sure that when I'm charging something to those cards that it is always within my means to pay it off before the next cycle and I too, earn pretty nice points from these cards.

I believe that if you use credit cards responsibly and not frivolously, there is nothing wrong with it. That is my opinion...

[HappyTown]

Not owned one in 15 years now, I do have a debt card, it takes money right out my account, money that's already there. I'm dept free, own my home on land free and clear, cars, truck, boat two four wheeler free and clear! If you want make money stay out dept, live within your means.

[Encryptus]

Originally Posted by Sherri

I know that Dave Ramsey really teaches against credit cards period, no exceptions. I have credit cards, but pay them off faithfully at the end of each month. I get lots of airline and hotel points, so I feel like it's good stewardship, rather than bad. But Dave says that you're letting man's system have your money, even if it's for less than a month, and he thinks that's wrong.

What think ye?

Ramsey approaches credit cards in the same philosophy most Apostolics do about drinking, even though some could handle it, it is not worth the risk of getting addicted. Credit card abuse is epidemic right now and ESPECIALLY dangerous now that often cannot be discharged through bankruptcy.

I have taught his FPU several times. as a general rule his advice is dead on, avoid credit cards and consumer debt at all costs.

[Jermyn Davidson]

Originally Posted by Encryptus

Ramsey approaches credit cards in the same philosophy most Apostolics do about drinking, even though some could handle it, it is not worth the risk of getting addicted. Credit card abuse is epidemic right now and ESPECIALLY dangerous now that often cannot be discharged through bankruptcy.

I have taught his FPU several times. as a general rule his advice is dead on, avoid credit cards and consumer debt at all costs.

ok.
if you do this, how does one build up there credit so they can qualify for a decent car loan and in the future, home loan? One has to build their credit some way-- credit cards are not the only way, but it is definitely an easy way to build one's credit rating.

[Encryptus]

Originally Posted by 1399

ok.
if you do this, how does one build up there credit so they can qualify for a decent car loan and in the future, home loan? One has to build their credit some way-- credit cards are not the only way, but it is definitely an easy way to build one's credit rating.

A lot more involved than can easily go through on this format. Will be glad to PM you some articles.

But one small example, most people are not aware that having too many credit cards EVEN IF PAID OFF TIMELY can actually result in a lower credit score.

[Jermyn Davidson]

Originally Posted by Encryptus

A lot more involved than can easily go through on this format. Will be glad to PM you some articles.

But one small example, most people are not aware that having too many credit cards EVEN IF PAID OFF TIMELY can actually result in a lower credit score.

But the timely payment history will definitely be consoling to a banker to see when that person goes to apply for a home loan, especially if they are paid off.

[Rico]

Originally Posted by 1399

But the timely payment history will definitely be consoling to a banker to see when that person goes to apply for a home loan, especially if they are paid off.

Brother, your debt to income ratio plays a bigger role in determining credit worthiness than your payment history. Your payment history can help you qualify for a better rate, but having a bunch of credit cards with high available credit limits will hurt you, especially if you are trying to buy a house.

[Sherri]

Originally Posted by Encryptus

A lot more involved than can easily go through on this format. Will be glad to PM you some articles.

But one small example, most people are not aware that having too many credit cards EVEN IF PAID OFF TIMELY can actually result in a lower credit score.

I did find this out once. I had several store credit cards that had zero balances that I had taken out to get the "15% discount with first purchase" or whatever (thinking I was being wise). I then immediately paid them off. What I did not realize was that your credit rating is based on the amount of AVAILABLE credit you can have compared to your income, not on just what you owe!! I have since cancelled everything but Visa, American Express and Macy's, and those also have zero balances every month.

[Sherri]

Originally Posted by Encryptus

Ramsey approaches credit cards in the same philosophy most Apostolics do about drinking, even though some could handle it, it is not worth the risk of getting addicted. Credit card abuse is epidemic right now and ESPECIALLY dangerous now that often cannot be discharged through bankruptcy.

I have taught his FPU several times. as a general rule his advice is dead on, avoid credit cards and consumer debt at all costs.

I guess I understand that mentality. But I feel like because I have learned to use them responsibly and ALWAYS pay them off monthly, they have become an asset and not a liability to me. The free stays and flights that I earn seem to be a good measure of stewardship.

On the other hand, drinking (although it may be done responsibly) is never really an asset, but just a carnal pleasure.