Could you live without your credit card?

Shenshen

mohawk wrote: »

I have one. Use it all the time. Pay it off every month by direct debit. I have never paid a cent in interest and it is cheaper to use then a debit card.
I don't get why people are so against them.

I'm not sure that people are against them per se, they just don't see the need for them.

How is a credit card cheaper than debit? I've got free banking with my bank, I don't pay transaction charges, and only get charged €5 per year for it, as opposed to minimum €30 for a credit card. Why would I pay an extra €25 to offer me the same features I would look for in a credit card - the ability to pay for things online?
Posters have mentioned that it's difficult to rent a car without a credit card. I've rented cars here and in Germany and never ever had any issues?

The_Kew_Tour

Credit cards ate way to go once you use it right and can pay back on time

smash

For those who still have the misconception that debit cards aren't secure and that you don't get your money back, here's a bit of reading for you: http://blogs.wsj.com/totalreturn/2015/05/19/fraud-worries-debit-vs-credit-cards/

smash

smash wrote: »

For those who still have the misconception that debit cards aren't secure and that you don't get your money back, here's a bit of reading for you: http://blogs.wsj.com/totalreturn/2015/05/19/fraud-worries-debit-vs-credit-cards/

Neither credit or debit cards are secure and of course you will get your money back with the debit card. The difference is if your debit card is scammed its your money they have taken (money which you might need for your rent/mortgage payment, bills, shopping etc) if your credit card is scammed its the banks money and isn't going to impact on you much if at all.

maudgonner

For ever odd wrote: »

Credit card companies wouldn't make much money, from the poster's on this thread, lol.

It begs the question, who are they making money from?

Obviously there are people who carry a lot of credit card debt but probably realise that they would get jumped on if they admitted it in this thread.

But as well as interest payments, the banks & credit card companies take a transaction fee for every payment made on their cards (for debit cards too). The merchant usually bears the cost, so it's not visible to the consumer, but as far as I remember it's not trivial, particularly for smaller businesses. That's why there will usually be a minimum spend required when you pay by card.

smash

Douglas Scary Billiards wrote: »

Neither credit or debit cards are secure and of course you will get your money back with the debit card. The difference is if your debit card is scammed its your money they have taken (money which you might need for your rent/mortgage payment, bills, shopping etc) if your credit card is scammed its the banks money and isn't going to impact on you much if at all.

And that's literally the only benefit. Well that and the bonus points, but if your account is cleared out and you inform your bank they will facilitate you so that you money.

Sky King

Penny Tration wrote: »

27, I've never had one and never intend to get one. If I want something, I'll save for it rather than use a credit card. I've booked holidays on my debit card with no issues, hotels have always accepted them, and I carry cash for spending money on holidays.

If you get defrauded its easier to get money back on a credit card. Also it's handy to have that facility of a couple of grand there if you are really badly stuck

But I agree, saving is the way to go, generally.

Speedwell

Yeah, people think that getting a credit card is an achievement praising them for their creditworthiness, instead of a brand on their rump to show which credit card company they are indentured to. Credit card companies don't like "customers" who aren't profitable (don't pay interest) and I have seen people get booted for just that reason in America. It really opens your eyes to who is supposed to be doing who a favor. I don't think it's exactly sane to pay a third party for the use of your own money that you haven't even made yet. No, I don't need or want a mortgage. No, I've never needed or wanted a car loan. Leveraging debt is for businesses, not individual wage earners with families. For 25 years I've been more responsible with my finances than most credit card users. Take that "debit cards are for losers" attitude and... use your imagination.

smash

smash wrote: »

And that's literally the only benefit. Well that and the bonus points, but if your account is cleared out and you inform your bank they will facilitate you so that you money.

Maybe they're okay with debit cards in Europe, but in the US they're reluctant (just in my experience) to rent a car without a cc, and some hotels insist on a cc.

Flyer miles and points, travel insurance and cashback to charity makes it worth having a CC. The more you travel the handier they are.

smash

smash wrote: »

And that's literally the only benefit. Well that and the bonus points, but if your account is cleared out and you inform your bank they will facilitate you so that you money.

The bank wouldn't give me money very easily as I had money in saving with them they wanted me to fill the from to request funds be released from saving, transfer them into my current account etc. The whole process would have taken days, been a load of hassle I just was lucky I could get by until pay day. There is no reason other than awkwardness that they wouldn't give a temporary overdraft.

There are also loads of other advantages to having a credit card aside from fraud protection which have been discussed by many on this thread.

Speedwell wrote: »

Take that "debit cards are for losers" attitude and... use your imagination.

I don't think a single person on the thread made a statement even close to this. People are pointing out the used correctly credit cards are a great tool and don't understand people's irrational fear of them.

smash

Candie wrote: »

Maybe they're okay with debit cards in Europe, but in the US they're reluctant (just in my experience) to rent a car without a cc, and some hotels insist on a cc.

Flyer miles and points, travel insurance and cashback to charity makes it worth having a CC. The more you travel the handier they are.

The only time I've ever actually needed to have one was for car hire and that was in Germany.

Squall Leonhart

I have a credit card, it's only ever used for things like buying concert tickets the morning of release if it happens to be a week before pay day, rather than dipping into my savings account (currently in process of demonstrating ability to save without touching it to the banks!), because I know I have XX amount coming in next week I will pay it off with.

Other uses include for renting a car, for some reason debit cards simply aren't accepted by most places I've tried.

Manage money well and credit cards are no issue.

boobar

Most of the time I could live without it. This month it has nearly burst into flames. Gets paid off in full every month though. Many moons ago ran up some serious debt, and racked up some heavy interest charges, never again.

Speedwell

Squall Leonhart wrote: »

Manage money well and credit cards are no issue.

Oh, well, manage money well and debit cards are no issue.

nox100 wrote:

I don't think a single person on the thread made a statement even close to this.

No, of course not. It's all been polite and condescending, "I don't know why you wouldn't want a credit card; is there something wrong with your ability to manage money" implications.

Speedwell

Speedwell wrote: »

Yeah, people think that getting a credit card is an achievement praising them for their creditworthiness, instead of a brand on their rump to show which credit card company they are indentured to. Credit card companies don't like "customers" who aren't profitable (don't pay interest) and I have seen people get booted for just that reason in America. It really opens your eyes to who is supposed to be doing who a favor. I don't think it's exactly sane to pay a third party for the use of your own money that you haven't even made yet. No, I don't need or want a mortgage. No, I've never needed or wanted a car loan. Leveraging debt is for businesses, not individual wage earners with families. For 25 years I've been more responsible with my finances than most credit card users. Take that "debit cards are for losers" attitude and... use your imagination.

What are you talking about? It's just a discussion, not a competition.

I've a debit card that I use all the time. And a credit card is handy for some other stuff.

They're just means of managing your finances according to your needs, not a character judgment.

Bizarre!

Geuze

For ever odd wrote: »

I couldn't help but notice, that credit cards are been used to pay for daily shopping, and even buying a round in the local boozer.

- What do you use your credit card for?
- How much is your balance?
- Could you live without it?

I use my CC to pay for as much as I can, because I get rewards based on spend.

So my CC use should not be taken as a sign of poor finances, or being stretched each month.

I have paid interest once in maybe 10 years, maybe 2.00-5.00 euro in interest.

My monthly balance is typically 1,000 - 2,000.

Geuze

It seems people have problems with CC due to their own irresponsibilities, not due to the CC itself.

Speedwell

Speedwell wrote: »

No, of course not. It's all been polite and condescending, "I don't know why you wouldn't want a credit card; is there something wrong with your ability to manage money" implications.

Well in fairness many people have stated just that, they would be unable to control themselves with a credit card.

Squall Leonhart

Speedwell wrote: »

Oh, well, manage money well and debit cards are no issue.



No, of course not. It's all been polite and condescending, "I don't know why you wouldn't want a credit card; is there something wrong with your ability to manage money" implications.

I'm sorry if you think I'm being condescending. You seem to imply I'm sneering at those who have "something wrong their their ability to manage money", this isn't true. Whether or not somebody wants to have a credit card is a matter for them to decide. Likewise, there are those on this thread who seem to think a person is crazy for having access to a payment method that costs them €30 per year.

Qiaonasen

Douglas Scary Billiards wrote: »

Well in fairness many people have stated just that, they would be unable to control themselves with a credit card.

It's very easy. You don't have the money. You don't spend it. This is kind of the reason why Germanys economy is so strong. People are not financially retarded like tha.

Cupcake_Crisis

I always avoided getting a credit card back home but you have to have one in Canada to build a credit score for when you want a lease etc. I've had one about a month and have used it once. It's too much temptation!

smash

The bottom line is that some people get them and can't manage them, while some people get them and manage just fine. Either way they're not a necessity for a lot of people because visa debit can be used instead.

jimgoose

Qiaonasen wrote: »

It's very easy. You don't have the money. You don't spend it. This is kind of the reason why Germanys economy is so strong. People are not financially retarded like tha.

Money is an elaborate practical joke perpetrated by the Illuminati and George H.W. Bush. The Germans, of course, don't get it. :pac:

Shenshen

Douglas Scary Billiards wrote: »

I don't think a single person on the thread made a statement even close to this. People are pointing out the used correctly credit cards are a great tool and don't understand people's irrational fear of them.

I'm curious - I've read the entire thread and haven't come across one post stating they're scared of credit cards. Worried about temptation, yes. Scared of the card, not really.

Yes, they can be a great tool. I would accept a company credit card if I travelled more for work, as it would mean I would not have to use my own money and then wait to be reimbursed.
But for my own personal finances, I don't see any need. They're expensive, and to me personally offer no benefit over the debit card I have.

I see them a bit like cars. A must-have for many people, and complete waste of money for others.

ted1

Penny Tration wrote: »

27, I've never had one and never intend to get one. If I want something, I'll save for it rather than use a credit card. I've booked holidays on my debit card with no issues, hotels have always accepted them, and I carry cash for spending money on holidays.

Deposits ? Most hotels and car rentals look for them.

Dr Crayfish

Why does anyone have credit cards these days? Ever since you could get Visa Debit cards in Ireland I would have thought they'd be obsolete. We need a more Swabian Hausfrau approach to money in Ireland anyway or we'll end up like we were in 2009 again.

Shenshen

Qiaonasen wrote: »

It's very easy. You don't have the money. You don't spend it. This is kind of the reason why Germanys economy is so strong. People are not financially retarded like tha.

Hehe, some truth in that. A large number of Germans refuse to use credit cards. It's quite a headache for international online shops, they can set up operations nearly everywhere using credit cards, except for in Germany where they have to offer bank transfer payment options. My OH used to work for a big electronics reseller that was trying to set up shop in Germany, they had quite some trouble explaining to their US owners why business in Germany wasn't picking up and why they needed bank transfer payment options.

bnt

I applied for a standard AIB card about 14 years ago: they sent me a "gold card" with a limit much higher than I imagined or wanted, which I've never come close to hitting. I use it for Internet purchases in particular: plane tickets & hotels, technology including a whole PC earlier this year. Current balance = zero: just paid it off in full, which I do every month unless it helps with cashflow to spread it over 2 months - which has happened about 5 times in the time I've had it.

So AIB probably don't like me very much, since they're not making much money off me, yet they keep renewing it. Now that Debit cards use the same systems as credit cards (VISA Debit etc.), I could probably do without it, but it's handy to have a "line of credit ". I saw previous posts about US customers getting booted if you don't spend enough: if that was happening here, I would surely be one of the booted.

Yamanoto

Candie wrote: »

Maybe they're okay with debit cards in Europe, but in the US they're reluctant (just in my experience) to rent a car without a cc...

Alamo, Enterprise & National will accept debit cards in the States, once you can provide proof of a round-trip ticket.

If anything, you're more likely to meet resistance or considerably greater rigmarole renting from from Euro franchises of the big operators.

WildWater

Augeo wrote: »

I use CC for everything possible, I pay them off 100% monthly so in addition to the must have element for booking and buying online etc I significantly reduce transaction costs on ATM withdrawals / debit card purchases etc.

It's also free credit for 30 days.

Great value all considered imo.

I was beginning to think I was the only one. Like Augeo we use ours (one account two cards) for everything possible and it is a central element of our budgeting strategy. I find it a great budgeting tool as I know exactly what we can spend to come on on budget each month and the cc gives me a simple running total plus an easy method of tracking all spending. Then a couple of days before the bill is due, I log on and pay it off in full.

I also travel for work quite frequently and by using my CC I can have my expenses claimed back before I have to pay the bill.

All round a great facility to have but if you can't manage one properly then you are better off without.