Credits Cards..Is there anything they can't do?

[SgtBuddy]

Homer quote, I think?

Anyway, I cut up all but one of my credit cards in preparation for the big payoff in a few weeks.

I have to keep my government travel Visa for official duty. Luckily, I can't use it on impulse purchases, so I should be safe there.

Is there a reason to have a credit card? I have a debit card that acts JUST LIKE a credit card. It is a Mastercard and, so far, everyone has taken it without question. I remember the days of the "debit card useless in 50% of the stores" fiasco. I think USAA has fixed that.

So, any reason to have a 9%+ APR credit card when a debit card can be used the same way?

Emergencies...savings will cover any emergency I can have (single dude...emergency consists of having to get a new proc after the AMD fried after fan failure)

 

[Spooner]

Debit Cards don't allow you to build credit thus allowing you to mortgage a home later in life.

 

[Viper GTS]

You're a fool if you use a debit card for online purchases.

Viper GTS

 

[jlee]

IMO, there isn't really any need for a CC. I don't have one (use paypal debit..), and my debit card is accepted everywhere a Mastercard is. The Blockbuster account applicated needed a credit card, and my paypal credit (*cough*debit*cough*) card worked just fine

 

[axelfox]

wait till an unauthorized charge comes around....

 

[Garet Jax]

To build credit and to protect yourself are the two big reasons.

 

[vi edit]

Two big reasons that I can think of that CC are superior to DC.

1. Theft protection. In many states(I think it varies by state anyway), if your CC is stolen, and hundreds, if not thousands of dollars in charges are racked up, you are only responsible for the first $50. Someone please correct me if I'm wrong on that. If your DC is stolen, the money is gone. Forever. No theft protection, no reimbursements. Nuthin. If you had $5000 in your checking account, and somebody steals your DC, your $5000 has just vanished.

2. Perks. I get 5% of my purchase back in points twords the purchase of a new vehicle with my GM card. With sony, you get 5% twords the purchase of sony products. Some cards give frequent flyer miles, others give money back. Many of them offer free extended warranties on purchases, and some of them offer price protection guarantees. I have yet to see a DC offer these incentives.

If you are responsible, credit cards are very, very useful.

 

[RossMAN]

Originally posted by: Viper GTS
You're a fool if you use a debit card for online purchases.

Viper GTS

Exactly.

What about building and maintaining your credit? Unless you can buy a new car or house with CASH then you need credit which credit cards help you to establish and maintain.

You don't HAVE to pay 9% or 19% APR ... why? You have a 25 "grace period" from the day your statement cuts to your due date, pay on or before your due date and your interest is 0%.

Some car rental companies and hotels will only accept a credit card to make reservations and NOT a debit card.

Credit cards are good when used responsibily and they are usually FREE, no annual fee, pay before your due date and you pay 0%.

 

[kranky]

Most places do offer fraud protection on debit cards so your money should be relatively safe. BUT - if it does happen to you, your money is gone first, then you get it back once the bank investigates. That might be a day, or a week, but in any event you could be temporarily broke. I personally won't take that chance. A way around it is to have a checking and savings at the same bank and be able to move money between them via the net or phone. That way at least some of your cash is safe from the debit card. Don't let them automatically move money from savings to checking to cover overdrafts on the debit card or you'll defeat the purpose.

And I would always have a credit card precisely for emergencies - the emergencies that may require more purchasing power than you have on a debit card. There are any number of things that could happen which might require you to temporarily spend more than you have readily available in your debit card account. I was once out of town visiting a friend and halfway home got into a terrible snowstorm. I had to check into a Holiday Inn for two days, plus meals, plus phone calls (this was pre-cell phone). I was glad to have a credit card then, because I couldn't have covered it otherwise.

Isn't there a limit on how large a debit card transaction can be? Not so with a credit card. (Up to your available credit limit)

 

[SgtBuddy]

Ah, very good suggestions!

I may keep a credit card, but just not use it...yeah, that's the ticket...oohh..nice 65" TV...



My credit rating is outstanding. I guess all those years of buying stuff adds up.

Cash Back rewards....I get that with my USAA card. Except, it is CASH back not cash back when you buy a gas guzzling SUV fro Chevy.

Fraud protection. I haven't been bitten yet, so it is hard to say. I do a large majority of my shopping online (Since I am overseas).

Diligence on paying off the balance. I am not going to have credit debt if I can help it.

Thanks folks