Can anyone make an argument for the use of credit cards?

Question

I cannot find one reason people use credit cards instead of just paying cash. It appears to me that it is just playing with snakes, and even incentive cards have high interest rates and outrageous fees.

Answer 1

Some people are able to live and never use a credit card at all. Some people find that cards do have benefits.

1. Building credit rating. This is more important to some than others. However, credit card usage over a few years without any problems is very helpful to the credit score. That can affect more than just getting more credit. Some jobs do credit checks nowdays and most apartments do as well.

2. Ease of use. There is no having to go to the bank and pick up cash. For some people, that is a big reason. Of course, that is also how to run into credit problems. Some people who can't handle the responsibility of using credit cards are better off using cash.

3. Emergencies. Imagine getting a blowout while travelling and not having any cash on you. Some tow truck places do not even accept cash. They feel it is a liability because that would mean that drivers could now be carrying cash and the crooks would target that. ATMs are not always easy to find and some you just don't want to do business with.

4. Theft protection. If your wallet is stolen and it is full of cash then you have lost all of that cash. There is no way to replace it. However, if your wallet is stolen and you had credit cards and you report it then those cards are cancelled and you only have to pay up to $50 of the transactions that were done before you reported it. Now, it is possible that you not realize it for days and they run up a pretty good tab on you but still there is at least some theft protection.

5. Some places will require a credit card in order for you to do business. Many hotels require a credit card. I am not sure if any car rental places accept cash or check. I kind of doubt it. You may not ever go to a hotel or rent a car but there are millions of other people who do. They will need credit cards.

6. Card advantages. Some cards come with really nice perks. Airline miles, cash back programs, savings programs, gift programs, charity donation programs. Many people like to take advantage of these. There are even some banks that give these advantages on debit cards.

7. Accountability. Each month (or every day if you go online and do it) you get a statement of how much you spent and where you spent it at. That is very helpful for some people in working their budgets. To do that with cash requires you to keep receipts. A kind of clumsy easy to mess up technique. Some people are better at the receipt thing than others. Some need a statement that shows every cent that was spent.


Cash is good to have but more and more places are wanting you to pay with either credit or debit. Checks are starting to go out the door. Many places do not accept them. Of those that do, many are just scanning the check and getting the funds electronically (basically making a check a paper debit card.) I heard that Wal-Mart will scan the check and hand it back to you. People need to rely on plastic somewhat today and that will increase more in years to come.

One note about myself. I do not use credit cards and I do not have any credit card debt. However, I do recognize that I have a better control on my budget right now that most people have on theirs. Some people need to have credit cards for some or all of the reasons above. I do not suggest relying on credit cards to make purchases you could not otherwise afford. That is how problems start.

By the way, what is wrong with playing with snakes? I grew up in the country and playing with snakes was a popular pastime for a growing boy.

Answer 2

There is no good reason except immediate need gratification.

The ATM visa or mastercard has the same protections as a credit card. Anything you can do with a credit card you can do with your debit card so you can rent a hotel, or whatever and not carry a wad of cash.

If you pay cash you don't care about a credit score. A credit score just means you have debt.

If you have no credit card bills you probably have money in savings for emergencies.

All those perks credit cards give are better for them than you. Visa has one know where if you buy 7 meals from burger king you get a free meal. Big deal.

You can get a manually underwritten mortgage without a credit score.

If you buy with cash then you probably have a budget so you know exactly where your money is going.

Answer 3

It's called convenience. You don't have to carry cash, and you can charge all month long and write one big check at the end of the month. Not everybody carries a balance, so the incentive cards are simply free money and discounts.

I put everything on my Discover card, and pay it off each month. I've never paid a penny for the card or for intrest on the card, and every year, I get a check back from them for about $500. So, yep, I'm going to continue to use my credit card. I can shop online through Discovercard.com and receive another 5-10% off of my purchase (and still use online codes that I've found elsewhere). And, if I choose to get my cashback bonus in the form of a gift card, then I can double that $500 to $1000. Not bad for the convenience of carrying their card around.

You need a credit card to establish a credit records so that you can get bank loans/mortgages in the future.

You need a credit card to rent a car.

You need a credit card to order items online (and if you don't receive it and the company says they sent it and too bad for you, then you call the credit card company and they do a chargeback to the vendor unless the vendor can PROVE that you received it - not just that they shipped it).

Besides, with a credit card, I don't have to go inside the gas station to pay before I pump gas and have to stand behind all of those people buying lottery tickets.

Need more reasons?

Answer 4

I totally agree with you. I have never had a credit card, do not need a credit card nor do I plan to even get a credit card.

It seems a lot of people use it like FREE money. And then when bill collectors start calling, hmmm, they can't pay for anything they have.

You don't NEED a credit card to obtain a line of credit for large purchases such as a house or car.
I have both of those with out ever applying or using credit cards.

Answer 5

Credit cards are a great way to buy things that you can't afford. For example, if the engine blows in your car, and you don't have two thousand dollars cash, but you really need a ride, charge it. When it comes to making frivolous purchases, credit cards are a definite no-no. But in emergency situations, they can be a life saver.

Answer 6

If you ever need to obtain a large capital purchase...ie: a house or car or boat... you must have established credit in order to pervent a 30 year savings plan for cash. Credit cards assist all of us in establishing that credit and associated history. A must have for anyone these days. (unfortunatley)