Whats the point in credit cards

[bsmithy]

I don't understand what good they're for (maybe for emergencies, but thats what savings are for).

I use a debit card (excepted everywhere, no fees, recieve average interest) which just about serves every purpose i can think of.
ATM, buying online, buying IRL, paying bills, direct debits are all covered with the one card (with fraud protection and 0% liability).
why would anyone need credit cards? the only use i can see is to have 3-4 to increase your spending/credit limit.

can someone explain?

 

[marquee]

dont have to carry large sums of cash around.. plus helps build up your credit history so when you apply for a loan in the future, you have a good credit rating

 

[kranky]

If someone uses my credit card illegally, I dispute the charges and still have all my money.
If someone uses a debit card illegally, the charges can be disputed, but in the meantime your money is gone.

If I buy something with a credit card and get defrauded, the CC company will go to bat for me. If I pay with cash, I'm on my own.

If I'm out of town and have a financial emergency, I'm not limited to the amount of money currently in my checking account.

My credit card pays 1% cash back on all purchases.

 

[krunchykrome]

There needs to be credit in this world. Without credit, there would be no basis to judge a person's "financial reliability."
You can't build credit with a debit card. But with a credit card, you can build credit and when you want to buy a house or a car or a big item, the banks will want to know about your credit history.

Are you really asking this question?

Besides credit, it's convenient, and it can be very beneficial if you know how to use credit properly to your advantage.
Whats the point in a dollar bill? What does it do? Bills, plastic....they're both abstract concepts of value, especially plastic.

 

[bsmithy]

Originally posted by: marquee
dont have to carry large sums of cash around.. plus helps build up your credit history so when you apply for a loan in the future, you have a good credit rating

what would you buy that costs that much, it's not like you'd put a car/house on your card is it?
my spending limit on the card is £3500 which is plenty for anything i can think of

 

[Whisper]

Originally posted by: bsmithy

Originally posted by: marquee
dont have to carry large sums of cash around.. plus helps build up your credit history so when you apply for a loan in the future, you have a good credit rating

what would you buy that costs that much, it's not like you'd put a car/house on your card is it?
my spending limit on the card is £3500 which is plenty for anything i can think of

It is my goal to one day buy a car with my credit card. I just want to see the charge on a monthly statement.

 

[CPA]

Originally posted by: bsmithy

Originally posted by: marquee
dont have to carry large sums of cash around.. plus helps build up your credit history so when you apply for a loan in the future, you have a good credit rating

what would you buy that costs that much, it's not like you'd put a car/house on your card is it?
my spending limit on the card is £3500 which is plenty for anything i can think of

I've heard of several people who have purchased a vehicle with a cc. On one of my cards, I have 25K in limit, so I could purchase a car with it if I wanted to.

 

[stateofbeasley]

Pretty much what Kranky said. I'd rather place the immediate risk of monetary loss due to the theft of my card on the Credit Card company. Debit cards = immediate access to your account = dangerous.

 

[bsmithy]

Originally posted by: krunchykrome
There needs to be credit in this world. Without credit, there would be no basis to judge a person's "financial reliability."
You can't build credit with a debit card. But with a credit card, you can build credit and when you want to buy a house or a car or a big item, the banks will want to know about your credit history.

Are you really asking this question?

Besides credit, it's convenient, and it can be very beneficial if you know how to use credit properly to your advantage.
Whats the point in a dollar bill? What does it do? Bills, plastic....they're both abstract concepts of value, especially plastic.

i'm talking direct advantages of credit over debit, also you can have an overdraft for emergencies (0% apr if you earn enough)

my fraud protection works like this: i walk into/phone the bank and say "this charge is not by me" and they credit me the money, then they investigate.

all good

 

[Titan]

1) Credit history
2) Not having to worry about having the money when I buy something.

I only get paid twice a month, and it's nice to know what bills I pay after which paycheck. I put everything I buy on the CC, and I can check what I bought on my online statement, even sort how much I spent on gas, groceries,etc. I don't want a debit card because I don't want to worry if I have enough in my checking account when I make a purchase. But if you are one of those people who keeps track of all their spending, then you shouldn't have a problem.

Also CCs are good for buying something that you need now, but won't have the money for a little bit. Like once when I moved I needed a bed but didn't have the $$, I had to wait for my first paycheck to come in to cover it.

Just for the record I have had a CC, only one for about 5 years now, and have not run up a ¢ of interest; I always pay the full balance.

 

[SoyBoy004]

Originally posted by: CPA

Originally posted by: bsmithy

Originally posted by: marquee
dont have to carry large sums of cash around.. plus helps build up your credit history so when you apply for a loan in the future, you have a good credit rating

what would you buy that costs that much, it's not like you'd put a car/house on your card is it?
my spending limit on the card is £3500 which is plenty for anything i can think of

I've heard of several people who have purchased a vehicle with a cc. On one of my cards, I have 25K in limit, so I could purchase a car with it if I wanted to.

most dealers won't let you purchase the ENTIRE car price on the card. FOr one, they have to pay a fee for every credit card usage, usually 1-4% i think, depending on the card. I was only able to pay $500 on my card when i bought my subaru.

another reason to use credit cards: free stuff! ie money, rewards points, amex's best value guarantee, etc

 

[FeathersMcGraw]

Three week's grace period versus immediate debit of funds. Assuming you have enough discipline to only make purchases you can cover.

 

[dxkj]

Insurance? A lot of credit cards add insurance.warranty coverage.

Some also add cashback (5% for me on gas).

Also they help build your history up in case you actually need to take out a loan.

Protection. If they are stolen you have coverage usually.

etc etc? silly question IMO

 

[bsmithy]

Originally posted by: dxkj
Insurance? A lot of credit cards add insurance.warranty coverage.

Some also add cashback (5% for me on gas).

Also they help build your history up in case you actually need to take out a loan.

Protection. If they are stolen you have coverage usually.

etc etc? silly question IMO

all this is provided on my debit account, it's a visa

edit: rewards are not as large in the uk, largest i have seen is 1% cashback

 

[marquee]

Originally posted by: bsmithy

Originally posted by: krunchykrome
There needs to be credit in this world. Without credit, there would be no basis to judge a person's "financial reliability."
You can't build credit with a debit card. But with a credit card, you can build credit and when you want to buy a house or a car or a big item, the banks will want to know about your credit history.

Are you really asking this question?

Besides credit, it's convenient, and it can be very beneficial if you know how to use credit properly to your advantage.
Whats the point in a dollar bill? What does it do? Bills, plastic....they're both abstract concepts of value, especially plastic.

i'm talking direct advantages of credit over debit, also you can have an overdraft for emergencies (0% apr if you earn enough)

my fraud protection works like this: i walk into/phone the bank and say "this charge is not by me" and they credit me the money, then they investigate.

all good

the biggest thing is credit history.. a friend of mine used his debit card all through college, never owned a credit card. now he has no credit history. now he has difficulty even applying for a credit card. if someday he needed a loan for a car or a house, he has to have all that money in advance.

 

[StageLeft]

They're good for buying things people can't afford.

--

Personally I use ours for everything I can, just to get points, then pay it off month's end. I also use it for online things, or in stores because I know I have greater security with it than debit. Also, when the money isn't there, it's a good buffer of available cash.

 

[Queasy]

The point of credit cards? To make money for the credit card companies.

 

[bsmithy]

Originally posted by: Queasy
The point of credit cards? To make money for the credit card companies.

exactly, i don't want to give them money

 

[FeathersMcGraw]

Originally posted by: bsmithy

Originally posted by: Queasy
The point of credit cards? To make money for the credit card companies.

exactly, i don't want to give them money

Chances are they manage your debit card, too.

 

[CPA]

Originally posted by: SoyBoy004

Originally posted by: CPA

Originally posted by: bsmithy

Originally posted by: marquee
dont have to carry large sums of cash around.. plus helps build up your credit history so when you apply for a loan in the future, you have a good credit rating

what would you buy that costs that much, it's not like you'd put a car/house on your card is it?
my spending limit on the card is £3500 which is plenty for anything i can think of

I've heard of several people who have purchased a vehicle with a cc. On one of my cards, I have 25K in limit, so I could purchase a car with it if I wanted to.

most dealers won't let you purchase the ENTIRE car price on the card. FOr one, they have to pay a fee for every credit card usage, usually 1-4% i think, depending on the card. I was only able to pay $500 on my card when i bought my subaru.

another reason to use credit cards: free stuff! ie money, rewards points, amex's best value guarantee, etc

I thought about that, but it doesn't stop you from using a cash access check, either by handing it to the dealer or depositing it in the bank. And you may be able to talk the cc in waiving any cash access fee if you are going to make that large of a purchase.

 

[DaWhim]

Originally posted by: bsmithy

Originally posted by: krunchykrome
There needs to be credit in this world. Without credit, there would be no basis to judge a person's "financial reliability."
You can't build credit with a debit card. But with a credit card, you can build credit and when you want to buy a house or a car or a big item, the banks will want to know about your credit history.

Are you really asking this question?

Besides credit, it's convenient, and it can be very beneficial if you know how to use credit properly to your advantage.
Whats the point in a dollar bill? What does it do? Bills, plastic....they're both abstract concepts of value, especially plastic.

i'm talking direct advantages of credit over debit, also you can have an overdraft for emergencies (0% apr if you earn enough)

my fraud protection works like this: i walk into/phone the bank and say "this charge is not by me" and they credit me the money, then they investigate.

all good

there are is no law to protect debit card users in term of fraud! NO
the law clearly states that for credit card users, our liability is UP TO $50. good luck when all your money got drained by someone else.

I use my cc whenever I can. there is a 1% cashback on every single dollar i spent.

 

[bsmithy]

Originally posted by: FeathersMcGraw

Originally posted by: bsmithy

Originally posted by: Queasy
The point of credit cards? To make money for the credit card companies.

exactly, i don't want to give them money

Chances are they manage your debit card, too.

i don't want to give anyone money

but I'd rather get interest than pay it

 

[bsmithy]

Originally posted by: DaWhim


there are is no law to protect debit card users in term of fraud! NO
the law clearly states that for credit card users, our liability is UP TO $50. good luck when all your money got drained by someone else.

I use my cc whenever I can. there is a 1% cashback on every single dollar i spent.

what?

 

[Ausm]

Originally posted by: Skoorb
They're good for buying things people can't afford.

--

Personally I use ours for everything I can, just to get points, then pay it off month's end. I also use it for online things, or in stores because I know I have greater security with it than debit. Also, when the money isn't there, it's a good buffer of available cash.

Also increasing the Bankruptsy rates to record levels.


Sysadmin

 

[DaWhim]

Originally posted by: bsmithy

Originally posted by: DaWhim


there are is no law to protect debit card users in term of fraud! NO
the law clearly states that for credit card users, our liability is UP TO $50. good luck when all your money got drained by someone else.

I use my cc whenever I can. there is a 1% cashback on every single dollar i spent.

what?

what is not clear? when your debitcard# got stolen, someone drain all your money in the checking account, your bank is not responsible to give back all your money.