glh's Journal: Credit Cards...

I have a credit card with a 0% interest rate until March. I generally don't like using credit cards (especially when carrying a balance), but if you're responsible they can be pretty useful- especially when you're building and money is flying out the window :).

At any rate, I had an interesting experience starting about last week. I was looking at my records of bills paid, and I noticed that I hadn't made a payment to this credit card company (the one with the 0%) for about a month. We've moved twice since April, so I figured I either didn't get the bill at the correct address or it got lost in the move. I went ahead and made a decent sized payment as a "hopefully this will make it in time" effort about a week ago. Yesterday we finally got a bill- and it had all kinds of fees on it. To top that off, they dropped my 0% interest rate and raised it to 13.75% (Oh, and they also upped my credit limit on top of that... ???). I went from a $0 finance charge a month to about $80 if you go by the fees.

This morning I just called them and was ready to pay it off and close the account (I had time to "cool down" from the night before). The person on the phone took off all the fees and reset my APR to 0%. I was half expecting them to do that, but it still kind of surprised me. I was told if I missed a payment again I would not get the fees waved. I just think it is interesting that credit companies use those kinds of tactics. A co-worker told me he's seen it where you miss a payment on one card, and the other ones see it and raise your interest rates accross the board. I hope that never happens...

Anyway, I'm glad I called, we can certainly use the 0% right now. I'll be glad in 6 months when (hopefully) all this stuff will be paid off.

Credit cards are evil

[nizo]

They are one (tiny) step above loan sharks. The only real difference is they can't send Vinny over to break your legs if you get behind, but other than that they are pretty much the same. I have one card with a $500 limit (department store card) and once my credit is out of the toilet I want to get one more card with a small limit, and that is it. It is waaaaay too easy to spend tomorrow's money today with these things.

On a totally unrelated note, what hints do you have for a wannabe woodworker? We are movi

Re:Credit cards are evil

[glh]

I am also hoping to build a few hope-chest type boxes for the kids at some point. What books/tools/etc would you recommend?

Ahh, finish carpentry? That's fun stuff. I am still learning a lot about it, though I've done a few projects here and there. I found a few good woodworking books at Lowes on cabinetry. Unfortunately I don't remember too many other details, but I'll try and find them. I believe they had a good hope chest / window seat type design in there. I also got a real good book on designing stuff

Re:Credit cards are evil

[nizo]

The 2x4 book, is it this book [amazon.com] by any chance? I have this one, and it got me started on the bookshelves I made (basically inexpensive 1x4 and 1x8 plywood that I had the guy cut for me at the store; I just had them cut the two peices side-by-side so the top/bottom/sides were the right sizes :-D The shelves were fun too.)

It has been hard getting too excited over woodworking while living in a condo; finding a place to saw wood was a PITA. I am looking forward to making stuff in the backyard shed and not having

Re:Credit cards are evil

[FroMan]

CC's are actually great tools. But like any other tool, use it correctly and carefully. Find a card that has some sort of point system (discover or air miles type cards). Then, find a wife (or husband as the case maybe) who is dutch and will keep you from spending on frivolous things, and makes sure the balance is paid at the end of the month.

My wife and I don't pay a cent of interest, but get the ease of use of a CC, and we get 'free books!' We use discover which we get credits for each dollar we spen