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[Mohonky]

I have 3 accounts; Debit, Credit, Savings.

I use my credit card to buy everything. Then when I gwet paid, it goes into the debit. With each pay that goes in, I pay off the credit card, whatever is left on the debit, goes into athe savings account.
I don't use anymore on my credit card that I can't pay off immediately with the debit card.

That way I keep up a credit rating without letting myself run into credit bebt.

 

[dr_octagon]

 

[Platinumstorm]

If you're not using a credit card, you're losing money.

I put everything on a credit card. The transaction fee is already baked into retail pricing, so there's no choice except to go along with the scam.

I use CC for all of my purchases. I pay off the entire amount before the statement is due, and then again a week later when the last processing ones go in so I don't have a "large balance", but that's pretty hard to do anyhow when I could buy a car on my CC.

 

[Nitty_Grimes]

Your making 2 payments a month? That’s insane.

 

[StreetsofBeige]

Credit cards are awesome if you can control yourself.

- dont need to hold onto cash or have cash come out your account right away doing debit
- pay next month
- rewards. I get back about 1.5% cash back. Look for no annual fee cards
- protection. credit cards can give extra warranty and travel insurance. Also, if a store tries to rip you off, call them. I did it myself. They cancelled the charge after a plumber tried to rip me off $200 and never came back to finish the leaky pipe. If I paid cash, good luck trying to get it back
- helps build your credit history. easiest way to build history too. there are other ways. All you got to do is put some utility bills on automatic credit card payment every month. Nobody says once you got a CC you have to use it for everything going forward

Avoid credit cards if you cant help yourself spending. Interest rates are probably 10% minimum with a basic card. Most people probably have 20%

 

[6502]

It's like smoking. If you are living fine without for gods sake don't start.

The system is gamed to keep increasing limits with more offers and bonuses and cash back etc very easy trap to fall in if your household income dips or you get a series of large bills... the card is always there right up to the point where your entire income is purely servicing debt.

Then the banks pull the rug out from under you and you pay crippling interest rates and those 0% transfer offers and cheap loans dissappear.

I struggled to dig myself out of 20K of debt despite only having 10% value of my house on my mortgage at the time. There was no help despite me being a very safe bet on paper.

AVOID CREDIT, IT IS NOT YOUR FRIEND!!

 

[Tams]

It's like smoking. If you are living fine without for gods sake don't start.

The system is gamed to keep increasing limits with more offers and bonuses and cash back etc very easy trap to fall in if your household income dips or you get a series of large bills... the card is always there right up to the point where your entire income is purely servicing debt.

Then the banks pull the rug out from under you and you pay crippling interest rates and those 0% transfer offers and cheap loans dissappear.

I struggled to dig myself out of 20K of debt despite only having 10% value of my house on my mortgage at the time. There was no help despite me being a very safe bet on paper.

AVOID CREDIT, IT IS NOT YOUR FRIEND!!

We're talking about credit cards here, not credit in general.

Yes, getting into credit card debt is insanely stupid. But if you control your spending so that you never spend more on a credit card than you have available, then you don't get into debt and it causes absolutely do harm at all. Pretty much any smoking causes harm, so that's a terrible analogy.

We get it, you couldn't control your spending. That doesn't mean others can't too.

 

[Scotty W]

What are your spending habits like?

I don’t spend much, and when I got a credit card, I didn’t have any problems apart from forgetting to pay occasionally. It is useful to have around, but I can understand your fear. I know people that just itch to spend money, and it would be much better not to have one.

 

[6502]

We're talking about credit cards here, not credit in general.

Yes, getting into credit card debt is insanely stupid. But if you control your spending so that you never spend more on a credit card than you have available, then you don't get into debt and it causes absolutely do harm at all. Pretty much any smoking causes harm, so that's a terrible analogy.

We get it, you couldn't control your spending. That doesn't mean others can't too.

I controlled absolutely fine for years but when you get used to servicing the debt with two incomes and one falls through it soon quickly builds up. I wasn't flashing the card at Casinos or going mad on QVC. It was car repairs and unavoidable bills only.

Even when you are asset rich it can become a problem once the offers dry up. Going from 0% to 20 or 30% on exiting debt is a killer. Easy to get into, extremely difficult / expensive to get out of.

It sounds like this guy has a good grip on his finances. I wouldn't bother messing with cards when you have cash in the bank aside for security on internet purchases (where you have the cash ready).

If it is for general spending to pay off, yeah sounds like it is not a problem.. until something uncontrollable / unexpected happens and you have other demands on your money - but who is really benefitting from it? The banks are not offering a public service out of the goodness of their hearts and all individuals are doing is essentially building up an overdraft. And a score, which will allow you to borrow even more..

 

[negator2vc]

Do you plan on traveling in your life. Hard to check into a hotel these days without one.
They provide some peace of mind in an emergency situation. No cash to pay the tow truck driver? I guess your stuck on the road.

Lately I travel within my country and there a debit card is just fine. Friends of mine that traveled within the last couple of years in Europe didn't encounter
problems.
Also what peace of mind! You are spending money not yours! You are automatically in dept even for a few days. You also can easily lose control. In debit case you
cannot buy something you don't actual have the money. If you didn't have enough money at the time you needed, the problem is that your bad plans.

 

[negator2vc]

Honestly, this is a very immature (in the genuine meaning of the word) view of credit cards. Not using is your business, but before you go giving advice, like here, I suggest you actually learn about how they work and how people use them.

It's the other way around you see. Advising people into ways where the can easily lose control without any real advances. Every "advantage" of credit cards it's manufactured by the banks themselves (like the connection of your credit score) since it's in the bank bevefit to have you in a leach.
If you are spending your own money you are in control of your spending and less likely to go overboard. You can still go overboard but less likely since if your account is empty you simply cannot buy.

A great example of going overboard is the "Black Friday" (coming up). If you want for example to buy stuff then plan before to save money instead of counting of some big daddy to "lend you money".

 

[6502]

It's the other way around you see. Advising people into ways where the can easily lose control without any real advances. Every "advantage" of credit cards it's manufactured by the banks themselves (like the connection of your credit score) since it's in the bank bevefit to have you in a leach.
If you are spending your own money you are in control of your spending and less likely to go overboard. You can still go overboard but less likely since if your account is empty you simply cannot buy.

A great example of going overboard is the "Black Friday" (coming up). If you want for example to buy stuff then plan before to save money instead of counting of some big daddy to "lend you money".

This.

And also the thread asked people to share their experiences, this I assume means the OP wants a range of views and opinions .

 

[AJUMP23]

If you are responsible with your money you can be responsible with a credit card. I use one to pay for vacations. Just makes it easy to track. But I have a vacation savings account that pays off the card immediately when we get home.

 

[V1LÆM]

Your making 2 payments a month? That’s insane.

2 subscriptions. my phone and netflix.

i have other monthy payments. rent, tax, insurance, internet, etc. internet/car insurance is direct debit on my debit card. the rest i pay on a payment card in store.

 

[Excess]

The system is gamed

There's nothing inherently wrong with credit. It's sole purpose has always been to increase the productivity and standards of living for those who need it. The issue with credit comes from financial illiteracy and lenders who exploit it.

 

[Tams]

It's the other way around you see. Advising people into ways where the can easily lose control without any real advances. Every "advantage" of credit cards it's manufactured by the banks themselves (like the connection of your credit score) since it's in the bank bevefit to have you in a leach.
If you are spending your own money you are in control of your spending and less likely to go overboard. You can still go overboard but less likely since if your account is empty you simply cannot buy.

A great example of going overboard is the "Black Friday" (coming up). If you want for example to buy stuff then plan before to save money instead of counting of some big daddy to "lend you money".

Manufactured or not, those advantages exist. Oh, and in the UK (where OP is from), credit scores are much less important.

It really sounds like you need to personally get control of your spending. If you are emptying whatever source of money you have (bank account, wallet, credit limit), then you are being financially irresponsible. You should always know how much you have left and spent (in the case of credit the latter especially so). If having your transaction declined because you emptied your bank account happens, then you need to take a long hard look at your spending behaviour.

And what makes you think I give two shits about 'Black Friday'?

 

[Tams]

I controlled absolutely fine for years but when you get used to servicing the debt with two incomes and one falls through it soon quickly builds up. I wasn't flashing the card at Casinos or going mad on QVC. It was car repairs and unavoidable bills only.

Even when you are asset rich it can become a problem once the offers dry up. Going from 0% to 20 or 30% on exiting debt is a killer. Easy to get into, extremely difficult / expensive to get out of.

It sounds like this guy has a good grip on his finances. I wouldn't bother messing with cards when you have cash in the bank aside for security on internet purchases (where you have the cash ready).

If it is for general spending to pay off, yeah sounds like it is not a problem.. until something uncontrollable / unexpected happens and you have other demands on your money - but who is really benefitting from it? The banks are not offering a public service out of the goodness of their hearts and all individuals are doing is essentially building up an overdraft. And a score, which will allow you to borrow even more..

Then you were going to struggle to afford to pay those bills anyway. So you had a choice and chose to use the credit you had available. No one forced you to. You chose to go into debt rather than default or not get the repairs.

If you have a rainy day fund/savings you are willing to dip into, then if you are keeping track of your spending (which you should be), then putting unexpected expenses onto your credit card too should not be a problem. You simple transfer enough money to your current/chequing account that your credit card draws from each month. The end result is exactly the same.

Due to the pitfall of being able to get into debt, it really should only be those who do have good grip on their finances who should get a credit card. Of course credit companies target people who don't and those people's interest payments is where a lot of the money that funds the rewards comes from, but such indirect exploitation of people is so ride in modern society that I'm not sure it's worth worrying about.

 

[Meicyn]

It's like smoking. If you are living fine without for gods sake don't start.

lmao

you can quickly tell which people in this thread have actual control over their lives and which do not

hey guys i dont own a hammer because i dont want to be tempted to put holes in my drywall

i dont own kitchen knives because i dont want to be tempted to stab someone

i dont own a car because i dont want to gta pedestrians and hookers

 

[MrFunSocks]

The best way to do it, and what I’ve always done, is to set them to pay off the whole balance every month automatically as a catch-all, and to always just pay off everything you put on it instantly.

Don’t use it to buy things you wouldn’t usually. Use it to get things like loyalty points, extra warranties, price protection, etc. Don’t think of it like credit, think of it as just using your own money but getting some benefits.

Set your credit limit to as low as allowed too. Go for ones with no yearly fees.

 

[Kagey K]

The best way to do it, and what I’ve always done, is toast them to pay off the whole balance every month automatically as a catch-all, and to always just pay off everything you put on it instantly.

Don’t use it to buy things you wouldn’t usually. Use it to get things like loyalty points, extra warranties, price protection, etc. Don’t think of it like credit, think of it as just using your own money but getting some benefits.

Set your credit limit to as low as allowed too. Go for ones with no yearly fees.

Yep, my banks have my credit limit limits set insanely high right now, and everyone I know tells me I should be maxing them while interest rates are low.

But I refuse.

I don't want to get fucked when interest rates go back up, so I don't borrow more than I have in cash to cover it.

I use my credit cards for all purchases in the month but pay them in full before they come due.

If you can't do that, don't use them.

 

[KingGhidorah]

i've avoided credit cards all my life and used debit cards instead. growing up my parents always warned me to stay away from them so i did. when i turned 18 my bank was trying hard to get me to sign up for one but i said no because i didn't understand them. recently i've been looking into them to try get my credit score a bit higher. i'm in the UK and my score is 967 which is considered "excellent". i would probably be fine without one but if i'm at 967/999 then i want to push it higher.

i have found a card i think would suit me and i have been pre-approved for it but i can't bring myself to actually apply because i think something bad will happen. i like to think i'm responsible with my money. i have thousands worth of savings and i always keep about £200-300 in my bank just incase. if i want to buy something then i'll wait until i have saved enough money up to buy it instead of dipping into savings or asking people for a loan (which i don't i've EVER done. i don't like taking someones money and being in debt to them). i think if i did get one i'd be responsible with it and pay it off every month. no minimum payments or high utilisation. when i think of credit card i think of it is something to benefit me and not just a quick way of getting money. i mean if i get a credit limit of say £1,000 i won't think oh shit yes i can go buy myself a PS5 and a XSX or oh shit yes now i can go book a holiday. i'd probably just put my phone bill/netflix and other subscriptions on it to make use of it and instead of worrying about each one just pay a single monthly bill.

i know this is probably a very boring topic and probably a lot of people are in their teens or early adulthood on here but i thought i'd ask anyway. could you share you experience if you have had used a credit card? is it really all bad or should i go for it?

You should get one. CC is necessary in case of emergency, etc. Looks like your parents taught you well to be careful with them

Just be disciplined with spending and paying them off. It's not free money, it's an emergency money

 

[Tams]

Yep, my banks have my credit limit limits set insanely high right now, and everyone I know tells me I should be maxing them while interest rates are low.

But I refuse.

I don't want to get fucked when interest rates go back up, so I don't borrow more than I have in cash to cover it.

I use my credit cards for all purchases in the month but pay them in full before they come due.

If you can't do that, don't use them.

I think anyone who uses credit card credit unless it is for something not absolutely cannot not be paid and is essential, is insane. And even then, you should pay it off as quickly as possible.

All long term loans for large purchases should be done individually. You get much better interest rates and they are easier to keep a track of. And that should only be for things like a house or car.

 

[Kagey K]

I think anyone who uses credit card credit unless it is for something not absolutely cannot not be paid and is essential, is insane. And even then, you should pay it off as quickly as possible.

All long term loans for large purchases should be done individually. You get much better interest rates and they are easier to keep a track of. And that should only be for things like a house or car.

At the same time it's fucked if you choose not to use the credit and get penalized.

I decided we were going to redo the floors in our house, even though I could have paid in cash, they wanted me to use my line of credit instead, even if the loan was for only 1 day.

 

[StreetsofBeige]

What are your spending habits like?

I don’t spend much, and when I got a credit card, I didn’t have any problems apart from forgetting to pay occasionally. It is useful to have around, but I can understand your fear. I know people that just itch to spend money, and it would be much better not to have one.

Just set your credit card on automatic payment. I missed paying 3 times in my life since i forgot to pay myself. So infrequent, I actually remember its 3 times. I messed up because two times It was back in the 90s when I still manually paid my CC bills at the bank ATM. I forgot. And another time (about 10 years ago I forgot paying online). I got messed up since I'd try to time paying it as close to the due date but didnt realize the due date that month was as close to the end as I thought as it adjusts. So instead of the usual 27-30th, it was like the 25th or 26th that month. I paid the next day or two. Then I said fuck it and set to auto-pay. Not sure why I never did before.

For all of you, if you miss a payment, as long as you either pay the minimum (or more) right away it wont hit your credit rating. When I missed that payment 10 years ago the guy even said their system gives a 5 day grace period (you'd never know unless you asked). So since I paid with 5 days, I was good.

I've never had a balance. Always paid it off. Even when I moved out for the first time and was living pay cheque to pay cheque and had to buy furniture, why credit card? When I bought $3000 worth of furniture (I couldnt pay it all off in one shot back then), I bought it from the furniture store on I think an 18 month pay back program that had a $99 admin fee. So that's the same as about 3% interest over 18 months (or 2% annually). Sounds like a deal to me. But then some people would had bought that on their credit card at 22% interest. So for me it cost $3100. By the time someone else paid it off on CC it'll probably cost them $3500. Just wasted $400.

Another way to pay off stuff if someone is desperate with a balance is LOC (line of credit) which for most people will be anywhere from prime rate at around 3% (if you're established) to prime + 5% if you're young and borrowing for the first time. When I got an LOC for the first time 20 years ago, I think it was set at prime + 5% and I had almost zero assets at the time.

Doesnt even make sense. Someone needs cash and would rather pull out a credit card then apply for a LOC. Sometime those spam letters you get from the bank are good.

If someone is that fearful maxing out a CC, just apply or ask for a low level limit (like $1000) and only use it for low priced things you pay off every month already (utility bills worth $200-300) and set it on automatic payment. Never have to think about it again and your credit rating builds just on utility bills.

 

[StreetsofBeige]

The best way to do it, and what I’ve always done, is to set them to pay off the whole balance every month automatically as a catch-all, and to always just pay off everything you put on it instantly.

Don’t use it to buy things you wouldn’t usually. Use it to get things like loyalty points, extra warranties, price protection, etc. Don’t think of it like credit, think of it as just using your own money but getting some benefits.

Set your credit limit to as low as allowed too. Go for ones with no yearly fees.

100% the right way to think of it.

I'd always reco a CC to everyone unless that person is so uncontrolled, they'll max it out thinking they're The Rockefellers. Just get a low limit CC that's zero fees and as basic as possible. Those ultra basic rock bottom cards probably have interest rates at 10-12%.

Someone limiting themselves to cash or debit is fine for controlling spending, but not all places accept cash or debit. I'm not even sure you can even book a hotel or rent a car without a CC. And credit cards are used way more than debit especially travelling in many parts of the world.

 

[Tams]

100% the right way to think of it.

I'd always reco a CC to everyone unless that person is so uncontrolled, they'll max it out thinking they're The Rockefellers. Just get a low limit CC that's zero fees and as basic as possible. Those ultra basic rock bottom cards probably have interest rates at 10-12%.

Someone limiting themselves to cash or debit is fine for controlling spending, but not all places accept cash or debit. I'm not even sure you can even book a hotel or rent a car without a CC. And credit cards are used way more than debit especially travelling in many parts of the world.

Exactly.

Although, and it depends country to country, debit cards often are accepted. It's the payment processor (VISA, Mastercard, etc.) that usually matters - for instance in the UK few accept American Express. Other than pre-paid cards (which often are limited) they should all work (especially for things like hotels and car hire).

 

[StreetsofBeige]

Exactly.

Although, and it depends country to country, debit cards often are accepted. It's the payment processor (VISA, Mastercard, etc.) that usually matters - for instance in the UK few accept American Express. Other than pre-paid cards (which often are limited) they should all work (especially for things like hotels and car hire).

If someone is willing to get CCs, can control their money and wants the most coverage for emergencies, I'd suggest a VISA and Mastercard to cover all bases. Every place that accepts CC will at minimum accept one of these. Likely both, but not always. Costco Canada accepts Mastercard, but not VISA (but googling it Costco USA does the reverse!). AMEX is more a US thing which not all places accept in Canada. And the US I think has Discover which definitely is not accepted here a lot. And if it really is, no stores have sign showing it.

 

[MrFunSocks]

You should get one. CC is necessary in case of emergency, etc. Looks like your parents taught you well to be careful with them

Just be disciplined with spending and paying them off. It's not free money, it's an emergency money

It used to be smart to treat a CC like that, but they offer so many benefits now that it’s almost silly to pay by debit instead of paying by credit and then paying off the credit card immediately. My credit card for example has 12 month price drop protection which has enabled me to get $500 back from the purchase price on my iPhone 12 mini as an example. I use that cc for literally all tech and furniture purchases and pay it off in full the day I use it. I have another cc I use for all groceries and things like car services etc because I get frequent Flyer points for each purchase, and again just pay it off immediately. It also gives free travel insurance on flights and hotel bookings.

As long as you treat them like debit cards you can get some amazing benefits for free. I don’t pay any annual fees or interest on mine.

 

[Nitty_Grimes]

2 subscriptions. my phone and netflix.

i have other monthy payments. rent, tax, insurance, internet, etc. internet/car insurance is direct debit on my debit card. the rest i pay on a payment card in store.

No mate wasn’t quoting you or asking you - was the post above the one I made

Phones are normally direct debit - don’t know if you are UK based but not normally credit card based payments. Mine never have been have 3 phone contracts (not all mine) and all are DD’s and have had phone contracts for 25+ years.

As for post I quoted:

He pays off his credit card bill before the statement comes - then pays it off again when it does. There’s no point having a credit card!!! That’s not proving you can build credit worthiness.

When your statement is generated say you owe £200 your statement will say you owe £200. Anything else goes onto next months statement. So paying £200 then paying whatever else you spend before your next statement just makes no sense.

 

[StreetsofBeige]

It used to be smart to treat a CC like that, but they offer so many benefits now that it’s almost silly to pay by debit instead of paying by credit and then paying off the credit card immediately. My credit card for example has 12 month price drop protection which has enabled me to get $500 back from the purchase price on my iPhone 12 mini as an example. I use that cc for literally all tech and furniture purchases and pay it off in full the day I use it. I have another cc I use for all groceries and things like car services etc because I get frequent Flyer points for each purchase, and again just pay it off immediately. It also gives free travel insurance on flights and hotel bookings.

As long as you treat them like debit cards you can get some amazing benefits for free. I don’t pay any annual fees or interest on mine.

I paid for a $10,000 company function and got back $300 in rewards dividends. Fuck the corporate card. I'm taking the rewards. The company even prefers it that way since it's on your own CC. So if your late paying thats your problem. Companies dont want people using corporate cards because half the people dont send in expense forms to go with it so the bill can linger until processed by the admin clerks. Or the clerks notice the bill and then go bugging people what the charge is showing up.

Even better for situations like this. I submitted my expense form and got back the $10,000 even before I paid off the CC bill the next month. lol.

When I travelled for business (before covid) I'd submit my expenses right away too. And always on personal card.

 

[MastaKiiLA]

You should have one if you plan on getting a loan in the future. Building good credit can be done easily, especially if you use a debit card often.

Use your credit card for any payments you normally make via debit card or cash. Pay off the balance either weekly, or on time each month. The FULL balance. Just know that everything you charge to the card will be paid in full each month, so you never have a rolling balance, so you don't have to worry about APR fees.

It's a quick and easy way to build a good credit score.

 

[RJMacready73]

If you've gone this long without one I'd say don't bother.

Points don't matter, your credit is solid. Why introduce temptation to spend more

This, you've survived long enough without it and you don't need one, avoid

 

[fran.fernandez]

Use for long time. I have two, one you pay end of month and another that is automatically discounted from my bank account. I use the last one mostly and the one time a month only for subscription.

i never in my life have used credit card to pay in multiple times, always full charge.
If is expensive I just wait and save until I can pay 100%

 

[Tams]

This, you've survived long enough without it and you don't need one, avoid

What a silly, immature, reductionist view.

Even if you aren't into rewards, the payment protection alone is worth it. There's some for debit cards, but it often takes longer (credit card companies just do it on the spot and usually with no questions asked - for debit cards they often need to do an investigation) and cover a lower amount.

 

[Kenpachii]

I don't like debt so no creditcard for me. The only debt i can tolerate is house debt but i see that as a investment more then debt. Everything else is bought when i got the money or i won't buy it.

 

[Meicyn]

I don't like debt so no creditcard for me. The only debt i can tolerate is house debt but i see that as a investment more then debt. Everything else is bought when i got the money or i won't buy it.

lmao

you are literally losing out on free stuff by choosing to not use a credit card

there are three scenarios

retard mode
- buy $500 thing with credit card
- not have actual money to pay debt
- accrue interest
- now you owe $507.50 for $500 thing
- lmao

virgin mode
- buy $500 thing with debit card or cash
- post “i dont like debt” on message boards
- lol

chad mode
- buy $500 thing with credit card
- pay $500 on account balance using autopayment so you pay no interest
- get $10 cash back rewards or frequent flyer miles or whatever
- have lots of sex

imagine a world with people who use a debit card instead of a credit card and miss out on hundreds of dollars of cash back every year on expenses they were already going to make

credit cards are like guns they are pretty awesome unless you are a moron

 

[6502]

I paid for a $10,000 company function and got back $300 in rewards dividends. Fuck the corporate card. I'm taking the rewards. The company even prefers it that way since it's on your own CC. So if your late paying thats your problem. Companies dont want people using corporate cards because half the people dont send in expense forms to go with it so the bill can linger until processed by the admin clerks. Or the clerks notice the bill and then go bugging people what the charge is showing up.

Even better for situations like this. I submitted my expense form and got back the $10,000 even before I paid off the CC bill the next month. lol.

When I travelled for business (before covid) I'd submit my expenses right away too. And always on personal card.

I think a benefit from business expenses like that might be taxable in the UK (benefit in kind).

 

[Kenpachii]

lmao

you are literally losing out on free stuff by choosing to not use a credit card

there are three scenarios

retard mode
- buy $500 thing with credit card
- not have actual money to pay debt
- accrue interest
- now you owe $507.50 for $500 thing
- lmao

virgin mode
- buy $500 thing with debit card or cash
- post “i dont like debt” on message boards
- lol

chad mode
- buy $500 thing with credit card
- pay $500 on account balance using autopayment so you pay no interest
- get $10 cash back rewards or frequent flyer miles or whatever
- have lots of sex

imagine a world with people who use a debit card instead of a credit card and miss out on hundreds of dollars of cash back every year on expenses they were already going to make

credit cards are like guns they are pretty awesome unless you are a moron

That world is called netherlands.

 

[Meicyn]

That world is called netherlands.

good point in this circumstance i am the retard they dont have rewards at all which is lame

 

[StreetsofBeige]

lmao

you are literally losing out on free stuff by choosing to not use a credit card

there are three scenarios

retard mode
- buy $500 thing with credit card
- not have actual money to pay debt
- accrue interest
- now you owe $507.50 for $500 thing
- lmao

virgin mode
- buy $500 thing with debit card or cash
- post “i dont like debt” on message boards
- lol

chad mode
- buy $500 thing with credit card
- pay $500 on account balance using autopayment so you pay no interest
- get $10 cash back rewards or frequent flyer miles or whatever
- have lots of sex

imagine a world with people who use a debit card instead of a credit card and miss out on hundreds of dollars of cash back every year on expenses they were already going to make

credit cards are like guns they are pretty awesome unless you are a moron

Ultra Chad.

When there's a dispute with a vendor ripping you off, the CC company handles it for you and cancels the charge! Cash payment and often debit, you're on your own to fight for your money back.

As I said in one of my above posts, a dickish plumber I found online tried to scam me $200 fee. Guy never came back. Called my CC company and showed him the invoice and of course they saw the charge on my card. Told them he never came back.

Got it reversed like a week later.

Have fun trying to get your money back if you paid the guy cash or debit.

 

[Deleted member 1159]

I buy everything with a credit card but I also pay in full every month. If you can’t do that then avoid them like the plague.

This. We’re going to have well over $1,000 in cash back at the end of the year on the one card we use and pay off every month. Daycare alone is $2,000 a month, no reason not to get a percentage of that back.

If you use a budget and know you can be trusted to not run a balance, it’s totally fine.

 

[Susurrus]

I'm in the USA so do what you want with this...

If you can be responsible, it is great.

Get a credit card based on what suits your spending habits for point earn/benefits/etc. Pay it off in full every paycheck (assuming your paycheck is at least monthly, I get paid every half month so go off that). If you can do this, you'll get all the benefits without any of the cost.

Do NOT do this if you can't pay it off in full at least monthly. Once you start building interest, and can't pay off your card, that's when you're fucked.

But if you can do it right, it can pay off in spades. I've had my travel based credit card since 2014 and have had a few free airplane tickets, and am sitting on a ton of points for more for when we start flying again (waiting for my youngest's covid vaccine still).

 

[12Goblins]

they are great if you are financially responsible, which is not most people

 

[StreetsofBeige]

This. We’re going to have well over $1,000 in cash back at the end of the year on the one card we use and pay off every month. Daycare alone is $2,000 a month, no reason not to get a percentage of that back.

If you use a budget and know you can be trusted to not run a balance, it’s totally fine.

Yup.

My monthly bill is naturally around $1000/mth. It's actually less but Xmas comes around and my bill is at least double. I'll get about $15/mth from this as I average about 1.5% cash back (depending what it is, it's 1%, 2% or 3%). That's $180/yr as free money. Even during 2020 covid year where I stayed home, didnt eat out as much and hardly bought gas, I still got I think $140. It's free money.

But it used to be $500+/yr when I traveled on business before covid and offered to pay for company events (which hasnt happened for years due to covid as everyone is WFH). Company events and restaurants are the 3% tier. A $5000 or $10000 event would be $150-300 alone!

I never topped $1000 cash back in a year though. My max was about $800 one year. Add it all up, and I've probably got back $4000-5000 over the past decade.

My first credit card for years was a basic card with no frills. No nothing. Best perk was no annual fee. Wasted my first 10 years of a credit carding doing this when I should had looked for a no fee card that give me something. Anything. Even just 1% back would be better than nothing.

 

[Tschumi]

I haven't had one for a really long time. It was useful when I had it, helped me buy things, but I only bought like one thing a month with it, if that.

I guess it'd help me got a PS5 or something if I wanted, but if I get a console that big and wedge it onto our TV shelf in the near future my wife will finally be rid of all doubt re: my intelligence lol

 

[Porcile]

I have both a UK one and a Japanese one. Both are essential for me.

 

[StreetsofBeige]

Another benefit of a CC comes from the post mortem of fraud.

Anyone here have their bank account (debit related) and CC get fraudulent charges? I have.

When you get shady CC charges, you call them the immediately halt the usage of the card and they send you a new CC in two weeks. The CC company knows there's an issue so they stop it completely. They dont grill you saying you have to pay any legit charges or interest. They help you out and stop everything. When you get your new card then you get back to normal. A pain, but not the end of the world.

When you got shady things happening to your bank account (which relates to your bank debit card), anyone knows what happens? I do. Not only does it get shut down and the bank reopens a new account for you like a new CC account, but there's going to extra hassles for you as most people probably have more auto-pay bills associated to your bank account, and your pay roll deposit is associated with it too. So you got to rework a lot more links and got to call any companies and tell them to hold off any bills as the account has fraud and it's halted by the bank. So have fun calling a bunch of places and telling HR at work you got bank account issues for the next couple weeks.

You may have to do this too to auto-pay CC bills you have set up, but for me at least I got more bank account auto-pays (including mortgage, property tax, car and home insurance) and of course pay stub pay.

If there's a fuck up with a utility bill on CC auto-pay (Rogers cable) there's no credit rating hit for a late internet payment. But if you forget or mess up paying a bill like a mortgage or car loan, that will ding your credit rating. Then you got to call them and hope maybe they reverse it. Not that a mortgage can go on a CC, but if possible I'd put as many reoccuring monthly bills you have on CC if that company allows it.

Fraud will typically happen the more you use a certain type of payment. In my experience, CC fraud aftermath was a lot easier than getting a new bank account up and running.

 

[Zeypher]

Use your CC to buy regular stuff and pay your bills monthly. Payments made via CC are insured thereby adding more protection to you when making digital payments. Finally regular bill payments raises your credit profile which is very valuable when dealing with financial institutions.

 

[Cyberpunkd]

I am extremely annoyed each time I have to pay something using cash. As for credit card the only one I have is Amex, since it allows me to get ridiculous number of miles for basically nothing + nice discounts here and there.

 

[Punished Miku]

Even if you can get $170 a year, that's free Gamepass. Now stop buying games day one and you're basically playing games almost for free.

I'm surprised they haven't come out with an Xbox credit card honestly that does this automatically. Lots of people would go for it.