Do you use credit cards? Why?

Litcrit · #1 Nov 16, '10, 1:03 pm

This has always fascinated me in an eery sort of way.

I understand the convenience of using a debit card instead of cash, but why would one use credit cards and then be in debt and pay interest? Is there something I'm not able to understand?

mary bobo · #2 Nov 16, '10, 1:17 pm

I use one for convenience. I only have one. My bank takes it out of my checking account every month so I do not go into debt. I also earn points on it and have gotten some nice stuff with the points.

BrokenFortress · #3 Nov 16, '10, 1:18 pm

I have two credit cards, one is for a store where you get freebies if you hold a card and use it on occasion, so I use it to get the freebies and then pay off the balance right away so there's no interest.
The other card I have I only use it in emergencies, or in the past when I was in college if my parents were going to pay for something I'd use it and they'd pay the balance before there was any interest.

So, personally I see no point in using them and getting interest. I know some people feel that they have to use them if they loose their job and have no money, but I'm a saving type of person so we have quite a bit saved up and have no reason to use credit cards.

Rascalking · #4 Nov 16, '10, 1:20 pm

I have one I use and it's only for emergencies. You need to have alot of self control to have one, whenever I walk by a Barnes and Nobles it's really hard to be good!

KostyaJMJ · #5 Nov 16, '10, 1:26 pm

My wife and I only use credit cards but we always pay in full each month. As long as you're disciplined there is nothing wrong with a credit card.

1. It is convenient to keep all your purchases together in one place and as long as you pay in full each month there are no interest charges.

2. A rewards card can give you about 3% back on your purchases

3. a credit card unlike a debit card will help build your credit score

4. a card isn't linked directly to *your* cash in the bank so it is more secure.

5. You are able to dispute any bogus charges on a card much easier. Once somebody has your cash it can be very difficult to get it back.

Litcrit · #6 Nov 16, '10, 1:28 pm

Oh, so if you don't spend more than is in your account, there's no debt & interest?

Didn't know that.

stockbrick240 · #7 Nov 16, '10, 1:32 pm

I don't have one. Ive thought about getting one for emergencies like having to replace a tire or unexpected gas or something like that.

rskempf · #8 Nov 16, '10, 2:01 pm

We use it the same way as a debit card, and as a convenience.

It is fully paid off every month - without fail.

constantseeker · #9 Nov 16, '10, 2:07 pm

Quote:

Originally Posted by Litcrit

Oh, so if you don't spend more than is in your account, there's no debt & interest?

Didn't know that.

You don't keep money in an account. You just pay a credit card bill monthly like you pay an electricity bill.

I use credit cards because it's ultimately much much safer than using a checking account. Money isn't taken directly from me, and I can see all charges before I actually pay with my money.

brina1416 · #10 Nov 16, '10, 2:18 pm

I use it to establish credit. I only have one and I feel that's all I need.

SuscipeMeDomine · #11 Nov 16, '10, 3:10 pm

Quote:

Originally Posted by Litcrit

This has always fascinated me in an eery sort of way.

I understand the convenience of using a debit card instead of cash, but why would one use credit cards and then be in debt and pay interest? Is there something I'm not able to understand?

Using a credit card doesn't necessarily mean being in debt and paying interest.

I don't carry a balance on my credit card. If you pay it off each month you don't owe any interest. In the meantime, I find it convenient/necessary for making travel reservations (plane, hotel, rental car), for emergencies, and just in general if I'm not carrying enough cash with me.

**tbcrawford** · #12 Nov 16, '10, 3:28 pm

I use my credit card for all online purchases.I pay the bill in full as soon as it arrives always.
I will not trust my bank account online (so I will not use my debit card) & I am protected on purchases if I want my money back by paying via credit card.I have an excellent credit score rating due to having used my credit card frequently & paying it off in full each time I have a bill.

newf · #13 Nov 16, '10, 3:29 pm

I use credit cards often.

I use them for convenience and because I can get free airline tickets and other things.

The key is to pay it off every month. I don't spend what I cannot pay at the end of the month.

noclevername · #14 Nov 16, '10, 5:56 pm

We use a credit card for everything, even groceries but we don't have any debt. We pay the balance off before the 30 day due date. The reason we do this is because we have an interest bearing checking account so the more money we leave in the account for longer, the more money we earn. And we earn cash back on our credit card. I think we got about $200 last year. So, if you really think about it, the credit card company is paying us for using their card.

As long as you start with a ZERO balance (that part is very important) and you pay the balance IN FULL (that part is very important too) before the due date, you will not be charged any interest.

But it takes discipline to use a credit card. If you can't pay it in full every month, then you shouldn't use one. There is no reason to be in debt. Being in debt indicates you are living beyond your means.

Cat · #15 Nov 16, '10, 7:59 pm

Well, someone has to admit it!

We use credit cards to pay for things that we don't have cash for. It's nice.

And we carry thousands of dollars in credit card debt with lots of interest. Doesn't bother us at all. We have a happy life.

We both have good-paying, reasonably secure jobs and feel confident that if we had to, we could buckle down and pay off the credit cards within a few months. But we don't. Why bother? May as well have a good time in this life while we're young and healthy enough to enjoy it.

To each his/her own.