# Credit Cards.



## Tom Bell-Drier (Mar 1, 2006)

I refuse to have a credit card due to the exhorbitant rate of intrest banks and credit card companys charge.

everything I purchase is either cash, cheque or on a debit card where the required amount is withdrawn imediately from my bank account.

every day I recieve junk mail asking me if I would like to apply for this credit card or that credit card these just get binned.

I know if you pay off the ballance on the due date of most credit cards no intrest is payable however I don`t fancy running the risk of late payment fees etc.

anyone else feel the same way.


----------



## gmac (Aug 13, 2005)

I use American Express. It's a charge card which means I am required to pay off my balance each month. Presuming I do so there are no interest charges. (I always do)

There is a flat fee for having an AmEx card which varies depending on whether you have a basic card or one with bells and whistles in terms of services.

The benefits are:
- flexibility - theoretically there is no limit on my spending, although I've never tested that. Nice to know that I have that capacity if necessary
- insurance coverage when I use the card to rent a car, buy tickets and goods, etc
- Reward points - th ereward scheme on AmEx is quite useful - I have flown to Europe on points and will be taking my family to Hawaii later this year
- Record keeping - the ability to track any purchase
- I can use it anywhere in the world - at least anywhere that takes AmEx

I also carry a Visa card but rarely use it.

I don't leave home without my AmEx.

------------------


----------



## android (Dec 8, 2004)

If anyone ever commits fraud using your debit card, you will learn what a bad idea they are. Cash is immediately withdrawn from your account and you have to prove it wasn't you that authorized it before you get it back. It can takes weeks or even months.

A CC offers much better consumer protection. You report the fraud and just don't pay the disputed amount. You're liable for $50 by law.

My Credit Union gives me a Platinum Visa with no fee and no interest if I pay it off every 30 days. Since they also have internet banking I just on on every 2 weeks and pay it to zero every payday.


----------



## PennGlock (Mar 14, 2006)

> quote:_Originally posted by android_
> 
> If anyone ever commits fraud using your debit card, you will learn what a bad idea they are. Cash is immediately withdrawn from your account and you have to prove it wasn't you that authorized it before you get it back. It can takes weeks or even months.


Yes indeed. This is why credit cards are nice for the big ticket items, so you can keep a low limit on your debit card.


----------



## Trenditional (Feb 15, 2006)

> quote:_Originally posted by android_
> 
> If anyone ever commits fraud using your debit card, you will learn what a bad idea they are. Cash is immediately withdrawn from your account and you have to prove it wasn't you that authorized it before you get it back. It can takes weeks or even months.
> 
> ...


Android, you stole my thunder. This is my usual spiel about how C.C.'s are better than Debit Cards. You are correct though, always better to use a credit card and pay it off each month. I always suggest people get a credit card which gives them something back (i.e. money, miles etc.) and make this their primary card.

_Deny Guilt, Demand Proof and Never Speak Without an Attorney!_​


----------



## Wayfarer (Mar 19, 2006)

I am an Amex, one "working" credit card, and one "internet" credit card. I like the Amex platinum, even with the yearly fee in excess of $300.00, due to upgrades while travelling, concierge service, preferred bookings, etc. as well as the yearly breakdown of transactions.

My "working" credit card I use for regular life; meals, small purchases, etc. and pay it off monthly.

My "internet" card is used, obviously, for internet purchases. This isolates internet transactions and any possible damage due to a compromised account.

While I have a debit card, I do not use it much for the very same reasons listed above.

Warmest regards


----------



## globetrotter (Dec 30, 2004)

I spent the first 37 years of my life living debt free - no credit cards, no loans, no credit at all. then, I needed a credit rating for an apartment, and found that I have insufitient credit history. looking into buying cars on payments and that kind of thing is the same thing. 

so, now I have two credit cards, I use them each for $50 a month and pay them off, just to keep my credit history healthy. 

aside from that, I don't use a credit card.


----------



## mgnov (Jan 11, 2006)

I personally am completely against paying interest. I have no credit cards, so when I wish to make a purchase I use a bank debit card (which is tied to my bank account and has a Visa or Mastercard logo). And, I might add, I have absolutely no consumer debt.

Regardng my tax liability, well that's another matter.


----------



## pleasehelp (Sep 8, 2005)

Can't you set up your online banking to automatically pay your credit card? In that case you collect interest on your account longer and there doesn't seem to be a risk of ever paying interest to the CC company. Many CCs also offer reward programs, so you can earn some money or credit towards goods.

I know that some car rental companies require a credit card and will not take a debit card as a substitute (I learned this the hard way when I left my CC at home).


----------



## Wayfarer (Mar 19, 2006)

> quote:_Originally posted by mgnov_
> 
> I personally am completely against paying interest. I have no credit cards, so when I wish to make a purchase I use a bank debit card (which is tied to my bank account and has a Visa or Mastercard logo). And, I might add, I have absolutely no consumer debt.
> 
> Regardng my tax liability, well that's another matter.


If you pay off your balance monthly, most credit cards charge no interest. I thought most knew this.

Warmest regards


----------



## DocHolliday (Apr 11, 2005)

I have a rewards card and pay for most everything with it. I've only had it for about a year and I've already accumulated $800-$1,000 in rewards. By paying off my balance each month, I'm essentially getting paid handsomely just for my normal spending.


----------



## Coolidge24 (Mar 21, 2005)

I use cash as much as possible, as it is far easier to keep track of withdrawals than random debits for $6.71 and the like

I use the credit card for big purchases, or cheques.

The only thing I use the debit card for is gasoline.


----------



## familyman (Sep 9, 2005)

I didn't get a credit card until after college. I've only ever carried a balance one month. My wife (who does all the bills, she likes to) put the wrong checks in the wrong envelopes. My car got several thousand dollars paid off on it that month and my credit card got only a few hundred. Amazingly enough both checks were made out correctly. The credit card company cashed a check made out to Ford Credit and the opposite with apparently no problem. Paid it all off the next month and that's the only month I've ever paid interest. 
I get 2% back that goes into a college fund for my children, the card has no fees. So I get 2% of everything I spend free. It's like reducing the sales tax 2%. I like that. 
We own our home, our vacation property and both cars free and clear. I also hate debt, but I appreciate credit cards for the tool they are.

_____________________________________________________________________________
I am no enemy of elegance, but I say no man has a right to think of elegance till he has secured substance, nor then, to seek more of it than he can afford. 

John Adams


----------



## 16128 (Feb 8, 2005)

> quote:_Originally posted by android_
> 
> If anyone ever commits fraud using your debit card, you will learn what a bad idea they are. Cash is immediately withdrawn from your account and you have to prove it wasn't you that authorized it before you get it back. It can takes weeks or even months.
> 
> A CC offers much better consumer protection. You report the fraud and just don't pay the disputed amount. You're liable for $50 by law.


A Visa check card (which is a debit card) has the same protection. Mine was stolen, $1,500 was charged over a two-day period before I noticed the card was missing (charges were incurred by a man, and no clerks checked his identification apparently, grrr.) The money was returned to my account within a few days.

You can purchase big-ticket items with a debit card - have them adjust the limit to reflect your needs.

However, I'm looking for a good charge/credit card with reward miles. If anyone can recommend something specific, IE Citibank or some other issuer, please share.


----------



## Trenditional (Feb 15, 2006)

> quote:_Originally posted by VS_
> 
> 
> 
> ...


_Deny Guilt, Demand Proof and Never Speak Without an Attorney!_​


----------



## 16128 (Feb 8, 2005)

> quote:_Originally posted by Trenditional_
> 
> Problem is the hassles that arise when checks waiting to clear, don't and bounce because the you and the bank haven't discovered someone is using your debit card. Of course your bank is going to reimburse you and of course eventually you'll settle up with the companies the checks bounced at, but it is a hassle.
> 
> ...


Right. My husband carries the credit card, but it doesn't have any benefit attached to it (miles, points.) We pay it off monthly if anything's charged to it. I like the debit card for everyday use because purchases pop daily into Quicken. I've had one problem in eight years of use. 

You're a detective, right? You would be shocked at the ineptitude following my card theft. I tracked the thief's purchases myself along with the cell phone number from the phone he purchased and two shops had his image on CCTV, and I handed everything over to the police but nothing was done.  I guess because it wasn't a violent crime and therefore low priority.


----------



## jbmcb (Sep 7, 2005)

I have a Discover with cash-back rewards, you get even better deals if you use them with partnering businesses. I get $50 gift certificates for $30 at Borders. It's a good deal. Of course I've never carried a balance, and if you have a good credit rating (obtained by having a credit card, strangely enough  you can call your company and ask for a lower rate, if you are worried about it.

My friend uses a debit card, and has an artifically low limit of $200 per day, so if somebody steals it they can't do too much damage. When he needs to buy something more expensive, he calls up and has it raised for a day or two. It's a good bit of extra security, along with the protection the bank gives you anyways for stolen cards.

Credit cards are useful if, for no other reason, just to build up credit. All you have to do is buy a couple things every month on one and pay off the bill and you usually won't be charged a fee or interest. Good credit means cheaper money if you need a loan, or want to finance a car or house, which is a good thing.


Good/Fast/Cheap - Pick Two


----------



## mgnov (Jan 11, 2006)

> quote:_Originally posted by Wayfarer_
> 
> 
> 
> ...


Of course you're correct, but when you sign your credit card agreement you (generally speaking) agree to pay interest if the balance owed is not paid each month. In my particular case, paying (or taking) interest is a religious proscription, so such a contract would not be considered acceptable.


----------



## Trenditional (Feb 15, 2006)

> quote:_Originally posted by VS_
> 
> 
> 
> ...


Many of the C.C. cases on this side of the pond go unpunished. This is the reason why the crime is quickly growing out of control. I'm sure the problems exist all over the world, its such a lucrative crime.

_Deny Guilt, Demand Proof and Never Speak Without an Attorney!_​


----------



## 16128 (Feb 8, 2005)

> quote:_Originally posted by jbmcb_
> 
> I have a Discover with cash-back rewards, you get even better deals if you use them with partnering businesses. I get $50 gift certificates for $30 at Borders. It's a good deal. Of course I've never carried a balance, and if you have a good credit rating (obtained by having a credit card, strangely enough  you can call your company and ask for a lower rate, if you are worried about it.
> 
> My friend uses a debit card, and has an artifically low limit of $200 per day, so if somebody steals it they can't do too much damage. When he needs to buy something more expensive, he calls up and has it raised for a day or two. It's a good bit of extra security, along with the protection the bank gives you anyways for stolen cards.


Yes, I did that when I bought furniture. Just ring the company.

Buying a house also prompts the credit card offers to roll in. We have great credit; there are just too many competing plans with extras such as miles to choose from. Thanks for the tip on Discover. Do most retailers take Discover?

Trenditional - true. I have to say I'd rather have the police chasing down a rapist than finding my teenage charge card pickpocket, but what a shame - I did much of the detective work.


----------



## shoefetish (Jan 15, 2006)

Credit card companies know your spending pattern. If there is a sudden large charge they will call to confirm. Happened to me a few times.

Love CCs for their convenience and freebies
2 Platinum Visas with no membership charges. 1 for internet purchases the other for over the counter. No worries about exchange rates or rip offs as I can stop payment or get the bank to address the issues. The perks like free flyer miles, assured hotel bookings even during peak seasons, car at the airport, dining privileges, free comprehensive travel insurance, etc are sure hard to beat.

And with the pressure from more and more new Visas introduced every other day the perks just get better


----------



## kenz (Jul 25, 2005)

I have several online businesses which process many, many thousands of credit card payments each year. Not a single one of them have I ever had a fraud problem with - and this over the past 10 years.

And personally I love the rewards system. My wife and I have stayed at luxury hotels for 'free', and every year when I visit UK I get a rental car for 3 weeks - fully paid by by points. 

Add to that the free travel insurance, and I'm making many thousands a year simply by owning a couple of cards.

I could never go back to cash.

(Edit for Freudian slip... had 'owing' instead of 'owning.')


----------



## Siggy (Jan 14, 2006)

If I only had one CC, it would be American Express.

Discover Card will hound you like a mad dog if you are late on one payment...hate them.

Some things I hate about credit cards:
Just about every bank credit card in the US is now charging a percentage for any non-US purchases! They just started doing this a few years ago. For someone who travels alot, or buys things on the net from England (shoes) etc, this is an unnessary added expense to line the pockets of the credit card co.

Many cards now give only a 20-day grace period for paying your balance...they keep whittling down the days so they can get you with finance charges.

Changing APR's.


----------



## shuman (Dec 12, 2004)

I was recently fortunate enough through an inheritance to pay off all of my credit cards. Due to illness of my fiance, the medical bills took priority and my credit cards went seriously delinquint. I was blessed to recieve the money that I did, and took care of the bills. I still have a couple little balances that, when she begins working agian, I will take care of. 

I will never go back to credit cards, and, due to the beating my credit rating has taken, I will have little choice. I have gotten a corporate card for my new job, and with reimbursement of travel expenses, the balance must be paid off every month. This will slowly improve my rating.


----------



## guitone (Mar 20, 2005)

I will never use a debit card, too hard to keep track of for me. I use a CC and pay it off monthly, never carry a balance....I earn 1% back on most purchases and 2% on gas and food, so maybe I will get something back. Since getting this one I write a lot less checks... I know my limits, I do indeed charge too much but never more than I can pay for each month, that is important. Once you start owing it is very difficult to come out clean.

guit


----------



## Badrabbit (Nov 18, 2004)

> quote:_Originally posted by VS_
> 
> 
> 
> ...


As VS has pointed out, debit cards are no longer as dangerous as they once were. I worked for Regions bank for a couple of years and we usually replaced money within two days of a fraud report. If after the investigation was done it was found that the customer actually made the purchases, we simply removed the money again. The only time I can imagine that one could not go two days without access to your account would be if you were out of town.

In addition, the banks often watch for odd purchases more diligently than even the CC companies. My card was recently suspended after a nice sized purchase from Lewin. They saw a purchase from Montgomery and one in London on the same day and placed a hold on the card. When I tried to use it at a store, the employee of the store had to call it in. I called my bank and explained that I had made the purchase and they had my card back up and running within seconds. The whole affair took less than 5 minutes. I felt much more confident in the security of my account afterwards and had only suffered a modicum of inconvenience.

--------------------------------------------------------------------------------
Women thrive on novelty and are easy meat for the commerce of fashion. Men prefer old pipes and torn jackets. 
Anthony Burgess


----------



## kenz (Jul 25, 2005)

> quote:_Originally posted by shoefetish_
> 
> ...2 Platinum Visas with no membership charges. 1 for internet purchases the other for over the counter...


Shoef,
I do that too - the internet card has a low limit in case of the account being emptied. Is that your reason as well?


----------



## Martinis at 8 (Apr 14, 2006)

I am a zero debt person.

However, I do use credit/charge cards intelligently. I pay them off before any interest charges can accrue. The cards are a great convenience for the travel that I do with my business. Plus the purchases help me rack up more frequent flyer miles, which means more free flights for vacations, and more vacations.

M8


----------

