What's the point of Credit Card?

What%26#039;s the point of credit card, when you can buy the product with your debit card?

Why some people get a credit card, and ends up with a huge amounts of debts ?

What%26#039;s the point of Credit Card?

A debit card and a credit card both have their place. Debit cards should be used for everyday purchases, especially food. While credit cards should be used for rental cars, hotel and flight reservations. Theoretically, it%26#039;s possible, to use a debit card, but aside from them physically looking the same, the way the money is accounted for is completely different. Debit cards immediately withdraw from the account as opposed to credit cards, simply hold the funds until the sales draft is completed. If a car is rented, additional money would be required to rent in addition to the security deposit. And that%26#039;s providing that the rental car agency even accept debit cards. Rental car companies now have BIN(Bank Identification Number) recognition software that can tell the difference between credit and debit cards. Credit cards are respected slightly more in that respect since it%26#039;s easier to get a debit card than a credit card. The best way for that situation would be to use the credit card for the deposit and then pay with a debit card. That way, you %26#039;re not charged interest on the hold, and you still have access to all your funds.

Also with credit cards, you have more purchase protection for larger items, and it%26#039;s easier to dispute charges if the product is defective and you%26#039;re having problems resolving it with the manufacturer. There are some debit cards that offer that feature, but they%26#039;re few and far between.

The problem is not with credit cards, it%26#039;s how people use and often abuse them. It%26#039;s nothing more than a piece of plastic. Put that %26quot;piece of plastic%26quot; in the wrong hands, then that%26#039;s where the problem starts. People often forget that credit cards are NOT their money, unless they pay for it, then it becomes their money. I have 5 credit cards that I use lightly, and I do mean lightly ($20/max) for different things that I would%26#039;ve used my debit card for anyway, and I pay them all off on time to show activity, but still stay within my budget. If I account for my credit card purchases in my check register, as if it were my debit card. I have money socked away in an emergency fund, which allows me not to rely on them.

People also tend to forget that credit cards are a privilege, not a right. The same with driving a car. You have people that obey the law, and they%26#039;re rewarded, while those that don%26#039;t get penalized with tickets or a revoked license. You don%26#039;t see people badmouthing GM, Ford, etc. because of the way people drive, so why should this be different? I don%26#039;t have any problem with placing the blame, as long as the blame is placed properly.

What%26#039;s the point of Credit Card?

well its good to have a credit card to establish a credit history so that if there ever comes a time when you want to buy something on a larger scale. This is help you get approve for a loan such as for a car and ect.

What%26#039;s the point of Credit Card?

From the consumers point of view, it should be a convenient way to spend money and pay off every month, earning rewards in the meantime.

From the credit card companys view, its an easy way to make money on consumers who carry a balance.

What%26#039;s the point of Credit Card?

To rent a car.

What%26#039;s the point of Credit Card?

With the VISA debit card, there is nothing you can%26#039;t buy if you have money in your account. And best of all, you don%26#039;t go in debt.

Contrary to what AJ says you don%26#039;t need a Credit history for any reason if you have money in the bank. Why pay a credit card to do something a good savings account or mutual fund will do better and keep money in YOUR pocket.

Reputable Mortgage companies DO NOT look at Credit history to loan money. They look at income/debt ratio.

Buying a car on credit is one of the worst habits we american have gotten into. A car loses 30% of it%26#039;s value the minute it is driven off the lot.

Buy USED and PAY CASH.

Money talks louder then credit. It also hurts, you think about what you spend with much greater deliberation

Check our dave ramsey. He%26#039;s a radio talk show guy and has a show on Fox Business, he is great.

What%26#039;s the point of Credit Card?

Well, the ideal use of a credit card would be for an emergency. Let%26#039;s say something major goes on your car, and you%26#039;re looking at a $3000 repair. You get the idea, somrthing unexpected happens. They are not for everyday use on some item that you%26#039;ll never use or a wild nite out on the town. But not everyone thinks this way....

What%26#039;s the point of Credit Card?

The point of a credit card is to make banks rich and to keep you in debt.

Same with the fico score. The point of the fico score is to keep you in debt.

You have to borrow money and make payments on time to get a high fico score. You have to keep borrowing money and keep making payments on time to keep a high fico score. All you get is debt.

You can easily save up an emergency fund if you don%26#039;t have any payments from borrowing money. That way you don%26#039;t have to rely on credit cards.