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

[npmommie]

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.

very true

 

[minnie1928]

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.

This confuses me...the keeping track component. How is it any different than keeping track of your checking account? Maybe it's because of the way I do my finances...all my purchases go into Quicken. If a transaction occurred on a CC or thru my checking account, it doesn't really make a difference to me since I will process it in Quicken regardless.

 

[Disney-Kim]

Its been about a year for us...and it was a big transition. But we have learned how to live without credit cards.

now I really think to myself...why did I ever need them? you don't. We just don't miss them. I used my debit for everything and we do earn points thru our bank as long as we use it as credit not debit w/pin. You don't earn as many points as credit cards...but hey its something.

We have traveled, bought stuff online, and all that stuff with no problem.

 

[quentina]

Debit....have no problems ever. We have been CC free for about 2 years....it is amazing!!!

 

[Lisa loves Pooh]

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?

There is a study that you spend more by not using cash.

So while you get $600-$800 per year....

Even if you always spend within your budget--you are probably spending more than you need to, negating the rewards at the end of the year.

http://www.livescience.com/culture/080907-cash-credit.html

http://www.creditcardguide.com/creditcards/credit-cards-general/credit-cards-spend/

In the second link, they state that it was found that consumers on average spent 12-18% more utilizing plastic.

So if you put $20,000 on credit each year....even if you only spent 5% more than you would have had you paid with cash-that's still $1000. Negating your rewards as stated.

It isn't really something you can test unless you choose for 1 year to abandon the practice of credit.

(not posted to argue the point--posted simply b/c you asked what was wrong, posted that you are rewarded and studies show that due to the overages, you are actually not breaking even on the use of the card to justify using them.)

 

[Lisa loves Pooh]

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.

I've used debit for years on gas--they only hold $1, regardless of company (shell, murphy usa, exxon, mobil, sunoco, etc). Then a couple of days later the actual amount comes through.

I only stayed at one hotel recently that states that they do a hold (didn't test it to find out and since it was being paid for by DH's company, DH used his amex to cover it as we do for all of his business purchases). Most others--disney included in my pre-dvc days have only charged the actual rate.

 

[CJMickeyMouse]

There is a study that you spend more by not using cash.

On average this might be true.... but a simple course in research methods will prove that anyone can create "a study" and make the results say whatever they want to say.

People that use credit cards as cash spend the same.

You really can't prove the study you cited, the same way I can't prove my statement. Everyone is different and handles their finances in different ways. Credit cards are not evil if you know how to use them. If they "tempt" a person, or tend to get them into trouble financially, then that individual should not have a credit card.

 

[minnie1928]

Everyone is different and handles their finances in different ways. Credit cards are not evil if you know how to use them. If they "tempt" a person, or tend to get them into trouble financially, then that individual should not have a credit card.

I'm one of the exceptions to the cash vs. credit study. I find that I actually spend MORE money if I have cash in my wallet. I think it's because the cash has been accounted for already so in my head the money is already spent. Where as with credit, I have yet to book the expense in Quicken so it's an expense that doesn't yet exist. By using credit, I'm creating more expense where as with cash, it's already spent in Quicken. So, the cash just burns a hole in my wallet until it's no longer there.

I know that it probably doesn't make sense to anyone but me, and that's ok.

 

[dd50]

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.

 

[dd50]

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.

I don't have a Disney Visa but I get cash rewards with my card. I pay mine in full so I guess I am a deadbeat because they pay me to use the card.

I do have a debit Visa but only use it the take out cash. They DO NOT have the same policy as a Visa.

My mom had her debit Visa stolen while she was at my house and had no need to use it. About 6 days after she was here my dad called and said the bank called because she was using it quite often and that wasn't like her. Needless to say the person used it for $2,500 at the mall. She did finally get it back but it took 4 months and many hours on the phone. They were on SS so that was a big piece of money to be missing for so long.

I think that everyone should at least have one credit card. Did you know that most car rental places will do a credit check if you present a debit Visa? They will also put $300 to $500 on hold until the car is returned and it should get placed back in the account a few days after that.

 

[dd50]

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.

That is exactly what I do. Just because I have enough credit to buy something doesn't mean that I have enough at the end of the month to pay it off. I use mine like cash and am always aware of how much I spent.

I have been teaching my girls the same way so they won't fall into the I have to have it now and end up not being able to pay their debts.

 

[CJMickeyMouse]

I'm one of the exceptions to the cash vs. credit study. I find that I actually spend MORE money if I have cash in my wallet. I think it's because the cash has been accounted for already so in my head the money is already spent. Where as with credit, I have yet to book the expense in Quicken so it's an expense that doesn't yet exist. By using credit, I'm creating more expense where as with cash, it's already spent in Quicken. So, the cash just burns a hole in my wallet until it's no longer there.

I know that it probably doesn't make sense to anyone but me, and that's ok.

Actually that makes perfect sense to me. I don't use Quicken, but I have it all "in my head".


It would KILL me to pay interest on a credit card. It is just not an option.

 

[luvdisney00]

Actually that makes perfect sense to me. I don't use Quicken, but I have it all "in my head".


It would KILL me to pay interest on a credit card. It is just not an option.

Me too, and I don't think I spend more with credit than I would with cash. I actually think it makes me more accountable because it comes to my mailbox at the end of the month in black and white and I have to account for what I spent. DH and I are both on board with using the card for expenses and discuss other purchases just as we would if we were spending cash. I love using the cc company to give me rewards for money I would have spent anyway...to each his own.

 

[EKW]

Haven't read all the other posts, but I don't do credit and have never had a problem. Yes, you can't use bidding sites, but I would never pay for a hotel I hadn't prescreened anyway. Some car rental companies won't let you rent with a debit card, but they're becoming fewer and fewer!

My advice, have two accounts at two banks. When I travel I use my interest bearing checking account's debit card to do all the car reservations and payments. That's the only thing I use that account for. I don't use my regular account because I don't want a hold placed on it...ever.

I usually use Southwest and Budget, and have never had an issue.

I was told last month that my position is one of 50 in my district that is being cut. As a single parent, let me tell you, I am SO glad that I have no debt. Yes, this is a crisis, but it's not like I have to deal with credit card bills, too!

 

[mamalle]

we keep one checking account that only pays bills all online thru bill pay. I try to never use that debit card at all unless I have forgotten my other one. My other debit is for the normal day to day stuff like groceries, etc and I allocate what my limit is for the 2 week period and transfer everything else into the savings account. So if that card did get stolen it wouldnt be too much.. we do still have credit cards but Im really trying not to use them and so far with travel it hasnt become a issue with the debit. I have used it in disney, plane fares, other hotels without a problem. I have never rented a car though so Im not sure about that one..

 

[Pembo]

In reading this, I had just had to chime in, I have a very dear friend who doesn't have a DEBIT card. She's never used an ATM. Her theory is if the bank is not open, she doesn't need money. She still writes checks at the stores.

Anyone out there like her?

 

[mhsjax]

In reading this, I had just had to chime in, I have a very dear friend who doesn't have a DEBIT card. She's never used an ATM. Her theory is if the bank is not open, she doesn't need money. She still writes checks at the stores.

Anyone out there like her?

Yep up until 2 years ago, this was my dad. I might also add that when he passed away, he owned his brand new 2500 square foot home with HUGE in ground pool, his brand new car, and when he died he left his 3 kids more than most people making twice his income will probably ever have. He hated credit card companies and would never have one, h paid cash for everything.

I worked for a big credit card company that everyone knows and seeing the way that they operate, I have developed my dads hatred of all things plastic. Yes they can give you cash back and yes you can get rewards, yes you don't pay interest if you pay it off, but that isn't why they are in business. These types of people aren't considered good customers. They are betting and hoping that you will slip up and not pay your bill on time. They will try and slide all sorts of things by you just hoping that you don't notice. Things like changing your billing date, suddenly cutting your limit and then charging you over the limit fees. Ok rant if over. If people want to use credit cards then fine. Me not so much.

 

[Lucille1963]

I use a cash and occasionally a debit for day to day purchase but ALWAYS book hotels and airlines and make online purchases with a credit card.

There are many more consumer protections in place with a credit card.

I read a trip planning column in the Chicago Tribune weekly and they are always advising to book on credit cards because if something goes wrong, you have a lot more leverage.

As far as online purchases, I had one (not very) major transaction go bad and it was hard to fight for my money back. If I had a paid on a CC, it would have been much simpler.

On an odd note, we pay our mortgage in person, in cash

 

[ilovefh]

We have one credit card with a $700 limit on purpose. We only use it for rental cars. I am not okay with the car rental company holding $500 from my checking account for a week. One trip there was a problem with our credit card working when we went to rent a car (our cc company was having a communication issue). It was such a hassle to use our debit card. Their policy was to hold $500 and they needed to see a return ticket, which we didn't have on us. We had to go back up to the Southwest desk and get a printout of our return reservation.

We'll keep our card just for rental cars! I don't like the idea of them holding 5 times the amount of my rental fee!

 

[mamalle]

that is a good idea..