While the use of credit has been around for hundreds of years, the actual credit card has evolved in the last 50 years to make access to credit much easier. You can use your credit card to pay for almost anything, including toll road charges, funding your IRA (obviously not recommended), and to pay for college.
Most people use a credit card on a daily basis, including myself. For responsible credit card users, the rewards can really add up if used properly. In fact, my wife and I will be going on a trip this fall and will use the credit card reward points accumulated this summer to pay for two nights at a downtown Chicago hotel. The points will save us close to $400!
While the rewards are nice, I really don’t need a credit card to function. Sure, it makes life easier for traveling, but you actually don’t need a credit card to travel. The downside is that you do need a good amount of cash in your bank because hotels, airlines, car rental places and other vendors will often charge your debit card a large sum in case they need to cover any ‘accidentals.’ With a credit card, they would just charge it to the card, but a debit card or cash requires your authorization, so they cover their bases by taking out more than what’s required.
How Easy Would It Be To Stop Using Credit Cards?
We have few bills that automatically charge to our credit cards, so we could stop pretty easily. Besides using my card for traveling, we don’t really use it that often. I think I could live without a credit card, but I wouldn’t want to because of the convenience factor.
What about you? Could you live without a credit card? Would you want to live without a credit card? If you don’t use one at all, share with us in the comments!
{ 12 comments… read them below or add one }
I could give it up without a problem. I don’t really want to, because I like the rewards. I could though…
I hear ya. The rewards are too nice to stop. As long as it doesn’t affect my spending habits, I don’t see a reason to stop.
My husband and I do not use credit cards. We stopped using them 2 1/2 years ago. When we travel, we put our expenses on our MasterCard debit card. Yes, sometimes that means flights and hotels are paid for in advance, but we plan trips and vacations carefully and save for them so we don’t end up paying for them after the trip. We always have the money saved up when we make the reservations for our trips.
THANKS for your comment Christy! I was hoping someone who didn’t use credit cards would share with us.
It’s NOT impossible to go without credit cards. You’re living proof Christy! You just have to plan ahead and understand how businesses might require a little more up front.
I could live without one, but it would be inconvenient. I pay my balance off in full every month. I use my airline credit card as my main card to accumulate frequent flier miles. I use the miles to travel overseas. I would miss that perk.
I love traveling to new cities and not having to pay for the hotel stay because of rewards…so I can definitely relate. Thanks for commenting!
I COULD… but why do it (like almost every comment). Why give up an additional 1-5% of rewards and have it be more of a hassle (taking money out of a ATM, always making sure you are carrying enough but not too much if you get mugged, etc.) Life would go on without a credit card, but I will never go back to cash.
My whole adult life I have used credit cards and paid the balance in full. It would be a huge change for me to not have one! I like the rewards and I like not having to worry about how much is in my account when I go grocery shopping. I would have to make sure I go shopping and trips etc after payday! This way, I know my card is due after payday, so it doesn’t matter. As long as I stay in my budget, of course!
The simple answer is “No” but let me explain. I pay it off every month and I use it for everything possible. I get paid a dividend each year for the purchases which is a cash deposit on the card. I don’t have problems over spending… I’m quite frugal. But the reason I couldn’t (or wouldn’t) live without it is because of society… it is required for so much (i.e. rent a car, buy a flight, etc). I hate debit… always giving up a pin for security – no way… my credit card protects me from fraud. Anyway, that’s just what works for me.
My wife and I haven’t had a credit card since 2002! So, yes, it is absolutely possible! Here are 2 of the often overlooked advantages
1) Peace of mind: We never have to worry about the CC card company screwing up payment processing. Although they are known for their completely ethical and competent practices (yeah right!), they have been known to “not get” your payment or just not process it, etc. I honestly just view it as if you play with snakes, you’re going to get bit.
2) Study after study has shown that you spend more when you use plastic: Plain and simple.
Here are some links to those articles:
http://www.livescience.com/2849-study-credit-cards-spending.html
http://www.daveramsey.com/article/the-truth-about-credit-card-debt/
http://www.usnews.com/usnews/biztech/articles/070624/2credit.htm
This really is an awesome topic to discuss Tim! I have just worked with too many clients who paid off their balances month after month for years, got into a little trouble, and next thing they knew had a several thousand, if not tens of thousands, dollar balance. For our lives, it’s just not worth the risk!
I think it’s impossible to live without credit card, but also know that this is the first step of the debt. It’s so easy way to excess your money and so fast, if you pay your monthly credit card bill regularly with waiting for next month than credit card is the best and very best for you.
Regards,
Jessey Ellen
too perfect. paid off every month? no temptations? come on people. You all are rich or live very meagerly lives. The truth is consumption is a disease and credit is the infection. I wish I could pay off my credit cards.
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