Credit Card Debt

[W2R]

Do you never rent a car or reserve a hotel room? AFAIK a CC is necessary for these things.

I do both of those things repeatedly and have for several years, with no problems ever, not even a hesitation, not even once. I even asked a car rental agency about it once, when renting a car, and was told that that information was years out of date and just not correct. Such problems are fiction in my situation and my guess is that these stories probably arose from those not knowing the difference between a debit Mastercard and a (more restrictive) ATM card or else from those with insufficient balance in the bank account to which the debit Mastercard is linked. I am perfectly happy with my choice to not be a part of the credit culture, though I know several here are not at all happy with my choice! Let's see - - 72:0:1 right now, so I can see that I am not going along with the crowd on this one.

 

[noworkethic]

I am perfectly happy with my choice to not be a part of the credit culture, though I know several here are not at all happy with my choice!

No! No! No! Please, either you have misunderstood or I have expressed myself poorly. I also do not like the credit culture. In fact I find it somewhat revolting. The only reason I originally applied for a credit card some 15 yrs. ago was because I had had problems renting cars and reserving hotel rooms, thus my query. Before that I had always paid cash for everything except real estate, and was proud of it. I did not realize that things had changed in these areas, which was why I asked the question. I am delighted that you find credit unnecessary and not at all unhappy with your choice.

 

[W2R]

No! No! No! Please, either you have misunderstood or I have expressed myself poorly. I also do not like the credit culture. In fact I find it somewhat revolting. The only reason I originally applied for a credit card some 15 yrs. ago was because I had had problems renting cars and reserving hotel rooms, thus my query. Before that I had always paid cash for everything except real estate, and was proud of it. I did not realize that things had changed in these areas, which was why I asked the question. I am delighted that you find credit unnecessary and not at all unhappy with your choice.

I didn't necessarily mean you!! I'm sorry. There are a lot of people who think that these problems still exist, and even more who think that debit cards are less well protected against identity theft (which might be true for some debit cards, I have no idea, but mine has verbiage in the contract to the contrary and their response was consistent with their policy). I am delighted to hear that somebody else feels as I do about credit cards.

Try getting a debit Mastercard as well as your credit card, and offer the debit card first. I haven't ever had it questioned, though I haven't tried it for international travel since I haven't wanted to leave the country. A debit Mastercard looks like a Mastercard, but it doesn't come with any credit - - there has to be sufficient money in your account. For example, if there is a $300 deposit on a rental car, the money will not be withdrawn but will be frozen (as a "pending withdrawal") until you return the car. I usually keep several thousand in the bank so that isn't a problem for me.

When I couldn't get a credit card back in early 1998, I was terrified - - we become so dependant upon them. I didn't know how I would survive without one. Everybody has one. But surprisingly I have found that I like having no credit card. It has really simplified my life and frankly, I just hate credit card companies after my past experiences.

When we have threads about how someone is having difficulties with their credit card company for one reason or another, you may imagine me in the background, reading and smiling like a Cheshire cat but not wanting to hijack somebody's post.

 

[Gumby]

No! No! No! Please, either you have misunderstood or I have expressed myself poorly. I also do not like the credit culture. In fact I find it somewhat revolting. The only reason I originally applied for a credit card some 15 yrs. ago was because I had had problems renting cars and reserving hotel rooms, thus my query. Before that I had always paid cash for everything except real estate, and was proud of it. I did not realize that things had changed in these areas, which was why I asked the question. I am delighted that you find credit unnecessary and not at all unhappy with your choice.

I got my first credit card at 25. And I would have been happy to continue life on a cash basis, but I was unable to rent a car during my honeymoon (fortunately, the young wife had a credit card), so I caved and got a card. I also was not aware that one could now rent a car with no credit card.

 

[W2R]

I got my first credit card at 25. And I would have been happy to continue life on a cash basis, but I was unable to rent a car during my honeymoon (fortunately, the young wife had a credit card), so I caved and got a card. I also was not aware that one could now rent a car with no credit card.

I wouldn't suggest trying it with an ATM card - - if anyone does experiment with this, make sure it is a debit Mastercard and looks just like a Mastercard, and make sure you have a nice fat checking account balance. I always put $2000+ in checking before I travel.

Also I wouldn't try it for international travel without a CC as back-up. Might be fun to experiment with that, though.

 

[CuppaJoe]

The credit card industry sucked me into the reward point program. If I really looked at my transactions, I may well spend more because of it. They have won! ...even though I pay them off early every month.

When I get further into "cheap bast*ardhood" I may reduce my card spending.

 

[RonBoyd]

The credit card industry sucked me into the reward point program. If I really looked at my transactions, I may well spend more because of it.

This is in the same category as doing something solely for the tax write-off -- not, I suspect, an issue with this group.

Of course, the CC card companies want you to spend more (who doesn't?)... but not for the reasons that you are implying. The "rebate programs" are simply sharing the fee charged to the (for instance) retailer for offering that method of payment. You can, of course, elect not to get your share but I am not sure it penalizes anyone other than yourself. In any event, you will pay the same for whatever purchases you make.

 

[Dawg52]

The credit card industry sucked me into the reward point program. If I really looked at my transactions, I may well spend more because of it. They have won! ...even though I pay them off early every month.

When I get further into "cheap bast*ardhood" I may reduce my card spending.

I can see how one could be more prone to spend by having a c/c over a debit one. But I'm as cheap as they come, so I don't think it has been a problem for me. But when I do charge as in gas, groceries, etc.....it sure is nice to see that end of month rewards credit made directly to my Penfed account.

 

[Alan]

I charge everything I can to my CC and never carry a balance. This year I've charged $32K and received $648 cash back.

I have an automatic payment large enough to cover any minimum go to the CC every month JUST in case something happens and I fail to make an on-line payment in full. (avoids accidental interest charges and late fees which happened once long ago when I used to mail in payments)

 

[Alan]

I wouldn't suggest trying it with an ATM card - - if anyone does experiment with this, make sure it is a debit Mastercard and looks just like a Mastercard, and make sure you have a nice fat checking account balance. I always put $2000+ in checking before I travel.

Also I wouldn't try it for international travel without a CC as back-up. Might be fun to experiment with that, though.

I second that. In Bordeaux (France) earlier this year on vacation I went to rent a car from Hertz that I had reserved. Penfed Visa was not acceptable, next I tried my Debit Visa card not accepted (I had over $3k in my checking account). Finally I presented my Amex card which was accepted - when I came to pay 2 weeks later I used my Penfed card which has better cash back.

 

[Moemg]

I like the comfort of a credit card for emergencies . I've had some emergencies [family illnesses ] that $2,000 would not have been enough to cover and money market transfers while fast are not instant .

 

[W2R]

I like the comfort of a credit card for emergencies . I've had some emergencies [family illnesses ] that $2,000 would not have been enough to cover and money market transfers while fast are not instant .

Transfers from savings to checking in the same bank are fast - - and even though personally I find that $2000 is enough to last me for an overnight trip, obviously one uses common sense in deciding on how much should be where for how long, ya know? All of this is soooooooo easy to do these days with electronic banking. The amount of funds you might need so precipitously fast that you couldn't possibly do electronic transfer from Vanguard for any of them, can be there for you and "as safe as money in the bank". Often one's 10-month emergency fund is a different pot of money than the "OMG my family member is sick" money.

 

[Moemg]

The illness I was referring to used up over $10,000 of funds suddenly and while most of it I was able to write a check for .The flight alone was $600 so it is nice to have the back up of a credit card plus My Savings is with Vanguard and it takes two business days before the money is actually in my account .

 

[bbbamI]

I like whipping out my credit cards for those expected/unexpected expenses instead of having to make transfers, but hey, that's just me.

 

[mews]

You can, of course, elect not to get your share but I am not sure it penalizes anyone other than yourself. In any event, you will pay the same for whatever purchases you make.

Or, you can ask the merchant - "What can you do for cash?" - often the answer is a few % off.

ta,
mews

 

[JOHNNIE36]

Debit Mastercards like mine look just like a Mastercard. If a customer answers that question as "debit", then the fee is assessed to the customer instead of to the store. That is why they ask - - they probably make a few bucks for the store this way during the day.

My bank sent debit Mastercard owners a letter several years ago, telling us to insist on having it processed as "credit", since that is perfectly legal and I guess is the intent in creating these cards. In fact, at one point several years ago they sued Wal-Mart about their refusal to process debit Mastercard purchases as "credit", and we no longer have trouble doing that with a debit Mastercard.

Thought I knew all about these cards but tell me about the debit fee being assessed to the "customer". I don't get it. Tell me more about this fee to the customer. I thought the merchant paid the fees which are different for a debit card than a credit card. I use both. I gave up on airline miles. Too much of a hassle. I have an Amex card that gives me 5% cash back on gasoline and cellphone and a couple other things and 1% on everything else. It's a business card but anyone can get it. No annual fee. The 5% gasoline rebate was nice when gas was $4/gal (my cost $3.80). Only problem--lots of places won't take Amex. My debit card is processed the same to me, whether it goes in as credit or debit.

 

[Moemg]

I like whipping out my credit cards for those expected/unexpected expenses instead of having to make transfers, but hey, that's just me.

Me too, I always love those commercials when they decide to fly away at the spur of the moment and whip out their visa . I want to do that just once before I die .

 

[JOHNNIE36]

At 35-0-1, I'd say your conclusion is correct! I am the "1" who doesn't use a CC.

Back when I needed one, right after my divorce and penniless but with a decent job, I couldn't get a CC. (Well, at least I couldn't get an unsecured CC without paying huge fees, amounting to over half of the ridiculously low CC limit)

Now, eleven years later and with credit scores in the 800's I could probably get one. I don't feel a need or desire for one at this point, though. So, I haven't got around to applying once again for my first credit card in my name only. The idea is such a huge turn-off to me.

Like Dex, all my regular bills are on automatic bill pay directly from my bank and I seldom write checks. My debit Mastercard is convenient for gas and online purchases. My bank refunds 100% of debit card purchases not authorized by me (and did so the one time that happened, back in 2001 - - that policy is written into the debit card contract small print).

Lots of advantages to major purchases on a credit card. Lot of cards will extend warranties at least one year. They can cover goods damaged in
transit. Also, someone mentioned insurance. A good credit rating can get you a lower rate on home and auto. Ever hear of your FICO score?

 

[RonBoyd]

Or, you can ask the merchant - "What can you do for cash?" - often the answer is a few % off.

So... you pull in to the gas station and jump out, run inside and say: "Quick! Let me speak with the merchant."

Have you actually tried that?

 

[Alan]

Me too, I always love those commercials when they decide to fly away at the spur of the moment and whip out their visa . I want to do that just once before I die .

I had to do just that a few years ago. Dec 26th at 8:30am I got a call from my sister in England to say my mother had died. I called around the airlines and got a flight that day - overnight to London and I was at my Dad's house the next afternoon.

 

[Bestwifeever]

I had to do just that a few years ago. Dec 26th at 8:30am I got a call from my sister in England to say my mother had died. I called around the airlines and got a flight that day - overnight to London and I was at my Dad's house the next afternoon.

Alan, I had to do that for my brother when our father died 28 years ago--pre-ATM-card-days, only a credit card could buy his overseas ticket.

 

[Alan]

So... you pull in to the gas station and jump out, run inside and say: "Quick! Let me speak with the merchant."

Have you actually tried that?

It has worked for me when buying a car, though not in recent years.

 

[RonBoyd]

It has worked for me when buying a car, though not in recent years.

Purchasing a vehicle with a Credit Card. Hmmmm.

 

[bbbamI]

Purchasing a vehicle with a Credit Card. Hmmmm.

Yep, my dealer let's me put $5k on my cc. I pay the rest in check, then pay my cc off when I get the bill.

Unfortunately, I've never been able to get a discount by paying cash instead of using my cc. But, I keep tryin'.

 

[bssc]

Purchasing a vehicle with a Credit Card. Hmmmm.

Bought a used vehicle in March for 8300 and put it on my True Earnings card. Some dealers will do that.