Living without a credit card

[Tyler Durden]

Anyone here live without a credit card?

I have one, and am thinking of doing without it. I really only have two reasons for it: 1) in case I need emergency funds; and 2) online shopping.

I guess I can put away more money in my everyday transactions account as an emergency fund, and I suppose I could get one of those prepaid credit cards from Australia Post for online shopping. But I am wondering if there may be any other need for it?

Just wanna hear from those who live without one, what initial adjustments did you make and is it inconvenient?

 

[prawn_86]

Why would you? If you control your spend and pay it off before any interest it is a great way to get points/vouchers etc for free

 

[chops_a_must]

Never had one.

Almost had to, but the visa debit card came in...

 

[bellenuit]

Why would you? If you control your spend and pay it off before any interest it is a great way to get points/vouchers etc for free

I agree. Also, the money you would have paid in cash can be sitting in a high interest account until you need to pay the CC bill. I have a Westpac Gold Master card which gives me free travel insurance so long as I pay for the trip/hotels using the card. I think the annual fee is $90 which is waived if you spend more than $10K or something per year on the card. As I put everything on the card, this is easy to achieve. I pay in full every time the bill comes through, so it costs me nothing in interest. I save a few hundred dollars per trip in travel insurance (which is far more than the surcharge that some airlines/hotels charge for paying by CC) and I also earn interest on the money I can have sitting in a high interest account that would have gone to meet a cash payment.

So long as you are in control of your spending, it is a no brainer.

 

[Some Dude]

Just wanna hear from those who live without one, what initial adjustments did you make and is it inconvenient?

Not quite what you asked but my wife lived without one until very recently. She always made sure she had cash etc but also found herself relying more on mine for online purchases etc. In the end it became a convenience issue for her so she got one with the smallest limit.

 

[Intrinsic Value]

I have two debit cards and have no credit cards.

I don't like owing anyone anything so I don't.

 

[pixel]

Why would you? If you control your spend and pay it off before any interest it is a great way to get points/vouchers etc for free

+1
It requires discipline to only buy what your current account balance can afford; but then it's an easy way to shop even without carrying large amounts of cash around "just in case" the Jeans or a new laptop you wanted to buy cost ten bucks more than you had on you.

 

[burglar]

Funny story!

I put a scissors thru my credit card before my debit card arrived in the post.
I was severly embarrassed at the funny money window!
It dawned on me that I had no card to withdraw cash.



I now have a Visa debit card for online purchases.

 

[rcm617]

Why would you? If you control your spend and pay it off before any interest it is a great way to get points/vouchers etc for free

Agree, I put all my spending on the credit card, which automatically gets paid off every month.
So no interest and in the meantime I'm accumulating frequent flyer points, get an extra years warranty on my electrical purchases, and free overseas travel insurance, well worth the fee.

 

[Judd]

As long as you don't put anything on the credit card without having the equivalent amount of cash in the bank and pay the thing off in full and on time, I see no problem with having one.

 

[Lantern]

Debit card only. Although I do carry a credit card from my place of employment, which can be used in an emergency.
Only had to use it once for that.

 

[waza1960]

Debit card only for me also.
I like to keep life simple now. Can't be bothered with fly buys/points whatever

 

[Thraxier]

Never owned one. Debit card does all the online stuff here and overseas and you are on the money mentioning an emergency fund. Your goal should be 3 - 6 months of living expenses in an online high interest savings account called your emergency fund that you do not touch unless it is an emergency. With the debit card out a credit card these days simply means you want something that you can't afford right now so need someone elses money to get it.

 

[prawn_86]

I'm actually surprised how many people here only have a debit card.

Our card costs us 150pa, we get free travel isurance (saved us about 2k on our 3 month SA trip, and paid out when needed), and about 700 - 1k worth of Myer vouchers pa. No brainer really

 

[Trembling Hand]

Really?


WHY?

 

[Trembling Hand]

I'm actually surprised how many people here only have a debit card.

Our card costs us 150pa, we get free travel isurance (saved us about 2k on our 3 month SA trip, and paid out when needed), and about 700 - 1k worth of Myer vouchers pa. No brainer really

+1

You cannot hire a car OS with a debit card. And struggle getting a decent Hotel room without handing over a hefty deposit. Even here its a pain in the rear.

 

[matty77]

I have a credit card as its hooked up to my home loan account, otherwise I would use strictly debit card only.

Just ordered a citibank debit card the last few days, they seems to have some good deals at the moment.

Getting rid of of crappy satisfac debit card - wow their customer service is TERRIBLE.

I want to change my address as I have recently moved interstate for a bit and called them asking to change my address, they asked for the password which I got wrong so now refuse to change my address and I need to go into a branch to sort out.

THERE IS NO BLOODY BRANCH IN THIS STATE OF AUSTRALIA

So they wont cancel my card or change my address now - what a bunch of idiots.

 

[McLovin]

+1

You cannot hire a car OS with a debit card. And struggle getting a decent Hotel room without handing over a hefty deposit. Even here its a pain in the rear.

I only have a debit card and I've hired cars all over Europe and America and never had an issue, ditto hotels.

The points on credit cards aren't worth the trouble. Easier to just hand over your American Airlines number.

 

[Trembling Hand]

I only have a debit card and I've hired cars all over Europe and America and never had an issue, ditto hotels.

You cannot hire a car in Japan with one. I was in the US in 2010 and had a problem with my credit card. Went to hire a car in New York and they wouldn't accept a debit card. Then same at a hotel in Washington.

I must look broke....

 

[prawn_86]

I must look broke....

Yes, yes you do :