credit or cash

[elvisdo]

It depends on what I'm buying but for bigger purchases I use a credit card. I rarely carry cash on me so I use my debit card for everything else.

[lywb2168]

I use debit/check card as credit 99% of the times.  I rarely carry cash on me and I try not to use my credit cards since I do not want the debt, but I do use them once in a while and pay off as soon as possible

[squirrelgirl44]

I use credit cards as a way of building my credit and improving my credit score.  After I use and pay on a credit card for at least 6 months, paying MORE than the amount required and paying in a timely manner.....

I pay off the account and send a written request asking that the account be closed per consumer request.   

What's the logic in closing the account after 6 months? Closing an account can only hurt your credit score.

Agree. It makes no sense to close your account - especially if it is in good standing. You need credit HISTORY to show a good relationship with a creditor...

[countrygirl12]

I use credit cards as a way of building my credit and improving my credit score.  After I use and pay on a credit card for at least 6 months, paying MORE than the amount required and paying in a timely manner.....

I pay off the account and send a written request asking that the account be closed per consumer request.   

This hurts your credit.  Opening and closing accounts all the time will lower your credit score.  Having accounts with a good record for a long time is a good thing.  And you do not have to tell them to close it "per consumer request".  If you request it they know it's per consumer request.  It's like how use to people would write on their checks "account paid in full".  Like that means something. lol.  If they say you still owe money it doesn't matter what you write on the check.

[mgint]

cash most of the time sometimes my debit card.

[articx]

I use my debit card for most of my online purchases, and cash for offline purchases.

[devideddi]

mostly cash

[oldbuddy]

What's the logic in closing the account after 6 months? Closing an account can only hurt your credit score.

Actually this is not true. One factor in approving a loan (extending credit) is your POTENTIAL debt, which means if you have credit cards that you are not using, the fact that you could use them any time adds to your potential debt when considering debt to income ratios. If those accounts are closed, your debt to income looks better.

[alice44]

I use cash a lot but also my credit card.  I always keep track of what I put on my credit card so the monthly bill doesn't put me in a bad financial pinch.

[nguzman1]

I always use debit and hardly ever carry cash on me. Debit is just more practical.

[KarenWitty]

I only use a debit/credit card. That way I don't overspend

[hawkeye3210]

What's the logic in closing the account after 6 months? Closing an account can only hurt your credit score.

Actually this is not true. One factor in approving a loan (extending credit) is your POTENTIAL debt, which means if you have credit cards that you are not using, the fact that you could use them any time adds to your potential debt when considering debt to income ratios. If those accounts are closed, your debt to income looks better.

Actually, it is true. My comment is only in regard to your credit score. Your credit score uses a credit utilization ratio, which compares your debt to your available credit. It is a good thing have credit available to you but not use it. For example,  if you have $1000 debt and $10,000 in available credit, you have utilization ratio of 10%. If you cancel a credit card with $5,000 limit, now your utilization rate is 20%. This will negatively affect your credit score. The lower the ratio the better. It also can adversely affect your credit history and new credit component if you are constantly opening new accounts.

[cwillard1]

i am in credit hell.  That is why I am here trying to make more cash.

[Liquidfire_43]

For big orders I use credit card (for cash back). For small things I usually pay by cash

[oldbuddy]

What's the logic in closing the account after 6 months? Closing an account can only hurt your credit score.

Actually this is not true. One factor in approving a loan (extending credit) is your POTENTIAL debt, which means if you have credit cards that you are not using, the fact that you could use them any time adds to your potential debt when considering debt to income ratios. If those accounts are closed, your debt to income looks better.

Actually, it is true. My comment is only in regard to your credit score. Your credit score uses a credit utilization ratio, which compares your debt to your available credit. It is a good thing have credit available to you but not use it. For example,  if you have $1000 debt and $10,000 in available credit, you have utilization ratio of 10%. If you cancel a credit card with $5,000 limit, now your utilization rate is 20%. This will negatively affect your credit score. The lower the ratio the better. It also can adversely affect your credit history and new credit component if you are constantly opening new accounts.

Let's just agree to disagree.