Reply #25: Not necessarily.. [View All]

I charge everything and then pay it off at the end of the month - works wonders for "points cars" - especially once that give good benefits. Some of my favorites are ones that give Gas credits, Cash back, - Heck diners club has one of the best points programs out there right now.

Infact if people paid off there credit card every month and used it as a secure way to pay (its the only insured purchasing program out there) they could get free cruises, free hotels, heck - free vacations every year or two and end up saving cash.

Just DON'T get the "Credit builder programs" - make sure you get good credit through better means as those cards have no incentive, HUGE "annual fees" INSANE interest rates and a pathetically low credit line.. 300-350 dollar credit card JUST ISN'T WORTH IT. One purchase even near 100 bucks can put you over if you miss a single payment..

For example on these "Credit builder" cards they give you a 300.00 credit limit, with a 159.00 "Service charge" that you have to pay down - if you go out and spend 100 and make one late payment then you get a 29.0 late fee, 50.00 over the limit fee and you get the highest interest rate they can shove down your face. that 100.00 charge becomes a 500.00 credit nightmare if you don't havet he cash to quickly pay it down within 6 months you will owe clsoe to 1200 bucks if you don't pay it off.

Its a game, however you CAN play it to win as long as you play within your means.