Why Use Credit Cards?

Zandoni

I have you used credit cards for many years. When I was poor they were very useful as long as you don't go to mad. Now that I am financially stable I use them like many others. I buy everything I need with it and pay it off in full with direct debit, getting my bit of cash back and protection on a lot of my purchases.

storminbalder

calibrax wrote: »

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.

You are actually incorrect on both your statements.

Hotels - I have never had a problem booking a hotel room using a debit card (Maestro). Most recently the Ibis in Hull.

Car rental - I must admit i was surprised on this one. I recently had to hire one from Enterprise in Scarborough. Again, no problem, they were more than happy with my debit card and only wanted the standard £100 deposit which would have had to have been paid with a credit card anyhow.

So I agree with the original poster. Credit cards are for fools and have no discernable use.

moonrakerz

littleowl wrote: »

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

It will only be a matter of time before someone is using your debit card number fraudulently. Then you will see the advantages of a credit card !

IHateDida

I've had my M&S credit card for 2 years now - during that time I've had about £150 back in M&S vouchers and it hasn't cost me a penny as I pay off my credit card before the 55 days interest free is up. Why would I not want £150 to spend in M&S free??!?!?!

But of course...if you are the type not to pay off your card at the end of the interest free period....then steer clear of credit cards. If on the other hand you are capable and willing to keep track & pay off.....then snap up the freebies that can be had from owing one!

Lottebear

For me there has been times when I haven't had the cash to pay for things I have needed, for example getting a job after uni and buying office clothes. Also hoildays, free protection, free to borrow, keep my savings earning interest thanks!

rl290

Littleowl, while I am in agreement with your general points, and am massively against how easy it is for people to gain access to excessively large amounts of debt, surely you concede that an intelligent money-saver can do well from credit cards:

1. Protection on credit cards is FAR stronger than on Visa debits. To quote Martin: "The key difference is that when you complain on a credit card under section 75, the credit card company itself is legally liable, with the chargeback it's just about the Visa/Mastercard process and that is no where near as weighty plus you can't go to court"

2. Cashback - I earn 5% cashback on everything I buy with my Amex. Apart from your paranoid remark about it earlier, why is this a bad thing? I pay off the card every month

3. Stoozing - if you are genuinely quite money-savy you can make significant amounts of money from interest free deals...

Now, you describe how you used to get headaches juggling bills etc, which I can understand. However, for those of us who are able to use cards to our advantage without any problems then they can be a real benefit to us. For you though, it seems that you are better off without them..

R

johnllew

storminbalder wrote: »

So I agree with the original poster. Credit cards are for fools and have no discernable use.

Rubbish. No discernable use? I've made over £100,000 from credit cards over the last 15 years, mainly through "stoozing".

Who's the fool?

storminbalder

johnllew wrote: »

Rubbish. No discernable use? I've made over £100,000 from credit cards over the last 15 years, mainly through "stoozing".

Who's the fool?

I must admit I made this comment partly in jest. Though I do find it concerning that some people seem to almost worship their cards.

I think they can be a force for evil. Some clearly can control them, and this might include yourself. But it would seem that the majority people (aecdotally at least) seem to be the controlled party.

I can't help wondering if the world would be a better and happier place had they never existed.

Mozette

littleowl wrote: »

Because it carries unpleasant strings doesn't it?

What strings? Direct debit to pay my egg money card in full each month, spend on it, get 1% cash back on all my spending, don't pay a penny in interest or charges. NEVER take cash out on my card, never use it for deemed cash transactions. So... what strings I keep to the T&C, I get 1% of my spending back.

So, why would you not want free cash?

Mozette

storminbalder wrote: »

I can't help wondering if the world would be a better and happier place had they never existed.

The world would be a better and happier place if a lot of things didn't exist, but you have to deal with reality and what you've got, not a dream world and what you want.