Need a credit card for anything these days?

If you don't have a credit card Some car/most rental companies won't take your booking. Some Hotels won't accept a booking without a credit card (which is ridiculous) Was at a funeral last year and they wouldn't take my Debit card when checking in

Ba-dom-tish.

In the event your card is scimmed with a credit card it’s the banks money not your money that is missing.

Now if a debit card is skimmed you may get it back but you might be waiting.

I never had a credit card, just a debit card. I didn't really find it a problem paying for hotels here but in the States I had to give a large amount of cash as a security deposit. I get by with a debit card.

Does Ireland have anything like the UK's Section 75 protections?

I can't see how there was a problem. All the rental company has to do is take the excess amount from the debit card, hold on to the money and refund it when the car comes back undamaged. It sounds to me like they were playing hardball to force the tourists to buy their rip-off insurance. Or, maybe the people did not have enough money in the bank to cover the excess. It does illustrate the big difference between having a credit or debit card when it comes to car rental.

I am aware that some rental companies refuse to accept a debit card. But it begs the question - how did those people manage to book the car in the first place?

I feel much safer using the credit card for online purchases.

If money gets stolen, it's the credit card company that's out of pocket, not me.

That's not true. If you file a chargeback on a debit card you get provisional credit until the issue is resolved. This happened me last year. (Revolut issued Visa debit).

I had a 12k limit credit card, which I gradually maxed out. Once I cleared that off I cut it up and got rid. I then vowed never to have a credit card again as I'm too impulsive. I've rented cars, stayed in hotels etc without issue.

I'd rather not chance it. I've never once accrued interest on a credit card so I'm fine with having one.

That's the main thing to watch with a credit card, running up bills like that on a credit card is madness. No offence meant Elm.

In my eyes a credit card should be used and balance cleared each month or so. A high limit is fine to cover for those moments where you're caught out. The one thing you do not want is credit card collections chasing you as they will absolutely hound you till you're fit to crack up.

Is there a place for them? Yes, they're handy access to instant credit. Are they a requirement these days? No, not at all.

Do they get some people into more financial trouble than they're worth? 100%

While we use them in pretty much a similar way, the reality is that, in the background, they are polar opposites (hence the "Debit" and "Credit" parts).

A Debit card is simply an electronic way of asking your bank to transfer money from one account to another (from your account to the retailer's account). And that's it. If there are any problems, the issue is between you and the retailer, not the bank (other than you hassling them and they, maybe refunding you out of goodwill). A credit card, on the other hand is derived from charge cards which, in turn are derived from "tabs". A credit card is an electronic way of asking your bank to buy you something and "stick it on your tab". It is the bank who buys the item. If there are any problems, the issue is between the bank and the retailer, not you.

While banks "offer" a similar dispute/protection policy, it is only an "offer of goodwill" and is down to how good the bank's customer service is. With a credit card, the bank is legally on the hook, not you. The other big difference is, with a debit card, the money leaves your account straight away, whereas with a credit card, the money doesn't leave your account for 4-8 weeks after (and longer if you desire). Not only does the "possession is nine tenths of the law" phrase apply here, but it also impacts the inconvenience of trying to get a refund.

Classic examples are where, during the Great Recession, lost of people had problems when buying furniture (where you typically purchase a sofa, but it doesn't get delivered for several months) and the company went out of business prior to delivery. People who paid with a debit card lost their money and were simply added to the list of creditors for the bust company. People who paid with a credit card simply had the charge removed from the credit card account and the bank got listed as a creditor. More recently, during the pandemic, people had similar problems with hotel and airline bookings as well as concert tickets etc. With a credit card, there was no problem. With a debit card, people were at the mercy of their banks customer service policy (which varies considerably depending on the circumstances).

You indicate you have had an experience and the bank did well by you. That's great. But the problem is - do you trust your bank will always do "right by you" when they don't necessarily have to?

There are other cons regarding using debit cards in lieu of credit cards. If a criminal was to get your debit card details, they could clear out your current account. Let's say that happened yesterday (Holy Thursday). While you may have contacted your bank and the card is now cancelled, your current account is empty until your bank investigates which won't even begin until Tuesday. Even if they do find in your favour, it could be the end of next week or even the week after before the money is refunded to you. in the meantime, you have no money and direct debits/standing orders going unpaid as well as no money to buy food/groceries etc. On the other hand, if your credit card is compromised, and the criminal uses it to buy things all the way up to you car limit, you are not really impacted unless you had planned to purchase some expensive item in the coming days. You ring your bank, they cancel the card, and later next week, the fraudulent charges are removed from the credit card account. But, in the meantime, your current account is still fine - you still have all the money at your disposal that you otherwise would have.

Bit of a grey area that. Dunno about things in Ireland but under UK law (S.75 Consumer Credit Act 1974) they are very explicit about the credit card company being liable for supplier failure. It is a major reason that I used a UK credit card even when living in Ireland.

Why transfer immediately after purchase? Your credit card provider will give you 30-60 days free credit. Just pay via direct debit so you don't forget.

As to whether credit cards are worth it ... I have used a credit card for the last 20 years and paid it off each month. I much prefer a credit card over a debit card. AIB give me 0.5% Cashback via Platinum Card on purchases over 5k per annum, I only have you deal with one payment per month rather than constant amounts going out with debit cards and I pay off in full each month via direct debit. If you are disciplined then a credit card is worth it.