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by chrisseaton 2762 days ago
> Live within your means.

Most people don't use credit cards to borrow. The point of the credit is just to hold until the end of the next month and then pay off in one go. The point of doing that is to allow a period of time to resolve any disputes for example.

Credit cards give you extra consumer power - actual extra laws backing you up (at least where I am).

I can't understand people who don't like credit cards if they say it's not living within your means.
2 comments
danenania 2762 days ago
It's a fail-safe.

With a credit card, you've introduced a new failure mode where you can end up in debt. If you do it right, you won't, but the cc companies know that a lot of people will mess it up--that's their business model.

It's a bit like with alcohol. If you never drink, you can be 100% confident you'll never become an alcoholic. If you do drink, even a little bit, that chance goes up. Plenty of people are able to drink responsibly, sure, but I can understand wanting to avoid the possibility entirely.

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pathseeker 2762 days ago
> It's a fail-safe.

But it's more dangerous than using a debit card where a stolen card ties up real money during the dispute window.

Also, you can have a credit card limit set low enough that maxing it out still means you can pay it off.

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dazc 2762 days ago
Say you're self-employed and your best client suddenly stops paying. They have a good track record and assure you it's just a technical blip or something. You have bills to pay so request an increase in credit limit. Then your client's blip turns into something much worse, and on it goes...

That's how people become unstuck. Very few people start off with bad intentions.

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danenania 2762 days ago
"But it's more dangerous than using a debit card where a stolen card ties up real money during the dispute window."

That's true--my solution to this is not keeping too much money in my checking account.

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orf 2762 days ago
Because a lot of people don't seem to follow that. You get paid X on the 1st, as long as you spend X-1 within the month you have no need for a credit card.

Other than showing some opaque credit agency that your ok for more credit.

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chrisseaton 2762 days ago
What about the consumer protection aspects? You don't get that with a debit card. I suppose you don't need it in the same way you don't need lots of things, but it's ignoring legal protection you could have for free? Plus every single time you buy on credit you are subsidising my credit card rewards.
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orf 2762 days ago
> What about the consumer protection aspects?

Which ones specifically? If they are truly for free then I don't need to pay for them by virtue of having a credit card.

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chrisseaton 2762 days ago
> Which ones specifically?

In the UK it's Section 75 of the Consumer Credit Act, 1974.

> Under Section 75 of the Consumer Credit Act 1974, the credit card company is jointly and severally liable for any breach of contract or misrepresentation by the retailer or trader.

> You don't have to reach a stalemate with the retailer or trader before you can contact your credit card provider - you can make a claim to both the retailer and credit card provider simultaneously, although you can't recover your losses from both.

> This right is particularly useful if the retailer or trader has gone bust, or it doesn't respond to your letters or phone calls.

> Section 75 of the Consumer Credit Act also applies to foreign transactions as well as goods bought online, by telephone or mail order for delivery to the UK from overseas.

https://www.which.co.uk/consumer-rights/regulation/section-7...

> If they are truly for free then I don't need to pay for them by virtue of having a credit card.

But law says you only get these protections if you buy on credit.

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pathseeker 2762 days ago
>Which ones specifically? If they are truly for free then I don't need to pay for them by virtue of having a credit card.

Chargebacks, protection against a stolen card, no real money being tied up during a dispute, etc.

>If they are truly for free then I don't need to pay for them by virtue of having a credit card.

Every consumer is already paying for them because business price in the credit card fees into their retail prices. If you don't get a discount for using cash/debit, you are already paying for this protection.

In the US, by not using a card, you are still paying for the benefits without getting them.

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orf 2762 days ago
> Chargebacks, protection against a stolen card, no real money being tied up during a dispute, etc.

I have all of this already.

And they price the risk of a card being fraudulent, which isn't specific to credit cards.

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pathseeker 2762 days ago
>Other than showing some opaque credit agency that your ok for more credit.

This credit agency determines your ability to rent with a low deposit and your ability to purchase a home with a loan.

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