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Subscribe to RSSWill you be sticking with your credit card longer than your spouse? For some Americans, the answer will be "yes." Overall, we are are pretty faithful to our plastic. According to Experian, the average time a credit card account remains open is approximately 129 months — or 10.75 years.
Contrast that with the fact that the U.S. Census Bureau reports that in 2009, first marriages that ended in divorce lasted a median of 8 years for men and women overall. The median time from marriage to separation was seven years.
It appears that Americans are also more loyal to their cards than their counterparts across the pond. Research by MoneySupermarket found that credit card users in the U.K. have remained loyal to their card provider for six years on average.
Related: Getting a Divorce? Here's How to Protect Your Credit
Is loyalty to a card issuer good or bad? On the plus side, holding on to your cards for a long time may help your credit rating. FICO High Achievers — those with FICO scores of 785 or above — opened their oldest credit card account 25 years ago on average; and the average credit account is 11 years old. Plus, if you've been a good customer for many years, you may be able to negotiate a lower interest rate or get a fee waived more easily than a new customer.
On the other hand, issuers are trying to woo new new customers with flashy promotions, such as the Starwood Preferred Guest Card from American Express that currently allows new cardholders to earn 10,000 points after their first purchase, and 15,000 points after spending $10,000 within six months. Just try matching the British Airways credit card 100,000 miles sign-up bonus with your current card. Fat chance it even comes close.
Related: Can You Really Get Your Credit Score for Free?
But that doesn't mean you should be fickle.
Perhaps the best strategy is to plan on a long-term relationship with your cards, and choose accordingly. But check in periodically to make sure they still offer you the best deal. If not, let them know you think you can do better — and why. They may be able to able to come up with a reason for you to stay.
If not, and you do break up with your credit card company, you don't have to end the relationship completely. You can still keep the account open in case you decide you want to come back later. Just think of it as keeping your options open.
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Credit cards are nothing but legalized loan sharking.
Becoming 100% debt free was the smartest move we made.
You pay credit card interest fees? I did once, in 20 years, only when my payment was late getting in, accidentally.
PS I don't visit the loan sharks on the corner either.
i see no problem with credit cards, they're convenient and they give me perks but i don't keep any balance AT ALL. Always pay in full.. those who keep balance is like being a piggy bank for others, but alas i am luckier than most that i can afford to pay all my bills or at least have the sense not to spend more than i make. for those who want more than what they make, i guess being slaughtered is a choice you make.
Keep your credit cards for emergency use only and purchases you can't pay cash with like reserving for a vacation or hotel. Unless you can pay off your balance each month, it'll cost you more just to have one.
I stopped using my debit card for purchases because of the following incident...
I went to a gas station that didn't have card readers, so I went inside to pay for $20 worth of gas. I used my debit card and signed the receipt as usual. When I went outside, I started the pump and walked away to make a brief phone call. When I returned, the pump had not stopped as normal and was at $22 and some change when I manually stopped it. I went back inside to tell the worker that I apparently owed him more money and that's when we both realized he had charged me for $200 worth of gas rather than $20. When I had signed the receipt, I didn't realize that. Long story short, if I hadn't walked away from the pump I might not have realized the fubar till after my bank account got hit with an extra $180 dollar charge. I've used credit cards since, but I do pay off the balances in full every month so I don't have interest accrued.
I have only two credit cards. One is a no fee Discover Card and the other is a Visa through my credit union also no fee. I do not run balances on them unless it is a large purchase and then I try to pay it off in three months or less. I've never had a problem with either one and have had each one for over twenty years. I would never bank or even own a credit card with the bailout out banks such as Chase, BofA, or Wells Fargo.
I think credit cards are less dangerous and generally cheaper than most spouses. Annual fee or not.
JohnBoy
I know I can live without both
I once had a fairly long-term relationship with my Sears credit card.
Then they allowed the schmuck I was divorcing to put hundreds in charges on my account. He wasn't on my accounts and never had been; they were mine when I was dumb enough to marry him. Nor did he have actual cards, mind you, but he had stolen the numbers from my cards.
I disputed the charges without success. After making a few payments, I decide 'screw this'. I informed Sear that since they had permitted the fraud, they could suck it up and closed my account. They got very shirty so I said I would never buy from Sears again. That was over 20 years ago and, being a woman of my word, I haven't been in a Sears since.
Not a surprise. My credit card never tried to spend more than I made and then take my house and bank accounts when it wanted to rub on another piece of plastic.
I have never paid interest on my credit cards, even though I charge everything on them. I maximize the rewards which is nice. Most cards were obtained for specific purposes but when the accounts get sold, I usually lose the perk that caused me to apply for the card.
Bank of America is the worst. If they hadn't purchased my oldest credit card account, I wouldn't use them. Right now I use them sparingly (approx. 1% of my monthly charges). Even then I have problems with them.