Several years ago I got into trouble with several credit cards. I've finally got that straighten out. I've done without a cc for so long now I'm strongly considering not obtaining one in the future. My job doesn't require one and I've managed to do just about everything without one ... even travel. Has anyone else decided to live without credit cards?
I still use credit cards, but to be quiet honest it's not as necessary as some think. There isin't alot you can do with a cc that you can't do with a debit card.
I have lived without a credit card for 6 years....here are a couple of things that posed a problem...definitely renting a car and taking a car service to the airport (same rules as rentals many times). Last year when my father died I got stuck at the airport without a ride....eventually I rented from "rent a wreck"....but it was a hassle. I have applied for 3 secured cards....mostly to rebuild my credit and in case of an emergency...plus sometime in the next 5 years I would like to buy a house. clc
I WOULD NEVER BE WITH-OUT A CREDIT CARD... You can get a NO ANNUAL FEE CARD with a $1,000 limit and just use it for AIRLINE TICKETS, HOTELS, AND CAR RENTALS... If you DON'T want to have a bill...THERE IS NO LAW THAT SAYS YOU CAN'T PRE-PAY THE BILL...if your going on vacation and are going to spend $2,000 send a check for $2,000 or pay on-line and when you get back, you have NO BILL...
CCs equal security. What if you use your debit card online and the site gets hacked and someone wipes out your checking account using your debit card #? Sure you'll get your $ back eventually... but wouldn't it be easier to have the ccc be out the $ instead of you? Ozzy.
I know there are somethings that are very hard to accomplish without a credit card, but the same convience of having one can also get you in trouble. I also know the "need" for a credit card varies from individual to individual. Fortunately, I don't do that much traveling and my job doesn't require a cc. Perhaps a $1000 secure card may be the way to go. I'm going to have to ponder that for awhile. There are many ways to build your credit without a cc. A secured loan is just one example.
True, but I read somewhere (here? maybe on Equifax website) that secured debt isn't as spiffy score wise as unsecured debt... meaning, in rebuilding you may be selling yourself short getting a secured card instead of an unsecured card, if you'd quality for an unsecured card. Another thought is opening up a separate account and getting a debit card for that account - that way if something weird happens with your debit card (over charge, etc.) then your personal checking account won't be compromised. This route won't help your credit score though. Ozzy.
I gave up credit cards years ago. I'd run into problems - got sick and was on WC for 2 years. My income went way down and I had trouble paying my bills. I swore I'd never let that happen again - and had the attitude of "If I can't pay for it right now - I don't need it." Of course I do finance my car - but that's all I did. HOWEVER,..... now that I would like to buy a house I'm finding maybe that wasn't so smart! One of the top reasons for my lower scrores is "lack of revolving and installment credit". If you think you might need that FICO someday - I'd tell you to think twice. It's always good to keep them low and not over-extend - but there is a reason FOR having them. Along with the reason that you do need at least ONE card (or a debit card that will funciton as Visa/MC) is that it's impossible to rent cars, and other iimportant things. Just my five cents worth. Mommy2cats
It is VERY HARD to LIVE with-out a credit card... SISTER-IN-LAW moved to OREGON...WIFE'S PARENTS want to fly LAX~PDX... They call for tickets..."WHAT YOU NEED A CREDIT CARD...I ONLY USE MY CHECKBOOK"...I HAVE TO BUY THEIR TICKETS ON MY CREDIT CARD!!! STAY IN A HOTEL LATELY??? RENT A CAR LATELY??? I save "TONS" of money by using ONLY CREDIT CARDS... CASH AND CHECKS HAVE A VERY HIGH COST... What do you think is better...writing 200 checks per month, or write one check to pay for 200 charges??? I guess if it works for YA'...use your NO CREDIT CARD PROGRAM...
Ozzy, Yes you are right some secured cards report as secured...but some report as regular unsecured cards. I just hoped I picked the right ones ;=}, clc
You're right... I goofed. So I guess in that case, a secured card would help you reestablish your credit. =-) Ozzy.
I agree with everyone's view about cc being important because of credit rating and if you want a mortgage or car loan etc. etc. If it were not for the ratings and this fico, I have a hard time understanding why I would want a credit card. 1. I travel and I have rented cars in at least 5 separate states with debit cards. All you have to do is not go to Avis/Hertz. Go to Alamo, Budget, Dollar. They are everywhere, and most likely cheaper than the first two. Even they have the CC requirements at some places, but they will accept debit if is in the state other than your home state. 2. I have stayed with all major hotels including Marriott, Sheraton, Hilton, Holiday Inn and their chain hotels and they all accept debit. 3. George's comment about fee for 200 checks, but George, if you pay for those 200 transactions with debit card, you dont even have to write that ONE check at the end of the month. Just reconcile. 4. All airlines I have purchased tickets from, accept debit. I can list at least 6 different airlines. 5. One last arguement (other than fico, of course) is that cc is more secure to use online, and at non-standard or 'shady' places. Meaning you are more protected with a CC purchase because it gives better comsumer protection. That is true, many banks would not give that level of protection with their checking accounts. So for that, I would follow Ozzyburger's idea of having a separate checking account with low balance, so you 'create' more security for yourself. One way to have a revolving tl is to find a bank that would offer a credit line or od protection with checking and reports it to cras. For example Fleet. That way you have revolving tl, but you are still using your debit card. Just my ideas.
There are some good arguments made for doing without a credit card, but just the security of knowing that you can get your hands instantly on loads of money seems to make it worth it. If you're worried about accumulating debt why not just a T&E card. CC are also useful for renting videos and buying tickets to entertainment and sporting events as well. Also, I believe that someone without any kind of credit card is a little suspect sometimes. People are always going to wonder WHY don't you have one, sort of like people who don't have a drink at a luncheon or party when everyone else does. People are almost going to suspect that you've had some problem in the past.
I am one yr post chp 7 bankruptcy and I have three cards that I use every month to rebuild. I really don't even want these cards. My main goal is to get an auto loan with a halfway decent APR in the future. I am finding the whole process of using them and paying them down quite annoying. I use them for gasoline, grocery store, etc...what a pain! I also have a secured loan from a credit union. Another pain! I only want my Nissan Altima! Experian Credit Expert - 639 Equifax - 641 E-loan - 644 TU - was 650 in April
i have an emergency fund for 6 months of expenses. everything. i don't knock anyone who says they like to have a cc for emergencies but i prefer to have cash for such situations. my visa debit/check card is accepted everywhere visa cc's are accepted. i've been in a situation where i was out of work and had cc bills up to here. if, for whatever reason, such emergencies occur again, i have the security of knowing i have 6 months of savings to cover my @$$. just my opinion. that's what was asked.
A T&E card is a travel & entertainment card. Namely amex charge card (not credit cards) diners club, and carte blanche. They are charge cards rather than credit cards because payment in full is expected upon receipt of the statement.
This route won't help your credit score though. Ozzy. ============== This is another Fallacy of FICO -- It's based to much on interaction with credit cards! ***************** SISTER-IN-LAW moved to OREGON...WIFE'S PARENTS want to fly LAX~PDX... They call for tickets..."WHAT YOU NEED A CREDIT CARD...I ONLY USE MY CHECKBOOK"...I HAVE TO BUY THEIR TICKETS ON MY CREDIT CARD!!! STAY IN A HOTEL LATELY??? RENT A CAR LATELY??? BUY GEORGE ===================== What would these business do if suddenly there wasn't any such thing as a credit card? A*Shut their doors and close up shop: B*Change their policy and find another way to stay in business: *********************** I agree with everyone's view about cc being important because of credit rating and if you want a mortgage or car loan etc. If it were not for the ratings and this fico, I have a hard time understanding why I would want a credit card. chargedoff ======================== More proof that credit scouring is a RIP ************************** I am one yr. post chp 7 bankruptcy and I have three cards that I use every month to rebuild. I really don't even want these cards. My main goal is to get an auto loan with a halfway decent APR in the future. I am finding the whole process of using them and paying them down quite annoying. I use them for gasoline, grocery store, etc...what a pain! I also have a secured loan from a credit union. Another pain! I only want my Nissan Altima! Mary1NYS ========================= Rite-the concept of credit cards to determine scores is totally bazaar! ********************* ~~~~~~~~~~~~~~~~~~~~~~~~
Hey, Chargedoff: You said you rented cars and motels with debt cards. Did they reserve a car or hotel with your debt card, or did you present your debt card on arrival and pay for it then?
