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I've tried to keep a credit card for "emergency" reasons or for transactions that I feel less secure in conducting, and I'm just not disciplined enough. To this day, I've carried at least a small credit card balance for probably 17 years. Now, I have paid off some and ran others up, but I've been indebted to a credit card company since college, in various amounts. Currently, getting my head knocked off over about 13k in cc debt.
We no longer carry a cc as a household. if we can't buy it with cold hard cash or debit, we don't buy it.
And in your case that makes sense. No one in this thread defending credit card use has said that everyone must or should have a credit card, only that there can be perfectly good reasons for doing so (because they offer rewards and protections that debit cards do not).
And here's a tip that decreases some of the risk associated with using a debit card exclusively: keep the bulk of your money in an account that is not linked to the card. Once a week, transfer the amount you'll need for the week into the debit card account. That way if your debit card is compromised, you'll only be out a week's worth of money while the bank straightens out the mess instead of an entire paycheck's worth.
#3 can be done with a debit card also. #1 and #2 can sometimes also be done with a debit card, but it is not universal.
But why would you want to spend your own money for a work expense? When using a debit card, the money is removed from your account immediately. If you put the work expenses on a credit card, it's possible that you will be reimbursed for those charges before the statement due date, thus you are never actually using your money.
Rewards programs, extended warranty, travel insurance, free checked bags for air travel, priority boarding for air travel , utilize the interest free purchasing period every month, if the cards is lost, stolen or compromised it doesn't impact my bank account. I'm sure there are others
Convenience is the main reason....put off paying for everything until the end of the month and let my money grow a little interest in the bank. Send out one check instead of dozens.
But the points are what really make it great. We once had a GM master card that earned points toward a new car. We charged everything we bought on it for about 4 years. Then went to the dealer, made a great deal on a car for one of our kids, and then after we started signing, told them we wanted to pay for part of the car with our $3600 in points on our card. For free, just for using that card instead of another one! we did the same thing with a Ford card, using over $2800 for an Escort for our youngest daughter. Paid off the card balances monthly, and never paid one cent in interest.
We now have a Marriott card with about 30 free nights on it, and a Amex card linked to our Delta Sky miles account, earning us free trips.
My question would be, if you can discipline yourself to pay off the balance each month why would you not use a credit card?
ok I did have a small $500 one a long long time ago when they first started pumping them out.. just to say I have good credit... but wanted nothing to do with it... not gonna force me to borrow someone else's money when I don't need it.
debit card works fine for everyday life.. I dont need rewards either... people might want those thing but you dont need them
CC's are great. Rewards make things cheaper, the convenience factor can't be beat in terms of payment method when combined with the security, and the 30-60 day free loan has many reasons why it's useful.
But, people who have trouble resisting the temptation to spend money simply because they can, will find themselves in debt and to them all of the above aren't worth paying almost 50% more for something(if paying only the minimum).
This thread asked for good reasons to have a credit card. I think they're pretty obvious at this point. The arguments against cc's seem a little off topic for this thread though and have been hashed out probably more times than anything else on this board.
Debit cards are also less secure than credit cards. Sure, if your debit card gets compromised and a thief empties out your bank account, you'll get your money back... eventually. What do you do in the meantime? It can take WEEKS to get the mess straightened out.
With a credit card, the card number is canceled and a new card is mailed to you immediately. It's a minor glitch, not a major stressor.
I lost my debit cards a couple times and had no problem cancelling and getting a new one sent in a couple days at most 7. But I guess I caught it soon enough because the money was still on it... so don't know how long it would've took to get it back.
But you can just link a free savings account or another (free) checking account to your debit card you use and just keep most of your money in that account. That's what I do. You can't do that with a credit card. Thousands and thousands of dollars in one place on one card. Nope... don't like that. I never have to worry about anybody stealing a lot of money off of my debit card... or losing it. I have a savings account too where I kept most of my money (all of it) and I just go online whenever I want and transfer whatever amount I need from my savings straight into my checking account linked with my debit card. I make sure I never keep more than a couple hundred on my debit card just incase it gets lost or stolen. Only like 1% of my total life savings. You're stuck with your credit card... you can't do that. Just gotta hope it doesn't get stolen.... then go through whatever you gotta go through to get it back.
But why would you want to spend your own money for a work expense? When using a debit card, the money is removed from your account immediately. If you put the work expenses on a credit card, it's possible that you will be reimbursed for those charges before the statement due date, thus you are never actually using your money.
Because it is earning 0.05% and I see no reason to care.
I lost my debit cards a couple times and had no problem cancelling and getting a new one sent in a couple days at most 7. But I guess I caught it soon enough because the money was still on it... so don't know how long it would've took to get it back.
But you can just link a free savings account or another (free) checking account to your debit card you use and just keep most of your money in that account. That's what I do. You can't do that with a credit card. Thousands and thousands of dollars in one place. Nope... don't like that. I never have to worry about anybody stealing a lot of money off of my debit card... or losing it. I have a savings account too where I kept most of my money (all of it) and I just go online whenever I want and transfer whatever amount I need from my savings straight into my checking account linked with my debit card. I make sure I never keep more than a couple hundred on my debit card just incase it gets lost or stolen. Only like 1% of my total life savings. Your stuck with your credit card you can't do that. Just gotta hope it doesn't get stolen.... then go through whatever you gotta go through to get it back.
That's called having a second card with a smaller limit... Same thing. You artificially reduce your spending ability in order to limit your risk while keeping the rest of it in a separate place. Only with a CC it's entirely pointless to do since you don't have the risk.
Having a credit card stolen isn't a big deal at all. It's the same process you went through to get your debt card returned only without the risk of your cash being gone. Someone runs up thousands of dollars on a CC and you just tell the company it wasn't you and it was stolen. Problem solved. The charge goes away and you never have to think twice about it.
1.irresponsible with little or no self control
2. Just don't like them or debt(which is irrational)
3. Possible annual fee
There really aren't many good reasons #3 being the only one which you can avoid
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