46

Keeping some liquid cash is sensible, but the exorbitant rates on your debt will hurt you long-term. Pay them off as quickly as safely possible. Since you have high-interest debt, getting rid of that debt is more important than maintaining a large emergency fund. Having both savings and overdraft fees is illogical. However, I understand that you'd rather ...


20

If you are sure they'll let you overdraft your account again, then for Heaven's sake get rid of that ridiculously high APR of 35%. Keep the rest as an emergency fund. 500 GBP is not much, but more than nothing. Then gradually get rid of the other debts, if only with the 150 GBP/month you just saved. This makes you get rid of the Amex debt in 10 months and ...


8

I have three debts: 6500 GBP overdraft (APR 35%) 2500 GBP PayPal credit (APR 19.9%) 1600 GBP Amex credit card (APR 23.5%) I have more debts than you (four of them, not three). My smallest debt is way larger than your largest debt. Guess what? None of my debts has more than 3% interest rate. Get rid of these debts! As soon as possible, I ...


7

This debt didn't make itself. I am concerned that if you pay down this debt, you'll simply borrow again soon enough, and you'll be right back on the debt treadmill. Suze Orman used to preach "3-6 month emergency fund" like everyone else. And then in 2008 when the market tanked, all she's said since was "8 month emergency fund". When you've fallen back ...


7

It’s precisely because a charge on a debit card won’t go through if you don’t have the money. If you trash your hotel room or crash your rental car, charging the repair cost to a credit card is more likely to succeed than charging it to a debit card. Remember, it’s the credit card company that takes the risk of you not paying, and not the retailer. The ...


5

This typically considered a form of credit card kiting. It is not allowed under the TOS of most (if not all) card processing/merchant account agreements. There can be legal consequences if intent to defraud can be proven, but typically it just results in account closure.


3

You asked, Is there such a thing as a truly preapproved credit card or loan? That is, are there banks that actually fully investigate potential borrowers, before any application has been completed, and send them truly guaranteed offers? No, there is no truly, completely, 100% "pre-approved loan." That concept just doesn't exist. The language of calling ...


2

If you buy a pack of gum with your credit card, the corner store gets your money immediately, the same as if you had paid with a debit card. If you fail to pay your credit card, it is the bank which issues your credit card which loses money. They are the ones who assess whether you will be able to use your card and repay it; the corner store has no ability ...


2

Bear in mind that the credit score is generated by some secret formula that will never be disclosed to you. Attempting to game it is rarely worth the effort, especially if you end up paying excessive amounts of interest in doing so. The purpose of a credit score is simply to answer the question "if this person borrows money from us, how likely are they to ...


2

There is no point whatsoever in hanging on to cash as an "emergency fund". The fact that you have access to a large overdraft and a couple of credit cards gives you a source of funds in an emergency, and gives you even more if you get those paid off. So it always makes more sense to pay off debt than to hold on to money. Here's what I think you should do. ...


1

Assuming you're talking about the USA you will have A credit inquiry A new account A change in credit utilization/total amount of available credit A change in average age of accounts A closed account (eventually.... whenever they report the closed account) A change in credit utilization/available credit


1

Liquid cash is also freedom. You could get a sowing machine, order some fabric, and make masks for people to wear for CoViD19 -- If you sell them for a profit (not too much, though) it would be a win-win for both you and those you serve: You help them not to get sick, they help you to get out of debt, and you make yourself part of the solution. A genius ...


1

This is an interesting question; but it probably will have less of an impact on your chances of getting a credit card than your credit score and credit history. You can check your score for free these days (I use www.mint.com from Intuit). Even if credit card companies are getting a little tighter with their lines of credit, that won't gum you up as much as ...


1

I'm going to answer based on my own personal perspective on financial decisions - ultimately, you need to determine your own criteria (risk tolerance, goals, etc) and decide the answers to your questions for yourself. Personally, I don't think it makes much sense to invest money when you have outstanding high interest debt, because from a pure numbers ...


1

I have received literally hundreds of those "preapproved offers". I have never seen one that didn't require an application first. In the US, I believe there was problem in the 70s where some credit card companies were sending actual credit cards (including to someone's dog and several dead people). If memory serves, there was some federal laws passed to not ...


1

I'm writing an answer to expand on what @ceejayoz wrote in a comment on your question. You asked, Is this a trend in the industry? Are all the trustworthy issuers (read: large, well-known companies, like BofA) walking away from cards that provide this set of features? Ultimately, yes - this is a trend. And there are a few reasons behind it, but ...


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