[cocoabeans]

So, it seems like the last few months banks have been wanting to lend to me an way more than I need. I applied for a credit card a few months ago for rewards and a good interest rate and they gave me a limit 10x what I need. I've got offers and pre-approvals for thousands of dollars of revolving credit just coming my way and at decent rates. Now I know it is lending and I know how credit and interest works and why they do it and how it could benefit me but, do I take advantage of it?

I've never really had out of control manic spending but, I never had access to a lot. Sure, I've gone into some debt but that was all repayable within a few months because it was only a couple thousand here and there. Stupid disorder.

Yea I can close down accounts with worse interest rates, and lower limits but what if I ever need the credit? Then again, what if I go all high and have access to this stuff making things worse. Ugh, if I could only predict it!

Stupid disorder!

Best thing is to avoid credit if you can. At least keep only a minimum of cards--one--that you might use only in an emergency.

Are you really surprised that you are being solicited to obtain credit from many sources? They're trying to make money, cocoabeans, and credit is a very lucrative
business, as you know.

Protect yourself from temptation if you will, please.

[cocoabeans]

Well I'm only surprised because I haven't been before! Maybe because I'm under 30, spent time overseas and didn't establish much of a credit history before now.

Oh and I know how credit products make the banks money but, I also know how credit when used wisely benefits the consumer.

[ajmich]

Wise advice to limit yourself to one card, even without this stupid disorder. My mania has always been pretty mild (hypomania) but it's very clear to me now that I would always abuse credit when it was available to me, and always told myself I would pay everything off, so what was the big deal. The temptation, in my case, was to mood alter by giving myself (and others) stuff I couldn't otherwise afford. Probably classic and common as dirt, and that's likely one of the things the banks count on... people like to SPEND. Even if you feel you could stay smart about it, don't temp yourself because as you already know, the moods are unpredictable and easy to get swept up in it all... yes?

[BlueInanna]

A good credit score can be of great value. Get the cards with good rewards, don't let your balance go over 10% of the credit limit, always pay on time. You know what to do. I was a fool and got caught in the trap at your age, now I'm screwed with maxed out credit cards at horrible apr's. but the trips to Hawaii and all the partying was fun. Now I'd rather have a great credit score.

[cocoabeans]

Originally Posted by BlueInanna

A good credit score can be of great value. Get the cards with good rewards, don't let your balance go over 10% of the credit limit, always pay on time. You know what to do. I was a fool and got caught in the trap at your age, now I'm screwed with maxed out credit cards at horrible apr's. but the trips to Hawaii and all the partying was fun. Now I'd rather have a great credit score.

Yea, the credit to debt ratio. I know how that works and it's the only reason I keep my limits do high. I have two cards now. Considering opening a line of credit for emergency purposes since it would have a lower interest rate than the excess credit on my credit card and I don't have much of an emergency fund built up right now and won't for awhile due to tuition payments (spouses) and we're saving for a downpayment on a home and of course the retirement fund. I read lines of credit are not to common in the US?

Two cards is better than one since you get subprime and zero percent interest balance transfer offers which work great when I go into repayment mode.

On one hand, I know my normal self is quite responsible and educated about credit. My normal self can't stand even the 25 dollar electricity bill and I pay everything off early and my normal self benefits from credit and sees exactly why opening a line of credit is a financially sound thing to do. On the other hand, my ****Eing asshole bipolar brain can get all impulsive and screw me over.

Then again, why don't I just open the credit line and lower the limit on my card? Ah! I think I've got the solution!

[cocoabeans]

Oh sweet asshole isn't filtered! How didn't I notice that before?

[Nessa213]

As others suggested, limiting yourself to low limit cards only for credit building purposes is the way to go. Speaking from experience after an intense manic spending episode 7 years ago, I personally see credit cards as an awful terrible thing. When used responsibly they can be wonderful, but if you ever find yourself truly manic you will convince yourself that the money to pay off the large debt will come from somewhere, and you won't even think twice.

I do have a credit card now and I find myself getting angry when they keep raising the limit. I'm it's great business for THEM to have a known manic spender as a customer. The conspiracy theorist in me wants to think that they do it on purpose.

[Resident Bipolar]

Oh dear. Credit and me don't mix! I'm 18 and have already racked up thousands of pounds worth of debt over under a year. My poor mom has had to pay them all off for me (late) and I've got to pay her back slowly over the next couple of years.

The worst thing for me was payday loans - they're instant online approval. I'd get an impulsive urge to borrow £400 and because it was instant, it was just way too quick and easy for me to be able to go on a spending spree.

Our house has bad credit because of me. Though I'm planning on getting a credit card to take out small amounts and pay them back to improve the house's credit score.

To combat the problem of taking out payday loans I've had all the major companies I used block my address (with my parents permission) for taking out loans from them so I can't rack up any more debt.

RB.

[faerie_moon_x]

My advice is to avoid using any credit cards at all costs. Have one very small card (like $500 or less) for an emergency. Or to build your credit like buy something really cheap, then pay it off 100% when you get the bill. That builds good credit.

Credit is like a snake in the grass but it not only bites you but your family. My dad sold my mom's house so he could pay off all his credit cards before he dies. $180,000 in stupid credit for stupid things. He did it because he knew that if he died, they would then come after me for the payment!

[BlueInanna]

Originally Posted by cocoabeans

Yea, the credit to debt ratio. I know how that works and it's the only reason I keep my limits do high. I have two cards now. Considering opening a line of credit for emergency purposes since it would have a lower interest rate than the excess credit on my credit card and I don't have much of an emergency fund built up right now and won't for awhile due to tuition payments (spouses) and we're saving for a downpayment on a home and of course the retirement fund. I read lines of credit are not to common in the US?

Two cards is better than one since you get subprime and zero percent interest balance transfer offers which work great when I go into repayment mode.

On one hand, I know my normal self is quite responsible and educated about credit. My normal self can't stand even the 25 dollar electricity bill and I pay everything off early and my normal self benefits from credit and sees exactly why opening a line of credit is a financially sound thing to do. On the other hand, my ****Eing asshole bipolar brain can get all impulsive and screw me over.

Then again, why don't I just open the credit line and lower the limit on my card? Ah! I think I've got the solution!

No personal lines of credit aren't so common here, I use them for business though. Having 2 cards and switching back and forth with 0% balance transfers is great. I used to do that, but then life happened. Great way to go if you can make sure to stay organized with moving the money around, and don't make any purchases on top of a balance transfer or they really screw you, cuz they're assholes! It's possible for a bp to be responsible with money, have a great credit, buy a house, start a business. But good credit is so important in capitalism. You're young, no credit flaws yet, you're golden to for it - just don't **** up your credit!