living without credit cards

[chyam]

I am considering chucking all my cc's as I pay them off, I was just wondering how do you go about making car reservations, hotel reservations, catalog orders without a cc? I know you can use personal checks but sometimes like with rental cars and hotels they want a cc in case of damage. So do any of you live completely without credit cards? I am sick of all their games and charges.

 

[jdes88]

A lot of car rental compaines now accept debit cards----however you will be subject to credit checks with this. also they will automatically hold a certain amount of $$ above the rental until it's returned damage free. As far as hotel reservations........99% of the time you need one to hold the room.

I know that for WDW pkgs if you book with a TA you can pay by check....but otherwise dun dun dun it's a CC......

We only use our CC for when we travel now!

 

[gymboqueenkaylee]

I do not have credit cards at all. I've booked hotels, cars, paid for orders online etc...all with my debit card that's linked to my checking account. I've never had any trouble with it at all. It does make life so much simplier.

 

[mrsklamc]

You can do everything with a debit card that you can do with a credit card. You just have to be aware of 'holds' that might get placed on funds. I think some hotels do this, and I believe someone on the boards mentioned a gas station doing it to them lately?

At this point I am hanging onto my cards for the rewards but I only use cards with no fee. If they added one I would ditch them in a heartbeat.

 

[cglaura]

I keep one cc for things I might need like car rental. Just make sure it is no annual fee and pay it off asap.

Anything else I use a debit card.

I keep two bank accounts. I only keep what I need for purchases I know I'll be making with the debit card in that account. That way, if I get a fraud hit, it won't hurt me other than the incovenience of going through the process of getting it straightened out.

 

[msmayor]

I suppose in a technical sense I live without CC, but still have and use them.

When I make a charge, I immediately deduct the charge amount from my checking account and place a code next to it. To me, that cash is 'gone' even though its sitting in the bank.

The day the bill comes in the mail, I go on-line and pay it off with the money in my checking account that I've already reserved to pay the bill by deducting it from the balance at the time the purchase was made.

It gives me the ability to say "cash only" with the flexibility of being able to still use a credit card, and continue to hold one for emergencies.

 

[uva185]

I am sick of all their games and charges.

You know, if you pay your credit card off on time each month you are essentially receiving an interest free loan each month.

If its difficult to do on a month to month basis try to pay the balance off each week to make sure you are not over spending.

A credit card is a wonderful tool and a great form of consumer protection against fraud, faulty merchandise, etc provided you use it responsibly.

 

[3boymthr]

I would hang onto one credit card with no annual fee, lowest interest rate, etc. just for emergencies and for reserving cars, etc.

DH ran into a situation where the hospital would not treat him without a credit card to assure payment of any co-pays or deductibles - even though they had our insurance card and I was writing a check to cover the co-pay.

My GF does not have a credit card or debit card. When he went to pick up a car at the airport he had to provide $500 in cash over and above the cost of the rental just to walk out the door. This was a deposit and he would get it back, but still.... My DM had to drive to the airport to hold the car with her cc so her dad could leave .

Having a debit card helps but last week I bounced three checks because when my DH used his debit visa to purchase two items they placed a hold on our account for 5 days for the tune of $460 over and above the purchase price Luckily, I have overdraft protection so it only cost me $5 but I was counting change and borrowing from my kid's piggy banks and running to the bank at 4:55 so I wouldn't bottom my savings account for my pending transactions.

If you are afraid of using it impulsively freeze it in the center a block of ice about the size of a half gallon of ice cream. By the time it thaws out you'll not be using it for an impulse purchase.

 

[3boymthr]

I suppose in a technical sense I live without CC, but still have and use them.

When I make a charge, I immediately deduct the charge amount from my checking account and place a code next to it. To me, that cash is 'gone' even though its sitting in the bank.

The day the bill comes in the mail, I go on-line and pay it off with the money in my checking account that I've already reserved to pay the bill by deducting it from the balance at the time the purchase was made.

It gives me the ability to say "cash only" with the flexibility of being able to still use a credit card, and continue to hold one for emergencies.

I do something similar only I transfer the cash as soon as I get home from the store. Most cc don't care how many tranfers you make in a month.

 

[Kitzka]

DH and I do not use credit cards and have not for about 8 years. We use our debit cards for everything and it works well for us. We use them for car rentals, hotels, etc. Have never had a problem with money being held (there have been a few stressful nights) but it was never a real problem.

Good luck

 

[Dani C]

You also have the option of purchasing pre-paid visa or mastercards to use for such purposes. They can be purchased at many financial institutions (many do not charge their own customers if they have certain account types) and also at several stores.

 

[Chicago526]

I do think that people should keep at least one CC on hand for emergencies and for travel. Not just for booking hotels and cars, but incase you get stuck away from home. All it takes is one canceled flight and you're stuck overnight until the 7 AM flight the next morning. Having a CC can make finding (and paying for) a hotel much, much easier.

Personally, while I plan on being CC debt free in the not too distant future, I will continue to put 95% of my purchases each month on my CC, and pay it off at the end of the month. I get miles and purchase protection, plus if my card ever gets lost my bank account isn't at risk the way it would be with a debit card.

 

[mlraabe]

No credit cards here and we travel, book hotels, etc often. It has never been an issue to just use our bank card.

 

[Justsyd2]

We gave up our credit cards 5 years ago. We use our debit card for WDW, hotels, and car rentals. We have never had a hold placed on our card We do have a separate savings account for emergencies, so we do have a safety net -- for those of you who hang on to a credit card for emergencies. We also use travel insurance when we travel, so if an emergency happens, it's usually covered.

 

[PrincessSuzanne]

My check card has the VISA logo as well as the fraud protection of a CC and I use it like a CC. I do make sure I have the amount in my acct that is going to be charged, and I have never had anyone put a hold on anything before. Now when we use it to buy gas, they do run it or $1, but that isn't a big deal.

Suzanne

 

[Schmoodle]

I would just say be careful because depending on the situation, canceling cards can actually hurt your credit score http://money.aol.com/bankrate/credit/canvas3/_a/cancel-a-card-hurt-your-credit-score/20061129154909990002

 

[chyam]

I would just say be careful because depending on the situation, canceling cards can actually hurt your credit score http://money.aol.com/bankrate/credit/canvas3/_a/cancel-a-card-hurt-your-credit-score/20061129154909990002

While this is true it also affects your credit score when the cc companies keep lowering limits even good customers as evidenced by another thread on this board.
Thank you everyone for your answers I defineately plan on getting rid of all my cards but perhaps I will hang onto 1. But it is good to know my debit card works just as well as a credit card.

 

[jodifla]

While this is true it also affects your credit score when the cc companies keep lowering limits even good customers as evidenced by another thread on this board.
Thank you everyone for your answers I defineately plan on getting rid of all my cards but perhaps I will hang onto 1. But it is good to know my debit card works just as well as a credit card.

But it really doesn't always. Just be careful....you are giving people alot of access to your banking account by using everything for debit.


And look closely at the person who needed a cc for her hospital charges. If you needed emergency treatment, could your bank account cover hospital charges that might not just be copays, but $10,000.

Dave Ramsey had a caller on his show whose husband had a scuba accident. He was rushed to the local, foreign hospital, and the only way they could leave the country was to pay the bill IN FULL on their credit card.

 

[C.Ann]

DH and I do not use credit cards and have not for about 8 years. We use our debit cards for everything and it works well for us. We use them for car rentals, hotels, etc. Have never had a problem with money being held (there have been a few stressful nights) but it was never a real problem.

Good luck

We gave up our credit cards 5 years ago. We use our debit card for WDW, hotels, and car rentals. We have never had a hold placed on our card We do have a separate savings account for emergencies, so we do have a safety net -- for those of you who hang on to a credit card for emergencies. We also use travel insurance when we travel, so if an emergency happens, it's usually covered.

I have several different debit cards from several different banks - as well as 2 savings accounts in 2 different banks that can be accessed immediately for any large emergency..

I have never had any "holds" placed on my cards - have used them for hotels, car rentals, etc. - and mine also provide the same fraud/buyer issue protections as the credit cards do.. I carefully shopped for the banks that I chose so I would have everything that I needed and/or wanted..

I have one specific debit card that is used for online purchases - that is attached to a bank account that cannot "draw" money from anyplace else.. I replenish that account - with small amounts - from time to time after I make a few purchases online.. If someone were to hack into that account (or any of the others for that matter) they would be very, very disappointed because of the way they are structured and the free protections I have available to me.. And obviously, there are no "fees" attached to these cards or accounts..

It can be done easily - and you will never again be tempted to spend money that you don't have or to purchase something just because you can "charge it"..

 

[Handbag Lady]

I hate credit cards and the way I use them may sound crazy, but here goes.

I reserve hotel rooms/rental cars/vacations with a credit card. Then, at the end of my stay and car rental, I pay in cash at the counter of each place and I get a receipt.

So, no charges on the credit card statement and no holds on my debit cards.

Plus, I have all that room on the credit card in case of an emergency or hospital stay when I travel.