Could you live without your credit card?

Eugene Norman

A credit card paid off every month isn't all that different from a debit card. I use both.

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.

Ulster bank had great ones, then they sent us a letter saying they couldn't do rewards anymore because of some european directive
I don't know how that would square with the UK rewards systems though

Personally it's not a necessity for me. It never was. When I had one it was for buying luxuries.
Now that I'm without one I just make sure to have money set aside for things like car tax and insurance. Of course stuff does come up. I was driving around for a while in my sick car before I had the cash to get it fixed so being able to put it on a credit card would have been handy.

Yet I'm glad I don't have one but that's because of me not the card.

MilesMorales1

I've never owned or used a credit card, so yes.

PowerToWait

Use it a lot. Pay it off every month. Don't get why people are so scared of them.

Drexel

Never had one so yeah I could!

Was goina get one a few years ago for buying online but visa debit came out and no need now.

Nearly got a new one a year ago. The limit would've been 4/5 of a term deposit. Didn't get it in the end because of the paperwork but would be handy.

I had a terrible time back home with debt and would never have a credit card without paying it off straight away. Debt's pure shte.

entropi

I refuse to have one. Would much rather save the cash the regular way and see what I have.

LizT

Have 2, one irish and one for where I live now. It's probably not such a neccessity to have one in Ireland but I've needed it here on a few occasions - renting a car, booking hotels and flights. I pay it off in full every month.

As long as you're sensible with it, there's no issue. It's easy to loose the run of yourself though, when I applied for mine here, they offered me a limit of twice my monthly salary.

Speedwell

PowerToWait wrote: »

Use it a lot. Pay it off every month. Don't get why people are so scared of them.

Not scared; it just doesn't make sense for me. Why be charged for the use of money you don't have yet, when a little time and prudent saving gives you the use of it anyway? The credit card people are not operating a charity, ffs.

Eugene Norman

Speedwell wrote: »

Not scared; it just doesn't make sense for me. Why be charged for the use of money you don't have yet, when a little time and prudent saving gives you the use of it anyway? The credit card people are not operating a charity, ffs.

Paying it off every month doesn't accrue interest. It's just like a delayed visa debit. It also doesn't preclude saving. I used to use the visa debit solely, then the debit and visa credit card interchangeably but it's easier to track my non cash spending (most of it) by doing it in one place.

There are other advantages. Book into a hotel with a visa debit and you pay upfront and you don't get extras. Some places don't take them. Fraud reimbursement must be easier with the credit card, if found in time you just don't ever pay the fraudulent purchase rather than hope they reimburse it.

Malari

I'm really surprised by the number of people who don't have them. I assumed they were as ubiquitous as mobile phones!

Del2005

Penny Tration wrote: »

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

I've booked the Gresham, a Hilton, a Raddisson (all in Ireland), some 4 stars in London, all with a debit card and no issues.

My dad booked and paid for an 18 day trip to the Seychelles (flights, hotels, transfers, no travel agent bollocks) all with his debit card too, with no issues.

If any of these companies go belly up after paying with your debit card you are an unsecured creditor at the end of a very long line, pay with a credit card and you are reimbursed immediately.

Credit has its uses and when used correctly is an excellent service.

I could easily afford to pay cash for everything I use my credit card for but the protection of using the credit card is much better than paying cash or using a debit card.

Mister Vain

Could I live without it? Yes.

I mainly use it for booking holidays and buying the odd item on Amazon.

Shenshen

Don't have one and never wanted one, either.
I have a debit card, which works perfectly fine for everything I need.

Truth be told, I never saw the point in paying the extra admin fees associated with credit cards. The debit card is free with my (also free) bank account.

monkeysnapper

Keep the dam things away from me , I have way to many hobbies and not near enough money to fund them .........

.. ........all

smash

Del2005 wrote: »

If any of these companies go belly up after paying with your debit card you are an unsecured creditor at the end of a very long line, pay with a credit card and you are reimbursed immediately.

Or you know, travel insurance.

Shenshen

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.

Happened to me once - I had a call from the bank about half an hour after it happened, and my money back in my account within 24h.

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.

That's what I have my two savings accounts for. One for long-term and investment, the other for upcoming major expenses like insurance, house maintenance, etc. Why bother with a credit card?

iguana

I used to have one but got rid of it once Visa Debit became available. Now I use either Visa Debit or a foreign exchange service like the Revolut virtual card when buying items sold in a different currency. When I had a CC I only used it on occasions that I knew I had the cash already available to pay it off but using a CC was necessary (for shopping online/making bookings) or easier making a large purchase when I didn't want to carry cash. I never used it as a short term loan or even an advance on future wages thinking I'd pay it off before interest accrued as I'd hate to start a month from 'behind.'

Speedwell

Shenshen wrote: »

Happened to me once - I had a call from the bank about half an hour after it happened, and my money back in my account within 24h.

Happened to me, too, and that's why I have accounts in three banks (I maintain a credit union savings and current account in the US, another US current account linked to my retirement savings account, and an account in Ireland for household stuff). All three have debit cards.

That's what I have my two savings accounts for. One for long-term and investment, the other for upcoming major expenses like insurance, house maintenance, etc. Why bother with a credit card?

Funny you should mention.

jimgoose

A credit card is a very useful financial tool and a tremendous convenience. However, if you have no money you have no business of one, it'll only get you into trouble. Like shotguns, powerful cars and good Courvoisier, they should be kept away from children and imbeciles.

maryishere

Yes, a credit card is a very useful financial tool sometimes. I worked abroad for a few months one summer a couple of years ago and it was very useful then too.

StudentDad

I happily survive without a cc. I got rid of mine about ten years ago. I haven't looked back

SD

Eugene Norman

Speedwell wrote: »

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.

What, not even for a house?

And I'm pretty sure that unless you are retired that you can't release those funds to buy a house.

Some people use credit cards as actual credit, interest accruing loans. Most people, (I hope) see credit cards as slightly delayed debit cards with more useful features.

zl1whqvjs75cdy

It's useful for holiday etc, I hate taking money out of my savings, prefer to eat into the cc balance with my wage. I know it's no difference at the end of the day but it's a physiological thing. I'm afraid if I dip into my savings once it may become a bad habit.

PowerToWait

donkeyoaty0099 wrote: »

but it's a physiological thing. I'm afraid if I dip into my savings once it may become a bad habit.

What are savings for? I save to have money to buy stuff I might potentially want / need. If I want it or need it I spend it.

smurfjed

Have two, Amex Gold Card for travel expenses as it offers good travel insurance plus has no limit, it must be paid back monthly so no interest.

Also an AIB visa for general payments, for the first time in years i have allowed this go into debt as I'm buying half a house. But it will be paid off before the end of the summer.

Could i live without them, nope, not with my line of work and travel.

zl1whqvjs75cdy

PowerToWait wrote: »

What are savings for? I save to have money to buy stuff I might potentially want / need. If I want it or need it I spend it.

A house deposit. Can't save that in a couple of months unfortunately.

Ocean Blue

Frynge wrote: »

With bank charges being the norm now again it works out cheaper to use my credit card like a charge card so as to avoid fees.

Same. Do most transactions on it then pay it off in full every month, sometimes every week or two. No transaction fees other than the single transfer used to pay it off. Using it about 15 years and never paid a single cent of interest or fees because I only use it for managing cash flow rather than for credit

AppleBottle

I got a credit card last year. I use it only if I know I'm low on cash towards the end of the month and need to make small enough purchases/or have an emergency and want to keep what cash I have in the bank. The bill gets paid once I'm paid. I have a clear balance on it at the moment.

If I didn't have it, I could probably live without it because I never have (or haven't had too) use it for anything major since I got it. In saying that, I reckon the next thing I put on it will be flights to New York which I will be booking shortly.

PowerToWait

PowerToWait wrote: »

What are savings for? I save to have money to buy stuff I might potentially want / need. If I want it or need it I spend it.

Significant things like house deposit, deposit of buying a newer car etc etc.

Not for day to day things that could easily be paid back using some of my disposable income over 2 months say or even longer. This means no reducing the amount going into savings or dipping into savings.

Even if you want to use savings it's not like you can get them instantly so what if something comes up suddenly. I also operate my current account with the minimum balance I need for that month (I work this out roughly in my head) and with everything else moved to savings so having the credit card to use for something unexpected is vital to tide me over till the next pay day and the money can be put into the cc then.

qo2cj1dsne8y4k

1/3 of my wages go into my savings.
I have no rent or mortgage to pay. We pay the house insurance/gas/electricity/internet/sky/phone
Buy dog food and do grocery shopping
Little bit of clothes/makeup shopping.

Whatever's left goes into my savings in the bank.
This savings for stuff like if we need to bring the dog to the vet/renovating the house in stages/if something breaks.

I can see why cc would work for most people, I just got burned before and would now be terrified spending money on it I didn't have to, because I do have the money elsewhere.

my3cents

LexieOnRale wrote: »

1/3 of my wages go into my savings.
I have no rent or mortgage to pay. We pay the house insurance/gas/electricity/internet/sky/phone
Buy dog food and do grocery shopping
Little bit of clothes/makeup shopping.

Whatever's left goes into my savings in the bank.
This savings for stuff like if we need to bring the dog to the vet/renovating the house in stages/if something breaks.

I can see why cc would work for most people, I just got burned before and would now be terrified spending money on it I didn't have to, because I do have the money elsewhere.

I think that those that make the best use of their CC have the money anyway. I can keep another €1000 in my bank by using a credit card.

Edit> apologies I've made your quote say what I wanted it to say (as I read it first time around) rather than what you actually wrote.

zSparc

I've never had credit card and never will.

astrofool

Had one for 16 years+, never paid any interest on it, use it for everything, only spend what I have, and it protects my interests better than cash or a debit card. Also invaluable when travelling.

If you can't handle one, that's fine, that's your failing to deal with, but it's all the pluses and none of the negatives as long as you understand numbers.

Permabear

This post has been deleted.

http://www.dailymail.co.uk/news/article-3034474/End-credit-card-perks-air-miles-thanks-EU-legislation-designed-HELP-consumer.html

Shergar6

Got rid of mine last month, after like 2 years of meaning to!

Dravokivich

I only got one about 10 years ago to book plane tickets. I've got the minimum amount of credit the service provider had available and never looked to get it increased. I've rarely used it since my ATM card was upgraded to a debit card. Meaning I could use that for online purchases.

snubbleste

Dravokivich wrote: »

I only got one about 10 years ago to book plane tickets. I've got the minimum amount of credit the service provider had available and never looked to get it increased. I've rarely used it since my ATM card was upgraded to a debit card. Meaning I could use that for online purchases.

You've paid €30+ x10 years = €300 just to have a card :eek:

Ash.J.Williams

I'm a musician therefore I can't have a credit card or I'd have all the finest equipment a card can buy.

Conor84

I used to have a credit card up until about 5 years ago when Bank of Scotland pulled out of Ireland. I decided not to replace it because I had a Visa Debit card and could use that instead for booking flights, hotels, shopping etc so didn't really need one and could avoid the annual charge.

Only bad thing about the Debit Card is you have to have the money in your account when you use it. But really that's a good thing as you can't run up debt. I never did on the credit card but know alot of people that did and the interest rates are scary

Speedwell

What's all this going-on about flights? I never had trouble booking flights with a debit card in my life, and I'm an immigrant who married my husband after an overseas long-distance relationship, and I'm also working for a company in England, for which I attend conferences and meetings. In fact I just booked flights last week for a conference, using one of my debit cards.

The One Doctor

Don't have a credit card now but used one for years. It's a crutch. Build up savings instead.

TPD

I usually use visa debit and don't buy anything I haven't the money for. Need to rent a car abroad in a couple of months though, so I've applied for one now

Speedwell

Speedwell wrote: »

What's all this going-on about flights? I never had trouble booking flights with a debit card in my life, and I'm an immigrant who married my husband after an overseas long-distance relationship, and I'm also working for a company in England, for which I attend conferences and meetings. In fact I just booked flights last week for a conference, using one of my debit cards.

I get flier miles and travel insurance when I book with a credit card. I have another card that pays 4% of my purchase value to a charity of my choice.

Many hotels need a credit card number on file, and it's almost impossible to rent a car without one.

You don't only have to run up debt on a credit card. You can, of course. But you don't have to.

For ever odd

Credit card companies wouldn't make much money, from the poster's on this thread, lol.

It begs the question, who are they making money from?

Danbo!

Got one years back before debit cards were the default handed out by banks. It was in 2006, had a limit of 2k. One day I clicked "See if you can increase your limit" on online banking and it jumped to 8k, just like that.

3 years later I moved banks and struggled to get another one because I had spend 4 months unemployed the previous year. They eventually gave me on with a €750 limit.

I use it only when I travel for work so I'm not out of money until my expenses are paid back. Lots of hotels will put a hold on $x per night for a week or two which is a pain in the ass with a debit card.

Also came in very handy when my debit card was cancelled due to fraudulent activity 3 days into a 3 week trip to New Zealand.

CIP4

I'm suprised how many people are so against them. I'm just finishing up college and starting work and the bank were saying to me about getting one which I plan on doing however I will be paying it off in full every month as I have no interest in paying unnecessary high amounts of interest to the bank plus I wouldn't go mad on for the sake of it.

Which tbh most sensible people pay them off in full every month and then it's just essentially money with no transaction fees other than the 30 euro a year. I don't get this mentality of oh they have a credit card so automatically owe 5k on it and are up to their eyes in debt once managed correctly they are a useful tool to have.

The benefits to me is its easier if your scammed as the credit card company follow up the money I've never been over mad on the extent I use my debit card considering it's linked straight to my current account. Obviously it makes for a handy back up if your debit card acts up or something like that also. Really they work petfectly well for most and the small percentage that are reckless with them are right to cut them up.

mohawk

I have one. Use it all the time. Pay it off every month by direct debit. I have never paid a cent in interest and it is cheaper to use then a debit card.
I don't get why people are so against them.