OK, so maybe it makes sense for *you* to not have a CC. The problem I'm having is that some posts in this thread imply that anyone who has a CC is "exposing" themselves to problems, and they just don't know it (or something like that).
Now, this will probably come across in a post as condescending, but I actually mean it only in an honest, helpful way - if you have trouble paying bills on time, I'd suggest you work out a system to address that. You have much to gain. If you had a system that worked for you, you could take advantage of the float, the rewards, and avoid late fees and hits on your credit score.
My "system" is (in order of preference):
A) Have the bill charged to my rewards CC. This gives me the float (time to respond), and I earn rewards with these purchases that I would make anyway.
B) If they don't allow auto CC charges, I set up an autopay through my bank online. I don't get any float, and no rewards, but I don't have to buy a stamp, worry about it getting lost in the mail, forgetting to mail it, etc.
C) Set up an autopay through the business (I don't like this so much, as it is a slightly different system to learn and another site to go to. No biggie, but I avoid it if I can.
D) Pay at the site directly (put a reminder on the calendar, and do an electronic reminder too). Same issues as C, but no auto feature. I use my CC if there are no charges.
In addition, I have an autopay set up for my two CCs from my checking account. Defaulted with an amount larger than my typical bill. I can't be late, and am unlikely (as in it has never happened) to pay too little and be charged fees. I have several weeks to go in and adjust it to the proper (usually lesser) amount.(snip)
-ERD50
It didn't strike me as condescending. "Set up an automatic method to ensure timely payment" is
totally consistent with my goal of avoiding unnecessary aggravation! And in fact, I do use various forms of automatic payment, I just pass on "Option A". My bus pass is on payroll deduction. So are my tax deferred retirement plan contributions. There was one bill I used to forget repeatedly, because it was only quarterly. I finally had that one put on autopilot—an automatic transfer from my bank. Likewise my car insurance, because in WA car insurance is a legal requirement, so letting that lapse would also be a major pain in the neck. It costs a little more than paying it once or twice a year, but I think it's worth the extra few bucks. My ISP bill is on my debit card—I don't think they take any other kind of payment but cards. And contributions to my Roth IRA are also by automatic transfer. I pay all my other bills via online banking out of my checking account, so I don't have to write checks, buy stamps, etc. The bank does all of that (for free). I suppose a payment could still get lost in the mail, but AFAIK it never has. It never did when I was mailing them myself, either. Next item on the agenda, get everything switched over to paperless billing.
I haven't put everything on automatic payment, because I get paid every two weeks but most of the bills are monthly. The different schedules make it probable that every now and again the bills would arrive at the bank a few days before the paycheck (which has been on automatic deposit for years), with resulting overdraft charges and mega-hassles. But once I retire, I think the pension checks come monthly and I may well take advantage of automatic billing and get all that stuff out of my hair. You can, IIRC, have income tax withheld and health/LTC insurance premiums deducted from the pension check beforehand, and put the remainder on direct deposit. Of course, all this automation leaves open the possibility of
something like this happening
I will only add in closing that you've objected elsewhere on the thread to what seemed to be people pushing the idea that everyone should get rid of their credit cards—but it seems to me that you are at least a little bit pushing the idea that we CC-free types
ought to get some credit cards,
ought to want to get cash back or other rewards, and
ought to want to take advantage of the float. Doesn't that strike you as a little bit contradictory? My response is "thanks, but no thanks." I just don't want the money that much. Quite the contrary, I am eagerly looking forward to being completely debt-free after retirement: no mortgage, no credit cards, no car loan, & don't give a rip about my rating, 'cause I don't need to borrow money ever again. Maybe that's not your cup of tea, but I don't think I could feel comfortable retiring at all with debt hanging over my head.
