Comments on Dual Income No Kids: Credit Card Debate - The Other Side

" me, it means we choose not to spend our valuable...

2007-06-13T17:40:00.000-05:00

" me, it means we choose not to spend our valuable free time constantly checking our rewards balances, making sure we made our required monthly purchase so a card's APR doesn't skyrocket, frequently calling the CC companies to try for a reduced APR or switching to cards with a lower rate."
I don't believe people who pay their balances in full every month do the things you mention. It is silly to constantly check reward balances. Every bill lists one's balance, and unless you spend a lot, and most of us who pay in full don't, the amount doesn't change that much month-to-month. If you pay your balances in full, you don't care much about your interest rate either since you never intend to pay it. So what is the point of constantly looking for a better rate if you don't pay it? The only exception are "credit card daredevils" who specifically use 0% cards for arbitrage purposes: i.e. taking a loan at 0%, putting it on an interest-bearing savings account and paying it back before 0% expires to pocket the interest. By the way these people who take advantage of 0% offers are counted as part of 58% of people who carry balances not 42% of people who pay in full.

I've never cared what my interest rate is as I've never paid it and don't intend to, so there is no reason to make a "required monthly purchase". This is actually something I've never heard of. Is it even true? I've also used the same card for many years. I am to busy at work to do the things you list.

At any rate, you are absolutely correct in making a choice that is right for you. You are wrong about the fraud protection though. While you are absolutely right in making a choice that is right for you, you should be aware that debit cards don't carry the same fraud protection as credit cards regardless of the logo. Please investigate it, especially if you travel as this is where you are most vulnerable, IMHO. Also, if you complain to a credit card about a fraudalent charge, the disputed amount is in "limbo" during the investigation; whereas with debit cards, it is taken from your checking and not returned until the investigation is complete. Given large enough amount and bad timing and it may present a problem.

Kristin, Kudos to you for getting some perks out o...

2007-06-12T18:04:00.000-05:00

Kristin, Kudos to you for getting some perks out of using your cards. You're in the minority if you're coming out ahead of the credit card companies, who are making billions on others who aren't so sharp. But I must address a couple of your misguided comments. Just because we choose to use cash (or a debit card, which essentially is the same thing - we're spending money that we've already earned) doesn't mean we're lazy. To me, it means we choose not to spend our valuable free time constantly checking our rewards balances, making sure we made our required monthly purchase so a card's APR doesn't skyrocket, frequently calling the CC companies to try for a reduced APR or switching to cards with a lower rate. That's what I consider "extreme". Also, since when is abstinence NOT a valid birth control option?

Anonymous, my debit card has the Visa logo on it. That means I'm entitled to the same "protections" you speak of.

Consider also that credit cards will PROTECT you. ...

2007-06-12T15:49:00.000-05:00

Consider also that credit cards will PROTECT you. The better ones have at least 1) automatic travel insurance (so you don't need to buy expensive rental car insurance), 2) consumer protection if your purchase is flawed or never arrives at all.

My card companies PROTECT me. What does your cash do for you? NOTHING.

I think this is a much more reasonable view. I per...

2007-06-12T11:02:00.000-05:00

I think this is a much more reasonable view.

I personally don't plan to get rid of my charge card any time soon - an AMEX gold, although you have to pay for it, is very worth it if you use it a lot. My husband and I together have accumulated nearly 100,000 points on ours, which will be used in large part to pay for our trip to Ireland later this year. There are also some other nice perks - I was able to get decent tickets to this year's US Open men's quarterfinal since Amex offers a presale to its gold and platinum-level cardmembers.

Financial responsibility, and knowing how to use the cards so you and not the CC company comes out ahead, is what is key. Sure, you could not use them at all and call that "smart" because you're totally assured of not racking up any debt, but that's the extreme, and ultimately kind of lazy, way out and really isn't optimal for you in the end. It's kind of like advocating total abstinence as a method of birth control. :)

Sorry for any confusion on the section of avoiding...

2007-06-12T09:50:00.000-05:00

Sorry for any confusion on the section of avoiding fees by not paying annual fees. I would advocate only using one card at a time as well. Otherwise the due dates and other details are harder to manage.

For instance, I recently switched from a rewards card with cash back to my United card. For some this might not make sense, but since I have Premier status due to all of my work travel, I earn points at a much faster rate on United than I would by cash back. We also travel enough, given that our families live on the west coast, that it helps to have the awards travel pay for this.

Once I have almost had my card for a year, I will call to talk my way out of a fee. If I can't do so, then I will cancel and get another United card from another bank with the bonus miles. Hope this is making sense.

Enjoy!

Miel

I think its important to limit credit cards to a f...

2007-06-12T09:43:00.000-05:00

I think its important to limit credit cards to a few because its so easy to lose track of what you're spending!

Amen Miel :)

2007-06-12T02:54:00.000-05:00

Amen Miel :)