6 ms·

I prefer my method of payment to not be pointlessly based on debt, but rather money I actually have.

Moru 4y ago
Use a debit card instead? You can only spend as much money as you have on the bank account. Except for the gas station, they can put a hold on your card for roughly the amount of a full tank and then release it after they know how much you refueled for. This can create a debt but is limited in scope.
- throwaway67743 4y ago
  Slight niggle, anyone can preauth for presumably a full amount and adjust the charge or cancel it (it's instant via the card networks, like refunds, your bank is lying to you if they say things like 5 working days etc)
SanjayMehta 4y ago
I use my no-fees credit card as if it's a charge card, clearing it every month.
weird-eye-issue 4y ago
I've had a credit card for over 10 years and get roughly 3% back on average which comes out to thousands of dollars each year. Never once have I paid any interest or fees. It has helped build my credit which is a big part I have over a 800 credit score. The money automatically is paid each month out of my bank account, I don't have to manually do anything What exactly are the downsides I've had?
- Gasp0de 4y ago
  This (especially the building credit part) is only valid for the weird US rules though.
  - weird-eye-issue 4y ago
    Yeah I can only speak to the US but I would be surprised if credit history and such is not relevant in other places...
    - scrollaway 4y ago
      The US is the only country in the world where you have such a credit history system built with credit cards. Some countries such as the UK have a credit system but CCs are not involved.
      - weird-eye-issue 4y ago
        I find this REALLY hard to believe https://www.capitalone.co.uk/creditcards/credit-builder-credit-cards.jsf https://www.capitalone.co.uk/creditcards/credit-builder-cred... https://www.experian.co.uk/consumer/credit-cards/types/credit-builder.html https://www.experian.co.uk/consumer/credit-cards/types/credi... https://www.barclays.co.uk/credit-cards/credit-building-credit-cards/ https://www.barclays.co.uk/credit-cards/credit-building-cred... https://www.hsbc.co.uk/credit-cards/credit-builder-credit-cards/ https://www.hsbc.co.uk/credit-cards/credit-builder-credit-ca...
      - rpdillon 4y ago
        > The US is the only country in the world where you have such a credit history system built with credit cards. Aside from the links posted in a sibling comment, I wouldn't say the U.S. credit system is built with credit cards: it's a fairly holistic metric that takes into account rent payments, loans, and a bunch of other stuff like "bankruptcies, foreclosures, lawsuits, wage garnishments or attachments, liens, or public judgments against you"[0]. Credit cards are lines of credit, so they certainly factor in, but the focus on your overall credit health, of which your credit cards may be a small part. [0]: https://www.investopedia.com/articles/pf/10/credit-score-factors.asp https://www.investopedia.com/articles/pf/10/credit-score-fac...
    - Gasp0de 4y ago
      In Germany you cannot build "positive credit" by spending money. I also think this is inherently unfair. As long as you never defaulted on a loan or forgot/failed to pay a bill you automatically have a perfect credit score in Germany.
kelnos 4y ago
Reasonable, but that means you're not only leaving money on the table (in the form of credit card rewards or cash back), but also you're not taking advantage of a great benefit: credit cards give you a firewall between merchants and your actual money. If a merchant fraudulently -- or even accidentally -- debits your bank account, then that money is gone. In many cases you will be able to get it back, but how long will that take? Days? Weeks? More? If the bad transaction is large enough, maybe you won't make your rent/mortgage payment that month. But with a credit card, the money is still in your bank account, and you can dispute the charge, and have it removed before you've spent your own money on it. Yes, credit cards do require some discipline. I pay mine off every month, and incur no interest charges, but sure, there's the possibility that I could charge enough in a month such that I wouldn't have the cash in my checking account to cover it at the end of the month. I generally don't consider this an issue, though, as I don't have a compulsive spending problem, and I track my purchases well enough in any case. In this day and age of incredibly poor customer service, I think it's invaluable to have some intermediary fronting the money for my purchases, in a way that lets me dispute transactions I think are in error before having to spend my own money on them.
- Broken_Hippo 4y ago
  This sounds more like you need better consumer protection that is government backed and written into law. You shouldn't have to have possible debt just to get that.
  - josephcsible 4y ago
    That sounds like saying that people shouldn't lock their doors, and we should deal with burglary solely with stronger laws instead.
    - Broken_Hippo 4y ago
      Burglary and getting ripped off by a company are two different sorts of things with different solutions. Locks work because it stops a lot of opportunity crime. Simple and effective: For everything else, we have laws. With consumer protection, what the 'get a credit card' crowd are basically saying is that sure, locks are available, but you have to be good enough to get one. Sorry about your luck, poor people that can't get one. Consumer protection laws are basically locks for everyone.
josephcsible 4y ago
If you pay their entire balance in full every month, which is what I meant by using them responsibly, then you are spending money you actually have, and you're also not paying any interest.

Moru 4y ago

Use a debit card instead? You can only spend as much money as you have on the bank account. Except for the gas station, they can put a hold on your card for roughly the amount of a full tank and then release it after they know how much you refueled for. This can create a debt but is limited in scope.

throwaway67743 4y ago
Slight niggle, anyone can preauth for presumably a full amount and adjust the charge or cancel it (it's instant via the card networks, like refunds, your bank is lying to you if they say things like 5 working days etc)

SanjayMehta 4y ago

I use my no-fees credit card as if it's a charge card, clearing it every month.

weird-eye-issue 4y ago

I've had a credit card for over 10 years and get roughly 3% back on average which comes out to thousands of dollars each year. Never once have I paid any interest or fees. It has helped build my credit which is a big part I have over a 800 credit score. The money automatically is paid each month out of my bank account, I don't have to manually do anything What exactly are the downsides I've had?

Gasp0de 4y ago
This (especially the building credit part) is only valid for the weird US rules though.
- weird-eye-issue 4y ago
  Yeah I can only speak to the US but I would be surprised if credit history and such is not relevant in other places...
  - scrollaway 4y ago
    The US is the only country in the world where you have such a credit history system built with credit cards. Some countries such as the UK have a credit system but CCs are not involved.
    - weird-eye-issue 4y ago
      I find this REALLY hard to believe https://www.capitalone.co.uk/creditcards/credit-builder-credit-cards.jsf https://www.capitalone.co.uk/creditcards/credit-builder-cred... https://www.experian.co.uk/consumer/credit-cards/types/credit-builder.html https://www.experian.co.uk/consumer/credit-cards/types/credi... https://www.barclays.co.uk/credit-cards/credit-building-credit-cards/ https://www.barclays.co.uk/credit-cards/credit-building-cred... https://www.hsbc.co.uk/credit-cards/credit-builder-credit-cards/ https://www.hsbc.co.uk/credit-cards/credit-builder-credit-ca...
    - rpdillon 4y ago
      > The US is the only country in the world where you have such a credit history system built with credit cards. Aside from the links posted in a sibling comment, I wouldn't say the U.S. credit system is built with credit cards: it's a fairly holistic metric that takes into account rent payments, loans, and a bunch of other stuff like "bankruptcies, foreclosures, lawsuits, wage garnishments or attachments, liens, or public judgments against you"[0]. Credit cards are lines of credit, so they certainly factor in, but the focus on your overall credit health, of which your credit cards may be a small part. [0]: https://www.investopedia.com/articles/pf/10/credit-score-factors.asp https://www.investopedia.com/articles/pf/10/credit-score-fac...
  - Gasp0de 4y ago
    In Germany you cannot build "positive credit" by spending money. I also think this is inherently unfair. As long as you never defaulted on a loan or forgot/failed to pay a bill you automatically have a perfect credit score in Germany.

kelnos 4y ago

Reasonable, but that means you're not only leaving money on the table (in the form of credit card rewards or cash back), but also you're not taking advantage of a great benefit: credit cards give you a firewall between merchants and your actual money. If a merchant fraudulently -- or even accidentally -- debits your bank account, then that money is gone. In many cases you will be able to get it back, but how long will that take? Days? Weeks? More? If the bad transaction is large enough, maybe you won't make your rent/mortgage payment that month. But with a credit card, the money is still in your bank account, and you can dispute the charge, and have it removed before you've spent your own money on it. Yes, credit cards do require some discipline. I pay mine off every month, and incur no interest charges, but sure, there's the possibility that I could charge enough in a month such that I wouldn't have the cash in my checking account to cover it at the end of the month. I generally don't consider this an issue, though, as I don't have a compulsive spending problem, and I track my purchases well enough in any case. In this day and age of incredibly poor customer service, I think it's invaluable to have some intermediary fronting the money for my purchases, in a way that lets me dispute transactions I think are in error before having to spend my own money on them.

Broken_Hippo 4y ago
This sounds more like you need better consumer protection that is government backed and written into law. You shouldn't have to have possible debt just to get that.
- josephcsible 4y ago
  That sounds like saying that people shouldn't lock their doors, and we should deal with burglary solely with stronger laws instead.
  - Broken_Hippo 4y ago
    Burglary and getting ripped off by a company are two different sorts of things with different solutions. Locks work because it stops a lot of opportunity crime. Simple and effective: For everything else, we have laws. With consumer protection, what the 'get a credit card' crowd are basically saying is that sure, locks are available, but you have to be good enough to get one. Sorry about your luck, poor people that can't get one. Consumer protection laws are basically locks for everyone.

josephcsible 4y ago

If you pay their entire balance in full every month, which is what I meant by using them responsibly, then you are spending money you actually have, and you're also not paying any interest.