Could you live without your credit card?

Niemoj

Have a debit card alright but never a credit and have no need for one anyway.

o1s1n

Penny Tration wrote: »

I know, my sister's debit card was skimmed and it took a few weeks to get the money back from the bank.

That's why I also have "emergency" cash in my purse at all times, and some savings that a trusted family member holds for me in their safe.

As for online shopping, I only use trusted sites, haven't had any issues.

If that works for you, grand Just seems like a lot of hassle when you can just use a credit card to separate your current account and online purchases instead of worrying about cash/safes etc.

If you pay off a credit card in full every month it's only really 'credit' in name, you're just using your cash in a different way which offers more security.

Yamanoto

Penny Tration wrote: »

what kind of hassle do you experience booking hotels with a debit?

Many hotels routinely place a hold on x amount to cover themselves, reducing your current account by a corresponding amount. It's a frequent enough occurrence that those funds then take an inordinate amount of time to be released back to you from the merchant. So guest calls hotel to complain, hotel blames your bank.

Guess what the bank tells ya?

Samaris

Never had one. Now, to be fair, I'm still relatively young, never had to buy a house or a car or anything that requires excellent credit and maybe a loan*. But I was hitting adulthood when the boom was still going (just), but I was already seeing the horror stories and I didn't trust the "GET A CREDIT CARD ALL SORTS OF WONDERFUL THINGS WILL HAPPEN" ads so I didn't.

So far, VISA debit has done for me, I can use the card to pay, including online, and if I'm out of money, I'm out of money. At least I'm not in debt to the bank (although I am in debt to my mother).

*This may come back to bite me in the ass when eventually I -do- need it.

Penny Tration

Yamanoto wrote: »

Many hotels routinely place a hold on x amount to cover themselves, reducing your current account by a corresponding amount. It's a frequent enough occurrence that those funds then take an inordinate amount of time to be released back to you from the merchant. So guest calls hotel to complain, hotel blames your bank.

Guess what the bank tells ya?

I've never had it happen. one place in London wanted £100 cash deposit but I knew that in advance.

Guess I've been quite lucky!

I have a credit card for travel, and I get decent free travel insurance for any trips I book with it. I've never paid any interest, it's paid off very promptly. I could live without it, but it's handy enough just for the travel bookings.

I use a debit card all the time, usually have very little cash on me.

For ever odd

Samaris wrote: »

Never had one. Now, to be fair, I'm still relatively young, never had to buy a house or a car or anything that requires excellent credit and maybe a loan*. But I was hitting adulthood when the boom was still going (just), but I was already seeing the horror stories and I didn't trust the "GET A CREDIT CARD ALL SORTS OF WONDERFUL THINGS WILL HAPPEN" ads so I didn't.

So far, VISA debit has done for me, I can use the card to pay, including online, and if I'm out of money, I'm out of money. At least I'm not in debt to the bank (although I am in debt to my mother).

*This may come back to bite me in the ass when eventually I -do- need it.

Aaahh, the Irish Mammy - the best credit institution in the country, with the accompanying "Now don't tell any of the rest of them I gave you that"

I find it strange someone not having a credit card in this day and age it's basically an essential. I have one since I started college and never had any problem ending up in debt with it. I either use cash or my credit card rarely use the debit card any more after getting skimmed and my account emptied one of the very few times I use my debit card online (almost always used the credit card online). No way would I use a debit card online at all any more.

I don't treat it as credit really though and pay it off or mostly most months. It's also essential to have one for work travel. I could spend a few hundred euro on a few days away with work (or much more if it's a us trip), no way I want to be using money from my current account for that.

Don't see how people have so much difficulty controlling themselves with a credit card. I got a new card recently too with a much higher limit and it also give me cash back on many transactions. It's only a few cent here and there but it adds up to a few euro in the month if you use the card a good bit.

Ruu

I use mine but it is paid off in full before the bill is due. Ireland is very behind in terms of a decent card with any kind of rewards or cash back. I have one from Amazon and the other from Barclaycard that has no foreign transaction fees of any kind so can use when abroad, 5% cash back on purchases.

Beasty

Ruu wrote: »

I have ..... the other from Barclaycard that has no foreign transaction fees of any kind so can use when abroad

You might want to check that - they certainly used to hide their fees within the exchange rate they used.

Douglas Scary Billiards

Douglas Scary Billiards wrote: »

I find it strange someone not having a credit card in this day and age it's basically an essential.

Why makes you view it as an essential?

Sinister Kid

LexieOnRale wrote: »

I got one when I was 18, boom time, lots of money. Only too delighted to give me one. I got into so much trouble with it. Disaster. I was making payments that weren't even covering the interest. My dad found out, paid it off and cut it up.
Was recently in the bank and the lady suggested I apply for one "for emergencies", no thanks!

I was in a similar situation except my dad didn't pay it off for me. Had to get a credit union loan of 7 grand to clear it, chopped it up after that. Best/hardest lesson I ever had.

andekwarhola

Between the smug tales of financial rectitude and the tales of profligacy, there's actually a middle place where many people own one and just use it to pay for unexpected, unbudgeted expenses and then simply redo their future budgets to pay it back as soon as possible.

Credit has its place (within reason) when you are good with budgeting and you are putting your spare money into savings (which you can't always get at quickly if something important pops up).

Deleted User

Deleted User wrote: »

Why makes you view it as an essential?

Safe online shopping, safer transactions when abroad, essential for work travel (who can afford to spend hundreds or even over 1000 euro out of your current account if travelling for work), can't hire a car without a credit card debit cards aren't accepted by most if any companies, access to extra funds if needed for something unexpected even if you have the money in savings etc most wont have instant access to these funds etc etc.

It's more a convenience than a necessity. All those things can be gotten round but it's much easier to sort with a CC.

Permabear

This post has been deleted.

andekwarhola

[Deleted User] wrote: »

Why makes you view it as an essential?

Most adults with financial responsibilities, especially with kids, would need temporary credit from time to time or at least find it convenient.

I don't see the point of having large amounts of money lying in my current account (even though our household income is OK) long-term when it could be put into savings or pensions. I can't access the former right away so for example, if my telly claps out or the car breaks down, I put it on the card and budget for it the following month (or two).

Doylers

Permabear wrote: »

This post had been deleted.

Who is that with? I can't seem to find any irish banks that give decent rewards or incentives like a % back.

smash

Douglas Scary Billiards wrote: »

I find it strange someone not having a credit card in this day and age it's basically an essential.

No it's not. I don't have one, I just use my visa debit to buy online and I'm not getting into debt. The only time I got stuck needing one was for a hire car abroad when they wouldn't accept visa debit for the excess preauthorisation. I made a call and got someone to give their details for me.

MarkAnthony

Renting cars was the main reason. Many countries you rent in will not accept a debit card, it has to specifically be a credit card. That and there is extra protection with a credit card over a debit card so it gets used for holidays etc. That's about it.

andekwarhola

I think if people have such an aversion to credit, it's possibly their potential relationship with it that's the issue. The credit card doesn't take control of your mind and make you rack up and ignore debt, after all.

One eyed Jack

I couldn't really live without it as I use it for business transactions and it's handy to have a record. I'm just literally useless with cash in hand, and I prefer to have my wife taking care of the finances. It's just less of a headache that way, for me personally anyway.

We did have an incident recently alright where my son got his hands on my wife's debit card and used it to pay for some iTunes and Play store content. My wife queried the transactions with the bank and we figured out who'd done it. The bank said they would return the money. I'm not sure if they did or not though, haven't asked my wife about it since.

smash

Doylers wrote: »

Who is that with? I can't seem to find any irish banks that give decent rewards or incentives like a % back.

He's in the states. We get nothing!

Doylers

Doylers wrote: »

Who is that with? I can't seem to find any irish banks that give decent rewards or incentives like a % back.

I doubt it's with an Irish or UK bank, US banks tend to be better with the incentives.

I get flyer miles and travel insurance with mine, that alone makes it worth having.

Penny Tration

andekwarhola wrote: »

I think if people have such an aversion to credit, it's possibly their potential relationship with it that's the issue. The credit card doesn't take control of your mind and make you rack up and ignore debt, after all.

Or maybe some of us just don't want things on credit?

I don't like being indebted to anyone, I wouldn't even ask my mam for fifty quid.

I budget incredibly well, considering my income is atrocious. I have money each week, emergency funds, and "fun" funds. So I'd control myself just as well with a credit card. I just don't want one because I don't like paying for something unless I have money upfront.

Doylers

smash wrote: »

He's in the states. We get nothing!

Candie wrote: »

I doubt it's with an Irish or UK bank, US banks tend to be better with the incentives.

I get flyer miles and travel insurance with mine, that alone makes it worth having.

Ugh the lads in the states get all the cool ****, screw you BOI and your student credit card :pac:

PLL

We don't have one, so yes I live without one very happily. I love not having debts.

If you pay off your credit card, it's not a debt. Used properly it's a convenience, used badly and it's potentially dangerous. It's all about the user, not the card.

deathtocaptcha

IsMiseMyself wrote: »

I don't have a credit card and I don't know if I'd ever get one. My mam drilled into us as kids to never buy anything unless we have the cash sitting in our accounts and that's something I've stuck with since.

RIP your chances of ever owning a house...

andekwarhola

Penny Tration wrote: »

Or maybe some of us just don't want things on credit?

I don't like being indebted to anyone, I wouldn't even ask my mam for fifty quid.

I budget incredibly well, considering my income is atrocious. I have money each week, emergency funds, and "fun" funds. So I'd control myself just as well with a credit card. I just don't want one because I don't like paying for something unless I have money upfront.

Nice homily.

Do I get my confirmation next?

By the way, you don't have any debt if you pay the balance in full.

Doylers

deathtocaptcha wrote: »

RIP your chances of ever owning a house...

Does it really help build credit? I know state side it cab help your odds but does it here?

smash

smash wrote: »

No it's not. I don't have one, I just use my visa debit to buy online and I'm not getting into debt. The only time I got stuck needing one was for a hire car abroad when they wouldn't accept visa debit for the excess preauthorisation. I made a call and got someone to give their details for me.

And if your card is scammed and your current account emptied you are fecked as it takes weeks to get money back. Using a debit card on like is very foolish imo.

Its also not really getting into debt. You have up to 56 days interest free credit and if you clear it on time you pay no interest of even if you do have a little bit of money on it now and again you pay a small bit of interest but its preferable than dipping into savings if you can pay off something over 2 or 3 months on the card imo.

As I mentioned before also I would find it very difficult or impossible to travel or pay for work stuff that I need to pay for upfront for without the credit card. One colleague recently had over 3k on his credit card that was all going to be reimbursed who could afford to have 3k gone from their current account for a few weeks?

smash wrote: »

He's in the states. We get nothing!

KBC credit card has 1% cash back on grocery shopping and online purchases.

Penny Tration wrote: »

Or maybe some of us just don't want things on credit?

As above you don't have to treat it as credit, a lot of the time when I spend on the credit card I transfer over the money from my current account within a few days its just safer using the credit card and I also get cash back.

Also if something bigger comes up like new tyres for the car ass an example I would put them on the credit card and pay for them over two months say as it would be too much of a hit pay all from one months wages and it means not touching your savings or having to reduce how much you are putting into savings. I often use the card like this also.

deathtocaptcha

Doylers wrote: »

Does it really help build credit? I know state side it cab help your odds but does it here?

it can work both ways... if you're topping up a paddypower account regularly with your credit card no lender will look favourably upon that...

but in general if you've a proven track record of paying debt on time, then yes, it does help build confidence.

Beasty

Doylers wrote: »

Does it really help build credit? I know state side it cab help your odds but does it here?

In the US and UK you get credit scores based on your credit history. You get a much higher score if you take on debt and pay it off in accordance with your agreement than if you have never had credit. Basically a positive track record counts in your favour and will get you better terms if you want additional debt.

One eyed Jack

andekwarhola wrote: »

Nice homily.

Do I get my confirmation next?

By the way, you don't have any debt if you pay the balance in full.

Usually somewhere between 30 and 60 days though, and I've known plenty of people who are completely averse to being in debt of any kind, or buying anything on credit. It's hardly sermonising, it's just the way some people are.

I think the worst I've ever heard is people taking out medium term loans to pay off their credit card loans. Some people still swear by credit unions!

The first thing to do if you move to the US is get a car loan and pay it off meticulously, not a single late payment. Same with a credit card. This is absolutely crucial to your credit score.

Even if you can afford a car out of pocket, go for a car loan to start building up the credit score.

my3cents

Don't need one as I could do all my online shopping with just a debit card.

However I put all the big online items and paypal on the CC so it gives me an extra 30 days to pay it off in full. Haven't paid interest in 20 years.

Olishi4

deathtocaptcha wrote: »

it can work both ways... if you're topping up a paddypower account regularly with your credit card no lender will look favourably upon that...

but in general if you've a proven track record of paying debt on time, then yes, it does help build confidence.

It all goes on your credit report made by the ICB.

That report shows a record of how you repay loans and credit and gives you a rating. The bank will check this with the ICB when you apply for a mortgage.

Speedwell

deathtocaptcha wrote: »

RIP your chances of ever owning a house...

Thanks, I have enough in my retirement account in the US to buy a house outright if I want one. I have that money, I might add, because I have not carried any debt for over 25 years.

Malari

It's funny, I don't think of it as debt. I always have calculated what I'll need to pay it off when the bill is due so I still think of it as accessing my own money but in advance on occasion.

smash

Douglas Scary Billiards wrote: »

And if your card is scammed and your current account emptied you are fecked as it takes weeks to get money back. Using a debit card on like is very foolish imo.

That's rubbish. I had my card skimmed before at an ATM and had the money back in 48 hours. As for getting scammed online... Don't by from dodgy people or use PayPal/Stripe!

my3cents

I don't need a CC as I could use a Debit Card for online transactions.

However I use a CC for all large and PayPal online transactions. It just gives me another 30 - 60 days to pay. I haven't paid interest on my CC in 30 years.

Mint Sauce

Have used it quite a bit the last 18 months buying stuff for new house, paying off big chunks when I could, above the required monthly repayment. Used it again most recently for car hire on holiday. Longest it was in debt was for about 6 months.

Currently in credit on it. Had I not had one, would have had to wait a lot longer to get things I needed. Instead of saving longer for items, I could save in stages to pay it off. Also avoid the minimum repayment option, and set it to a higer level. 20-25% monthly repayment is less interest and a shorter time compared to say 5%.

Yes, did end up paying a little more in the end, but didn't go stupid, and kept it manageable.

Have also been told having a credit card, and keeping a check on it, makes you look more favourable to lenders.

smash

smash wrote: »

That's rubbish. I had my card skimmed before at an ATM and had the money back in 48 hours. As for getting scammed online... Don't by from dodgy people or use PayPal/Stripe!

Took me 3 weeks to get money back from a scammed debit card. My account was emptied and my full over draft used up. I was just lucky that it happened after all big expenses (rent etc) had all been paid for that month and it was only a few days to pay day. Had it happened just after pay day it would be an awful mess. That thing is it was the one time in a very long time that I used the debit card online as my cc at the time had a low limit and was maxed with something work related.

Also even very legitimate websites are not immune to hacks etc.

thierry14

Use it all the time

Great for cash flow.

If you have direct debit setup you avoid the interest and just pay the 30 euro a year, don't see why they have a bad rep if used right they are very useful.

Well worth the 30 euro to have a few k of credit on tap for 30 days.

Very hard to rent a car without one too.

Olishi4

Mint Sauce wrote: »

Have also been told having a credit card, and keeping a check on it, makes you look more favourable to lenders.

Ye, I went once to get a laptop on finance or something where you had to pay within 6 months from Argos. I'd never had a loan or credit card and thought that would go in my favour but they refused on the grounds that I didn't have a credit history. Not even just for a mortgage but the majority of lenders will check your history.

I couldn't get a credit history because if I went for a loan, they wanted to see my credit history but I didn't have one so my main option would be to get a credit card and use it correctly.

Stojkovic

Havent had one for over ten years.
Visa Debit.

The_Pretender

Same as a lot of people here. Use it for most card purchases, gives the security that the most someone can scam from me is the low credit limit I have; which is paid off by the banks anyway so I'm never really out of pocket when this happens.

Lucyfur

deathtocaptcha wrote: »

RIP your chances of ever owning a house...

Nah that's not true. If you've no history of debt you'll still be approved for a mortgage if you have a record of saving.

hardCopy

Had my own since I left school. Got married last year and cancelled my personal one. Haven't had a chance yet to go to a branch and get a joint one. Can't say I've missed it. Visa Debit does a fine job so far. We don't have an overdraft either so it's forced us to budget better. Previously I would have used it for all sorts of stuff if I was short at the end of a month.