do we still need credit cards? This
article in yesterday's Wall Street Journal caught my eye. It is thought provoking, although I don't agree with the premise that it's impossible to live without a credit card because sometimes you HAVE TO use a one (like when you buy a "$10,000 home entertainment center"). People who want to pay cash would do so by writing a check or using their ATM card. Only a fool would carry around $10,000 in cash.I think if you really wanted to, you could get by without a credit card, a good idea for people who tend to spend more than they earn and want to get out of debt. But, then again, maybe I'm not seeing the whole picture, since I use a credit card for everything. But, I pay off my balance each month and I love taking advantage of the reward miles that never expire.
The video clip that's part of the article was interesting to me because it discusses how closing a credit card account can hurt your credit score. It suggests some alternatives in lieu of closing accounts that have been paid off. It definitely is making me reconsider my plan to close some credit card accounts I haven't used in years.
January 26th, 2009 at 05:54 pm 1232992469
January 26th, 2009 at 05:59 pm 1232992761
January 26th, 2009 at 05:59 pm 1232992799
I'm with Merch. My debit card has a/the Visa logo on it. So even if/when I needed a "credit card" (hotels/motels and car rental places still require them to the best of my knowledge) I would be fine without an actual credit card.
January 26th, 2009 at 06:10 pm 1232993407
January 26th, 2009 at 08:23 pm 1233001418
January 27th, 2009 at 04:51 am 1233031908
but then again, i use my credit card for points, like lots of other people. it would be a bit simpler without a cc, but also i would be potentially costing myself about $400 a year!
January 27th, 2009 at 05:49 am 1233035388
BTW - I canceled cards that I didn't use one at a time. I didn't care about lowering my credit score at the time. Its still in the high 700s. I think that the "lower credit score" threat is moot. It might lower it a bit, but unless you are in the process of buying a house within a couple of months, its a threat with gums, not teeth. And if you don't use the card, and they cancel it, does it lower your score? Probably. If its happening to everybody, then everybody's average goes down. Just get rid of most of them if you can. You'll feel better, and who gives a rat's a$$ what the card company thinks?
January 27th, 2009 at 04:40 pm 1233074413
I don't like anyone having access to my bank account with a debit card. With the CC the most I'll be responsible for is 50 dollars. Just my .02 cents on the issue!
January 27th, 2009 at 06:39 pm 1233081541