Credit cards and the full timer

The friendliest place on the web for anyone with an RV or an interest in RVing!
If you have answers, please help by responding to the unanswered posts.
See posts with no answers
rsalhus

rsalhus

Well-known member
Joined
Jul 20, 2006
Posts
1,335
seilerbird,


I liked what you wrote, it should be beneficial to many RVers especially those thinking of or already going fulltiming.  Let me add a paragraph that I think should be included.


CREDIT CARDS - Use them whenever and wherever you can, and pay them off without incurring any interest charges.  That way you don't need to carry a lot of cash and you have receipts for everything you purchase.  You can find credit cards that give you up to 5% off of all fuel, pharmacy, and grocery charges - which can save you up to $100 per month.  Other credit cards give you, for instance, 3% off of your charges in any of 3 different categories chosen by the credit card company.  Some credit cards give you a flat 1% off of all of your purchases.  Having several credit cards and using them wisely can save you money and is worth the effort.  Keep track of all your credit cards and pay them off online from your checking account.  There are free programs like KeePass that you can download to keep track of all of your passwords and user IDs (and other important information) which you need when you're reviewing or paying off your credit card charges online.  You can store the KeePass file on a computer and a flash disk (I recommend two) for safekeeping, and then you only need to remember one password to open your KeePass file.  You can have each credit card company send you an email when your monthly statement is viewable and another email a few days before a payment is due and you can postdate a payment so you don't pay your credit card charges before they're due.  You can also use Autopay to pay off things like monthly cellphone charges.  And having all credit card and other correspondence via email saves on snail mail forwarding charges.
 
rsalhus said:
seilerbird,


I liked what you wrote, it should be beneficial to many RVers especially those thinking of or already going fulltiming.  Let me add a paragraph that I think should be included.


CREDIT CARDS - Use them whenever and wherever you can, and pay them off without incurring any interest charges.  That way you don't need to carry a lot of cash and you have receipts for everything you purchase.  You can find credit cards that give you up to 5% off of all fuel, pharmacy, and grocery charges - which can save you up to $100 per month.  Other credit cards give you, for instance, 3% off of your charges in any of 3 different categories chosen by the credit card company.  Some credit cards give you a flat 1% off of all of your purchases.  Having several credit cards and using them wisely can save you money and is worth the effort.  Keep track of all your credit cards and pay them off online from your checking account.  There are free programs like KeePass that you can download to keep track of all of your passwords and user IDs (and other important information) which you need when you're reviewing or paying off your credit card charges online.  You can store the KeePass file on a computer and a flash disk (I recommend two) for safekeeping, and then you only need to remember one password to open your KeePass file.  You can have each credit card company send you an email when your monthly statement is viewable and another email a few days before a payment is due and you can postdate a payment so you don't pay your credit card charges before they're due.  You can also use Autopay to pay off things like monthly cellphone charges.  And having all credit card and other correspondence via email saves on snail mail forwarding charges.
Click to expand...

Thank you for the suggestion but I don't think it fits in with the text. I am writing about things that you MUST do BEFORE you hit the road. That is something you MIGHT consider AFTER you hit the road. I avoided a lot of subjects like this to keep the text as short as possible.  You should start a separate thread on this subject so that people will be more likely to find the information.

On a personal level I hate credit of all kinds and I think it is the dirtiest word in the dictionary so I would not feel right telling people they should use credit.
 
Rolf

Re credit cards; postdating a check doesn't do anything. When the credit card company receives the check it is cashed immediately, regardless of dating. That is mentioned sometimes in the fine print since the bank processing services don't have the capability to hold a check until the posting date.

Some alternatives; if you use on line banking you can have your bank pay the bill on the day before the due date. If you use a money management program like Quicken, you can have Quicken schedule a payment. I use Quicken and have my charges posted to it almost daily and reconcile Quicken to my monthly statement. Since I have already posted the payment due in Quicken, I feel safe letting the credit card company automatically pay itself on the due date.With either of these two approaches you will avoid any late fees and missed payments.
 
Re credit cards; postdating a check doesn't do anything.
Click to expand...

[/size]
[/size]Bernie, sorry for the confusion but I didn't say anything about postdating a check.  No checks are involved in paying monthly credit card bills online.  I said postdating a payment.  When you pay off a monthly credit card bill online, you can specify the date you want the payment transaction initiated.  The payment  transaction will not be initiated until the date that you specify.  So if you went online on the 5th of the month to pay off a credit card that wasn't due until the 15th of the month, you could specify that you want it paid on the 15th of the month and the transaction won't be initiated until then.  And you don't have to pay it off the day before it's due, you can pay it off on the day that it's due.
 
On a personal level I hate credit of all kinds and I think it is the dirtiest word in the dictionary so I would not feel right telling people they should use credit.
Click to expand...


Different strokes for different folks.  Some people can't handle credit cards, that's true, but they're missing a lot of savings.  If you completely pay off your monthly credit card bills each month when they're due, you will never get charged any interest.  A lot of people don't understand that fact.  And float is another added advantage that is built into the credit card system.  Using credit cards for RV fuel purchases alone is a no-brainer.  If you could save $5 or more each time you filled up the fuel tank for your RV, why wouldn't you use a credit card?  It doesn't cost you anything, in fact, it saves you money, and it's not addictive.  A true no-brainer if I ever saw one.
 
rsalhus said:
If you could save $5 or more each time you filled up the fuel tank for your RV, why wouldn't you use a credit card?  It doesn't cost you anything, in fact, it saves you money, and it's not addictive.  A true no-brainer if I ever saw one.
Click to expand...

Because not everyone can handle owning a credit card. Have you noticed how many people end up in bankruptcy because of the abuse of credit cards. If you gave me a credit card I could not carry it around without giving in to temptation. The bill for my first month would be about $5000 more than my income. Paying off the balance each month would never happen with me. Credit cards have ruined the lives of millions of people. It is like a drug, there are many ways to use it without hurting yourself, but the possibility for abuse is endless.

Personally I don't like using another person's money, which is exactly what you are doing by paying one month later. I do not ever purchase anything unless I have the cash in hand and I can afford to spend that cash. I just don't see the point of paying for everything one month later so you can save $5.

I also flat out refuse to give the credit card companies any of my business. They are the most dishonest bunch of thieves in the world. Congress recently had to pass massive legislation to try and regulate them. But the credit card companies lawyers are busy looking for loopholes to screw you with. You want to get into be with credit card companies then be my guest. I wouldn't touch them with a ten foot pole.
 
rsalhus said:

  No checks are involved in paying monthly credit card bills online.  I said postdating a payment.
Click to expand...

Sorry Rolf, I read postdating a payment to refer to a check. Yes you are right, you schedule an online payment for a future date.
 
The wise use of a credit card takes discipline and not everyone has that.  If they do, Rolf has pointed out the biggest advantages.  We look at our credit cards as 30+ day interest free loans, but we pay them in full by the due date every month.  The several hundred dollars in cash backs are an added bonus, but of course, they're just returning our money :)  Cash only users pay the same prices but don't get the cash backs, even though those are built into the prices.
 
Ned said:
The wise use of a credit card takes discipline and not everyone has that.  If they do, Rolf has pointed out the biggest advantages.  We look at our credit cards as 30+ day interest free loans, but we pay them in full by the due date every month.  The several hundred dollars in cash backs are an added bonus, but of course, they're just returning our money :)  Cash only users pay the same prices but don't get the cash backs, even though those are built into the prices.
Click to expand...

I wish I had your discipline, Ned, but I don't and I recognize that. I realize I am paying a premium by paying cash but I don't care.
 
It is like a drug, there are many ways to use it without hurting yourself, but the possibility for abuse is endless.
Click to expand...


It's called self-control.  If you don't have any, then you have a problem.  It's not the fault of the credit card companies, or the availability of alcohol or drugs that's the cause of all the problems we see everyday.  The problem starts with you and me, we need to control ourselves and our wants and our needs.  If we can't control ourselves, we need to get help.  Simple as that.
 
Tom, you're wise to realize that and acknowledge it.  No shame in that.
 
I am not ashamed at all. I feel it is important for me to recognize any character flaws I have. I got into trouble with the first credit card I ever owned at age 18. Turned into a disaster. That is the last credit card I ever owned. I will never put myself in a position where that could happen again. I did use credit in the 70s and 80s to buy a house, but I sold that in 1989 and I have been credit free ever since.
 
I have to agree with Tom. All it takes is one major repair job and you have just blown your ability to pay off the balance each month. And who, if owning a credit card, will have the restraint not to use it for something like that? I have gotten into debt several times and I have learned my lesson. It's cash only for me. Plus, when you use a credit card there is a paper trail of where you are and where you've been. I might be a bit paranoid to mention that, but I'd prefer to truly live off the grid and on the downlow. In this day and age of identity theft, you have to think about those things.

Cheryl
 
Tom (Seilerbird)

Before this thread drifts too far into the merits and/or dangers of Credit Card use and abuse, let me add my compliments on your original post.
Great and thorough job!  Thanks, lou
 
Thank you Porky. Maybe we could get the credit card part split off to a new thread.
 
seilerbird said:
Thank you Porky. Maybe we could get the credit card part split off to a new thread.
Click to expand...

Consider it done.
 
I hate being in debt, and prefer to save and pay cash for major items whenever possible.  But I also use credit cards for their convenience and the advantage of not having to carry large amounts of cash while on the road.  I do have emergency cash hidden in my RV, but it's substantially less than what I would need if I was paying cash for everything.  I keep track of my spending and usually have no problem paying the bill in full each month.

The only exceptions are for major, unexpected expenses.  Then I just cut back my spending until the major expense is paid off.  Yes, it means paying some extra interest, but the convenience of being able to access the funds without hassle and get the work completed when needed is priceless.

One tip I learned is to have cards from more than one provider.  If you travel with a partner, you carry and use the card from one account and your partner carries the card from the second account.  If you travel solo, put one card in your safebox and use the other.

This way, if you lose your wallet or otherwise develop a problem with one of the cards, you can cancel it and still have the other, separate card to use while the first is being replaced.    If you have multiple cards on the same account, losing one will invalidate both of them until the replacement reaches you.
 
Use them whenever and wherever you can, and pay them off without incurring any interest charges.
Click to expand...


I don't often quote myself, but I need to this one time to clarify a point.  I certainly don't recommend the reckless use of credit cards whenever and wherever you can, what I meant to say was to use credit cards whenever and wherever you can INSTEAD OF USING CASH.  If you're going to pay cash anyway, why not use a credit card and take advantage of both the float and the cash back rewards?  And to me, it's a no-brainer for everyone, not just full-timers.  Like  Ned said, think of it as a 30+ day interest-free loan that you will pay back with no interest when it's due.  Just wanted to clear that up.


Paying off unexpected expenses and major purchases has nothing to do with this facet of credit cards usage.  Certainly if you've got enough self-control to restrain yourself from ever using credit cards at all, then you should have enough self-control to use it conservatively and wisely.  Plus, if used wisely, it can help your credit rating for those times when you need credit, like when buying a home or a business (when you get tired of full-timing).  :eek:



 
Lou Schneider said:
One tip I learned is to have cards from more than one provider.  If you travel with a partner, you carry and use the card from one account and your partner carries the card from the second account.  If you travel solo, put one card in your safebox and use the other.

This way, if you lose your wallet or otherwise develop a problem with one of the cards, you can cancel it and still have the other, separate card to use while the first is being replaced.    If you have multiple cards on the same account, losing one will invalidate both of them until the replacement reaches you.
Click to expand...

Lou,
This point is well taken.  We recently discovered some fradulant use on our AMEX.  Terry called them and then AMEX caught and denied additional  expenses but it has required  closing that account and an issue of a new card.  In this between time we are using my AMEX card.  By the way as RVers  when we were totally full time and now that we are part timers, we use our credit cards instead of cash  anytme we can. Credit cards are extremely useful for online purchases which we seem to do quite often! 

We  pay off the balances each month  and have been given  cash as a reward for using the card.  I like the convenience of not having to have money in my wallet.  Each will have their own  comfort level and we will never  try to convince someone who does not have our core  beliefs cause it would not do any good.  To each his own.....
Betty 
 
You must log in or register to reply here.

Latest posts

Members online

Total: 1,042 (members: 9, guests: 1,033)

Forum statistics

Threads
131,972
Posts
1,388,447
Members
137,722
Latest member
RoyL57
Back
Top Bottom