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I consult for clients around the country. I've racked upwards of $15,000-$20,000 in reimbursable travel and business expenses in the course of a month. Do you seriously suggest that I take that money out of my checking account? I am not the bank for my clients.
Second, as someone who has next to no consumer debt and someone who pays for almost everything via cash or debit card, I can say that having access to credit in exigent situations is simply smart. I don't care how much you have in savings.
12-20-2014, 10:01 PM
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n/a posts
Quote:
Originally Posted by thinkalam
what about debit card or any other similar card !
Debit card is not similar.
A charge card like American Express might be viable. Some of them even reimburse airline fees (baggage, meals, etc), though you'll pay a hefty fee for that benefit.
It is great to have a credit card for all reasons mentioned. Definitely better than cash, and especially better than a debit card.
If you are buying lunch for $15, and you have the cash, just use your credit card, keep the cash in bank, then pay credit card at end of month. Always use credit card..
Only if... Only if... Only if... Only if...
Only if you pay the balance in full every single month. That means only use the credit card for things you would have surely paid for with cash. Never pay interest. Only buy what you know you can definitely pay off at the end of the month.
If there is some crazy emergency, and you need to use credit card for something you can't afford? Like your car breaks down. Go back to using cash until you pay off the credit card in full.
Anyone can get a credit card too. If you have bad credit, or no credit....and are ready to be a responsible adult. Go to a Capital One bank branch, and they will hook you up with a credit card. Just be responsible and always pay in full each month.
I tore up my credit cards 30 years ago and have worked off of cash and my debit card ever since. I've traveled, paid for hotels, rented cars, and done all the things you have described. I simply like to know I can afford something before I buy it.
Might not work for everyone, but I live comfortably, drive nice cars, spend money whenever I want, and have been able to put away money because of my being careful.
Sometimes its your only emergency source of cash, such as unforeseen medical bills, etc. I know, someone will respond with that's what you have an emergency fund for, but sometimes your emergencies come back-to-back and exceed your emergency funds. You can't always plan for all the unexpected in life.
Just this week, my MIL died. She didn't have any life insurance and no funds, although she spent through her funds without leaving any provisions for final expenses. We had to do something, and funeral homes do want paid! Most take credit cards, but few will set up extended payments. The most simple service we could find came to $800, which we put on a credit card. We do have such money in the bank, but over the weekend, its a process of transferring funds, writing a check, etc, all the while, there she was in "storage" in the hospital and no place would pick her up without payment. See, there's times you simply need a credit card, one should at least have one for such contingencies!
the interest on my home loan is calculated off the loan & savings.
The more I have saved = less interest
I have a 55 day credit card, which I use for more expensive things, and allows me to keep that bit more in savings account for a little longer.
I've never paid 0.01c in interest on my credit card.
The real reason why you should carry credit cards (always carry them concealed) is because you have a 2nd amendment right to carry them. Don't disrespect the 2nd amendment by not carrying them. And don't listen to the arguments about people getting killed. Credit cards don't kill people; people kill people. We need credit cards to defend ourselves from a bad government. If you ever run out of credit, it means you've been using your credit cards too carelessly, shooting everything in sight with them. Make sure you don't carelessly leave your credit cards lying around where burglars can steal them. Burglars commit crimes with credit cards. Also never let your kids get their hands on them. They have no idea how dangerous they can be in the wrong hands.
Cons: can be stolen, some people are irresponsible with credit
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