Why Use Credit Cards?

NickX

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.

These "Credit Cards are Evil" posts come up fairly regularly.

I completely agree with johnllew above, used with prudence Credit Cards can provide you with an enhanced quality of life and will earn you more money that if you use cash\Debit Cards only.

Naturally if NOT used with prudence, then they can lead to problems. But that is what this board is all about, for us to learn from the experiences of others and make our usage of Credit Cards more effective.

I find it strange that people should post such negative Credit Card messages on a Credit Card forum

littleowl

NickX wrote: »

These "Credit Cards are Evil" posts come up fairly regularly.

I completely agree with johnllew above, used with prudence Credit Cards can provide you with an enhanced quality of life and will earn you more money that if you use cash\Debit Cards only.

Naturally if NOT used with prudence, then they can lead to problems. But that is what this board is all about, for us to learn from the experiences of others and make our usage of Credit Cards more effective.

I find it strange that people should post such negative Credit Card messages on a Credit Card forum

The reason I posted this was directly linked to the current financial crisis. It seems to me that the ethos of borrowing - whether large or small, by nations or individuals - is a practice which requires the strongest regulation.

Whether that be outside regulation of financial institutions whose actions will cause us all to suffer, or self-regulation by individuals.

I wanted to raise the question whether our society has become so entrenched with the idea that we can spend spend spend because endless credit is (probably now was) available is something that should be re-thought.

Babu

I have ridiculously high credit limits on a number of credit cards. This does not mean I spend to those levels. I have never paid a penny in interest charges nor in late payments.

I do not use my debit card for any purchases whatsoever. I don't see why I should use my money when credit card companies have provided me with credit limits for a number of days.

I also have earnt a large amount of money from credit card companies by stoozing.

Everything I purchase gets settled by direct debit when the payment is due.

I have been the victim of a number of fraudulent transactions on a number of credit cards in the past, these have been sorted by the credit card companies very quickly and I have had new cards issued. If this kind of fraud happened with my debit card then I would obviously have problems with my current account.

I don't consider myself particularly savvy or financially astute, however, it does not take a lot to use credit cards to your advantage rather than the big credit card companies' advantage.

littleowl

Babu wrote: »

I have ridiculously high credit limits on a number of credit cards. This does not mean I spend to those levels. I have never paid a penny in interest charges nor in late payments.

I do not use my debit card for any purchases whatsoever. I don't see why I should use my money when credit card companies have provided me with credit limits for a number of days.

I also have earnt a large amount of money from credit card companies by stoozing.

Everything I purchase gets settled by direct debit when the payment is due.

I have been the victim of a number of fraudulent transactions on a number of credit cards in the past, these have been sorted by the credit card companies very quickly and I have had new cards issued. If this kind of fraud happened with my debit card then I would obviously have problems with my current account.

I don't consider myself particularly savvy or financially astute, however, it does not take a lot to use credit cards to your advantage rather than the big credit card companies' advantage.

i have only used a debit card and have never had a problem - no fraudulent transactions - nothing (fingers now firmly crossed!)

I do wonder, though, how much longer credit card companies will continue giving high credit limits - especially to those people who use them carefully and, therefore, earn the companies no profits?

Now - and in the near future - perhaps they will no longer be able afford to do this?

However many people say they use their cards to earn and never pay interest I don't think that alters my opinion that the only safe and decent way to behave is to pay for what you want and if you can't afford it then you don't have it.

In the final analysis how does the buying of 'things' enhance life? Those same 'things' end up in landfill when the next desirable object comes along.

Mozette

littleowl wrote: »

However many people say they use their cards to earn and never pay interest I don't think that alters my opinion that the only safe and decent way to behave is to pay for what you want and if you can't afford it then you don't have it.

In the final analysis how does the buying of 'things' enhance life? Those same 'things' end up in landfill when the next desirable object comes along.

I can afford what I buy, and I pay for it! It's just that I put it on my credit card, then pay it off when I get the bill, with money that has earned me interest, and I get cash back. I'm buying food, transport, clothing (when I need to), all essentials and not 'stuff that ends up in landfill'.

It is the use to which things are put that is 'good' or 'bad', rather than the things themselves.

I'm perfectly 'safe and decent' thank you, perhaps you should get off that moral high horse sometimes and realise that there is a difference between fact and opinion. You have a different way of conducting your finances than I do; neither is 'right' or 'wrong', they are just different.

Babu

littleowl wrote: »

i have only used a debit card and have never had a problem - no fraudulent transactions - nothing (fingers now firmly crossed!)

I do wonder, though, how much longer credit card companies will continue giving high credit limits - especially to those people who use them carefully and, therefore, earn the companies no profits?

Now - and in the near future - perhaps they will no longer be able afford to do this?

However many people say they use their cards to earn and never pay interest I don't think that alters my opinion that the only safe and decent way to behave is to pay for what you want and if you can't afford it then you don't have it.

In the final analysis how does the buying of 'things' enhance life? Those same 'things' end up in landfill when the next desirable object comes along.

1. I'm pleased that you have not ever had a problem with fraudulent transactions.

2. You're probably right - we may all find it harder to get credit now.

3. You have an opinion that the way you pay for things is the only safe and decent way - well that's just your opinion. The way I choose to run my finances does not make me any less safe and decent and my behaviour in using the credit card companies' money rather than my own does not make me a thief!

Just because you have an opinion of how you choose to live does not give you the right to decide that the way others use their credit cards is the road to world ruin!

nzseries1

I know it's been discussed a lot already but I want to give my $0.02.

People say 5% cashback isn't worth it. Hang on... any amount of free money at all without having to lift a finger is worth it!!!

That alone is reason enough to use a credit card. But, the extra protection on purchases - as well as the standard section 75, I get a free 1 year's extended warranty on electrical appliances bought on my Ulster Bank Gold Card. Freaken awesome.

After I've finished getting my free cash from stoozing my ulster card, I will keep it for this free warranty.

Gosh, I'm surprised how many times I wrote the word free in this post!

littleowl

Mozette wrote: »

I can afford what I buy, and I pay for it! It's just that I put it on my credit card, then pay it off when I get the bill, with money that has earned me interest, and I get cash back. I'm buying food, transport, clothing (when I need to), all essentials and not 'stuff that ends up in landfill'.

It is the use to which things are put that is 'good' or 'bad', rather than the things themselves.

I'm perfectly 'safe and decent' thank you, perhaps you should get off that moral high horse sometimes and realise that there is a difference between fact and opinion. You have a different way of conducting your finances than I do; neither is 'right' or 'wrong', they are just different.

I don't think I am taking a moral position for anyone but myself, as have said all the way through this, I only speak for myself. I don't judge other people. The argument (that word taken in its original meaning) I posited was whether living on credit was/is sustainable or desirable.

littleowl

Babu wrote: »

1. I'm pleased that you have not ever had a problem with fraudulent transactions.

2. You're probably right - we may all find it harder to get credit now.

3. You have an opinion that the way you pay for things is the only safe and decent way - well that's just your opinion. The way I choose to run my finances does not make me any less safe and decent and my behaviour in using the credit card companies' money rather than my own does not make me a thief!

Just because you have an opinion of how you choose to live does not give you the right to decide that the way others use their credit cards is the road to world ruin!

To address your last para. No, it doesn't, and I don't think I have done this. I have merely put forward the idea that I think it would be a better world if people did not rely on credit. My opinion - the way I live - is my affair just as yours is yours. As you say, different, not better or worse.

However, I do believe that the credit mentality is an unhealthy thing and perhaps the country would be better without it. Just an idea that might well gain credibility in the days and months to come I feel.

calibrax

When I referred to hotels and car hire when travelling, I meant abroad. I travel extensively with my job, and not having a credit card in the US causes major hassle.