Primitives do not care for Dave Ramsey

[EagleKeeper]

I have never had a credit card or a debit card.....American cash, I don't leave home without it.

And at my age, I think I can make it from here to the graveyard without getting either one.

If what Bad Dog has asserted and what I believe to be true you are still paying to allow merchants to cover the 3% charge to process CC transactions.

I don't think that merchants have the ability to differentiate between people that pay cash or use the card.

[Bad Dog]

I sort of get what your saying.

So...just to get this straight...if I pay for whatever with a CC the merchant pay's 3% to process the transaction and makes up the difference in on the shelf price of their goods.

That makes sense to me and makes sense of part of the business model.
.

Ask any merchant, they get a check from Visa or MC minus the transaction fee every month.  As you said the fee is included in the shelf price.  Every now and again I see a gas station offering gas a little cheaper if you pay cash.  The one caution I would add is that you have to keep a sharp eye on your account online to watch for spurious charges (4 times in 30 years) and, I don't use it to pay bills online.

[Freeper]

You need a CC to:
1) Buy anything online
2) Rent a car
3) Book a flight
4) Reserve a hotel room

Only a fool uses a CC for anything other than for these (or similar electronic) purposes.  Using a CC to pay other debt is dumb^2.  Keep a small number of CCs and pay them down to ZERO every month -- no interest, good FICO, all-around credit and life goodness.

I keep both a corporate and personal Amex Platinum -- the benefits, if you use them, far outweigh the annual costs.


PS: Ramsey is right.  When I paid off my prior mortgage I felt elation that was way better than sex (since this time Mrs. FD was participating).  When I moved I took on a mortgage only because 3% APR is damn near stealing.  The new place will be paid for in full in 4 years (always OVERPAY your debts!)  Then I can call him and again say "I AM DEBT-FREE!"

My wife and I share that basic fiscal value: We HATE debt.  We pay cash or we do without (except said mortgage).  We have a running Car Fund where we pay our old car note to the fund so if our car kicks out, we can buy a new one cash.

A debit card works for all of that, and you don't have anything to pay back.

[EagleKeeper]

Ask any merchant, they get a check from Visa or MC minus the transaction fee every month.  

I don't understand this.

Why would a merchant get a check every month from Visa (minus transaction fees)?

[Bad Dog]

A debit card works for all of that, and you don't have anything to pay back.

True, but they get to use your money until you draw it out and, you have to be careful to not come up short on a trip.

[Bad Dog]

I don't understand this.

Why would a merchant get a check every month from Visa (minus transaction fees)?

How else would they get the money you charged on your Visa card.  The "check" was a term of art, it is probably done electronically.

[Ptarmigan]

Debt is a four letter word.

[lorelai]

I got one liberal all fired up once when I told him you don't see too many monocles and top hats standing in the lotto line at the gas station. It was determined that I hate poor people after that comment.

I occasionally do $2 scratchers at the gas station, as my voluntary tax on helping people bad with math (like me) become good at math (Arkansas has their lottery going for very good scholarships which are helping many people get in and/or go back to school.

[EagleKeeper]

How else would they get the money you charged on your Visa card.  The "check" was a term of art, it is probably done electronically.

Yeah, duh.

I understand, you as a shopper pay with a card and Visa pays the merchant, less the 3% processing fee, the merchant makes up the 3% with shelf prices.

I can be pretty thick sometimes and I appreciate the patience.

[landofconfusion80]

I occasionally do $2 scratchers at the gas station, as my voluntary tax on helping people bad with math (like me) become good at math (Arkansas has their lottery going for very good scholarships which are helping many people get in and/or go back to school.

Why not just contribute directly to the scholarships or charity and skip the middle man?

[Bad Dog]

I occasionally do $2 scratchers at the gas station, as my voluntary tax on helping people bad with math (like me) become good at math (Arkansas has their lottery going for very good scholarships which are helping many people get in and/or go back to school.

Hopefully, you have looked into exactly how much of that money actually makes it in to scholarships and who is receiving those scholarships.

[lorelai]

No.

Revolving credit is the absolute worst kind of credit to have on your history - especially if it is the only type of credit.  You're much better off taking out personal loans (for which you already have cash saved to pay in full) and paying them off in half time if you're seeking to build a history.  Debit cards are much better for having plastic and don't require a monstrous interest rate to pay down if you can't make the payment on time, one time.

I speak of these things from experience.

Dave's principles of being debt free and paying up front for things is all part of having "financial peace"; peace that comes from not owing anyone for what you have.  That his principles are Bible based should not be a stumbling block.

I agree that installment loan history is FAR more important to getting approved for a mortgage or a car, the really vital things.  You need a mix, and yes, if you can qualify for a personal loan already, then you have no need to get a "starter" credit card.  Right now the only positives on my credit report are all of my installment loans, and a few inactive accounts that I stopped using prior to hitting my own debt ceiling -- job loss.  

The Bible is a wonderful text, even for those who don't see it as the divinely inspired word of God.  If everyone followed the principles in it, this world would be a far better place (though I am more fond of the NT than the OT, as most people raised Episcopalian are probably.)

[EagleKeeper]

I agree that installment loan history is FAR more important to getting approved for a mortgage or a car, the really vital things.  You need a mix, and yes, if you can qualify for a personal loan already, then you have no need to get a "starter" credit card.  Right now the only positives on my credit report are all of my installment loans, and a few inactive accounts that I stopped using prior to hitting my own debt ceiling -- job loss.  

The Bible is a wonderful text, even for those who don't see it as the divinely inspired word of God.  If everyone followed the principles in it, this world would be a far better place (though I am more fond of the NT than the OT, as most people raised Episcopalian are probably.)

I agree that installment loan history is FAR more important to getting approved for a mortgage or a car, the really vital things

Ok, I had to read it a couple of times but I think she makes a point.


Edited because I tend to jump on DUmmies, but I will admit to being wrong.

Don't get me wrong DUmmie, I'm watching you.

[GOBUCKS]

DUmp democrats hate Dave Ramsey because at the end of every show he says, "The only way to financial peace is to walk with the Prince of Peace, and that's Jesus Christ."

[Freeper]

DUmp democrats hate Dave Ramsey because at the end of every show he says, "The only way to financial peace is to walk with the Prince of Peace, and that's Jesus Christ."

He's a damn fundy prick. How dare he be divisive and mention that hatemonger Jesus, now if he mentioned the peaceful prophet, Mohamed we would have to be accepting of that.

[JohnnyReb]

He's a damn fundy prick. How dare he be divisive and mention that hatemonger Jesus, now if he mentioned the peaceful prophet, Mohamed we would have to be accepting of that.

Conservatives/republicans are cheap, greedy bastards, don't you know. Jesus only wanted 10% while Mohammed wanted 20% of everything you stole for himself and then 3% more for the poor....Mohammed sure sounds like a DUmmiecrat to me.

[obumazombie]

Libs don't like Robert Kiyosaki much either. They thought his first book's title was a come on.

[lorelai]

Ok, I had to read it a couple of times but I think she makes a point.


Edited because I tend to jump on DUmmies, but I will admit to being wrong.

Don't get me wrong DUmmie, I'm watching you.

I missed what you said, so we're all good.  As far as Episcopalian jokes, check out Robin Williams.   "Catholic lite -- all the ritual, none of the guilt" is just one.