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

[madcat]

I have bought airline tickets, rented cars and anything that can be done with a cc with my debit card. Are there times when I wished I had a cc? sure, but we have an "emergency" account that we pay into every pay day and DO NOT touch, unless there was an emergency, which we have not had that was so big that we drained the account (thank goodness). It has a debit card with a visa logo on it. We only have one card and neither one of us carries it, it is put away. We have never had credit cards. It forces you to really take you money into consideration before you buy something, so I usually have very little buyer's remorse

 

[CJMickeyMouse]

I think so much of this is a MINDSET.

We have many credit cards - all carry no balance- paid off every month - getting all kinds of gift cards and such with the rewards.

We are of the MINDSET that when we use the credit card, we are spending money. If the money is not there to pay it off at the end of the month, then it is not charged. PERIOD.

I have respect for those who have chosen to go Credit Card free. It's all the same to me, I don't see charging up a credit card as "temptation" because it's just not an option.

I am teaching my children to use credit to their advantage - charging everyday things and paying it off each month so they can see the rewards add up.

 

[SalandJeff]

We have a debit card with a Visa logo and use that for everything. We have never had a problem reserving airfare or hotels.

However, we did have a problem renting a car. The last time we went to WDW, we rented a car online using the debit card. It went through no problem. We got to the airport and skipped the line inside (Emerald Aisle). When we got to the booth, our debit card would not go through, so we had to go inside and put down a cash deposit.

I found out afterward that our credit union does not allow car rentals on their debit cards. They were having problems because the rental car companies were placing holds on large amounts in the accounts, and it was causing people to become overdrawn and incur a lot of overdraft fees.

I know this varies from bank to bank, so I would just caution to make sure there are no restrictions on your debit before traveling.

 

[jodifla]

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.

Your story is a good one. We NEVER use our debit card on online purchases, or for travel.

You are basically opening up your bank account when you do it.

We have several credit cards, with big lines of credit open and available. We keep in there for emergencies, and are glad we have it. We also have savings in short term, medium term, and long term accounts.

We are not afraid of credit cards, and we use them wisely. We've flown to Hawaii, Europe, and many American destinations on our points. And we always have a nice hunk of Disney Visa money as well.

 

[DisneyAndRedSox]

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.

There is a huge thread about 5x on DISboards. I got the 5x offer 4th quarter 2008 and 1st quarter 2009, didn't enroll in the bonus since I knew I would never meet it (I think it was $1000 spend in 4 categories). Finally 2nd quarter 2009 they lowered the mininum spend in the 4 categories and I hit it 2 out of the 3 months. The last 2 quarters they finally sent me 5x on all purchases, I think my mininum spend was $750. I just looked at my Jan 2010 statement and it shows $164 dollars were awarded for 2 months in 4th quarter 2009. I did just get a new bonus offer and probably won't make it. If I do I will call and enroll right before the deadline.

 

[Planogirl]

I think that the point is that a debit card and a credit card can be treated exactly the same way. It's important to control credit cards and to avoid balances.

A credit card saved our house once and I will never be without one. Picture two layoffs and a major health crisis at the same time. You can blow through savings quite easily when it comes to medical expenses. Not to mention trying to survice when you have little income. A series of unfortunate events can happen to anyone so don't fool yourself into believing it can't. A credit card can see you through as distasteful as using one is.

 

[npmommie]

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.

when we went to Disney in January, I used a debit card on file at Wilderness Lodge for charges, I was thinking to myself, how do they even know if I have the money in the account? maybe they didn't know it was a debit card? it has the MC logo on it.

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.

my bank has you come in to fill out paperwork, it has to go thru "security" and it takes several days to lift the limit and its temporary.

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

This is what I do also. I have a separate "shopping" account that I only have a limited amount of funds in for online shopping.

 

[apnep]

I am curious if we were to have NO, I mean 0 ZERO, credit cards how would we book a hotel? flight? rental car?

Use your bank's debit card which also acts as a "credit" card except you have to have the cash in the bank. You get all the same protection of a regular credit card.

Angela

 

[bmartin1206]

I to kicked the credit card to the curb and use my bank debit card as necessary and maintain a savings for emergencies linked to the card or transfer as needed. The only problem I have run in to is you can't rent cars with most places for some reason. I was told it's because you have to have a certain available balance but I usually have that covered. They just don't accept it.

 

[Lisa loves Pooh]

While we have not cancelled all of our credit cards....

I book all of those things with a debit card. There are rental car companies that take them. However--as stated, I haven't cancelled the CC and I did have to use the CC to hold it.

Dave Ramsey gets rentals all the time with debit--but he has never disclosed what company allows it with no credit at all. But he of course probably has plenty of cash reserves that it isn't an issue.

I personally don't carry any credits cards...at...all.

DH hasn't let go of the Amex and since his current employment doesn't have a corporate cc, he uses it mainly for that.

Never had a problem--but as stated, we did have a fraudulent attempt on our account. But it was stopped.

But airline, on-line, hotel....bank card works fine and dandy.

 

[Lisa loves Pooh]

Sorry but if I'm stuck out on the interstate at 3 AM I want to be able to get my car towed and a motel and my car fixed. All the money in the bank won't get you a room at 3 am..... on a Sunday

And I said nothing about not having cash savings .Who said I used the card for savings? those are 2 very different things. You should still have savings even if you have a credit card they certainly aren't interchangeable, my goodness.

Sure it can.

Not sure who's towing your car or where you are staying, but they do accept bank cards.

And I don't care who you are--at 3am on Sunday--noone is repairing your car regardless of your credit/debit/cash status.

 

[Caitsmama]

DH and I have NO CC's. I use my Visa Debit card for everything. Knock on wood, no problems - and it's been at least 3 years since i used a cc.

 

[locolala]

No credit cards here either, just the debit card from USAA. We get cash rewards on it. In case of emergency, we have around 10k in savings that we never touch and more available if we need it. I can't see us ever having an emergency that would require more money than that. Our insurance deductible is only 500 if we get in an accident, so that's easy to take care of. Our insurance also covers towing, so all we have to do is show proof of that and it's taken care of. Since we're military, never have to worry about medical bills either.

 

[avahoneybee]

There was a time when people only used cash to buy things and most of them survived. I don't think it's a necessity to have a credit card and everyone has their own way of doing things and what works for some doesn't work for others. We have credit but rarely, if ever, use it. I honestly can't be bothered racking up thousands of dollars in spending to get 1 free airline ticket, plus I just don't have the time to keep track of that stuff.

 

[rockundergirl]

It would be foolish of me not to use my credit card, I use it for everything I can, and pay it off every month. I end up making about 600-800 a year in cash rewards. But then again I do a lot of work travel, so it makes sense for me. Why are credit cards bad if you don't run a balance? I guess I'm asking why do you bother to not use them? Isn't it easier?

 

[deerhart]

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.

you can't look at my debit card and tell whether or not its a debit card or a credit card. In fact my bank's credit cards look just like their debt cards. My debit card even starts with the standard visa numbers

 

[deerhart]

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.

My bank doesn't do this or at least I haven't yet hit the limit, or I asked them to remove it years ago. I have routinely charged close to 1k on my card (purchasing computers, plane tickets, etc..). I also had no issue with charging almost 4k to my debit card to pay Disney.

 

[deerhart]

when we went to Disney in January, I used a debit card on file at Wilderness Lodge for charges, I was thinking to myself, how do they even know if I have the money in the account? maybe they didn't know it was a debit card? it has the MC logo on it.

and when you hand over you regular credit card how do they know that you have any credit left on it or even high enough credit to cover the expenses.

The answer is they don't KNOW until they run the card and either get an approval or denial on the card.

 

[avahoneybee]

you can't look at my debit card and tell whether or not its a debit card or a credit card. In fact my bank's credit cards look just like their debt cards. My debit card even starts with the standard visa numbers

Mine too.

 

[DisneyAndRedSox]

and when you hand over you regular credit card how do they know that you have any credit left on it or even high enough credit to cover the expenses.

The answer is they don't KNOW until they run the card and either get an approval or denial on the card.

Sometimes a business will put a hold on funds when they swipe the card. For example, you go to a restaurant and the bill is $100 and you give them a debit card. When they swipe it, it automatically gets a higher approval like $120 so when they go back to add the tip it will clear. Lets say you pay the tip in cash, there is still a hold on the account for $120 until the transaction for $100 clears. Same thing happens at gas pumps. You might only be getting $15 but there is a hold on the account for $30 when you first put that card into the pump for authorization. Also, many hotels and car rental companies put a hold on funds so they know they will get approved at the end of the contract period.