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Do you use a credit card? Why or why not? (discuss.tchncs.de)

submitted 1 year ago* (last edited 1 year ago) by [email protected] to c/[email protected]

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I know this might just reflect financial culture differences across countries, but let's give it a try

Edit: as a clarification, I meant credit card compared to debit, not to cash

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[–] Usernameblankface 4 points 1 year ago* (last edited 1 year ago) (4 children)

No, because if I use the credit card issued by my bank, I have to remember to pay it back. The bill doesn't appear the same day, so I have to check back a few days later. Just long enough to forget half the time. There is no automatic payoff, so I see it as a trap to charge interest from me.

Edit, I'm in the USA

[–] [email protected] 3 points 1 year ago* (last edited 1 year ago)

Consider downloading some kind of checkbook ledger app. Anytime you get paid, re-balance it and make sure it's correct. Then, use it for EVERY purchase that isn't cash. Once you get into the habit of not needing to re-balance it, switch 100% of your purchases to credit card, and keep the habit up. When it comes time to pay your credit card bill, you will have the cash you need to pay it off, and you will also be building credit which will give you more purchasing power down the road.

[–] [email protected] 3 points 1 year ago (1 children)

Are you not aware of the grace period? If you pay your bill by the due date no interest is charged. You get to use the bank's money for the better part of a month for free.

[–] Usernameblankface 1 points 1 year ago (1 children)

I am far too forgetful for this to change the outcome for me.

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago) (1 children)

Fair, but they will send you a bill. I do understand the struggle of staying financially organized though, I churned credit cards for a bit and it can be overwhelming staying on top of everything, even if you've got a system.

Edit; a word.

[–] Usernameblankface 1 points 1 year ago

Yeah, I've tried working my money different ways, and found a system that works for me. I think it's worth losing out on the benefits to have less things to keep track of.

[–] [email protected] 2 points 1 year ago

Get a better credit card. I have like 10, and they are all automatically paid every month. Go with one of the big credit card issuers, like Chase, Discover, Citi, or Capital One.

But it absolutely is intended to trap people into paying interest. They want you to charge more than you can afford to pay back, but if you have a healthy amount of cash in your bank account, you'll never need to worry about paying interest with a credit card. I haven't had an issue with autopay in over 10 years of using credit cards.

[–] [email protected] 2 points 1 year ago* (last edited 1 year ago)

You can get email reminders when your statement comes out. You don't pay interest on anything until a month after the statement.

For example:

Buy an apple on Jan 1st. Statement sent to you on Feb 1st. Interest starts March 1st unless you pay it off before then.

You can set up autopayment, but it'll be for the full statement balance once a month.