Give me good reason why one should have credit card. (bankrupt, student loan)

[AZDesertBrat]

Originally Posted by Clemencia53

Better security against hacking. With a debit, your money is gone if they go into your checking account.

With a credit card, it was money that was available to you, but not necessary - if that makes sense.

We have had too many cases of people getting their checking accounts wiped out here in my small town.

I don't even carry my debit card in my purse.

What bothers me about debit cards anymore is the fact that you don't NEED a PIN to use them. Most of them you can hit the "change payment" button, hit "credit" and it goes through without even a signature required if it's under $50. And often when it's more too. Using it that way doesn't allow any cash back though so maybe that's a blessing. But a person could still do some serious damage.

[AZDesertBrat]

Originally Posted by thinkalam

What are the pros and cons of having credit card? Can't you survive without one!

I can, and have, survived years without a credit card. I have one now and use it enough to keep it active and pay off every month. It's handy in case of emergencies, getting a hotel room, airline tickets, rental car, etc. etc.. The money is already in the bank to pay for those things so I don't mind using it.

My "one good reason" for having one? I WANT it!

[Retire in MB]

While you can survive without a credit card, why would you want to?
When you check into a hotel, many hotels will put a hold on your funds to cover not only the room rate but incidentals - this can sometimes be twice the room rate. If you use a credit card, the hold is released within a day or two. If you use a debit card it may take 10 days to release the hold so you can't use your own cash for that period.
If your debit card is stolen the bank has 10 days to review any transactions and then credit you back any funds they decide are fraudulent. You are with out the use of your cash during the investigation.
Properly managed credit cards have many advantages

Originally Posted by MJ7

You can't buy on-line without one. False, you can use debit or checking/routing.

Thus putting your bank account at risk.

You can't reserve a rental car or, buy an airline ticket, or reserve a hotel room without one. False you can use a debit or checking/routing.

Which ties up a lot of your available cash.

If you have good credit without a credit card then there really aren't any needs for it other than the almost zero rewards program marketing scam and the convenience factor.

How is it a "scam?" I swipe my card, they give me 1-6% back. This year I've gotten back over $500 just by using my credit card instead of cash.

[MLSFan]

My question is give me one good reason people are buying things that they can't afford, hence why they are weary of credit cards? I don't care how high the interest rate is, I never pay it because I always pay off the card each month.

People want to be "rewarded" but then turn away from credit card rewards because they can't do simple math of not knowing when they have to stop spending?

The benefits of a credit card is 1) I can defer the payment for a month (so I can invest the money for a month before paying it off, or until my paycheck fills bank account back up to pay it off) and 2) I like the rewards. The securing it provides is nice too, but the 2 reasons above are the main reasons I use credit cards and not cash and never debt card.

[MJ7]

Originally Posted by JasonF

Thus putting your bank account at risk.
Which ties up a lot of your available cash.
How is it a "scam?" I swipe my card, they give me 1-6% back. This year I've gotten back over $500 just by using my credit card instead of cash.

What happens if you miss a payment, even by just one day? Banks offer you these things in the hope that you miss payment, that you keep the card after the initial 0%APR and then hit the lowest APR available of 10-20+% and miss payments. Credit cards are risk, debit cards are not. Security breaches can occur with or without a debit card used, just look at Home Depot.

[jrkliny]

By federal law, fraud liability for credit cards is limited to a total of $50. Most issuers waive that amount so you have no liability. That is not necessarily the case for debit cards. Be sure to check the fraud protection for any debit card you use. The banks want your money up front and prefer debit cards so they do often provide 100% protection, but check to be sure.

I can understood those who want to avoid the use of credit cards. Many, many card users run up debts with high interest rates. I pay off my cards totally each month to avoid any interest charges. In addition to convenience factors use of the cards has a couple of advantages. First the use of credit cards (and prompt payment) will greatly improve your credit score. That can have a major effect for something like a mortgage. Next I really like the points. I buy everything possible on my card with double travel points. It is actually a "commercial" credit card and the points are double again what most people get. I paid for my daughter's tuition with the card. I even bought a $50K+ diesel pickup truck with the card. I have enough points to fly around the world a few times.

[GregW]

The most important function of a credit card is to provide evidence of your CREDability.

Originally Posted by MJ7

What happens if you miss a payment, even by just one day?

Depends on the card. Some will let it slide the first time. Others will hit you with a late fee. If you have a promo rate they might cancel that. But these are all things you agree to when you sign up. And how is it a scam if they charge you, as agreed, for not paying your bill? And why are you so irresponsible that you can't pay a bill before it's overdue? Set it up on autopay and never think about it again.

Are you one of those people who goes through life always blaming others for your own screwups?

Banks offer you these things in the hope that you miss payment, that you keep the card after the initial 0%APR and then hit the lowest APR available of 10-20+% and miss payments.

So? Still not a scam.

Credit cards are risk, debit cards are not.

Both are risk. With a debit card, you're risking having money you need be unavailable for some indeterminate period of time. With a credit card, the company is assuming some risk because you might not pay it back, thus they charge interest and fees.

You need to look up the word scam. It doesn't mean what you think it means.

Security breaches can occur with or without a debit card used, just look at Home Depot.

Home Depot is a perfect example of exactly why you should be using a credit card. Breach happened, Chase sent me a new card. Done. Someone stole my card number in San Francisco, Chase sent me a new card when they noticed someone trying to buy things with it in random locations; I even told them where I was traveling and they approved transactions with the old card until I could get home and get the new one. If it were my debit card that was compromised, it would've been a much bigger deal.

You really trust your checking account to companies like Home Depot? A company that hired a guy who sabotaged his former employer's network when he got fired, and who actually said, "I love to write and distribute Viruses"? He's now in jail for the sabotage. Why would you trust them to keep your checking account safe and secure? Let them have a credit card so at most you have to deal with the hassle of activating a new card.

[longnecker]

Say you are dissatisfied with a purchase or hotel stay. If you paid with cash or check chances of getting anything back are slim. A credit card company can be a big help there.