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elmosawawi

Credit cards

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Hi everyone,

 

With lesser people in US and Europe have credit cards does everyone still have 1?

 

I never have one and probably never will and I am debt free. :thumbsup:

 

Elmo

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As an accountant I don't understand the no credit card culture. If you are using your credit card irresponsibility obviously you're going into debt. If you're using it with the full knowledge you can pay it off at the end of each month then there's every reason to get a credit card. Firstly you'll need good credit rating, and also you have MUCH better protection using a credit card than anything else (carrying tons of cash on you, use a debit card), and you get card benefits.

 

I am debt free since I paid off my student loans DECADES ago and I have several credit cards with no outstanding debt.

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I have three credit cards, each for different purposes. I pay it off at the end of every month, and I have an excellent credit rating.

 

Like TL, I don't quite understand the "no credit card" culture. It's the other extreme of the whole "I got a credit card, let's max out my credit!" culture. Reasons why you should have a credit card:

 

- Credit building. Try buying a car or getting a mortgage with no credit... or your rates will be through the roof. Obviously it helps that I'm in engineering, but this is another story.

- Card benefits. Cashback, reward miles, etc. None of these can be obtained with your prepaid or debit card. I get paid for spending money that I am going to pay back anyway. Also, I got credit cards that offer theft protection and free extended warranty.

- Some places only accept credit cards. Just saying. I've been to stuff like parking meters that simply do not accept cash.

- Additional protection. The consumer protection of credit cards against the seller is greatly tilted towards the consumer.

- Security. If you lost $100 cash, it's gone. If you lose your card, you lose nothing.

- A dollar today is worth more than a dollar tomorrow. I can keep my cash invested in a higher interest account, which may take up to a week or two to release. If I need to spend, for example, $3000 now, I can keep the money in my high interest investments for extra time, and still pay back my credit card on time. I'm getting an interest free loan at the expense of other people.

 

There are MANY reasons why you should get a credit card. If you can't spend responsibly, then don't blame the card. It's like saying you should never own a car because you're just going to drive at 200km/h, and everyone should take the bus instead. If you don't speed, then there's no issue.

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I only really use my Credit card when I got no money in my bank account or if I want to buy something that's online. When it comes to like filling up my car with gas or buying food, etc I use my Debit bank card.

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100% agreed with TL and chc, add 1 more: if you Travel a lot a Credit card is almost a Must.

Yep, that too.

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I have three credit cards, each for different purposes. I pay it off at the end of every month, and I have an excellent credit rating.

 

Like TL, I don't quite understand the "no credit card" culture. It's the other extreme of the whole "I got a credit card, let's max out my credit!" culture. Reasons why you should have a credit card:

 

- Credit building. Try buying a car or getting a mortgage with no credit... or your rates will be through the roof. Obviously it helps that I'm in engineering, but this is another story.

- Card benefits. Cashback, reward miles, etc. None of these can be obtained with your prepaid or debit card. I get paid for spending money that I am going to pay back anyway. Also, I got credit cards that offer theft protection and free extended warranty.

- Some places only accept credit cards. Just saying. I've been to stuff like parking meters that simply do not accept cash.

- Additional protection. The consumer protection of credit cards against the seller is greatly tilted towards the consumer.

- Security. If you lost $100 cash, it's gone. If you lose your card, you lose nothing.

- A dollar today is worth more than a dollar tomorrow. I can keep my cash invested in a higher interest account, which may take up to a week or two to release. If I need to spend, for example, $3000 now, I can keep the money in my high interest investments for extra time, and still pay back my credit card on time. I'm getting an interest free loan at the expense of other people.

 

There are MANY reasons why you should get a credit card. If you can't spend responsibly, then don't blame the card. It's like saying you should never own a car because you're just going to drive at 200km/h, and everyone should take the bus instead. If you don't speed, then there's no issue.

nailed it right there

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