Are Credit Cards Worth it?

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Are Credit Cards Worth it?

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I rather have cash because not everyplace takes plastic.

[twoxsp]

Credit cards are fine for people who can manage their money correctly, plus they build credit for eventually buying a house or car of your own.

[RRW359]

Ursprungligen skrivet av twoxsp:

Credit cards are fine for people who can manage their money correctly, plus they build credit for eventually buying a house or car of your own.

House maybe but if you make enough money to pay for credit card purchases you make enough to not need a car until you can buy it without a loan. Houses are different since you are either paying rent or a mortgage and the latter will go away after a couple decades.

[Chaosolous]

Ursprungligen skrivet av Vinegaroon:

Yes, because it builds credit that you can use to take out loans and buy things like cars and houses. Get a good credit card with low rates (preferably through a credit union) and a manageable balance. Use it for expenses you need to pay anyway then pay it off before you need to pay interest.

Until the world we live in is structured in a way you can get by without a credit score they are useful.

Yeah so this basically. I have two credit cards, one through my CU and another through a credit card company. You don't want to always use them as constant use is technically considered risky use by other lenders. I alternate between my two.

Also never think of it as money you have, they are simply "Access to a loan without the paperwork every time." It is still a loan and if you don't pay it off before/when it's due that's on you for spending money you did not have. I use them for expenses that I have to pay anyway. I often make the purchase and then just pay the balance through the apps right after.

I have really good credit due to this and when I ask for/need a loan it's much easier for me to get one. The one I will get is often at a good interest too. Not in this current economy but when things were normal. Interest rates are just high all around right now. At least in the US.

[Out Of Bubblegum]

Ursprungligen skrivet av RRW359:

but if you make enough money to pay for credit card purchases you make enough to not need a car until you can buy it without a loan.

Disagree with that. Most need a car first to get a real job. Parents have to help with that.

[Electric Cupcake]

Annoyingly, a lot of places want you to use ACH and bribe with small monthly discounts to auto pay with them. Of course the Comcast ♥♥♥♥♥ then raised the overall rate anyway.

[RRW359]

Ursprungligen skrivet av Out Of Bubblegum:

Ursprungligen skrivet av RRW359:

but if you make enough money to pay for credit card purchases you make enough to not need a car until you can buy it without a loan.

Disagree with that. Most need a car first to get a real job. Parents have to help with that.

Depends on where you live but if you live in a city you can usually bus or bike to work. If you live more rurally your family probably already has a car you can borrow. If you didn't have a job and everywhere near you requires a vehicle then maybe but then you wouldn't be able to pay back any CC purchases anyways.

[Γαῖα]

OP

Just see yourself as a business and run a nominal ledger on your ingoings and outgoings and then decide based on how buoyant you are as to whether or not to indulge in credit/debt.

Its this and not how trust worthy you are thats really the important factor.

[craigsters]

I had nine thousand in credit card debts and owed Dell Financial thirty seven hundred, so I went bankrupt in April, best decision of my life

I'm going to frame my bankruptcy court document and hang it on my wall

[craigsters]

Ursprungligen skrivet av Hegelian Dialectic:

1st off how is everyone buying their Steam games? So yea... Me: ummm gift cards exist...

Visa Debit with my bank card link to my chequing account, funds have to be in chequing account for online transaction's to work

[HypersleepyNaputunia]

it protects you best from bad sellers

[mikel3113]

Ursprungligen skrivet av kilésengati:

Ursprungligen skrivet av mikel3113:

That still means you have to have the funds in a checking account and again for large purchases, that means you're just keeping thousands of dollars sitting in a non-interest earning checking account that is very inefficient ends up the devaluing due to inflation

It's also still trusting a third party to link directly to your checking account, which is your money and if that data is stolen from their servers you were checking account and log in information may be compromised

Well yeah, that's what current accounts are for.
What are you paying Steam with? Business shares? Your retirement fund?

And in regards to privacy and security concerns: Unless either party is stupid enough to save that data on their servers, it is transmitted directly to the payment processor (usually a bank).
I certainly wouldn't trust some rando Joe Shmoe with SDD, but as a consumer towards companies SDD has very generous terms for getting your money back should something go wrong.
And as for personal info: At least here in Germany, people have to enter them to purchase something online anyway. Sucks, but such is the law.

SDD is used for defrauding consumers and companies alike, but re-appropriating your money is comparatively easy due to the long terms (up to 13 months depending on circumstances). SEPA also being an Europe-only thing helps as well. And as SDD is quite important for the European economy, authorities are also fairly motivated on keeping the system clean.
Just taking someones banking info to commit SDD fraud is probably about as stupid as robbing a bank and likely won't even yield much as most people will notice money gone missing after less than 8 weeks.

"What are you paying Steam with?"-

My credit card which offers fraud protection which is what I'm saying is the most secure for online purchases.

"Unless either party is stupid enough to save that data on their servers, it is transmitted directly to the payment processor (usually a bank)."

Best buy and Target over here had my personal data in it and a debit card transaction which was then subsequently stolen and sold to the highest bidder when their systems were hacked years ago. I had to file a police report and had multiple credit cards applied for under my name and they went through with transactions at Best buy. I didn't have my bank account money stolen but my credit was really affected and it took a lot of time to clear my name of the fraud. Definitely happens into large companies. Not sure if those companies exist over where you are but It definitely happens from time to time and I would much rather have a credit card on file with these companies then a debit card where my own money is at risk. You do you though and seems like less of a problem where you live

[RRW359]

Ursprungligen skrivet av Hegelian Dialectic:

1st off how is everyone buying their Steam games? So yea... Me: ummm gift cards exist...

Also debit cards, physical games that require Steam, and Coinstar.

[Kamiyama]

Only if you plan on improving your credit score. You need to make reliable on-time payments on several cards for a minimum of 10 years to get a score above 700.

And even then banks won't give you a mortgage for a house unless you have a history of structured payments, which means you need to take out loans and pay them back in full.

Been there. I had a score above 700 but couldn't get a mortgage for exactly that reason. I tried several banks and got turned down at all of them.

It wasn't like I was trying to get a mortgage for a mansion or even a six-figure home. I wanted a trailer worth about $30k at the time. I could easily afford it, but since I had no structured payments on my credit history they all said no.

The credit score is just one reason they can turn you down. It's BS.

You want credit cards + structured payments and pay them all off all the time without fail for 10 years. Then they will probably find some other reason to not give you a mortgage you could easily afford. (probably)

[craigsters]

The self checkout at the dollar story is racist and wont take my ten with Viola Desmond on it