Closing All My Credit Cards | Pros And Cons
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- เผยแพร่เมื่อ 8 ก.ย. 2024
- So right now I have an 811 credit score, which is pretty cool and get me some good rates and stuff, and I also have 6 lines of credit with pending credit that I could accept today and have access to over 50k in credit money.
But here is the catch, I’m debt free, I hate using credit cards and I don’t want to use them. So I’m at this cross roads of, do i close all my credit cards and then become on of those Dave Ramsey folks that don’t have credit or do I keep it open and use the one bill method and maintain something that I don’t think I’ll use again.
So if you are watching this video, I’ve made videos like this before, where I talk out load and you guys get to see how I made decisions. I did when I was considering paying off my debt and then boom I paid it off. ( so use common sense as you watch this video and don’t be a dummy and start closing accounts if you’ll be buying a home soon )
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Lets Talk about the Benefits of having a credit Score
The only way to maintain a crerdit score is to borrow money
And the only benefit to having a credit score is to borrow money
It creates this cycle
The Strategy I Use to not find myself overspending on a credit card is the One Bill Method:
I use automatic bills
Automatic payments
And avoid using the card for anything else
On top of that here are common benefits:
You get points/miles
Better interest rates for when you borrow money
Theirs less friction ( Job, Apartment and mortgage )
Here are the Draw Backs
When you play stupid games you win stupid prizes and most people get finessed with credit cards
Cons:
Most people Overspend ( between 10-20% extra because of the lack of pain receptors activated in the brain ) quick test, when was the last time you looked at a receipt for gas, groceries or drive through
A lot of Intererest Payments ( a lot of people say they pay every month but a lot of people don’t )
What is a Zero Credit Score
Its when you stop reporting any activity to the FICO people
And they don’t have a way to gauge you based on borrowing money
Beucase you no longer borrow money and that has some consequences but not really
Consequences
Insurance Premiums may be higher ( negotiate, no credit is not the same as bad credit )
Electric company ask for a bigger deposit ( not crazy deal)
A landlord may not rent to you ( other landlords exist )
Youre unlikly to get a mortgage ( that’s a lie )
No cell phone plan sometimes
How do you get a Zero Credit Score
Usually happens after closing all your accounts and paying off your debt
And 1 year goes by without any reporting
What is my decision as I stand here today
I think my one bill method works best
But I think I also need to make sure, I cant even think about using the cards
So one bill method in combination with cutting them
Why?
It removes frictions in a world where this is needed
For write not it feels like the most rational thing to do
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1 bill method has worked wonders for me I watched your videos and went from 540 last year to 728 and still climbing. Thanks Tommy zero
I think you made a smart decision Tommy. I have five credit cards. One I use responsibly like a debit card according to my budget, and the others for an occasional purchase that I pay in full or for emergencies. 🙌🏾
Me gusta tener ZERO balance en mis cuentas, but I also like to use my cards every month and I also pay them off every month, my credit score is in the 800s but I don't plan on taking any loans in the foreseeable future but it's great to see that I am credit worthy. As always my brother great content. Peace ✌️
Zero..... credit score haha....Great vid tommy, personally i'm tired of debt, it's been around for 17 yr's, i'm almost out of it, and i'll be all to glade to get rid of the predatory lenders called credit cards, student loans, and the credit score too, personally ramsey's idea of zero debt sounds amazing (FIRE.... financally independent retire early goal is 5-6 yrs, won't ever get their being stuck in payments)
You didn't make any decision, it's the same one you made before. Also, A few years ago, I tried for an apartment, and they said they base everything on credit score, they didn't care about past rent payments. I needed a minimum income, but if the credit score was not up to par, income didn't matter. I tried the one bill method and Discover refused to increase my credit limit. They say I didn't use the card enough. Plus, I am concerned about this method because it could cause credit card companies to lower my limits, decreasing my score. I mainly worry about having a good score in order to rent an apartment and to get a good deal on car insurance, the latter you did not even mention. If you don't have an excellent credit score, you pay a lot more in car insurance.
0. Thank You, Tommy for the video. It was very good. I don't plan on using credit. I tried three or four times, to get a law firm to remove all negative info, but, I didn't rebuild at the same time, so I lossed out. I'm older, and I have did it all once anyway, as far as a house is concerned ( upkeeps ) and the vehicles ( which were Liabilities mostly ) except, my musclecars. Lastly, I want less headaches, at this older age. Thanks again, Tommy. Always enjoy watching your videos, you really have EXCELLENT CONTENT FOR US !!! God Bless !!! The Best Always !!!
My credit is currently 779. I want the invisible 900 in my life.👀
Hey Tommy your score went up alot 811. Congrats
Keep one card with streaming services billed and set auto payments. Close all others. One card is sufficient
Dave Ramsey doesn’t live by that tho
I'm curious what's your plan when the dollar goes to zero due to a sovereign debt crisis
Awesome 😎😎😎😎😎
I have 24 major credit cards, 1 business credit card , $20K personal line of credit and a mortgage @ 2.37% rate. I don’t carry credit card debt. I’m keeping all of my accts planning on adding more in 6 months
I closed them all, not worth the prize
@@TommyBryson wow
From 12 to 2 cards
Zero - sounds great!
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. --Ayn Rand./
Zero. What if I closed all but one card? I have 4 credit cards( one is a retail store card). I'm thinking about closing all but one, the very first card I opened when I was 19. That way I still have a credit history but have less risk of being in serious debt like I am now. The oldest card I have has a credit limit of 15k. I have another card that has a limit of 15k, one with a limit of 6,500 and the store card of 300. I'm constantly being preyed on by the credit card companies and I'm tired of it. It's a constant cycle of spending, getting into debt and then trying to pay it off. Any advice would be greatly appreciated 🙏
zero
So you don't use debit cards because it's plastic and you can overspend?
Although you could buy anything without a credit score you will pay a lot more in interest.
ZERO
0 see those biceps building ~~
0. Cutting up cards but not closing them, hmmm. Interesting idea.
I’m debating too
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0. Thanks
Zero! One bill method
😎
Zero 0 😱
Zero,
Nonsense!
Zero!
Orez
Zero 🎉
People who subscribe to Ramsey should be very careful .
Why do you say that?
Curious why as well...
My dude... if you have a perfect credit score, you're supposed to leverage your credit to make you a lot of passive income. If you want to know how, ask me to find out how
How
You found Jesus. But funny he couldn’t find the slaves when they was getting babies cut out their stomachs. Man y’all crack me up with this invisible man
He has 2 left eyes
Hey, he didn’t ask you to subscribe to his faith. If you don’t believe in God, so be it. But don’t come on someone else’s channel trying to shame them for their expression of God. #TeamJesusToo 🙌🏾🫶🏾🤭
I closed all my cards today my score went from 803 to 500
@@winchill2002 That's not right
Yeah. After all you bought yourself into being. 🤪
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