[xpllmr]

So I did it today, it was something that I wanted to do for a while but finally got to a financial situation where I could finally do it. Got rid of my credit card!!!! Not like I was using it for stupid things I just had it in case of emergencies as a back drop to feel secure, I just want to know if anyone here has done the same and if so what happened next... was good or bad...anything would help...Thanks...

[sisimelanyk]

First off, congrats on retiring your credit card. While not credit card free (I maintain one with a small limit that is for emergencies only) I have been almost debt free (still have to pay the mortgage) for a number of years. From what I've read if you don't periodically use a credit card it can have a negative effect on your credit rating. I have not noticed anything bad on mine because of this, and tend to believe that the positives far outweigh the negatives.
Congrats again.

[mobiphones]

WAAHHOOOO. Good job. Now if more people could do that, society would imo be better.

[allaboutauto.us]

Congrats! That is truly a significant achievement.

Now, to avoid accumulating any credit card debt again in the future, I recommend opening a money market fund and setting cash asside each month in that account to use as an emergency fund. If you have not already done so, this is a great way to have cash set aside for unexpected cash needs like your refridgerator dying or needing car repairs, etc. It also helps if you have an unexpected interruption in your income. Most financial experts say you should have 6-8 months of living expenses saved in a cash account like a money market fund.

Cheers!

[Nashhlkq]

I've recently done this as well. We're not debt free yet, but we're getting there. I have got rid of the credit card though. I've got a question though. Say the AF screws up my travel arrangements or something happens and the funds werent loaded to my card. I've heard leadership saying use your personal CC and you'll be reimbursed. Now that just doesnt seem like the right answer. What should a guy do in that situation.

[pirinosa]

Congrats on a very positive step towards financial responsibility. Many people fail to realize that maintaining a balance on a credit card is that same has taking out a high interest loan. For convenience, I use my credit card for most purchases but pay in full every month. As long as you can do this, a credit card can be very useful!

Congrats on your milestone! I agree with FLAPS, maintain an credit card and use it, not using one can have a negative impact on your credit score as well, believe it or not. I do the same thing, I make purchases that I pay off before the billing period ends. This shows activity and the ability to pay off your balance on time.

[Liaiskelile]

I've recently done this as well. We're not debt free yet, but we're getting there. I have got rid of the credit card though. I've got a question though. Say the AF screws up my travel arrangements or something happens and the funds werent loaded to my card. I've heard leadership saying use your personal CC and you'll be reimbursed. Now that just doesnt seem like the right answer. What should a guy do in that situation.

We have been hearing the same thing. But, we are also hearing there is upposed to be a phone number you can call 24/7 to get money loaded on your card for those types of reasons, or say if you check into billeting, and Oops, they gave away your room and now you have to stay downtown. You are supposed to be able to call to get money loaded on your card to cover for any price difference.

[Haibundadam]

I went without credit cards for several years, out of necessity. Back in the early 1990s my ex and I had filed for Orderly Payment of Debt. The only difference between OPD and Bankruptcy is that with OPD you are required to pay back all of the debt at a (government agency) dictated low interest rate. Once you’ve paid the debt off, it stays on your credit rating for three years, so there is a motivation to pay it off sooner rather then later. Having said that, my FICO score is now 815, and only because I jealously guard my finances (it helps that the ex isn’t around anymore either, LOL). During the OPD days, once I got into the routine of not having a credit card, it actually was ok. It didn’t bother me…no credit card, no bill at the end of the month. I do miss the simplicity of a cash only lifestyle.

Regards

[TaliaJack]

The only issues i have ever ran across with not having a credit card has been when i have been on the road and i have not seen an atm (other than the 4 buck fee ones at the gas stops) and i need to gas up.

[Grorointeri]

Congrats! That is truly a significant achievement.

Now, to avoid accumulating any credit card debt again in the future, I recommend opening a money market fund and setting cash asside each month in that account to use as an emergency fund. If you have not already done so, this is a great way to have cash set aside for unexpected cash needs like your refridgerator dying or needing car repairs, etc. It also helps if you have an unexpected interruption in your income. Most financial experts say you should have 6-8 months of living expenses saved in a cash account like a money market fund.

Cheers!

Money market accounts these days have interest rates so low that it'll be eaten by inflation

[VardyCodarexyz]

Congrats on your milestone! I agree with FLAPS, maintain an credit card and use it, not using one can have a negative impact on your credit score as well, believe it or not. I do the same thing, I make purchases that I pay off before the billing period ends. This shows activity and the ability to pay off your balance on time.

Yes, this. Also, the bigger the credit limit, the better your score. Just use it for small purchases every few months and pay it off electronically before the billing cycle.