Why Use Credit Cards?

johnllew

littleowl wrote: »

Why use credit cards?

How about:

- extra protection under S75?
- up to 56 days interest-free so I can keep my money earning interest for longer?
- cashback earned on purchases?
- to make thousands of ££ "stoozing"?
- convenience: saves carrying large amounts of cash around

Credit cards - couldn't/wouldn't do without them.

Purchase protection is also offered on debit cards I believe.

Very little and only on Visa debit cards - a poor alternative.

littleowl

Kavanne wrote: »

Er? like what!?

Amex = 5% cashback for FREEEEEEEE.

Also, purchase protection is not offered on debit, please go and read up on the 'XL' incident. And do some research before you make such ridiculous posts.

Erm - I believe that if a debit card carries the Visa logo it offers the same purchase protection doesn't it?

littleowl

johnllew wrote: »

How about:

- extra protection under S75?
- up to 56 days interest-free so I can keep my money earning interest for longer?
- cashback earned on purchases?
- to make thousands of ££ "stoozing"?
- convenience: saves carrying large amounts of cash around

Credit cards - couldn't/wouldn't do without them.


Very little and only on Visa debit cards - a poor alternative.

Why is that a 'poor alternative' ? You are covered in the same way and you are not borrowing.
As for cashback earned on purchases - what - a few percent - you are joking?

normanmark

littleowl wrote: »

Erm - I believe that if a debit card carries the Visa logo it offers the same purchase protection doesn't it?

No it doesn't.

calibrax

When travelling, try hiring a car, or staying in a hotel without a credit card. To most places you'd be an unacceptable risk and they'd turn you away. Unless you paid cash up front, and in the case of a hire car, left a hefty deposit or bought insurance to cover against any cosmetic damage to the vehicle.

If you travel on business most companies expect you to pay the costs then claim them back on expenses. Unless you have a credit card, this means you'd have to take out savings and lose out on interest... you then have to wait to be reimbursed. With a credit card's interest free period, you simply pay on the CC, claim the expenses, and pay off the CC once your company pays you.

Credit cards are a very useful tool when used correctly. If you don't trust yourself then you shouldn't get one. However saying that they aren't needed is like saying a telephone is not needed, or the internet is not needed - it's true, you can get by without them, but they do make life easier in many many ways.

You need to differentiate. Living on credit, and using a credit card to help you manage your money efficiently are two VERY different things.

Spark

I had my first card for buying on the internet, it offers more protection for purchases on the internet. There isn't as much protection when you use a debit card.
I use the card with the lowest APR to budget. Ex : if I had to replace a broken computer or washing machine, I would hit the internet and order a replacement, and pay with a credit card. Now, I would repay the balance in 3 or 4 months, yes, I would pay some interest, but not much. And I would avoid to buy anything else until that particular purchase is paid off.
Sometimes you find bargains that you want to grab, and you would necessarily not want to spend money you have in your account that particular time, but you can buy that bargain there and then and pay later.
I never pay my bills or weekly food shopping with it, it's more for luxuries and emergency things, and I always make sure that I have enough money in my account to pay back my credit balance at once in case I lose my job.
I must say, you need to be well disciplined to use it the way I do, as it would be very easy to just spend spend spend and find yourself in a mess.
But it is so convenient that it's difficult to go without at least one.

johnllew

littleowl wrote: »

Why is that a 'poor alternative' ? You are covered in the same way

No, you're not, only in limited circumstances. S75 gives far greater protection. You don't know what you're talking about which undermines the rest of what you say.

As for cashback earned on purchases - what - a few percent - you are joking?

I average £500 a year in cashback and will easily exceed it this year. How much do you get back using a debit card?

Mrs_Ryan

I couldnt cope without a credit card now, to be honest. My credit card is an absolute lifeline to me, and even my partner (who doesnt believe in credit cards) occasionally asks me to pay for something using mine as it is safer - for example, we are flying to Ireland next year and need to get a connecting flight using a small Irish airline. We both have Alliance and Leicester Visa Debit cards but we have both agreed to use my credit card as if the airline went under then we would be protected.
Plus my debit card (due to an irritating anomaly with the programming of it) isnt accepted in some places. Without my credit card, at times I would have been stranded alone in Nottingham late at night when the cash machine was out of order and the ticket machine wouldnt take my card. How could my debit card save me then????

iceicebaby

2p off a litre of petrol and the extra protection on big purchases

littleowl

I do travel and I do use hotels. I have never encountered a difficulty using a debit card in those circumstances.

I believe that living with credit cards is a state of mind, it is possible not to do so or how would a whole nation manage without them?