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Why go through the trouble of the credit card? Aside from the points and the credit score, what net life benefit does it give you? You get to hold onto cash that's already spoken for, how exactly does that make any sense?
Why go through the trouble? For me:
1. Tracking spending is easy. I review my charges and plug them in to my spreadsheet.
2. Bill paying is streamlined. I set up recurring payments for utilities, insurance, Netflix, etc. A few minutes of effort to set up, but once it is done, I set up one transfer from checking to credit card, and I am done. (I have one utility bill which will not accept a credit card as payment without charging a fee. That one I pay directly from checking).
3. I like the free money. As I said earlier, I have redeemed more than 1k of rewards this year so far.
4. I like knowing that when I have the occasional problem with a purchase I cannot resolve with the merchant, I have an extra layer of protection.
5. I like knowing that if my credit card number is compromised, all I need to do is report it and ask for a card with a new number to be issued. Nothing is coming out of my bank account as a result.
Points, cash back, priority boarding, free checked bags, travel insurance, ad&d insurance, extended warranty, protection against loss or theft, the float and security over direct debts hitting my checking account those are benefits I get
Quote:
Originally Posted by David Aguilar
Why go through the trouble of the credit card? Aside from the points and the credit score, what net life benefit does it give you? You get to hold onto cash that's already spoken for, how exactly does that make any sense?
That's the part I don't understand. All my expenses are tracked for me, giving me a firm audit trail if I need it. I don't have to find an ATM to get cash(especially useful when travelling), and on top of that, they're paying me to provide me with those benefits. All for what trouble?
A CC is a convenience. I don't see how it's trouble at all.
Credit is fine, as long as you control it, not the other way around. You cannot rent a car without a credit card,
Correction: You can't rent a car from some places without a credit card. I am happy to take my business elsewhere but this is a personal decision and you are free to use or not use credit cards.
Quote:
Originally Posted by gentlearts
and, right or wrong, you get no credit rating for paying cash for everything. You cannot buy things online, or cover emergencies, without a credit card.
I have done both. I can buy anything online with my debit card that you can with your credit card and there has never been an emergency that required me to use a credit card. I made some foolish moves a while back such as allowing more than $22,000 to accumulate in an account linked to my debit card but thankfully no one took advantage of it and now I avoid it by moving money elsewhere.
Quote:
Originally Posted by gentlearts
Being adamantly against it is dumb, in my opinion. You just need to maintain constant control.
What we do is always use "same as cash" credit options. We use it, they don't use us. Even if I had the money, I would still buy a car at a zero interest option.
These deals are not always available, are only available on new cars, and also require you to forgo a cash-back discount in most cases. So the effective interest rate is definitely not zero and having a new car on borrowed money also costs you more in both collision insurance and depreciation than a gently used car bought in cash with a reasonable deductible ($2000+).
Quote:
Originally Posted by gentlearts
We charge everything we can of our monthly expenses on a Capital One Venture card, then we pay the balance every month. For this, we get points for travel expenses. We opted for a $59. fee after the first year because the points are doubled.
If you are always in control, you do not need to be fearful of credit.
All that risk and work for a piddly $59? Annual fees reduce that, and you can incur a late fee if a payment doesn't get in on time. Even if you try to pay your full balance on time every month crazy things happen. A friend of mine had an electronic payment fail to go through even though he had sufficient funds and they slapped him with interest and late fees. It's worrisome enough for me just to not get rent checks, etc. lost in the mail. I hate paying bills and don't see another one as worth the trouble. Even autopay sometimes fails as it did with my cell phone a couple years back. The last thing I want is to add another bill I don't need.
To each his/her own. Some people find living with no credit card a huge hassle, and others would find having one a bigger hassle than not. Neither is objectively right or wrong and a responsible person may go with or without.
Credit is fine, as long as you control it, not the other way around. You cannot rent a car without a credit card, and, right or wrong, you get no credit rating for paying cash for everything. You cannot buy things online, or cover emergencies, without a credit card. Being adamantly against it is dumb, in my opinion. You just need to maintain constant control.
You can't? How have I been doing it then? Bank-issued check cards linked to checking accounts, used as credit (w/Visa or Mastercard logos)......
What do I need a credit rating for? To get more credit that I don't need? I've already got my house.
I'm confused by your response. Why did you ask a question only to follow the answer with a smartass response?
I was expecting more than what were mostly travel frivolities.
Quote:
Originally Posted by Petunia 100
Why go through the trouble? For me:
1. Tracking spending is easy. I review my charges and plug them in to my spreadsheet.
2. Bill paying is streamlined. I set up recurring payments for utilities, insurance, Netflix, etc. A few minutes of effort to set up, but once it is done, I set up one transfer from checking to credit card, and I am done. (I have one utility bill which will not accept a credit card as payment without charging a fee. That one I pay directly from checking).
3. I like the free money. As I said earlier, I have redeemed more than 1k of rewards this year so far.
4. I like knowing that when I have the occasional problem with a purchase I cannot resolve with the merchant, I have an extra layer of protection.
5. I like knowing that if my credit card number is compromised, all I need to do is report it and ask for a card with a new number to be issued. Nothing is coming out of my bank account as a result.
1. I can do this with my bank account.
2. I do this with my bank account. Some bills which I can have auto-debited I still pay manually (via phone or online) because they vary every month, and I like to be precise in my calculations.
3. The $1K in rewards you received came out of the massive profits the CC company made off other, less responsible people's interest payments.
4. They offer this service as a benefit to draw in people that will pay them interest.
5. "If". This is what I use. Sounds a lot like what the CC companies offer. Looks like I somehow can get "free money" too.
I was expecting more than what were mostly travel frivolities.
1. I can do this with my bank account.
2. I do this with my bank account. Some bills which I can have auto-debited I still pay manually (via phone or online) because they vary every month, and I like to be precise in my calculations.
3. The $1K in rewards you received came out of the massive profits the CC company made off other, less responsible people's interest payments.
4. They offer this service as a benefit to draw in people that will pay them interest.
5. "If". This is what I use. Sounds a lot like what the CC companies offer. Looks like I somehow can get "free money" too.
Most of what I listed was unrelated to travel. It's sad you have a poor attitude that clouds your ability to think rationally.
3. So what?
4. So what?
5. That is still more of an issue to have your bank account compromised than a credit card
Most of what I listed was unrelated to travel. It's sad you have a poor attitude that clouds your ability to think rationally.
3. So what?
4. So what?
5. That is still more of an issue to have your bank account compromised than a credit card
I agree with you mostly but one could make the ethical argument that even if you have zero credit card debt, you would be indirectly exploiting people that are in debt to their eyeballs. I can respect the view that credit cards are worth having for the rewards, and I don't consider anyone to be a bad person just because of their credit cards, but I will never do this myself.
I agree with you mostly but one could make the ethical argument that even if you have zero credit card debt, you would be indirectly exploiting people that are in debt to their eyeballs. I can respect the view that credit cards are worth having for the rewards, and I don't consider anyone to be a bad person just because of their credit cards, but I will never do this myself.
I do not feel bad for any amount of time that others can't manage their credit and pay interest. Not only that but I'd surmise that the rewards are paid more from the merchant charges than interest. In that notion we all pay for the rewards no matter if you pay with cash or credit. I'm paying for it and collecting, you are just paying for it
Why go through the trouble of the credit card? Aside from the points and the credit score, what net life benefit does it give you? You get to hold onto cash that's already spoken for, how exactly does that make any sense?
My AmEx points fly me to to Denmark this Christmas and there's enough left over that the Missus and I can do a spring vacation as well. That's a net life benefit in my book. You may call it a frivolity if so you choose.
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