s/o Question for those who do not have credit cards

[Plaid Dad]

Have you encountered any substantial inconveniences by not having credit cards? Renting cars? Making hotel reservations? Getting major loans (mortgage)? Do you have a debit card with a credit card symbol on it?

 

TIA!

[Pamela H in Texas]

I haven't rented a car, so I don't know about that, but I haven't had any issue otherwise. And we own our own home. We do have a Visa debit card.

 

But seriously, we'd mess up majorly if we had a credit card. We're just BAD financially. Cash only is really best for us (though if my hubby gets laid off in March, I'm sure I might wish we had credit cards for back up).

[Tree House Academy]

I wonder this too. I recently shredded my credit card...and I was supposed to rent my mom a car for Christmas. Let's just say that I will now be driving to get her because with a credit card, they put a hold on your account for $150 (deposit) PLUS the amount you owe for the rental. With a debit account, they actually remove the money and then put it back when you return the car! It is Christmas and a week before dh gets paid again, so there is no way I have an extra $500 to put on my debit account. So right off the bat, that sucks. Luckily, dh still has a cc and I *could* use that if I needed to, but I have found that, at least with car rental, it is less convenient to not have a cc.

[Confuzzled]

We've only been without cards for a year and a half so haven't had a whole lot of experience yet. We already had a mortgage so that wasn't an issue. Our debit card is issued by Visa and works for almost everything for which we would normally use a credit card. Debit cards work fine for hotel reservations. The only problem is that they put a hold on your account when you first check in for more than the cost of the rooms and it can sometimes take several days after checkout to be removed. It can tie up money you might need or cause a check to bounce if you cut it close and aren't aware that they do it. Car rental policies have different policies concerning debit cards. Some take them and some don't. I researched it once and found a chart online with all the policies but I'm not sure now where it is. We use the debit card for all online purchases, hotels, airlines, etc. We try to use cash for all purchases in town.

 

Research shows that we spend 18-30% more on purchases when using plastic, although almost everybody will say they are the exception and don't do that. I said the same thing before we converted to all cash spending, but was proven wrong. I definitely spend less when I'm using cash. The key is to keep the cash in envelopes designated for each budget item and leave them all at home unless I need one for a planned purchase.

 

HTH,

Kris

[angela in ohio]

We use our debit card with the Visa logo for everything (and we have used them for hotels numerous times and for a rental car once.)

 

We got approved for a mortgage larger than we'd *ever* want to take out with no credit cards or car loans or anything like that. If you have the income and little debt, you can find someone happy to have you. :)

[elegantlion]

We do not use credit cards. We have a debit card with a Visa logo that is run as a CC. We also buy one time debit cards through this place for most of our online purchases.

 

We use the debit card for hotels, however we have run into issues with the debit card tied to our checking account. When you check in and give them your CC some hotels run a pre-authorization for the amount which does not expire for a couple of days. Then they will authorize the card for the amount when you check out. The pre-authorization will tie up your funds for a few days. Now we either put a cash deposit or use a debit not tied to our checking with hotel stays.

 

It is usually not an issue with simply making a reservation, they usually authorize the card for 1.00 only.

 

We haven't rented a car in a while, but there used to be some issue with debit cards and some car rental companies. They preferred you have a true CC, not a debit.

 

Our house is owner financed so I don't know that would affect a traditional mortgage.

 

We have not found it to be a big hassle. We much prefer to operate life on a cash basis.

[Murphy101]

we have a visa debit card

 

it's really not been that big a deal for us.

in fact, just about 2 yrs ago we bought this house and a large reason we qualified was the LACK of debt/credit we had

 

car/hotel rental...

they usually want to place a hold on the card for certain amount, which if it's the total cost of the rental is no big deal, b/c whether it comes out now or later - it's planned expense, kwim?

 

HOWEVER some places want to place a hold of WAY more than the simple cost of the rental. for example, we might want to stay at a hotel that costs $89 for one night, but they want to put a hold on our card of $250 - in case of damages or whatever is what they claim. Which means we wouldn't be able to spend that $250 until about 48 hours after check out. So this is more an issue of how much cash you have on hand. If you can afford to not need that money for a bit, it's no big deal. If you can't, then it's a royal pain.

 

Even if we pay cash when we check in, they want a card to put that hold on. Really it hasn't been a big problem. We tend to stay at fairly decent places. Not the Ritz, but not scared of the sheets either, kwim? We hold the room for the cost of the rental ONLY usually without a problem.

 

We don't rent cars b/c well, we don't need car - we need a small bus and have never been able to afford that, so we just drive our baby van everywhere.;)

 

airlines and hotels have not been a problem at all though so far.

 

worst case scenario, we'd use AMEX charge for such things, but it's rare that we come across a situation where we just have no choice but a true CC vs just using the debit.

 

that's been our experience after about 14 years.

 

we do have 2 credit cards, but it's because they were cheaper in interest and payment than getting a quick unsecured bank loan to pay some really big expenses last year (a new furnace and a major motor repair on my van - a totally of nearly 7k that we didn't have at the time.) Those were the first credit cards we'd had in over 13 years and that's the only thing we used them for. We'll be using my dh's severage check in January to pay them off and close them.

[elegantlion]

Just to add about our last hotel stay. We paid cash upon check-in and they accepted an additional 50.00 cash deposit that we got back upon checkout. I'm not sure all hotels will do this, but it worked for us.

[Daisy]

We have a credit card but it is frozen in a block of ice. LITERALLY. We never carry it on us. We are an all-cash family with the exception of the things you have mentioned; Hotel reservations, airplane tickets, and car rentals.

 

We do not carry a balance on our card.

[TraceyS/FL]

Our house is paid for.

 

We have a pre-paid greendot Visa card from Wal Mart that we can load if we need it. DH gets paid on it from his 2nd job - direct deposit.

 

Otherwise, it hasn't been an issue for us so far....

[KIN]

We have a Visa debit card and use it everywhere. I've never had a downside to not having a credit card. :)

[OnTheBrink]

Well, I've sort of skated around any problems by not having a card. My home was purchased with a contract for deed; I don't carry the mortgage (but will in a few years), I've never rented a car. I do have a prepaid Visa that I load up whenever I want to shop online and it could be used for hotel reservations or car rentals. I don't have a debit Visa; I find my prepaid Visa keeps me out of trouble better.

[kat19]

We don't have any credit cards.

We have our debit card that can be used as a credit card also, so that takes care of hotels and such.

[Kris]

Have you encountered any substantial inconveniences by not having credit cards? Renting cars? Making hotel reservations? Getting major loans (mortgage)? Do you have a debit card with a credit card symbol on it?

 

TIA!

 

Well, for us, we don't travel much. We make one trip each summer where we need to stay in a motel, but they don't require a credit card to hold the reservation if we get there before 6:00 p.m. "Nicer" places would require a CC, but we can't afford to stay there anyway. :lol:

 

We don't have loans -- we pay cash for everything, including our land, house ands cars. If we don't have the cash we do without. And we do without a lot. But if we don't *have* the cash, we couldn't afford the payments anyway. So the upside is we get to keep our stuff, and when hard times hit, we still worry, but not about tow trucks or foreclosure -- and boy, have the hard times hit. Our income for the past two months is *one-third* of what it "should" be -- Ho Ho Ho! :lol:

 

It is an inconvenience. There are a lot of things you can't do without a credit card anymore. I think registering with eBay is one of them. But, just like with everything else, we just do without. I'm not going to get a credit card just so I can register with them and buy more stuff. :D

 

We don't use a debit card, either. Cash only really helps with the "Oh! That's so CUTE! I must have that NOW!" impulse buys. Go home, think about it, and the next week? Still gotta have it? Okie dokie. :001_smile:

 

Yes, it is inconvenient. But so is sleeping in the car. :D

[Colleen]

Imo it's a convenience to have a credit card , and as Patty said, it can be a lifesaver (so to speak) in an emergency scendario. As far as our business is concerned, we couldn't operate without one as some companies require setting up a line of credit, which in turn often requires having a major credit card.

 

If you're concerned about interest rates and debt issues, use the card minimally and pay off the balance in full each month. Btw, as far as debit cards are concerned, I would never encourage people to use that as a substitute for a true credit card. A debit card doesn't offer the same safety measures as does a credit card in the event of a stolen/misused card.

Edited December 20, 2008 by Colleen

[swellmomma]

I have a secured master card from money mart. I put money on it when I want to use it, but unlike regular credit cards I am not going into debt with it. It is great for booking hotels, shopping online etc but still helps me maintain my budget because I am only spending what I have on hand kwim

[Murphy101]

A debit card doesn't offer the same safety measures as does a credit card in the event of a stolen/misused card.

 

actually this is not true much anymore

 

in fact, my VISA debit card has MORE protection than either of the 2 CC we have

 

I've never had a problem getting an error fixed on my debit, but it's been a nightmare getting stuff taken care of on a mastercard CC

 

you just have to shop around and ask about the policies:)

[Colleen]

actually this is not true much anymore

 

in fact, my VISA debit card has MORE protection than either of the 2 CC we have

 

I've never had a problem getting an error fixed on my debit, but it's been a nightmare getting stuff taken care of on a mastercard CC

 

you just have to shop around and ask about the policies:)

 

Glad to hear that. I know of many people who have ended up with a heap of difficulties when their debit cards were misused. On the other hand, when someone committed identity theft against me, my Visa credit card issues were easily cleared up. One way or another I believe a credit card is an essential resource.

[Stacy in NJ]

I don't think I could survive without a credit card of some type. I have two (Am Ex and VISA). For safety reasons, I think they're really necessary. We do pay our cards off in full every month. We actually have zero debt, no mortage, no car loan or lease, no credit card debt.

[phathui5]

Have you encountered any substantial inconveniences by not having credit cards? Renting cars? Making hotel reservations? Getting major loans (mortgage)? Do you have a debit card with a credit card symbol on it?

 

TIA!

 

I haven't had any of the problems you mentioned and I don't have a credit card. I have a Visa debit card through our bank that is linked to our checking account and that works for everything.

[mamaof2andtwins]

I have not had a credit card in about 8 years. We do have a debt card with a MasterCard logo on it. That is what we use. I have never had a problem with it, and we do rent hotel rooms and such.

 

Jennie

[Anna]

Imo it's a convenience to have a credit card , and as Patty said, it can be a lifesaver (so to speak) in an emergency scendario.

 

If you're concerned about interest rates and debt issues, use the card minimally and pay off the balance in full each month.

 

Colleen (or anyone who has ideas about this),

 

We've been using only debit cards but I'm leaning more towards getting a regular CC for emergency purposes. My understanding is that American Express requires that you pay it all in any given month. Is that correct? In a real emergency you might have to put a larger than usual amount on it that you may not be able to pay in full. If that happens, do they cancel your AE card or what? I've heard folks say that AE is good because you can't run up a debt but is it really as convenient as a VISA CC? And where is the best place to go for comparisons in choosing a new CC?

Edited December 21, 2008 by Anna

[Anna]

Bumping this. I'm sure somebody has answers to my questions, huh :huh: ?

[Kris]

Bumping this. I'm sure somebody has answers to my questions, huh :huh: ?

 

I haven't had an American Express card in a long, long time. All I can tell you is what they used to do -- yes, you have to pay the balance off each month. *But* since I had one, they've come up with other plans, too, I think. Have you looked at their website? I think they have cards now that carry a balance like "normal" credit cards.

 

I can't tell you if they close the account if you don't pay the balance every month -- we always managed to pay it. I'm sorry I'm not much help! But at least "someone" answered you. :lol:

[TN Mama]

We only have MasterCard debit cards and we have rented cars, made flight & hotel reservations, etc. and have never had a problem. We also have never had any problems with loans (house, car).

[hsmom]

Up until recently we never had a credit card (still don't) nor a debit card with the master card logo(just got one about 8 month ago). We ran into quiet a few problems with not having one. Like the holiday inn requires a credit card or a huge deposit to stay there. Ordering things (because not all places except paypal. LOL)and all kinds of stuff. Now that we have the debit we don't run into any problems. Well not yet anyways

[Susie in CA]

We also use a Debit Card for those types of purchases. We have never had a problem doing so. We have done everything this way, including renting cars, buying airplane tickets, making hotel reservations etc., for four years now. We also use the same card outside the US and have never had an issue come up.

 

Susie

[Nestof3]

We each have a credit card, but we have Visa check cards which also work as visas. The reason we have credit cards is because we don't like giving out the number that ties directly into our checking account. Yes, there's still protection, but if someone were to overdraft our account, it would take time to clear it up.

 

We have had fraud occur on our credit card, and it was nice that it was taken care of, but it still takes closing down the account and such -- time.

[Anna]

We each have a credit card, but we have Visa check cards which also work as visas. The reason we have credit cards is because we don't like giving out the number that ties directly into our checking account. Yes, there's still protection, but if someone were to overdraft our account, it would take time to clear it up.

 

We have had fraud occur on our credit card, and it was nice that it was taken care of, but it still takes closing down the account and such -- time.

 

This is EXACTLY what I'm talking about. We have debit cards but we want to get 1 credit card that isn't tied to our checking accounts and I'm wondering if it would be more convenient to go with something like a VISA CC or if American Express would be better?

 

How does one go about finding a good CC for emergency purposes (that's not a debit card)?

[TraceyS/FL]

I wouldn't rely on a regular AmEx for an emergency - you have to pay it every month and they are horrid if you don't/can't. I"d go with one of their other offerings with a line of credit - or with a regular Visa/MC if it was something for an unexpected expense i might have to carry a month or 2.

[PinkInTheBlue]

We frequently fly, rent cars, stay in bigger hotels, etc. Not having a credit card was an often problem. Sometimes one we couldn't get around and had to change our plans. I would think if you ever have a decent amount of need for any of these type things or if you're building and/or improving your credit for mortgages or such, a credit card is a help. In our life it's a necessity. I'm also thankful we don't have any problems with cc abuse.

[Michelle in MO]

Patty Joanna: we charge only what we need, but think of it as a bill that we have to pay off in its entirety when the statement comes due. I think owning/not owning a credit card depends on whether or not someone feels comfortable with that.

 

Having a credit card has come handy in times of an emergency. For most people, I think the key is living withint your income, and that may work differently with different people. For many years I was not comfortable with a credit card, and found I was able to function well without it, although that was a while ago.

[Karenciavo]

I admit that I haven't read the other threads and do not understand more than one reason for not having a fee-free card at hand. That reason would be "lack of self-control" and that is a good reason to not have a card. The card is a tool, and tools can be used well or badly. It depends on the wielder.

 

Credit cards don't ruin home economics, people do. :001_smile: We are like Patty, although we weren't always. Funny thing is we've had 2 no fee CC companies cancel us since we've started paying our card in full.