Single Status Update
Success. I was accepted for the card at the 60% APR and given a more than reasonable credit limit.
This is so exciting.
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@CUDAcores89 So as a general rule do you disagree with Ramsey's principles or do you agree but believe that you have the know how to be the one out of 10k people the company has to take some loss on?
@Jtalk4456 for MOST people, what Dave Ramsey preaches is correct.
However, I am not most people. The VAST majority of people treat their credit limit like it's their money, it's not. It's the banks money. As such I treat spending on my credit cards like spending on a debit card, except it just has to be paid at the end of the month.
I have played mind games fighting over a $1.25 candy bar before and as to whether that $1.25 was worth parting with or not. I have walked into plenty of stores before and came out with nothing because I didn't find anything I wanted. I currently have access to almost $11,000 of total credit limit, yet I religiously pay down my balances to zero and do not use my credit limits to get into debt.
Dave Ramsey is speaking to an audience of people who are terrible with money and spend everything they have. For these people, it makes perfect sense to stay away from credit cards.
Me however (and the rest of the r/churning subreddit) treat credit cards as a way to turbocharge our spending through airline miles and cash back. We don't care about the credit limit or the APR, since we mentally do not want to carry a balance and have no plans to pay the bank any money unless it's for an annual fee that gives us more value than the fee. A good example would be I recently signed up for an amex biz platinum card that has a $5500 annual fee, but includes enough travel credits that can be converted into cash by buying airline gift cards and selling these gift cards completely offsets the annual fee. If the annual fee was $550 but I got nothing back, I wouldn't sign up for it.
In a nutshell yes, you have to be like the 1% of the credit card users out there who know how to game the system rather than let the banks take advantage of your lack of financial knowledge and get you into debt.
Churning credit cards is like going to Vegas and playing poker at the casino. There are two kinds of people who play poker at the casino. There are the people who go to the casino to lose all their money (most credit card users), and then there are the people who go to the casino and use their years of training in poker to make money instead (churners). One is easy, the other requires discipline, just like credit card churning. I suggest you choose to be the latter and not the former.
I agree with Dave Ramsey for the audience he is speaking to. These people are not disciplined enough to pay off their cards every month. But for a small minority of credit card users, it makes sense since it's cash back and travel I wouldn't have gotten otherwise.
My flight and part of my hotel at LTX 2019 are entirely paid by american express. without them, I would've never been able to go at all. I also have no debt on this card and I met the spending bonus by buying something I already needed to buy, my college tuition. then I get a free trip anywhere in the world for free.
@CUDAcores89 Fair enough. I've been the most for a while now, but we're getting past the bad discipline and starting to set up budgets and get far more involved with our money