Can you please convince me to get a credit card?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Topic Author
CoffeeAndBooks
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Can you please convince me to get a credit card?

Post by CoffeeAndBooks »

I haven't in the past and don't foresee in the future the benefits of getting a credit card. Since I was a kid, I've only heard horror stories that come as a result of them. Would it be financially necessary for me to start using one?

Apologies if this has been brought up before.
Last edited by CoffeeAndBooks on Fri Mar 28, 2014 11:52 pm, edited 3 times in total.
kerplunk
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Re: Convince me to get a credit card

Post by kerplunk »

If you are responsible, you should have one. If you can't trust yourself, don't get one. I would argue that if you aren't responsible, you should still get one and only use it once every 6 months to keep it active.

Benefits:
- Instant emergency fund.
- Builds your credit.
- Cash back on certain things (free money).
- Safer than carrying cash.

The list goes on, really...
2stepsbehind
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Re: Convince me to get a credit card

Post by 2stepsbehind »

CoffeeAndBooks wrote:I haven't in the past and don't foresee in the future the benefits of getting a credit card. Since I was a kid, I've only heard horror stories that come as a result of them. Would it be financially necessary for me to start using one?

Apologies if this has been brought up before.
No, it isn't necessary. Moreover, it isn't worth it to me to convince you to get one. Frankly, if you are not willing to put in a modicum of effort to understand the benefits of getting a credit card, you probably shouldn't get a credit card.
PocketChangePension
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Re: Convince me to get a credit card

Post by PocketChangePension »

If you're on BH following the principles that people here employ, you already seem to be a responsible person. You get free money for using it, either reward points or cash back, and it helps build your credit. Just pay for your typical monthly expenses with it and pay it in full each month. Never pay interest.

A Big plus is that if somehow the number gets stolen, it ties up the banks money and not yours. I used to use a debit card and had $2.100 stolen from my account and it took the bank a week to refund it. With a credit card, you don't have to worry about that.
ajcp
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Re: Convince me to get a credit card

Post by ajcp »

No.

If you want one get one, but if you don't I'm not going to convince you that you have to.
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HighFive
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Re: Convince me to get a credit card

Post by HighFive »

No reason to convince, there can be many downsides to owning a credit card if you are not responsible. Start with http://www.bogleheads.org/wiki/Credit_cards.

You can easily get 1%+ cash back on all purchases. There are other benefits of a credit card not listed on the wiki: automatic car rental insurance and many others that you can look into if you desire.

If you decide a credit card is right for you, you need to make sure you are paying it all off every month on time...
Polymorphic
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Re: Convince me to get a credit card

Post by Polymorphic »

The risks associated with credit cards tend to be behavioral ones, while the biggest risk with debit cards tends to be fraud. So, ask yourself which type of risk is a bigger liability for you and go from there.

Personally, I don't use debit cards unless there is no alternative.
Topic Author
CoffeeAndBooks
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Re: Convince me to get a credit card

Post by CoffeeAndBooks »

2stepsbehind wrote:
CoffeeAndBooks wrote:I haven't in the past and don't foresee in the future the benefits of getting a credit card. Since I was a kid, I've only heard horror stories that come as a result of them. Would it be financially necessary for me to start using one?

Apologies if this has been brought up before.
No, it isn't necessary. Moreover, it isn't worth it to me to convince you to get one. Frankly, if you are not willing to put in a modicum of effort to understand the benefits of getting a credit card, you probably shouldn't get a credit card.
My modicum of effort was starting this thread from of a genuine interest of Bogleheads' perspective on the topic.
stan1
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Re: Convince me to get a credit card

Post by stan1 »

What are you using, if not a credit card? Credit cards have superior consumer protection than debit cards. If there is fraud on a credit card you dispute the charge and it is taken off your bill. IF there is fraud on a debit card the money is gone from your account and you have to work with the bank to get it back.

Also, many of us do enjoy 1-6% cash back of various types on our credit card spending (which we pay off in full every month).

I no longer use cash, except for a few $5 and $1 bills I keep in my car for tips or to chip in with co-workers for food brought into the office.
Warning: I am about 80% satisficer (accepting of good enough) and 20% maximizer
scone
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Re: Convince me to get a credit card

Post by scone »

Obviously it's not a life and death necessity. However, just to share our personal experience, not having a credit card reduced our credit rating from the 800s to about 750. The credit report specifically cited the lack of outstanding debt as a negative! To me, that just shows how screwed up the values of the finance system can be, but there's nothing I can do about it, so now we have a credit card.
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MathWizard
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Re: Convince me to get a credit card

Post by MathWizard »

I couldn't rent a car without a CC.

I use a CC to check-in at the automatic kiosk at the airport.

Reserving rooms for late arrival.

Charge business trips and then get reimbursed before bill arrives.

Don't have to carry as much cash when travelling.

Emergency funds when travelling if car breaks down.

That's why I have one.

I wouldn't get one if I had to pay an annual fee.
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tfb
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Re: Convince me to get a credit card

Post by tfb »

CoffeeAndBooks wrote:I haven't in the past and don't foresee in the future the benefits of getting a credit card. Since I was a kid, I've only heard horror stories that come as a result of them. Would it be financially necessary for me to start using one?
No, it's not necessary. You can live perfectly fine without it.
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clubby
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Re: Convince me to get a credit card

Post by clubby »

How in the world do you rent a car, reserve a hotel room or book a flight? Do hotels even take cash? And I'm not talking about pay by the hour hotels. What about airlines? Cash? I don't think you can even rent a car in CA without a credit card.

Oh, it just occurred to me that the OP might be using a debit card to do these things. If that's the case, fine, but I know for a fact that some places will not take a debit card for a rental car.
thebogledude
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Re: Convince me to get a credit card

Post by thebogledude »

Use the credit card for its intended purpose which is to build credit history. If you use it as personal credit to borrow against, that's fine if you don't mind paying the high interest rate. There is a 30 day grace period to pay your bill and you have the security the credit card company provides along with an itemized bill for expense tracking. I taught myself early on to never charge more than i can afford so I view the credit card as a tool for me and I always pay the monthly due in full. I never really understood the appeal of a debit card since it allows merchants to take money out of your back account.
Last edited by thebogledude on Sun Mar 23, 2014 11:46 pm, edited 1 time in total.
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Watty
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Re: Convince me to get a credit card

Post by Watty »

For some people having a credit card too likely to cause problems that would outweigh the advantages so not getting one could be a very good choice.
What about airlines? Cash?
Buying an airline ticket for cash is possible but that is a red flag that will likely get you a lot of extra scrutiny in the security screening.

A debit card is an option and others have mentioned many of the drawbacks. I have several credit cards but I refuse to have a debit card because of the lack of protection. I especially would not use a debit card online.

With either credit, debit, or ATM cards you really need to have more than one just in case there is a problem that causes your main card to be "eaten" by a machine or disabled and declined at a bad time. I have had both of these happen.

Whatever you use another type of situation that you need to be prepared to handle is that a couple of times when I was out of town I have also run into problems with my medical or dental insurance not being taken so I needed to pay for the services then submit my own claim to the insurance company. For example once my wife needed some urgent dental work while we were on vacation. The only dentist we could find that could fit her in could not directly bill the insurance company so I paid for it by credit card then I submitted the claim.
Jerrybaby
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Re: Convince me to get a credit card

Post by Jerrybaby »

I use several credit cards, and they all get paid off each month. I wouldn't have them if I couldn't control my spending.

I estimate that I will earn over $2000 in cash back rewards this year. Free money, just because I pulled out a credit card instead of a check, cash, or debit card.
$2000 is welcomed at Christmas time.
McCharley
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Re: Convince me to get a credit card

Post by McCharley »

Well, a credit card beats a debit card for security since the debit funds are taken immediately and the credit card bills later.

A credit card is essential: what if you need bail?!? :shock:

Really, the only reason I can see not to have a credit card (no fee, cash/miles back, paid in full every month) is if you feel you cannot control yourself. Many things require one, from car rentals to parking.

For me, I feel like a credit card gives me even more control because I can see an itemized list of all expenses.

I just don't understand why not. :confused
Nummerkins
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Re: Convince me to get a credit card

Post by Nummerkins »

If this doesn't convince you, nothing will:

Say your debit card gets stolen and $2000 of charges racked up. Sure, your bank say they will cover the money but what about the chain reaction of bounced billpays, checks, overdraft fees, etc.? What a mess. It will take weeks to fix, if not longer if your bank doesn't think very highly of you. Then you have all the fees to clean up.

Say your credit card gets stolen: $2000 of charges are racked up. Your credit card company is out the money, not you. One call to dispute and they will work it all out.

Now, add to this cashbash for purchases, extended warranty coverage, etc. and I can't see a reason not to use a credit card.
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Mitchell777
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Re: Convince me to get a credit card

Post by Mitchell777 »

I was the same way. Probably from the way I grew up and fears of increasing my spending. Hard to believe, perhaps, but did not have a cc until I was over 30. Actually had a mortgage well before the credit card. Then on vacation my gf had rented a car and I was told I could not drive the car unless I showed them a cc. So when I got home I got one. Actually had some problems getting one as the credit agency the card issuer used did not have a record of my 8 years of mortgage payment so I had no credit history in their mind. This was many years ago so maybe it is different now. I would not feel comfortable without one now and one is all I have, except for a work card. I think it has made me spend a little more freely but not much
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swimirvine
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Re: Convince me to get a credit card

Post by swimirvine »

I bank with BofA and have the Royal Caribbean Visa. We love cruising on RC My wife and I use it to pay for EVERYTHING. I pay off the entire balance weekly and in 7 years have never incurred a interest charge or fee. We've earned enough points for 2 free cruises so far. There has been 1 time in the past 7 years where I bought something for which I didn't have the cash in my checking account to pay for it with my debit card. However, I knew I was going to receive a check for more than enough within a week or two.

Bottom Line:
Credit Cards are good for
1. Points and rewards
2. Providing a short-term bridge to purchase something

As long as you're disciplined and pay off your balance at least every month.
The way I invest my money is not the right way to invest, it's the right way for ME to invest.
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shokwaverider
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Re: Convince me to get a credit card

Post by shokwaverider »

Simple:

1) Debit cards are dangerous, no protections whatsoever!
3) Credit cards include a lot of protections for free 0 liability for unauthorized use.


All the other reasons are just added benefits.
takeshi
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Re: Convince me to get a credit card

Post by takeshi »

CoffeeAndBooks wrote:Convince me to get a credit card
It's not up to us to convince you. It's up to you to determine if you need/want one.
CoffeeAndBooks wrote:Since I was a kid, I've only heard horror stories that come as a result of them.
One can find horror stories on any topic and using your reasoning that would mean that everything is to be avoided. It's certainly possible to use credit cards responsibly. Cards don't manage themselves so credit problems aren't inherent to the cards.
CoffeeAndBooks wrote:Would it be financially necessary for me to start using one?
Could be if you need to build credit. It's certainly possible to purchase big ticket items without credit. Again, you need to make the determination if you need the credit.
CoffeeAndBooks wrote:My modicum of effort was starting this thread from of a genuine interest of Bogleheads' perspective on the topic.
It's really not the perspective of others that matter. It's you that matters. You need to determine if you have the need. You can't poll others to determine that. You need to spend much more time and effort doing your own due diligence -- same as anyone else has to.
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CyberBob
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Re: Convince me to get a credit card

Post by CyberBob »

shokwaverider wrote:Debit cards are dangerous, no protections whatsoever!
Let's not spread disinformation here.
According to the law, the Electronic Funds Transfer Act (EFTA), Electronic Fund Transfers (Regulation E) Section 1005.6 Liability of Consumer for Unauthorized Transfers 6(b)(3) limits your debit/ATM card liability if you report the issue within 60 days. And if you report it within 2 business days of learning about a debit card theft or loss, your liability is limited to $50, the same sum you may be liable for if you lose your credit card (as per the Fair Credit Billing Act FCBA). And Visa and MasterCard have further corporate 'zero liability' policies in place where you may not even be liable for the $50.

And that's all if you lose the actual card. If you still have the physical card in your possession, Part 2 of the above referenced EFTA regulation Transfers not involving access device, states that if the consumer notifies the institution within 60 days of the transmittal of the periodic statement that shows the unauthorized transfer, the consumer has no liability.

And in response to the OP, I would say that while I'm all for not having debt, unfortunately, your credit score is important nowadays for other things, from insurance underwriting to even being hired for a job. So I would suggest getting a card to help your credit score, but don't use it regularly if you don't want to tempt the debt fates. Just use it twice a year to buy something small and keep the card active, but leave your credit line otherwise unused so your low credit utilization rate boosts your overall credit score.

Bob
Last edited by CyberBob on Mon Mar 24, 2014 10:32 am, edited 3 times in total.
Jack FFR1846
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Re: Convince me to get a credit card

Post by Jack FFR1846 »

Things I use my credit cards for:

Rewards in $ and 0 interest because I pay in full every month.
Don't have to walk everywhere when on vacation because rental car agencies only take CC for security.
I can see my cardiologist (he does not accept cash!)
I can buy things online easily

I can certainly see if you live offline in a cabin, 20 miles in the woods, where a credit card will do nothing for you.
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Jeff7
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Re: Convince me to get a credit card

Post by Jeff7 »

shokwaverider wrote:Simple:

1) Debit cards are dangerous, no protections whatsoever!

3) Credit cards include a lot of protections for free 0 liability for unauthorized use.

All the other reasons are just added benefits.
My debit card# was used by someone in Russia to try to buy an $880 cellphone.
(They didn't have the 3-digit security number, but it still resulted in a hold on my account and a subsequent overdraft charge. :confused)

The bank refunded all of the money and waived the overdraft charge.
With the foreign exchange rate fluctuations during the time it took to get the hold lifted, I came out about $2 ahead.
I'll note that the debit card has the Visa logo on it, if that makes any difference; all of my dealings were with the bank directly.


I've got a credit card, done primarily to improve my credit rating. My experience has been that paying off loans on time or early, and otherwise avoiding debt translates to "You don't have much credit history, so you're too risky." So I had to start with a credit card with a $500/month limit. After I behaved myself for 6 months, that increased to $750.
And I get credit card offer mailings by the truckload now. They've slowed down though: I remove the application form, scrawl "REMOVE" over both sides of it, and mail it back in the postage-prepaid envelope.

Not going over the limit is easy: I only use it for groceries.
It does pay back 1% for those purchases.

I'm wary of getting a bigger&better rewards card; I don't want that quiet thought of "tiny discount!" influencing my purchasing habits. Though I'll say that I do get some small amount back on Giant Eagle's FuelPerks, but if it does influence what I buy, it's in my subconscious's subterranean depths.
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frugaltype
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Re: Convince me to get a credit card

Post by frugaltype »

stan1 wrote: I no longer use cash, except for a few $5 and $1 bills I keep in my car for tips or to chip in with co-workers for food brought into the office.
My car was trapped in a parking area where the automated machine to process ticket payments had stopped reading any credit cards. I guess it would still be there, 2 hours away from where I live, if I hadn't had $9 in cash to feed the machine.
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CyberBob
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Re: Convince me to get a credit card

Post by CyberBob »

Jeff7 wrote:And I get credit card offer mailings by the truckload now.
http://www.optoutprescreen.com/

Bob
Buckeye
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Re: Convince me to get a credit card

Post by Buckeye »

We use credit cards a lot.

Total annual fees on our 3 cards are about $220. And every year or so when I do the math they are more than justified (vs. strictly no annual fee options).....for the way we use them.

But I make no mistake in realizing they indeed do influence our spending. Absolutely no doubt about it....we spend more than we would otherwise if paying cash. But I consider that a good thing overall. :)
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bottlecap
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Re: Convince me to get a credit card

Post by bottlecap »

No. I don't like being ordered around.

JT
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SamGamgee
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Re: Convince me to get a credit card

Post by SamGamgee »

bottlecap wrote:No. I don't like being ordered around.

JT
Come on guys, all these non-responses are getting tiresome. OP's request was perfectly clear.
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ogd
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Re: Convince me to get a credit card

Post by ogd »

The huge reasons are:

1) credit history, which gives you access to extra cheap mortgages and car loans later on. Some of these may be cheap enough to qualify as free money even in you can afford to pay them outright. My mortgage broker friend says she gets the shivers every time she runs into someone without a credit card because she knows how hard it will be to get that person a good loan.
2) rewards: by not using credit cards you are leaving 1-3% on the table. Or to put it another way, you are subsidizing the rewards of people who aren't afraid of using credit cards, since you pay the same prices and merchants are relying on you to afford our discounts. It's a crooked system if you ask me, but it is what it is.
3) protections: credit cards are better at protecting from fraud and quicker to dispute / reimburse.

Get a credit card with rewards and pay it off in full every month. If you were responsible so far to not get one and max it out on a TV, you shoudn't have any trouble. It's a game you almost have to play these days.
placeholder
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Re: Convince me to get a credit card

Post by placeholder »

Got my first credit card in the late 70s while I was in college because Standard Oil had a guaranteed student card and that was a great leg up in establishing credit history and wasn't a card you would likely go wild in spending with.
surfstar
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Re: Convince me to get a credit card

Post by surfstar »

The year is 2014.
TravelforFun
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Re: Convince me to get a credit card

Post by TravelforFun »

I didn't read every post but did someone point out you have to have a cc to rent a car? Car rental agencies don't accept cash or debit cards.
Quickfoot
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Re: Convince me to get a credit card

Post by Quickfoot »

Hotels and Car rental companies also tend to impose $250 to $500 holds on debit cards for incidental damages. If you travel or plan to a credit card is invaluable.
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Re: Convince me to get a credit card

Post by placeholder »

TravelforFun wrote:I didn't read every post but did someone point out you have to have a cc to rent a car? Car rental agencies don't accept cash or debit cards.
That's not true completely although some companies might not at all and some will restrict which cars or have certain steps to go through to use a debit card (you can find this information through a web search).
Fallible
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Re: Convince me to get a credit card

Post by Fallible »

CoffeeAndBooks wrote:I haven't in the past and don't foresee in the future the benefits of getting a credit card. Since I was a kid, I've only heard horror stories that come as a result of them. Would it be financially necessary for me to start using one?
...
I'm retired and never had a major credit card and except for minor and rare inconveniences haven't needed it. I don't think I'm making a statement about it. It's just that over the years, I always thought something would come up and I'd need one, but it never happened. I'm also frugal, so I probably would've used it wisely/sparingly and never carried a balance. You never know, though, once tempted with the instant gratification, ease, and convenience the cards offer. (Hmmm... maybe I am making a statement.)
Last edited by Fallible on Mon Mar 24, 2014 4:49 pm, edited 1 time in total.
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surfstar
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Re: Convince me to get a credit card

Post by surfstar »

OP: do you drive?

Using a CC at the pump is faster and guarantees you'll fill up your tank vs guessing with cash and coming up short, or going back for a refund. Besides, who wants to wait in line behind people to say "$40 on #1"? What a waste of time.
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bottlecap
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Re: Convince me to get a credit card

Post by bottlecap »

SamGamgee wrote:
bottlecap wrote:No. I don't like being ordered around.

JT
Come on guys, all these non-responses are getting tiresome. OP's request was perfectly clear.
You think it is? Really? What is the request, exactly? Has he (she?) given any indication a) whether he wants or doesn't want a credit card or b) what circumstances might help us make his decision for him if he's unsure. The only real question is whether it is financially necessary for him to get a credit card. For all I know, he's 90 years old. Wouldn't that pretty much answer that question right there?

I'm sure the OP didn't intend to be brusque and opaque, and I certainly don't intend to discourage him from posting. Maybe I'm getting old, but these type of posts are becoming more common and it kind of bothers me. If one can't bother to let me in on the point of a post, why must they demand that I "convince" them of something or out of something?

I guess my thought is, be polite, ask a specific question and give us enough information to actually provide some useful insight. Without it, I wonder if we're wasting our time. There was a whole thread recently where all sorts of advice was given and the OP came back and said he wasn't really going to do any of the things he said he was thinking about, he was just trying to start a discussion for his own edification. My thought was he should have started the original post clarifying that he was just trying to mentally stimulate himself. Many posted thinking they were giving beneficial advice. I couldn't tell whether that reasoning was the same for this post, but the general nature of the post without specifics seemed that it might be.

Perhaps I'm the only one that feels this way?

JT
Jeff7
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Re: Convince me to get a credit card

Post by Jeff7 »

frugaltype wrote:
stan1 wrote: I no longer use cash, except for a few $5 and $1 bills I keep in my car for tips or to chip in with co-workers for food brought into the office.
My car was trapped in a parking area where the automated machine to process ticket payments had stopped reading any credit cards. I guess it would still be there, 2 hours away from where I live, if I hadn't had $9 in cash to feed the machine.
I was almost in trouble when I wandered into a toll plaza in my travels.
Luckily I did have a few stray dollars throughout the car and my wallet.

It's apparently cash, EZ-Pass/Fastpass/etc, or (I assume) a fine for no payment.


CyberBob wrote:
Jeff7 wrote:And I get credit card offer mailings by the truckload now.
http://www.optoutprescreen.com/

Bob
Ah, nice. Thank you.
takeshi
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Re: Convince me to get a credit card

Post by takeshi »

bottlecap wrote:Perhaps I'm the only one that feels this way?
Purpose would help with the discussion if details were included. I.e. -- What plans does the OP foresee in the future? What prompted the creation of this thread if the OP hasn't seen the need for credit in the past? What goals does the OP have? Where does the OP draw the line with regard to determining if credit is of any worth? These aren't universal matters. We don't know the OP or the OP's situation. The OP needs to clarify all this in order to have any sort of meaningful discussion on the topic. Some people have no need for credit. Some think it's absolutely necessary. Some find it a necessary evil. OP could be anywhere in the spectrum and we are expected to answer this with no knowledge at all?

"Convince me" threads always reek of entitlement. I have no problems providing feedback but the person asking the question at least needs to show some initiative. Posting a thread with no information does not qualify IMO. At the very least look at the credit products out there and then come back with specific questions. It's not anyone's job to convince anyone else of anything on any topic except for those in politics/marketing/advertising/etc. If you want to be convinced then check out the ads. If you want a useful discussion then help us to help you.
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daytona084
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Re: Convince me to get a credit card

Post by daytona084 »

In addition to the reasons already mentioned: Paying by credit card is now faster than cash. I do not appreciate being in line behind someone paying cash at the gas pump or in the self-scan line at the grocery store (trying to feed paper money into the self-scan machine, one bill at a time).
TFinator
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Re: Convince me to get a credit card

Post by TFinator »

takeshi wrote:We don't know the OP or the OP's situation. The OP needs to clarify all this in order to have any sort of meaningful discussion on the topic.
It seems like this has been a perfectly fine discussion. 42 posts in, with some repeats, but mostly I think the OP is getting the perspectives, advantages, disadvantages that he was looking for. Obviously others find it interesting enough to comment, or this would be one of those dead-end 3 post threads.

When I don't find a topic interesting, well thought out, or if I find it annoying, I tend to not read it and I don't comment.
ubermax
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Re: Convince me to get a credit card

Post by ubermax »

I agree with TFinator and I think the OP's query regards a credit card is one that many including myself have had - my wife and I originally got credit cards just "for emergencies" but it's evolved into online purchases, airline tickets, etc. etc. and for those emergency situations - having the cards just makes things easier and I don't think we spend more because we have them - and I'm not sure how we would get certain things without them, e.g. plane tickets ???
scrabbler1
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Joined: Fri Nov 20, 2009 1:39 pm

Re: Convince me to get a credit card

Post by scrabbler1 »

Until I got my first cash-back CC last year through the same bank I use for my checking account, I rarely used my CC. But now I use my CC for more of my everyday purchases, mainly at the suprmarket when it exceeds $40 (which is about 2/3 of the time, I am shopping only for me). The cashback, however, is gravy, because a few years ago I obtained online banking so I can pay my CC bill with a few point-and-clicks now. Still, it is handy to have a CC in case I buy something on line (maybe once a year), buy plane tickets, get a hotel room, or rent a car, the last 3 of those items I have not done in more than 10 years.

It is not totally clear to me if the OP is disdaining credit cards and preferring debit cards, or is disdaining using any form of plastic to buy stuff. I am not defending debit cards as a good substitute for the reasons others have stated here already. It has been at least 4 years since I last used my debit card for a purchase, as opposed to getting cash from an ATM. I would suggest to the OP to have a CC even if it is little more than a "safety net" to use in case of an emergency or for a large purchase.
placeholder
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Joined: Tue Aug 06, 2013 12:43 pm

Re: Convince me to get a credit card

Post by placeholder »

But now I use my CC for more of my everyday purchases, mainly at the suprmarket when it exceeds $40
Why such a high threshold why not use it for all supermarket purchases?
dmwahl
Posts: 29
Joined: Tue Mar 25, 2014 1:29 pm
Location: Madison, WI

Re: Convince me to get a credit card

Post by dmwahl »

I've been living for a while now with no credit card. I haven't had any trouble renting a car, flying, ordering stuff online, paying bills, buying gas, etc with a debit card. Whenever possible (which is the vast majority of the time) I run the card "as credit" to avoid entering my pin. The only places I do use the PIN are ATMs and a local grocery store that doesn't accept credit cards anyway. When run as a credit card I get the same protection as a real credit card (CyberBob did a great job of pointing out the law on this). I have had a few odd looks when someone asks for a credit card and I explain I don't have one, but so far nobody has refused to take my money.

Regarding my credit score, I haven't noticed any difference after ditching the credit cards I had (it has been around 2 years since I had one). If anything my score has gone up very slightly (as of this morning I checked and it's 757). I have had no troubles getting a mortgage or refinancing and have done it several times since dropping all my credit cards.

For me the main reason I got rid of the credit cards was that I tended to spend more with them. Not a lot more, but I didn't like that the thought "at least I'll get 1% back" went through my head each time I used one. The second reason was just to prove it can be done :)

Clearly credit cards can be used responsibly, but for me it just isn't something I've found that I need. If some day I find that I need a credit card, then I'll get one.
mikep
Posts: 3856
Joined: Wed Apr 22, 2009 9:27 pm

Re: Convince me to get a credit card

Post by mikep »

surfstar wrote:OP: do you drive?

Using a CC at the pump is faster and guarantees you'll fill up your tank vs guessing with cash and coming up short, or going back for a refund. Besides, who wants to wait in line behind people to say "$40 on #1"? What a waste of time.
More and more gas stations are charging extra for CCs, and I can't blame them due to the CC fees but I thought it was illegal? Anyway the workaround for Bogleheads (as mentioned by The finance buff) is to buy a gift card with your credit card and use that at the pump to get your cash price. :)
scrabbler1
Posts: 2798
Joined: Fri Nov 20, 2009 1:39 pm

Re: Convince me to get a credit card

Post by scrabbler1 »

placeholder wrote:
But now I use my CC for more of my everyday purchases, mainly at the supermarket when it exceeds $40
Why such a high threshold why not use it for all supermarket purchases?
I like to not have a lot of transactions on my CC. If I go in there and buy $10 or $15 or $20 or a little more, it is easier for me to use cash and get in and out of the store quickly. Using the CC at the store does slow me down some versus cash. Also, when I use the self-checkout once in a while for small purchases, I take that opportunity to get rid of all my small coins (dime, nickel, penny) easily.
placeholder
Posts: 8421
Joined: Tue Aug 06, 2013 12:43 pm

Re: Convince me to get a credit card

Post by placeholder »

At my supermarket credit card is faster because if under $50 it's swipe only no signature needed which is much quicker than handing over bills and getting change.
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