Why Use Credit Cards?

littleowl

calibrax wrote: »

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.

Ah, I don't travel in the US only Europe and certainly there I have never had a problem using my debit card for hotels etc. Perhaps the Americans have a different approach?

MrExample

I think that one of the points of the OP's post is that we have come to depend on cards, for precisely the reasons mentioned so far.

The fact I need a credit card to stay in certain hotels (unlike others, I have encountered this, particularly when trying to book online), or only get sub-standard protection from my debit card means that I'm at a disadvantage paying with plain old money compared to someone who funds their purchases with debt.

I have a card too, for these reasons -- but I don't need it. I just know that every now and then some arbitrary hurdle gets in the way when I want to pay via another means.

Woodyrocks

...to build up my credit history/rating

Soubrette

I think you are conflating two different argument littleowl.

It seems you are saying that using a credit card is synonymous with living on credit. From some of the previous posters own experiences we can see that it is possible to use a credit card to spend money that you already have, in order to gain certain benefits.

Also the card companies charge a fee to those who accept their cards - so even those that pay off in full every month generate a certain amount of income.

In Canada I was unable to hire a car without my credit card although my search for one that would accept a debit card was not exhaustive

Sou

Mozette

littleowl wrote: »

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.

I don't think living on credit is sustainable or desirable - occasionally it may be necessary. I don't live on credit; I use credit cards to make myself a little extra money. I think my 1% is worth it, you aren't tempted by 5%; my extra £100 a year might not be worth it to you, but it is to me. I still ask, why would you not want a bit of free money, and what are the strings attached to the way I choose to operate my finances?

littleowl

Mozette wrote: »

I don't think living on credit is sustainable or desirable - occasionally it may be necessary. I don't live on credit; I use credit cards to make myself a little extra money. I think my 1% is worth it, you aren't tempted by 5%; my extra £100 a year might not be worth it to you, but it is to me. I still ask, why would you not want a bit of free money, and what are the strings attached to the way I choose to operate my finances?

! could counter that by saying what is wrong with saving and paying for things you want? Or just paying for things as you go along. Different points of view and different ways of living.

My original question, as I have said, was aimed at the present financial situation which appears to have been caused by people - bankers whatever- using money they don't have to speculate and attempt to make profits which has proved to be unsustainable. I am NOT criticising you or taking any sort of moral ground, merely wondering whether it isn't time that individuals and institutions stopped trying to make a fast buck (horrible American expression but it describes what I mean) and damned well cut their cloth according to their means.

The question was on philosophical and not personal lines. It appears to have been taken personally by a few people. which is a pity because it detracts from the larger question I was asking.

Mozette

littleowl wrote: »

! could counter that by saying what is wrong with saving and paying for things you want? Or just paying for things as you go along. Different points of view and different ways of living.

My original question, as I have said, was aimed at the present financial situation which appears to have been caused by people - bankers whatever- using money they don't have to speculate and attempt to make profits which has proved to be unsustainable. I am NOT criticising you or taking any sort of moral ground, merely wondering whether it isn't time that individuals and institutions stopped trying to make a fast buck (horrible American expression but it describes what I mean) and damned well cut their cloth according to their means.

The question was on philosophical and not personal lines. It appears to have been taken personally by a few people. which is a pity because it detracts from the larger question I was asking.

But I am paying for things as I go along. I could pay with my debit card or cash, but I would rather get interest on my money, and the cash back from the credit card; why is that wrong (in your opinion)? If I can, I do save up for stuff, but occasionally somthing cannot wait to be saved up for; well, I could have done without hot water & central heating when my boiler needed replacing, but I chose to have it replaced at the time it packed up and pay back over 12 months, interest free, rather than save for 12 months and suffer.

I don't understand why you see using credit cards sensibly as such a bad thing. Or what the strings are!

storminbalder

skyrider007 wrote: »

Some hotels and car rental will block a certain amount of money from your card limit (or the balance of your account for a debit card) for security deposit. For example, if your hotel costs £150 per night, they may block £450 from your card (which could make you overdrawn) and release them a few days after you have checked out if you did not damage their room. This could cause a lot of problem if you are relying solely on the debit card.

This is clearly just not true in this country (although it would seem to be the case that some claim it might be in North America).

I thought from reading on this forum that it was myself true with regards to car rental, but was pleasantly surprised to be found completely wrong (as I have already mentioned on page 2).

So why people seem to want to keep propogating these myths is beyond me (even Martin seems to encourage this propagation).

Credit cards quite simply cause a lot of misery and pain and should not be encouraged, even by the few that seem able to handle them and profit from them.

Mozette

storminbalder wrote: »

Credit cards quite simply cause a lot of misery and pain and should not be encouraged, even by the few that seem able to handle them and profit from them.

Knives can cause a lot of misery and pain, so can rope, motor cars, alcohol, planes, razor blades, bottles, oh, even fists. Let's not encourage any of these things!

It's the use to which things are put that cause the good or the bad consequences... generally by human beings, so sterilisation for all then!:rolleyes:

Goodnight, to users and non users alike; it's been interesting!

storminbalder

Mozette wrote: »

Knives can cause a lot of misery and pain, so can rope, motor cars, alcohol, planes, razor blades, bottles, oh, even fists. Let's not encourage any of these things!

It's the use to which things are put that cause the good or the bad consequences... generally by human beings, so sterilisation for all then!:rolleyes:

Goodnight, to users and non users alike; it's been interesting!

I think I'm making myself clear here. In fact I'm certain I am. I think you are not listening. I am sure that you are intelligent enough not to encourage the use of knives, alcohol or indeed rope on here! So why encourage the use of credit cards?

It seems that some on this forum are, perhaps unwittingly, promoting a potentially very dangerous and unhealthy product.

It is quite simple what I am saying! Why won't you understand!