A couple credit card questions...

Which is why I say thanks again for taking the time to answer my questions Spunky. I appreciate it.

And Spunky reveals she works for a credit card company.

Only an employee of a credit card company would make a blatantly false statement like "you can't rent a car or book a hotel in the US without a credit card. " You can book a hotel room with a debit card just as easily as with a credit card. I can understand having 1 card for emergency situations, but what is convenient about buying things with a credit card over a debit card? Unless you consider 'paying for things with money I dont have" a convenience

I prefer using a credit card for purchases because it's easier to keep track of them. When I buy things with my debit card, they just get lost among check deposits, ATM withdrawals, etc. on my bank statement. With a credit card I get one bill so I know exactly what I spent that month and I pay it off in full.

If you don't abuse them there is nothing wrong with using credit cards. I've had several since I was a teenager and have never missed a payment or spent more than I can afford to pay that month. It's only because of those cards that I had a good enough credit score to qualify for my apartment lease - not an easy feat for someone my age in this city..

Fortunately, I don't need to work for a credit card company to understand money!

Sure you can. Just keep your fingers crossed that that checking account always has enough money it to cover any and all expenses - even indavertent/mistake charges that just happen in life. Now that would mean that you'd keep all your money in a checking account which isn't financially smart as most checking accounts do not pay interest and if they do it is a negligle amount.

You cannot rent a car without a credit card. The rental places need security before they hand over those keys and a debit card does not provide that level.

I don't follow your logic. Just because I might not keep ALL my money in an unsecured checking account, doesn't mean I don't have that money. To infer that people with credit cards don't have money or spend money they don't have is ludacris. Wolfgang, you apparently don't know much about finances and the whole world of credit/interest/fees/etc. must be quite scary for you. Thus, you can only see one way: the way of debt. Shame - your financial future is rather limited.

Atta girl. Resort to insults.

You can't buy much on the internet without a credit card - many places won't take a debit card only.

I have told all my kids to get a credit card as soon as they are offered one (usually when they enroll in college) and to use it but to pay it off each month.

They have all done so and my one son has been able to get a car loan AND now a house loan because his credit is so good (with no input from us parents at all).

As long as it's managed well - and not considered "free" money (which it is not) it is a good choice.

As Sarah said - I put everything on a credit card and I have a monthly statement of everything (mostly) that I buy. I also pay it all off each month. I have been doing this for 40 years with no problems. Listen to Spunky - she knows what she is talking about. And she isn't making any money by giving advice on this board for free.

I've never encountered problems and I buy lots of things online, and have done now for 8 years, all using a debit card. If you didn't have money in your account to cover the purchase then the bank would still pay it (presumably within reason) and then you'd take it up with your bank. I've never been in a situation where a debit card wasn't enough, and I did get a credit card with my account but I cut it up immediately. I'd not want to spend money I didn't have.

Yes, the bank would pay it, but they'd also charge you between £35 and £40 for that privelege, followed by charges for unauthorised borrowing, debit interest on the enforced overdraft and possibly a referral fee if you had absolutely no overdraft in the first place. If you pay with a credit card that doesn't have enough credit on it, the transaction will decline. You argue that your case for debit cards and yet seem to think it's okay to pass off the charge onto the bank when you're not able to manage your account properly. Seems daft to me.

I'm only talking about my own experience. I personally don't buy anything unless the money is there in my account, and that works for me and I'm happy to do that.

there's plent of sites that won't touch a debit card especially outside the UK

it's also no gaurantee that you can use a switch or maestro when you're abroad. there's no such problem with a mastercard or visa as everyone takes them.

that's really why i got mine in the 1st place.

if you're sensible with them and your money then they're fine. i know a few people who aren't and it's kind of heartbreaking.

one girl i know came upto me one time looking all happy and i asked her the good news. she said: my overdraft just got increased by a grand so i've been shopping.

*slaps forehead*