Comments on: Is it Really That Tempting to Sign Up For New Credit Cards? http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 02:50:51 +0000 hourly 1 http://wordpress.org/?v= By: Mark http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-259622 Mark Thu, 27 Mar 2008 01:17:18 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-259622 What really annoys me is the CC companies that put in the fake "your name here" credit card. It just aggravates me to no end to have to open it up and send that fake card through the shredder separately. So - if someone would be so kind to post the model number of a shredder that can chew through a small town phone book...I would be ever so grateful! :) What really annoys me is the CC companies that put in the fake “your name here” credit card. It just aggravates me to no end to have to open it up and send that fake card through the shredder separately.

So – if someone would be so kind to post the model number of a shredder that can chew through a small town phone book…I would be ever so grateful! :)

]]> By: Kitty http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-218839 Kitty Sat, 26 Jan 2008 03:15:32 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-218839 I don't see credit cards offers as any different from any other sales pitch or sales materials one gets in the mail. If one cannot resist credit cards, how would the same person resist all of store "specials". This reminds me of a collegue who complained that his wife bought a $2000 vacuum cleaner because "the salesman looked nice", although he was not much better. It seems to me that learning to resist any kind of sales pitch - be it credit card or an item one doesn't need - is a basic requirement of being responsible with money. Personally I look at this flyers. I compare their cashback with cashback I currently get, if it is greater I might consider it. When I get 0% offers, I spend a little time considering if I want to bother with arbitrage. Haven't done it yet, but sometimes I think about it. After that, I shred the offer and throw it away together with zillion of sales brochures I get. I also got a travel brochure in a mail once inviting me to buy a tour of Europe on a private jet for 50K (or something like it). Shall I be angry because this brochure tries to make me spend 50K on one trip? But really, nobody forces anybody to get credit cards, and nobody forces anybody to use it to buy stuff one can't afford. I don’t see credit cards offers as any different from any other sales pitch or sales materials one gets in the mail. If one cannot resist credit cards, how would the same person resist all of store “specials”. This reminds me of a collegue who complained that his wife bought a $2000 vacuum cleaner because “the salesman looked nice”, although he was not much better. It seems to me that learning to resist any kind of sales pitch – be it credit card or an item one doesn’t need – is a basic requirement of being responsible with money.

Personally I look at this flyers. I compare their cashback with cashback I currently get, if it is greater I might consider it. When I get 0% offers, I spend a little time considering if I want to bother with arbitrage. Haven’t done it yet, but sometimes I think about it. After that, I shred the offer and throw it away together with zillion of sales brochures I get. I also got a travel brochure in a mail once inviting me to buy a tour of Europe on a private jet for 50K (or something like it). Shall I be angry because this brochure tries to make me spend 50K on one trip?

But really, nobody forces anybody to get credit cards, and nobody forces anybody to use it to buy stuff one can’t afford.

]]> By: Miguel http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-217921 Miguel Thu, 24 Jan 2008 18:07:52 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-217921 IG, That is exactly the way she sees it. She does own her own condo (acquired with proceeds from a settlement if I remember correctly). I've never met anyone who put so much effort into getting over on the system. i think that there are many people like her out there. It's not all fun and games though - the dark side of this type of grifter lifestyle is that it is very stressful and of course, morally bankrupt (pun intended). Believe it or not, she is a wonderful human being in many other respects. Scary, ain't it. IG, That is exactly the way she sees it. She does own her own condo (acquired with proceeds from a settlement if I remember correctly). I’ve never met anyone who put so much effort into getting over on the system. i think that there are many people like her out there. It’s not all fun and games though – the dark side of this type of grifter lifestyle is that it is very stressful and of course, morally bankrupt (pun intended).

Believe it or not, she is a wonderful human being in many other respects. Scary, ain’t it.

]]> By: Independent George http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-217884 Independent George Thu, 24 Jan 2008 17:05:03 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-217884 #10 - The funny thing is, she's probably right. If she already has a home (protected under bankruptcy), then the only thing she loses is her credit score (which most people are concerned about primarily for its impact on buying a home). The credit cards effectively ARE free money for her. I think this sort of situation was the driver behind the bankruptcy reform of a few years ago. Of course, my thought then (and now) was that if the card companies were that concerned about recovering their loans, all they need to do is tighten their credit standards. #10 – The funny thing is, she’s probably right.

If she already has a home (protected under bankruptcy), then the only thing she loses is her credit score (which most people are concerned about primarily for its impact on buying a home). The credit cards effectively ARE free money for her.

I think this sort of situation was the driver behind the bankruptcy reform of a few years ago. Of course, my thought then (and now) was that if the card companies were that concerned about recovering their loans, all they need to do is tighten their credit standards.

]]> By: JLP http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-217816 JLP Thu, 24 Jan 2008 15:37:17 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-217816 Miguel, Wow! That's crazy. Unfortunately, your relative isn't the only one who thinks this way. Miguel,

Wow! That’s crazy. Unfortunately, your relative isn’t the only one who thinks this way.

]]> By: Miguel http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-217814 Miguel Thu, 24 Jan 2008 15:30:30 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-217814 I have a elder relative who is very dear, but a complete and utter walking money disaster almost by design. She has filed personal bankruptcy at least 2-3 times. When she gets a CC offer in the mail, she sees it as free money. I kid you not. She will max it out, figuring that its only a matter of time before she will file again and wipe the slate clean. In her mind, if the CC companies are dumb enough to send her cards, and the law will allow her to dodge her obligations, then where is the harm. I have a elder relative who is very dear, but a complete and utter walking money disaster almost by design. She has filed personal bankruptcy at least 2-3 times. When she gets a CC offer in the mail, she sees it as free money. I kid you not. She will max it out, figuring that its only a matter of time before she will file again and wipe the slate clean.

In her mind, if the CC companies are dumb enough to send her cards, and the law will allow her to dodge her obligations, then where is the harm.

]]> By: Matthew http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-217435 Matthew Thu, 24 Jan 2008 03:47:52 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-217435 Even better, you can eliminate receiving the things all together. Check out the FTC's website at http://www.ftc.gov/bcp/conline/pubs/credit/prescreen.shtm for information on how to get off of these lists. It beats shredding! Even better, you can eliminate receiving the things all together. Check out the FTC’s website at http://www.ftc.gov/bcp/conline/pubs/credit/prescreen.shtm for information on how to get off of these lists. It beats shredding!

]]> By: Mrs. Micah http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-217333 Mrs. Micah Thu, 24 Jan 2008 00:30:19 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-217333 I would just put them through my parents' shredder. So far they haven't found me at this address (I believe I opted out...it's working so far). And my parents have instructions to shred anything from Capital One (the people most interested in giving me such a card). I would just put them through my parents’ shredder. So far they haven’t found me at this address (I believe I opted out…it’s working so far). And my parents have instructions to shred anything from Capital One (the people most interested in giving me such a card).

]]> By: Andy http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-217287 Andy Wed, 23 Jan 2008 23:04:26 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-217287 It's ludicrous to blame the credit card companies. Not only do you have to open the envelope, fill out the long-ish form, and mail it, you also have to receive the card, activate it, and actually use it! Also, you can opt-out of the offers. It’s ludicrous to blame the credit card companies. Not only do you have to open the envelope, fill out the long-ish form, and mail it, you also have to receive the card, activate it, and actually use it!

Also, you can opt-out of the offers.

]]> By: Yowsers http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/comment-page-1/#comment-217235 Yowsers Wed, 23 Jan 2008 22:29:42 +0000 http://allfinancialmatters.com/2008/01/23/is-it-really-that-tempting-to-sign-up-for-new-credit-cards/#comment-217235 Meg - pity the guy that catches her... Anyway, we're moving to a cashless society, which is to say we're shifting over to being nearly all plastic. Cash will never go away, but it's use will diminish considerably. Just thinking about that shift underlines how important it is to make education on its use mandatory. Unfortunately, teaching kids about credit card use (and abuse) reminds me of sex education: left to the parents, if often doesn't get done. Or it gets done *after* that conversation that starts with "Mom? I've got a big problem..." And even after that it often doesn't get done right. Credit was an enemy for me until I set up a very simple system: I use the card for anything over $10 because I get the award points they offer (good for a couple plane tickets each year), and then every two weeks pay off the balance every time a paycheck rolls in. If I splurge (and I do), it's gets thrown back in my face by the next Friday. That may not work for everyone. Meg – pity the guy that catches her…

Anyway, we’re moving to a cashless society, which is to say we’re shifting over to being nearly all plastic. Cash will never go away, but it’s use will diminish considerably.

Just thinking about that shift underlines how important it is to make education on its use mandatory.

Unfortunately, teaching kids about credit card use (and abuse) reminds me of sex education: left to the parents, if often doesn’t get done. Or it gets done *after* that conversation that starts with “Mom? I’ve got a big problem…”

And even after that it often doesn’t get done right.

Credit was an enemy for me until I set up a very simple system: I use the card for anything over $10 because I get the award points they offer (good for a couple plane tickets each year), and then every two weeks pay off the balance every time a paycheck rolls in. If I splurge (and I do), it’s gets thrown back in my face by the next Friday.

That may not work for everyone.

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