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How so? If you are not disciplined, then you are gaining money by not using one. On the other hand, my debit card is accepted anywhere where a credit card is.

How so? If you are not disciplined, then you are gaining money by not using one. On the other hand, my debit card is accepted anywhere where a credit card is. (btw I'm in the EU, so I don't get the obsession with CC in the USA)

jfim 8y ago
Unlike the EU, credit cards in the US have crazy perks. 2% cash back on all transactions for example mean that you're essentially getting a free discount on everything.
- evandijk70 8y ago
  The difference is pretty crazy. In the Netherlands, where I live, you can't use a credit card in most supermarkets, due to the extra transaction costs. The one chain that does accept credit cards charges an extra 50 cent if you pay with credit card. Debit cards are the standard way of paying for stuff, and are accepted everywhere. For online shopping credit cards are used a bit more often, but payment through online banking is a lot more common. I guess in practice the system is a bit like credit cards, because it is relatively easy to have a negative balance on your checking account. There are no overdraft fees, you just pay interest on the negative balance. Credit is determined by a lack of a 'BKR registration', which keeps track of both existing loans and payments that you missed for previous loans. If you have no 'BKR registration', you can get approved for a mortgage, a loan or a credit card, provided you meet the income criteria.
Kuiper 8y ago
There's not a lot of "discipline" that goes into paying off your credit card each month (in the sense of practice); my credit card auto-debits from my checking account at the end of the month to pay off the full balance for that billing period, so I passively pay for my purchases shortly after making them. The only way I lose money to interest is if I actively decide to log into my account and tell the system to stop paying my balance, which is something which would be bad on a variety of levels and doesn't appeal to me tremendously, so I guess it requires discipline for me to stay out of credit card debt in the same sense that it requires discipline for me to refrain from shoving a chunk of lard into my mouth. At a minimum, you could benefit from having a credit card that you just use to pay for a monthly subscription (e.g. Netflix, Github, Patreon) and just not use it for any other expenses; stuff it in a drawer and forget about it, or physically destroy the plastic if you don't want the temptation. (Heck, you could probably even request that your credit card have a $15 limit if you want to ensure it never gets used for anything other than your Netflix subscription.) >(btw I'm in the EU, so I don't get the obsession with CC in the USA) I wouldn't say that Americans are "obsessed" with credit cards any more than they're "obsessed" with shampoo. Which is to say, yes, there are some people who care a great deal about hair care products and have five different bottles in their shower, but for a lot of people it's just a basic fixture of living that you're kind of expected to deal with and isn't really in people's minds. Yes, I use it every day, but I'm not a credit card enthusiast any more than I'm a shower enthusiast.
matchbok 8y ago
Mostly perks. Paying it off every month is the way to go. Perhaps it's different in the EU, not sure! :)

jfim 8y ago

Unlike the EU, credit cards in the US have crazy perks. 2% cash back on all transactions for example mean that you're essentially getting a free discount on everything.

evandijk70 8y ago
The difference is pretty crazy. In the Netherlands, where I live, you can't use a credit card in most supermarkets, due to the extra transaction costs. The one chain that does accept credit cards charges an extra 50 cent if you pay with credit card. Debit cards are the standard way of paying for stuff, and are accepted everywhere. For online shopping credit cards are used a bit more often, but payment through online banking is a lot more common. I guess in practice the system is a bit like credit cards, because it is relatively easy to have a negative balance on your checking account. There are no overdraft fees, you just pay interest on the negative balance. Credit is determined by a lack of a 'BKR registration', which keeps track of both existing loans and payments that you missed for previous loans. If you have no 'BKR registration', you can get approved for a mortgage, a loan or a credit card, provided you meet the income criteria.

Kuiper 8y ago

There's not a lot of "discipline" that goes into paying off your credit card each month (in the sense of practice); my credit card auto-debits from my checking account at the end of the month to pay off the full balance for that billing period, so I passively pay for my purchases shortly after making them. The only way I lose money to interest is if I actively decide to log into my account and tell the system to stop paying my balance, which is something which would be bad on a variety of levels and doesn't appeal to me tremendously, so I guess it requires discipline for me to stay out of credit card debt in the same sense that it requires discipline for me to refrain from shoving a chunk of lard into my mouth. At a minimum, you could benefit from having a credit card that you just use to pay for a monthly subscription (e.g. Netflix, Github, Patreon) and just not use it for any other expenses; stuff it in a drawer and forget about it, or physically destroy the plastic if you don't want the temptation. (Heck, you could probably even request that your credit card have a $15 limit if you want to ensure it never gets used for anything other than your Netflix subscription.) >(btw I'm in the EU, so I don't get the obsession with CC in the USA) I wouldn't say that Americans are "obsessed" with credit cards any more than they're "obsessed" with shampoo. Which is to say, yes, there are some people who care a great deal about hair care products and have five different bottles in their shower, but for a lot of people it's just a basic fixture of living that you're kind of expected to deal with and isn't really in people's minds. Yes, I use it every day, but I'm not a credit card enthusiast any more than I'm a shower enthusiast.

matchbok 8y ago

Mostly perks. Paying it off every month is the way to go. Perhaps it's different in the EU, not sure! :)