JimmyBean42
DIS Veteran
- Joined
- Mar 16, 2015
Many were commenting they needed some unpaid credit as paying off every month somehow increase their credit score.. Is this true?
I also think that many who put a vacation on a Card and do not pay for it, have their good reasons.. Maybe this is the one and life time opportunity. Between Jobs and NOW have the time off. Or realize by time they save the cash this will be a missed opportunity for many reasons. We shouldn't negativly judge for using credit.. in fact my husband and I are thinking about a home line of credit.. our house is paid off and the interest rates are insanely low.. We have many things on our Long list of things to do...new furnance, new Couch, kitchen. Kids rooms Need Major update. etc.... Sure I can save 5 or so years... but for 2,5% I'll take the cash now and pay a bit of interest to have those 5 years of enjoyment.
Idle credit cards (unused) for long periods of time aren't the best. It's good to show some activity and paying timely. You also want the ratio to be low. So if you have a $10,000 limit, you don't want a $9,000 balance, but a $1,000 balance that you pay off timely (no late fees) works in your favor.
I agree. Some people work extremely hard and may be just shy of affording a Disney vacation. Does that mean they shouldn't go b/c they don't have the cash on hand at the time of booking? It's their call. No judgement here. I have a co-worker who books Disney vacations frequently and likes to go in the fall. But he has to use his credit card as he pays for the vacation with our bonus payment, which we receive in December. So he gets some small interest fees. But to him it's worth. And I asked him what he would do if our Company nixed bonuses one year. His reply "it's where we are happy so we'd still go, pay the interest a little bit longer and figure it out after. But I don't worry about that until they cut bonuses.....and they haven't (knock on wood)". To each their own I say.