Are credit cards a necessity?

seligehgit · 27-03-2022 7:32pm #1

Pretty straight forward query.

Are credit cards necessary for any particular purchases nowadays or do visadebit and prepaid credit cards eg revolut ( backed by visa or mastercard ) suffice?

Do they offer superior protection against fraud or are such incidents easier to resolve in their presence?

Thanks

Sleeper12 · 27-03-2022 7:35pm

For the most part debit cards are fine. There are still times when credit cards are required. For example in the US you may need them to hire a car

Jim_Hodge · 27-03-2022 7:36pm

I got rid of mine over 20 years ago and never had a situation where one would have been useful. That said I haven't hired a car.

Delta2113 · 27-03-2022 11:05pm

Revolut cards are actually prepaid debit cards. I still have a Bunq travel card which is actually a prepaid credit card but when it expires next year it will no longer be available as the product is discontinued.

Credit cards are certainly not a necessity.

Padre_Pio · 27-03-2022 11:08pm

Car rental. Only thing, but they only need it as security in case you do damage the car or something.

You can still pay the bill with a debit card when you hand the keys back.

Pomodoro · 27-03-2022 11:11pm

You can have a hold on the debit card for the damage excess as well. Last time i rented with hertz they had a 2000 euro hold.

L1011 · 27-03-2022 11:14pm

Anything involving holds needs you to carry significant sums in your current account to use a debit card instead.

Car hire is clearly the big one there, but there are other situations like pay at pump petrol stations where a hold may be taken and not properly converted; and instead sit locked on your current account for a week or so (often €80 is held on pumps).

When this happens there is nothing you can do to get the funds released quicker. Whereas if its a credit line that's being held by mistake it doesn't affect you unless you need that credit.

Paying for the better insurance usually slashes the hold amount on a card for car hire, not really a workaround but something to remember.

coylemj · 28-03-2022 1:28pm

L1011 said: Paying for the better insurance usually slashes the hold amount on a card for car hire, not really a workaround but something to remember.

+1 though the ~~rip-off~~ 'better' insurance you buy at the car rental counter will cost a helluva lot more than the €30 annual Govt. duty on a credit card.

Sierra Oscar · 28-03-2022 1:52pm

I find they're also a good way to track spending, so long as you are disciplined in clearing the balance monthly. I put all of my discretionary spending on the credit card. Start the month with a zero balance so as the month progresses you can easily monitor your spending. Never had to worry about loosing money due to fraudulent transactions either.

With online banking its simple to clear the balance monthly now. I think a lot of the hangup about people worrying about clearing the balance comes from when it used to be a hassle to do so. You don't need to go into a bank branch or write a cheque to do so these days. You can do it from your phone within thirty seconds. I've never once paid interest on my credit card in the over ten years that I've had one now.

The cash back I get from spending more than covers the cost of paying stamp duty on the card annually. I can't see any reason why any disciplined person who is good at managing their finances wouldn't want to have one.

Wanderer78 · 28-03-2022 1:52pm

rented a car in iceland last year, ive no credit card, they had no problem accepting my debit card, i also got a revolut for the trip, was accepted everywhere, so no need for cash

Nigel Fairservice · 28-03-2022 2:12pm

I put most of my spending on my credit card but I do clear it every month. I do like to have the credit card in case of emergencies and in case of fraud. Someone once bought a €3000 laptop on my credit card fraudulently. I signed something for my bank more or less saying I knew nothing about the transaction and I never heard any more about it. I'm not sure if the process would have been as painless if I was waiting for a long time to have the €3000 put back into my current account.

28-03-2022 2:13pm

I only use my credit card. Debit cards are terrible inventions IMO….immediately that it’s used, the money is gone from your account. I’d never ever put in my debit card details into an online store. Chargebacks, frauds are harder to claim back and insurance coverage much less. Plus you’ve points and other rewards from using credit cards.

as long as you set an appropriate limit and pay the full balance monthly, there is no cost. Just better protection. Budgeting is easier as you can see your spend against your limit and know your max….no danger of accidentally spending money in your current account that’s needed for that months bills

you also don’t build your credit score with a debit card as you do with a credit card which you pay off in full monthly

of course all of the above is only valid if you pay of the full balance. As soon as you start to borrow on it, you should cut it up

you2008 · 28-03-2022 2:26pm

https://www.boards.ie/discussion/comment/118846936#Comment_118846936

"as long as you set an appropriate limit and pay the full balance monthly, there is no cost"

Exactly, dont get it why PP use debit card to pay as there is a transaction cost--> €0.0XX (what ever the cost per transaction?), please dont tell me you can keep €XXX in your bank ac for free of charge

seablue · 28-03-2022 3:36pm

I got rid of mine. Hadnt used it for years.

Bojill · 28-03-2022 6:44pm

So the answer is yes or no depending on what you're doing or may want to do in the future. 😀

I use my avantcard all the time, pay it off each statement, the govt duty is more than offset by the cashback.

TuamJ · 29-03-2022 5:51pm

For me it is but I travel loads mostly to North America where credit cards are the norm. I use my credit cards to tap fares on subways and buses, to rent cars, to pay for hotels and restaurants. Have only been a victim of fraud once but 1 phone call and I had a new card sent to me by courier, the charge taken off immediately and I wasn't the least bit worried 'cos not my money! I have 2 credit cards and wouldn't go anywhere without them. My hotel bills are usually fairly substantial as I never pre-pay accommodation so not having to worry about holds on my debit card is also great.

I was in Florida a few years ago when Thomas Cook went bust. There were people on my flight back who had got the news that their flight home was gone and they had no credit card, not enough on a debit card to cover alternative arrangements or stay on at the hotel and they looked like they had aged a decade from the stress it caused. That they were in the US without the means to pay for healthcare (I had to go to the hospital out there once for stitches, they swiped my credit card and my insurance compensated me) scared the shite out of me but wasn't going to rub salt into the wound!

One of mine gives a bit of cashback and the other has travel insurance and a 'free' flight (i pay taxes) and an airport lounge pass. I wouldn't take out the cards for the measly rewards we get in Ireland but they're a nice little bonus.

29-03-2022 6:06pm

https://www.boards.ie/discussion/comment/118852674#Comment_118852674

Agree with you 100%.

The thread title is “are credit cards a necessity”. I think the more appropriate title should be “should you ever use something other than a credit card”. IMO the answer is no. It’s the safest form of payment with far better protections (other than American Express, of course, but Amex is not an option in Ireland as is not accepted anywhere….it’s my go-to card outside of Ireland)

Glaceon · 29-03-2022 6:16pm

I only use my credit card online and never the debit card. At least if my credit card gets compromised, I’m not out of pocket while the fraud is processed.

Strumms · 29-03-2022 6:22pm

https://www.boards.ie/discussion/comment/118847499#Comment_118847499

I did the same, I had a 4500 limit.

was too easy to on a whim, book a holiday, football trip, buy a new laptop… which are all things I indulged in, in my 20’s…paying off a bit at a time… had a brilliant time but….

now I just spend what I have, don’t have a credit card and won’t get a new one probably.

NewbridgeIR · 29-03-2022 7:26pm

Holds on debit cards can stay there for 10 days which is a real pain if you're stuck for cash. Worst offenders are hotels so for that reason, I usually use a credit card for that sort of expense. You do need to clear it in full after every statement - or at the very least, minimise the interest by not leaving stuff on it for any longer than a couple of months. You don't need a massive limit either. If you're any way indisciplined then keep the limit reasonably low.

Are credit cards a necessity?

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