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I'm new to the Fool and have been scanning old posts here and having found no mention and at the risk of preaching to converted...

In my efforts to eliminate CC debt (~11K) but not wanting to give up the convenience of CCs, I maintain one CC with a zero balance all the time (paid in full every month).

To this card I charge all the must-have-CC automatic-monthlies (like Internet access, EZ-Pass highway toll system) and all on-line purchases (books, etc.). I charge any toys I "need" and all Christmas gifts to it. It can "hurt" sometimes, but I have managed to not pay interest on this account except for one month in the past five years.

My rationalizing for doing this is two-fold.
1) In the short-term, it avoids my paying interest on these monthly nickel-and-dimes because the CC has no balance. Nothing iritates me more than having some small monthly fee (like my $9.95 ISP) posted to an account with a balance - this forces me to pay interest on it!
2) For the long term, I have an account that I treat as a charge (not credit) card. I hope that the diligence will still work for me when the other debt is gone.

The only drawback I envision is if the CC company gets tired of me (because I pay them no interest). I know they make money off of me and I don't feel sorry for them; I usually charge ~$200-$300 a month on it.

I also get to do a small, REALLY small, dance every month when I pay it in full, knowing I haven't added to the "other" debt.
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I'm new to the Fool and have been scanning old posts here and having found no mention and at the risk of preaching to converted...

In my efforts to eliminate CC debt (~11K) but not wanting to give up the convenience of CCs, I maintain one CC with a zero balance all the time (paid in full every month).

To this card I charge all the must-have-CC automatic-monthlies (like Internet access, EZ-Pass highway toll system) and all on-line purchases (books, etc.). I charge any toys I "need" and all Christmas gifts to it. It can "hurt" sometimes, but I have managed to not pay interest on this account except for one month in the past five years.

My rationalizing for doing this is two-fold.
1) In the short-term, it avoids my paying interest on these monthly nickel-and-dimes because the CC has no balance. Nothing iritates me more than having some small monthly fee (like my $9.95 ISP) posted to an account with a balance - this forces me to pay interest on it!
2) For the long term, I have an account that I treat as a charge (not credit) card. I hope that the diligence will still work for me when the other debt is gone.


Hiya Mike!

Welcome "new Fool"! ;)

Actually, what you do has been discussed many times here, and it's the way many of us manage our credit cards--paying in full every month.

Not only does this allow you to use their money for free for a month, but it's also a great way to enjoy perks like cash-back, bonus miles, etc.

It's the best way to use credit!

Tony
...but I still am...

Off2Aruba
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Congrats on paying down your debts and keeping it that way!

I find no fault whatsoever in using credit if it is used wisely. Why not take advantage of a bank's money for up to 55 days?

Better yet, if the card offers rebates or warranty protection you're better off. Several of the major card issuers now accept payments online so there's not even a stamp to put on an envelope.

- Lan
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The only drawback I envision is if the CC company gets tired of me (because I pay them no interest). .


After 26 years and never paying a cent of interest to the same B of A Visa card, they haven't dropped me yet. In fact I just got the new B of A Rewards card and they are going to be paying me money come this October!!

Utahtea
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Mike65535:

>>The only drawback I envision is if the CC company gets tired of me (because I pay them no interest). I know they make money off of me and I don't feel sorry for them; I usually charge ~$200-$300 a month on it.<<

You shouldn't worry one moment about them getting "tired" of you. There is no drawback here. Sure, they might not do you any favors while you are paying everything off every month, but what favors do you need?

It sounds like you are being perfectly responsible: Paying off your debt while also bettering your credit and your skills in personal finance. Keep it up, man!


TL
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**To this card I charge all the must-have-CC automatic-monthlies (like Internet access, EZ-Pass
highway toll system) and all on-line purchases (books, etc.). I charge any toys I "need" and all
Christmas gifts to it. It can "hurt" sometimes, but I have managed to not pay interest on this account
except for one month in the past five years.**

Hi, Mike..and welcome to Foolishness!! The way you use your card is exactly how I am using my Amex to facilitate getting out of debt. I choose this particular card becasue it MUST be paid off every month (altho this month hurts in particular :-(. Slowly my other balances are going down, and they will lose a big chunk when my Christmas club account comes due in November.
Keep up the good work and keep coming back..this site is my daily dose of community, especially in this age of anonymity (sp?) that the internet creates.

TriChick
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**After 26 years and never paying a cent of interest**

Wow, this is almost unimagineable for me..not paying any interest for 26 years?!? What a great feeling that must be..you must have had great people to learn from. My parents were not Foolish at all, and despite being thrifty I still am chained to that nasty ball of
CC debt. Working hard to erase it, but it's so sloooooooowwwwwww..
*SIGH*

TriChick
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