life with no credit cards, how do you do it?

[DisneyAndRedSox]

I am one of those who used a debit card and has now switched to using my Disney Visa for everything and paying off monthly (yes, a deadbeat!) Twice I had a debit card reissued because a company was hacked, first Egghead.com (now NewEgg) and TJMaxx. I know a Debit Visa has protection like a Credit Visa, but until you actually have your account tapped for funds and have to get 'provisional funds' while they investigate, you don't realize how much of a major pain it is! I used my debit card in Paris, transaction went through 2 times. It took me 3 months to fight it, they would give me $275 "provisional funds" back, not find in my favor and remove the funds. It took 3 months of fighting with the bank and having money going back out of my account without any warning. Yes, I finally won the dispute and eventually changed banks, but I only won after I took the morning off from work and went to bank's main ofice with DH ready to battle!

Another reason I switched... when I used to work in retail I can't begin to count the number of times people called my office and complained they used their debit card and there was a hold on funds in their account (i.e. a transaction was voided and re-rung, etc) or it took forever for a refund to post. Then there was a restaurant up the street from me where a waiter was skimming cards into a card reader for a few weeks and then he skipped town. If I am going to have any fraud on an account to dispute, I would rather have it be a credit card vs my bank account.

In the long run, I am getting better rewards with my credit vs debit. DH just ordered a shed last weekend with his 2009 bonus, we asked if they had any discount for paying by cash or check. Nope, so it went on the visa! The day they deliver it I will transfer the cash and that is another $26 in Disney rewards for me! So far so good using my Disney Visa... last year I made out great with the 5x bonus and ended up getting over $400 rewards for the year. If all of a sudden they come out with an annual fee, I will start using my credit union's Visa credit card until I find another card with better rewards and no annual fee.

 

[avahoneybee]

I'm not a big fan of credit cards either, but how do you rent a car? We've had the same card for years but rarely use it, except to book airline tickets and renting cars.

 

[luvdisney00]

I can't imagine life without a credit card.
We use ours as often as possible so that we can earn FF points. It gets paid off every month and we have never paid any interest but have made good use of the free travel.
I LOVE my credit card

I'm with you, I also love having buyer protection and a breakdown of all of my monthly spending. We use our CCs like debit cards though, we only put on them what we have to spend. All of my monthly expenses go on the card, and I love getting the rewards. Card always gets paid off at the end of the month, and we have savings if we go higher than planned because of an emergency or unexpected expense like a car repair or medical bill.

This month when my car repair bill was 3x what I expected it to be, I thought, "well, at least I'll get more rewards dollars for Disney" Softens the blow a little bit.

I don't think it matters if you have a cc or not, it's personal preference. What matters is whether or not you have CC DEBT. If you have that, get rid of it ASAP any way you can. If you know you can't control spending with a cc, don't have one, but just like pp said "I love mine ."

 

[pixistix]

I have not used a credit card in about 5 years. We use debit and savings for everything. All 3 dd's have cars. They each pay us monthly for the cars and that money goes into an account just for future car repairs. Just like having your own extended warranty account. DH and I were Realtors in addition to our regular jobs for several years to earn extra money since we do have an annual Disney habit to pay for. I'm in sales and get a commission check every month so that not calculated into the budget and can be saved or used for projects or trips.
Thought about getting one cc just to have one but I've heard such controversy over them (yes, even the Disney Visa) that I just didn't want to deal with it.
It's not easy to go completely without credit cards. You have to really stick to a savings plan. And I'm not saying I would never get one, but for now all is well without one.

 

[hanutedmansionmomma]

I just bought plane tickets using my debit card with no problems. I've never had a problem booking a hotel with my debit card either.


Any debit card with a logo is accepted LIKE a cc. You just give them the debit card number and it goes through. Same way with ordering anything online.

I had to leave a credit card# on a cottage we were renting for security deposit. I handed the person my VISA debit card. He wouldn't take it because, "how did he know if I had anything in the account and what if I trashed the house and left?" (I'm standing there w/ another family with little kids...yeah, we're the house-trashing type!)

Anyway, I had to whip out a "real" credit card in this instance.

 

[HeyIt'sMe]

My DH & I have one credit card - the Disney Visa - and we don't carry a balance. We use it for everything that we can so we earn the rewards. I review our online statement every day and pay off the charges as they post.

I like having a credit card because even though we have money in savings you can't always access it right when you need it.

Having a credit card does not equal being in debt.

 

[scrappyjae]

How do you guys get around the daily limit that some banks put on your debit card? I know my bank and even my mother's bank will only let you charge so much a day, and they won't budge on adjusting it.

 

[bored]

Using a debit card online makes me nervous. If the # is stolen they can empty your account and not just charge up your account that the CC company can then reverse the charges. That is the only reason I use a CC for online purchases/reservations.

 

[wdwfan16]

I would never not have a credit card for a true emergency. I however do have self control and don't charge what I can't afford. That is the whole trick not whether you have a credit card or not.

Glad to hear you are able to keep it locked away, but I'll take cash savings for an emergency over a credit card any day.

It is not all all or nothing deal. I have plenty of cash in the bank, 401Ks and investments but none of that helps me when the tow truck arrives and they will only take CCs.

Lucky for a friend of mine who was in the no CC camp that she got me on the phone and that the towing company was willing to accept my CC over the phone. Lets just say the friend applied for the CC the next day. They realized that there are times a CC is the only way.

 

[wdwfan16]

I am one of those who used a debit card and has now switched to using my Disney Visa for everything and paying off monthly (yes, a deadbeat!) Twice I had a debit card reissued because a company was hacked, first Egghead.com (now NewEgg) and TJMaxx. I know a Debit Visa has protection like a Credit Visa, but until you actually have your account tapped for funds and have to get 'provisional funds' while they investigate, you don't realize how much of a major pain it is! I used my debit card in Paris, transaction went through 2 times. It took me 3 months to fight it, they would give me $275 "provisional funds" back, not find in my favor and remove the funds. It took 3 months of fighting with the bank and having money going back out of my account without any warning. Yes, I finally won the dispute and eventually changed banks, but I only won after I took the morning off from work and went to bank's main ofice with DH ready to battle!

Another reason I switched... when I used to work in retail I can't begin to count the number of times people called my office and complained they used their debit card and there was a hold on funds in their account (i.e. a transaction was voided and re-rung, etc) or it took forever for a refund to post. Then there was a restaurant up the street from me where a waiter was skimming cards into a card reader for a few weeks and then he skipped town. If I am going to have any fraud on an account to dispute, I would rather have it be a credit card vs my bank account.

In the long run, I am getting better rewards with my credit vs debit. DH just ordered a shed last weekend with his 2009 bonus, we asked if they had any discount for paying by cash or check. Nope, so it went on the visa! The day they deliver it I will transfer the cash and that is another $26 in Disney rewards for me! So far so good using my Disney Visa... last year I made out great with the 5x bonus and ended up getting over $400 rewards for the year. If all of a sudden they come out with an annual fee, I will start using my credit union's Visa credit card until I find another card with better rewards and no annual fee.

This needs to be repeated.

Debit card - MY money

Credit card - NOT my money

My debit card gives rewards but they are 1/4 to 1/2 of my CC normal rate rewards. I was getting 5% rewards on my Disney Visa. Hmmm which to use.

 

[ekmom]

I use a credit card for everything possible because it's convenient and also for the cash back. Discover is our primary card and last year between my account and DH's we got $710 in cash back. I pay it off every month (yes I'm a "deadbeat" and proud of it!) and I haven't paid one single penny of interest in 30 years of using credit cards. It works for us.

 

[DisneyAndRedSox]

This needs to be repeated.

Debit card - MY money

Credit card - NOT my money

My debit card gives rewards but they are 1/4 to 1/2 of my CC normal rate rewards. I was getting 5% rewards on my Disney Visa. Hmmm which to use.

Another funny thing, when I switched from using debit to credit, my credit score jumped. It was always very good, but now it is higher than I thought I could ever be. DH almost fell out of his chair last time he looked at the scores and saw that I passed him (I don't work anymore, and when I did he made a lot more-lol). He was actually had "credit evny!"

 

[KevGuy]

I never heard of the Disney visa giving 5% rewards and find that hard to believe, only 5x rewards after meeting a minimum which is usually very high.....We have been CC free for 3 months now and find it to be no problem, we just use a debit card, and as for the daily limit, we can call the bank and increase it or temporarily have it removed if needed, and we also have a paypal debit card linked to our checking with a 1k limit and because it goes through the bank as a pre-arranged payment the daily limit does not apply. If I need more than that I can write a check or they can wait till the next day.

 

[LisaInNc]

I haven't had a credit card in years. I waas the typical credit card disaster. I got my first one at 18 used it liberally. Got a ferw more oh it was FUN then realized how long it was going to take to pay it all back. When I finally did I promised myself no more! I haven't had one in about 10 years. As soon as the debit cards made their appearance I went to that and dumped the traditional credit card.

I don't agree that you have to have it for emergencies. That is what the credit card people have taught us. People use them as security and they are really like a poisonious snake just waiting to strike.

I use savings for the 3am emergency and if I had something catastrophic....a credit card isn't going to bail me out. I would find another way.

I think as a society we have been conditioned to use credit for things.

Lisa

 

[J3nn78]

We essentially live credit card free. I have one credit card with a $1150 limit. We NEVER use it. It is there purely for emergency purposes- and yes, we have an emergency cash fund as well, but as a PP mentioned-does you no good when you are stranded somewhere.
Oh, and I have a Kohl's card which I only use for the discounts and pay it off as soon as it is used.
NO credit card will ever make a penny off of me again!

As for booking vacations- we use our debit card and never have had an issue.

 

[LisaInNc]

Using a debit card online makes me nervous. If the # is stolen they can empty your account and not just charge up your account that the CC company can then reverse the charges. That is the only reason I use a CC for online purchases/reservations.

That one is easy. I have one debit for on line and its from the same bank as my regular account. Before I make a purchase I transfer in the amount of the purchase and 1.00 more. That is it. If anyone ever got that number they would not get much

I have been shopping on line...well since the internet started and never once had a problem. I did have a checkbook stolen once.....oh that was FUN!

Lisa

 

[mrsklamc]

It takes a lot of discipline to shread those "special offers" that come in the junk mail each day, but you get over it after awhile.

Better yet, go to optoutprescreen.com and they won't send them anymore.

 

[wdwfan16]

I never heard of the Disney visa giving 5% rewards and find that hard to believe, only 5x rewards after meeting a minimum which is usually very high.....We have been CC free for 3 months now and find it to be no problem, we just use a debit card, and as for the daily limit, we can call the bank and increase it or temporarily have it removed if needed, and we also have a paypal debit card linked to our checking with a 1k limit and because it goes through the bank as a pre-arranged payment the daily limit does not apply. If I need more than that I can write a check or they can wait till the next day.

I meant 5x not 5%.

I haven't had a credit card in years. I waas the typical credit card disaster. I got my first one at 18 used it liberally. Got a ferw more oh it was FUN then realized how long it was going to take to pay it all back. When I finally did I promised myself no more! I haven't had one in about 10 years. As soon as the debit cards made their appearance I went to that and dumped the traditional credit card.

I don't agree that you have to have it for emergencies. That is what the credit card people have taught us. People use them as security and they are really like a poisonious snake just waiting to strike.

I use savings for the 3am emergency and if I had something catastrophic....a credit card isn't going to bail me out. I would find another way.

I think as a society we have been conditioned to use credit for things.

Lisa

Just because you cannot control yourself with CCs does not mean that other cannot control themselves. I had my first CC at 18 and I never paid a penny in interest. I was smart enough to know what interest was and that it was not my friend.

 

[HHSTigerFan]

This is my take on this.. being in a credit society, those that don't use a reward CC are paying higher prices, which is ironic because people that tend to not use CC's are often very frugal people, they clip coupons, shop the sales, only buy things they can pay for in cash, etc... but they end up paying a higher cost of goods because they pay cash...

That said, we are not good with credit so we mostly use cash, closed all of our accounts but one (and will be paying for a few more years for those mistakes) and kept a Target Visa, charge enough each month to get their 10% coupon each month for our montly big Target trip, will save $20 or so each month..

 

[LisaInNc]

I meant 5x not 5%.




Just because you cannot control yourself with CCs does not mean that other cannot control themselves. I had my first CC at 18 and I never paid a penny in interest. I was smart enough to know what interest was and that it was not my friend.

Hold on there....something I did at 18 which was well back when the dinosaurs were inhabiting the earth has no bearing on what I do now. I can control myself didn't say I could not. When I was 18 I didn't realize how much the interest would be!

I could do the credit card thing and pay it off at the end of the month but I just don't want the extra paper work.

It has nothing to do with being smart!

Lisa