Comments on: On Dave Ramsey and Why You Shouldn’t Cut Up All Your Credit Cards

By: Ryan

Ryan — Mon, 06 Feb 2012 02:29:24 +0000

I’m not aware of any laws against using a person’s FICO score to determine insurance rates. In fact, I think it’s become common practice… wish it wasn’t that way, but it is..

By: Ryan

Ryan — Mon, 06 Feb 2012 02:27:39 +0000

Agreed. This is what I’ve been doing for years.

By: Ryan

Ryan — Sat, 04 Feb 2012 20:15:29 +0000

Can you name a mortgage company who would do this? I don’t know of any.

By: Jodi

Jodi — Wed, 23 Mar 2011 19:34:41 +0000

It is very possible to get a good rate on a mortgage without a FICO score but it requires finding someone who will actually look at your credit report to see that your zero FICO score isn’t due to irresponsibility.

By: Jim, Chesapeake, VA

Jim, Chesapeake, VA — Mon, 06 Dec 2010 00:35:10 +0000

I keep a Discover Card and a Mastercard. I use the Mastercard frequently to buy gas, and other items that would require a hundred or two hundred bucks. That’s a lot of money to carry around. The Mastercard rebates 1% (so I collect a portion of somebody elses interest), but it is important to note that I pay off the Mastercard as soon as the charge goes through. That’s usually 48 hours. I never charge unless the money is in my account to pay off the charge. Electronic banking allows you to pay off your credit card every single day if that is what you want to do… and just happens to be what I do! This whole topic is about discipline! You either have it, or you need to find it… The Discover Card only gets used twice a year to buy a couple of low priced items, otherwise, they send me letters threatening to close the account.

By: Why you shouldn’t cut up all your credit cards | Pro Credit Score Tips

Wed, 01 Sep 2010 09:03:37 +0000

[...] is a link to the original article: http://bettercreditblog.org/2009/12/02/on-dave-ramsey-and-why-you-shouldnt-cut-up-all-your-credit-ca... [...]

By: Alex Leonov

Alex Leonov — Wed, 01 Sep 2010 09:02:53 +0000

It is a good thing to have a bunch of credit cards with slight movements on them – spend some, refund some, making up as good history without really taking large credits – like you are spending your cash with slight percentage that is improving your overall credit score. And I definitely agree that to close all your cards is a bad idea. No credit – no score. No score = problems. Linked back to this article at http://procreditscoretips.com/2010/09/why-you-shouldnt-cut-up-all-your-credit-cards/

By: athensguy

athensguy — Sun, 06 Dec 2009 20:35:55 +0000

@Mephisto
Every company is always looking at new ways to try to make money. Just because CCCs are looking at adding fees or eliminating grace periods does not mean that will happen across the board. Some cards may have an annual fee added. Fewer may eliminate grace periods. You see, it’s not true that card companies don’t make money from PIF cardholders. Before American Express went subprime, all of its cardholders were PIF unless they were in default.

Anyway, I have 8 or so cards in my name and DW has a few others. All are no annual fee and all have grace periods. I find it very unlikely that any of them will eliminate the grace period or add an annual fee, with the addition of an annual fee being slightly higher than the elimination of the grace period.

By: Chris

Chris — Sun, 06 Dec 2009 18:42:13 +0000

What you Dave Ramsey nerds are forgetting is that CREDIT DOES NOT EQUAL DEBT!

When I use my no AF credit cards and pay them off immediately there are NO fees – and companies are not adding fees for that type of spending. They are hiking interest rates (which I don’t have to pay) and fees for late payments and over the limit spending. Again, smart credit card use costs nothing.

And mephisto, why would a rich person laugh at paying higher rates? They wouldn’t, unless they are also stupid. You don’t get or stay rich blowing money for no reason.

Having a good FICO score costs nothing.

I laugh at you who DR has brainwashed. He’s made so much money off of you fools — he’s laughing all the way to the bank.

By: Mephisto

Mephisto — Sun, 06 Dec 2009 18:24:15 +0000

Another point that many have not put on here yet is that many credit card companies are looking to add fees and interest to people who do pay their bills off every month, because they are realizing they make no money off of you. So unless you plan on finding the few that won’t very quickly follow suit, most of you who are saying to keep these cards open will pay more than that $50 to the credit card company to get the “privilege” of being a card holder. And as many others have said, insurance is becoming a more competitive field. They want your business and if you say you’re going to switch companies because they are charging you more for not being in debt and having a credit score, and a lot of them will try to work with you. And those that won’t, well they will learn that this tactic may cost them more business in the future as well. Me and my family will continue to not use debt, and in our 20′s, will use this decades long practice to make ourselves rich, and our kids will look at a $50 car insurance hike and laugh at it.