I use Debit cards but I almost never use Credit cards. I feel that if I do not truly have the money in my pocket or bank account for use, then I don't really need to be buying. I do not like the idea of buying things and then having to turn around and pay interest on the purchase. I may have already paid tax on the item so why do I want to pay more money for late fees or whatever else? I do not even trust Credit card companies. I feel that they are constantly sitting around somewhere trying to figure out how they can squeeze more money out of people. They try to say that it is good to use them to build Credit. Well, that one of the main reasons I do not use them. I feel like if I do not really have the money readily available that I do not need their (scammy) credit account or offer.
Credit cards aren't a bad thing if they are used properly. I use mine because I can earn cash back on my purchases and I know that I am protected for my purchases. I had an issue about a year ago on an item that I bought through an online seller on Amazon. I bought a "water-proof" phone case and when it turned out to be defective it ruined my iPhone. I contacted the seller and I got my money back, but Discover (my credit card company) replaced my iPhone. Since I purchased the item with my credit card my purchase was protected. It was a win-win for me. I think that if cards are payed off monthly they work great. I will admit there have been a few times I have carried a balance and I have been charged interest, but the pros outweigh the cons for me. It's all up to the individual. I use my debit card very little. My credit cards offer fraud protection and I feel much safer using them. Credit cards are a good way to build credit. My first credit card was a secured credit card. I put $250 up as collateral, and I could charge up to $250 onto my card. After 6 months I was able to apply for a "real" credit card. When I closed my secured credit card I got my money back, and it helped me build my credit. Establishing credit is needed if you want to eventually want to mortgage a house, get an auto loan, etc.
I don't really use credit cards either, Roy, but lrd does make some good points. The protection can be a godsend. Credit cards are also great to have in an emergency. To avoid paying all the extra, pay off your balance each month. That way you aren't really buying things you can't afford, and you're not paying an arm and a leg for interest. If you don't have credit, it is a good way to build credit. You just have to be careful and use them responsibly.
I'm not opposed to credit cards, but I rarely use them. I'm pretty frugal, fiscally. I like to know that I have the necessary money to cover all my expenses without dipping into my credit cards. If I have an emergency, I'll use a credit card. Something major such as a car repair. Then, I'll pay the balance off in full as quickly as I possibly can in order to avoid all the interest and fees that come along with the convenience of a credit card.
Sadly you have to use a credit card for some things, like booking a car rental or a hotel room. It does not hurt to use them if you have some self control and pay off the balances fast. My complaint is when you have had a card for years and then suddenly they are sold to another company. This happened to my sears master card and man what a mess the new company made. Right out of the gate it increased the rates, now I thought they could not just do that but for whatever reason they did, so i just didn't use it and then I got a letter saying they were going to close the account from non-use. What? so because I didn't use it right away, that's crazy if you ask me. It left a bad taste in my mouth towards Sears. Obviously i am not the only one because the store is not doing well. To bad for them because my Herbergers card has a great rate and all sorts of incentives.
Reducing my use of credit cards helped increase my credit score. Why? I began paying off bills and realizing how much I REALLY had to spend. Credit cards normally keep people in a daze making them believe they are rich and wealthy when they are not. Then, after the **it hits the fan, the user faces years of work just to try and get his or her finances on track again. It really is a shame.
I learned awhile back to spend only what I have. I will do my best to avoid using a credit card at all costs. I just don't like being in debt. I use debit cards quite often though and even increasingly so as more and more merchants in my area are taking them.
They're great if your careful and responsible and actually the best option with purchases. However they are way to easy to abuse and get yourself in trouble. I love my cards, but I'll be the first person to say they are the devil's playground.
