I've never had a credit card (I'm old enough) and currently I don't plan to until after college, or possibly before if I can become secure enough financially to actually use one responsibly. I'm wondering, though, is it possible to not use or own one, and do everything through bank account, cash, etc? Those cards just seem like such a hassle, and I've seen in my own family how credit card debt can become a huge problem. What do others think? Are there people out there who purposely never use them? Also, does it make it more difficult to build a credit history without one, or is it easy enough to do that other ways?
There's one word to describe HOW to use a credit card - DISCIPLINE. Believe it or not, most people don't have any discipline when it comes to credit cards.
Unfortunately, it's a double edged sword. You can build a credit history without one, but it'll take a while. What companies like to see is that you're ready, willing, and able to pay back short term debt (revolving credit).
It's good to have a credit card - - For times like renting a car. Depending on the state, the rental car companies sometimes put a $1,000.00 lien on your card until you bring the car back in good condition. They don't take the money unless you destroy their car, but you can't rent without a credit card. I suppose you could use a debit card, but that may screw up your daily allowable transactions. And if you're on vacation, it'll really piss you off to have to sit in your hotel room all day because you can't get to any of your money.
Credit cards are okay, but you have to make sure that you have the discipline to use them appropriately. Most people have in excess of $13,000.00 in credit card debt. It will take them more than ten years to pay that off. When it comes right down to it, do you really want to pay ten years on a toaster oven or new TV??
My rule of thumb is to pay off the credit card as soon as the bill comes in. In other words, if I can't afford to pay off the bill (instead of making monthly payments) I can't afford whatever it is that I intended to buy.
Credit cards are good, but very dangerous.
yeah definitely a debit card is better than a credit card because there's no debt. it's useful if you shop online, or use other online services that require online payment, although these often accept checks as well. as far as stealing stuff from your jeans... well if you carry cash you can only take as much as you need, and lose as much as you've taken, whereas if you carry your debit card, you got everything you have on it, so if it gets stolen you may lose everything vs. losing the 10 bucks that you had in your pocket. so if you get a card, you should always have the bank's number handy so you can call and report the card stolen right away, so they'll block it and prevent the thief from draining your account. so you see, a card is convenient, but it has its own risks.
