Could you live without your credit card?

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.