If you no longer use credit cards

[M&M]

Please tell me how do you handle hotel reservations and online ordering?

 

We are getting rid of all our cc debt, and getting rid of all cc. So, how does one live in a credit society when you wish to pay cash for everything?

 

Thanks

[wy_kid_wrangler04]

We do not use credit cards, but we do use our debit card. That is linked to the bank, but takes money from our checking account. That is how we do it. Before we had our debit card, when we were moving across the country we just explained to hotels we didnt have a cc. They were ok with it, just did a walk through the room with us upon check out. We were required to show our drivers license (I guess so if anything happened they could track us down)

 

Alot of online ordering you can call the customer service and some will do a check over the phone, and alot of places are taking paypal which links up to your checking account.

 

ETA: Origionally when we got rid of our credit cards and credit card debt we were determined to do it without even a debit card, but that was getting very difficult (though it was possible)

Edited May 12, 2010 by wy_kid_wrangler04

[TandLMommy28]

Debit card. I do keep ONE credit card for hotel reservations just because it's annoying to have a hold on the account for weeks or even months. But I always make sure I have the cash set aside to pay the bill the moment it comes in.

[cjbeach]

Debit card. If it's something really odd, something I just think COULD go wanky, I'll reload my trusty Green Dot Walmart card and use that. :)

[ScoutTN]

We too use our debit card which takes monet directly from our checking account. Doesn't matter if it's debit or a credit card, just so long as it has VISA or MC on it, everyone will take it. Paypal too.

[MaryCatherine]

We too use our debit card which takes monet directly from our checking account. Doesn't matter if it's debit or a credit card, just so long as it has VISA or MC on it, everyone will take it. Paypal too.

 

 

Yes, this. I've been debit card only for ten years. Have NEVER had a problem before.

[simka2]

Debit Card...but we do have a credit card for hotel and car reservations. Same reasons as above. We don't like the to pay the hold, or the extra deposits ;(

[Parrothead]

A visa or mastercard debit card works wonders for those type things.

[Orthodox6]

Keep one credit card which you use for this purpose. I could not begin to post all the links to articles explaining why it is completely unsafe to use a debit card for this purpose, or for online purchases. I never would use a debit card !

[gingersmom]

Debit card for many many years with no problems at all.

 

I did recently get a credit card with a very low low minimum (no chance of me running it up) just to use when I needed to rent a car. The car rental places I called take debit cards but they put a large hold on your account for X amount of days.

[EKS]

We are debt free but I use a credit card all the time. I just pay it off each month.

[Renee in NC]

Debit card. If it's something really odd, something I just think COULD go wanky, I'll reload my trusty Green Dot Walmart card and use that. :)

 

:iagree:

 

I don't rent cars or reserve hotels, though, so that isn't an issue.

[elegantlion]

We have a debit card that is not tied to a checking account, we use that for hotels, etc. We have also left a cash deposit on hotel rooms without issue. It works out good because that is our gas money on the way home.

 

One issue when using debit cards attached to checking accounts. I'm not sure if they still operate this way, but some will do a "pre-authorization" for the entire amount when you check in. That essentially ties up your money for at least 3 days. We had that issue once on a weekend trip. The card got authorized for the full amount. We were at a convention so technically our hotel had been set up and paid through the convention people. We were unable to access that money all weekend, which was supposed to be our spending money and money to get home. We had to borrow money to get home and the pre-authorization fell off the next day, not a fun weekend. I'm not how that works now, it's been several years, but make sure you read the fine print about pre-authorizations.

[fivetails]

There really aren't very many options here... we don't have the same kind of 'debit cards' that you guys are talking about - a 'debit card' here is just the card that you use to get money from the bank machine or to pay for stuff at the store. You can't make plane reservations or whatever with our 'debit cards'.

 

It's getting kinda foolish though, really. I called to make a dental appt for the kids recently and they required a credit card number prior to booking - this was so that if you didn't show, they could charge you the $75 no-show fee. We have credit cards available for this, but I asked her "So what about people who don't have credit cards?" out of curiousity and... she had no answer. Aside from "well, it's never come up".

[Granny_Weatherwax]

We are debt free, too. We have one credit card that we use for online purchases and reservations. If we use it we pay it off at the end of the month.

[aggieamy]

We too use our debit card which takes monet directly from our checking account. Doesn't matter if it's debit or a credit card, just so long as it has VISA or MC on it, everyone will take it. Paypal too.

 

Yep. This is what we do. We also have a debit card that is not linked to our savings or main checking account that we use for most internet purchases and things around town like gas. Otherwise we use cash to pay for everything else. We've been without cc's for going on four years and in that time we've been to Europe, the Virgin Islands, and all over the US. Flying, renting cars, and getting hotels. All without problem on a debit card.

 

I will admit that renting a car can be a pain sometimes but I'm happy to spend an extra 30 minutes getting a car using a debit card to be able to stay away from credit card debt.

[Orthodox6]

[double post accident]

[Orthodox6]

There really aren't very many options here... we don't have the same kind of 'debit cards' that you guys are talking about - a 'debit card' here is just the card that you use to get money from the bank machine or to pay for stuff at the store.

 

 

That is the very card type other posters are discussing. The information is easily available about why this is an unsafe method.

[BeckyFL]

Keep one credit card which you use for this purpose. I could not begin to post all the links to articles explaining why it is completely unsafe to use a debit card for this purpose, or for online purchases. I never would use a debit card !

I would never use my debit card online either. I don't have enough money in there to cover large identity theft problems. CC's are much better for that kind of thing. Just don't ever allow yourself a balance on them.

[SquirrellyMama]

We have one debit card for online purchases that has between $100 - $300 in it. That way if anything is stolen it isn't much. My mom has had money stolen from a bank card 3 times and each time the bank has replaced it immediately. Now, if she would only listen that the casino isn't a place to be we'd be good. After the 3rd time money was stolen there you'd think she'd get the picture.

[fivetails]

There really aren't very many options here... we don't have the same kind of 'debit cards' that you guys are talking about - a 'debit card' here is just the card that you use to get money from the bank machine or to pay for stuff at the store.

 

That is the very card type other posters are discussing. The information is easily available about why this is an unsafe method.

 

Yes, but they're different ;) Ours can't be used to do anything else. You can't call the airline and book a ticket with your bank card. You can't reserve a hotel with your bank card. You can't shop online with your bank card. It doesn't behave like a credit card at all..... you can only get money out of a ATM or buy stuff in a store that has a debit machine at their cash.

[Orthodox6]

Yes, but they're different ;) Ours can't be used to do anything else. You can't call the airline and book a ticket with your bank card. You can't reserve a hotel with your bank card. You can't shop online with your bank card. It doesn't behave like a credit card at all..... you can only get money out of a ATM or buy stuff in a store that has a debit machine at their cash.

 

This is interesting. I had not heard about a debit card being so restrictive. This may be a requirement of your family bank.

 

My experience with debit cards has been that the card can be "run" through the machinery as either a debit card, or as a credit card. (If run as a credit card, it functions nonetheless as a debit card -- the money is removed directly from the checking account.) Often I make a transaction and the seller runs my debit card as if it were a credit card. In the past, I rarely would use my debit card for an online purchase. No problem.

[fivetails]

Yes, but they're different Ours can't be used to do anything else. You can't call the airline and book a ticket with your bank card. You can't reserve a hotel with your bank card. You can't shop online with your bank card. It doesn't behave like a credit card at all..... you can only get money out of a ATM or buy stuff in a store that has a debit machine at their cash.

 

This is interesting. I had not heard about a debit card being so restrictive. This may be a requirement of your family bank.

 

 

Nah, just a Canadian thing, I think. :)

 

[it's not "restrictive" - it's just how they work]

[Orthodox6]

Nah, just a Canadian thing, I think. :)

 

[it's not "restrictive" - it's just how they work]

 

Bingo ! I had no way of knowing that you are from another country ! I don't automatically read the "location tags". :)

[Tutor]

We have a cc we keep on hand for online purchases and reservations (we usually pay cash or with the debit card at the hotel; the cc is only used to reserve), but you could also used a pre-paid credit card. I think that PayPal also has a service now where they will issue you a temporary credit card number for online purchases that don't accept PayPal. The number acts like a credit card for processing purposes at the store, but it automatically withdraws the money from your PayPal account or linked bank account when PayPal receives it.

[Kari C in SC]

Just a thought about your credit score... you really do not want to cancel all of your credit cards. Your score is based on the amount of credit lines you have and how much of it is in use. If you have not open credit cards, it can drop your score considerably.

 

Personally, we use a hotel points credit card for everything. I pay it off every two weeks. I haven't had to pay for a hotel room in years just by buying what I would normally buy with my credit card.

[Photo Ninja]

Because I don't like to use my debit card when ordering online (way too easy for fraud to occur), I started getting Visa gift cards. They work like a credit card and are accepted where credit cards are accepted. I keep track of how much money is available on them and they work great. You can't reload them, so you need to figure out how much money you want the card for before you buy it. The ones I get cost $3.50, but most credit cards now will charge interest or if you pay it monthly many are starting to charge a yearly fee to have the card. The $3.50 is worth it for me. They do charge a monthly fee if I don't use the entire amount within 6 months, but that has not been a problem because I use the card.

 

I got the idea from someone who figures out how much her hotel, etc. will cost, then she buys a Visa gift card for a bit over that amount and uses it when booking hotels. She has never had a problem doing that.

 

It is a convenient option to a credit card or debit card. I have found that the credit union is the best place for me to buy one, but banks also sell them. I think the Visa gift cards the grocery store sells cost the most.

[elegantlion]

Because I don't like to use my debit card when ordering online (way too easy for fraud to occur), I started getting Visa gift cards. They work like a credit card and are accepted where credit cards are accepted. I keep track of how much money is available on them and they work great. You can't reload them, so you need to figure out how much money you want the card for before you buy it. The ones I get cost $3.50, but most credit cards now will charge interest or if you pay it monthly many are starting to charge a yearly fee to have the card. The $3.50 is worth it for me. They do charge a monthly fee if I don't use the entire amount within 6 months, but that has not been a problem because I use the card.

 

I got the idea from someone who figures out how much her hotel, etc. will cost, then she buys a Visa gift card for a bit over that amount and uses it when booking hotels. She has never had a problem doing that.

 

It is a convenient option to a credit card or debit card. I have found that the credit union is the best place for me to buy one, but banks also sell them. I think the Visa gift cards the grocery store sells cost the most.

 

I do this as well.

 

Here in the states ATM cards used to be just that. When Visa/MC got the idea to attach their logo to the ATM card to make it the debit card. I'm not even sure you can get a plain ATM card anymore. All of the accounts I've seen have the debit card attached.

[cjbeach]

I do this as well.

 

Here in the states ATM cards used to be just that. When Visa/MC got the idea to attach their logo to the ATM card to make it the debit card. I'm not even sure you can get a plain ATM card anymore. All of the accounts I've seen have the debit card attached.

We do this as well. However I buy Walmart's Green Dot visa card, the oNLY reason is because it's a Green Dot which is a larger company. My children's health insurance I pay with my Green Dot card because they've rejected the Vanilla Visas in the past. It's just not their policy to accept "smaller company" cards. :confused: Bank cards - yes. Green Dot - yes. All others were mostly - no.

[Dobela]

We have a debit card that is not tied to a checking account, we use that for hotels, etc. We have also left a cash deposit on hotel rooms without issue. It works out good because that is our gas money on the way home.

 

One issue when using debit cards attached to checking accounts. I'm not sure if they still operate this way, but some will do a "pre-authorization" for the entire amount when you check in. That essentially ties up your money for at least 3 days. We had that issue once on a weekend trip. The card got authorized for the full amount. We were at a convention so technically our hotel had been set up and paid through the convention people. We were unable to access that money all weekend, which was supposed to be our spending money and money to get home. We had to borrow money to get home and the pre-authorization fell off the next day, not a fun weekend. I'm not how that works now, it's been several years, but make sure you read the fine print about pre-authorizations.

We had this happen in the last 2 years. It was a horrible experience in a very embarassing sort of way. Then, a couple of months later we went to another location and the hotel pulled out 2 days as standard proceedure. It took 4 weeks for us to get that money back and by the time we paid overdrafts, that was one way too expensive hotel stay. After that my dh applied for 1 credit card. We keep no balance on it but use it for hotels when traveling. The only other time we used it was when the brakes went out on my car and we were flat broke after paying off some other bills. Of course we paid the card off next pay check but without it we could not have replaced the brakes on my car and I was needing to travel a long distance a couple of days alter.

[Dobela]

I do this as well.

 

Here in the states ATM cards used to be just that. When Visa/MC got the idea to attach their logo to the ATM card to make it the debit card. I'm not even sure you can get a plain ATM card anymore. All of the accounts I've seen have the debit card attached.

Locally you have to specially request the nonVISA/Mastercard ATM cards. If you don't, they will automatically send the VISA logo. My dad only keeps an ATM card so that it is more difficult to steal and use.