Just when you think you’ve seen all the silly things you can on the Internet, you run across something that makes you CRACK UP LAUGHING! Such it today’s article, 9 reasons to love credit cards, by Liz Pulliam Weston. As the title might indicate to you, our readers, I’m not a fan…and that’s putting it lightly!
The article is a little lengthy, but it’s worth the read, if only so you can laugh at it as you read. Here are some highlights:
- Arbitration – The author says that credit card arbitration is a fabulous feature. Well, when I used credit cards, I never had to use this feature, even when I had problems with stores. Also, opinions are split as to whether arbitration is good or bad. This article says the consumer doesn’t usually come out on the winning end.
- Automatic bill payment – Obviously, you can set up your bills to be paid from your account. So? You can do that with a debit card as well, which comes from YOUR money, not borrowed money.
- Bulwark against identity theft – The author points out that credit card companies have laws in place to make sure they don’t charge you for fraudulent charges, after a $50 fee, within 60 days. This is true. However, debit cards have systems in place as well. Within 2 days, it’s a $50 fee and a $500 fee up to 60 days. Most banks voluntarily choose to extend the $50 fee to 60 days, and not charge $500. So again, it’s a wash.
- Credit Improvement – I wish people would quit focusing on “improving your credit score through credit cards! Having cash to pay for things makes credit cards pointless, doesn’t it? Which makes your credit score less important. Yes, you might need it to buy a house, but if you put at least 10% to 20% down when you buy the house, and have a good income, I doubt they will pay close attention to your credit score.
- Extended Warranties – These things are a waste of money most of the time anyway, so tauting them as an advantage doesn’t really make sense. Period.
- Interest Free Loans – Well, interest free loans don’t matter if you pay for what you want with cash! If you don’t have the money for it, don’t buy it. Want money for “emergencies”?? That’s why you have an emergency fund!
- Purchase Protection - Some cards pay to fix or replace items broken that you paid for with a credit card. They don’t do it out of the kindness of their hearts. You, and others, are probably paying for it, you just might not know you are.
- Rental Car Coverage – Your auto insurance covers this. So, why do you need more? A silly advantage, considering auto insurance is mandatory, and credit cards are not!
- Rewards, Rewards, Rewards- Yes, some cards offer rewards, but that only encourages you to use them more! Also, unless you stay in hotels a lot, fly a lot or whatever else they offer “points” for, the points are not useful. Other rewards are usually not worth it, or are something that you could have bought outright, and saved on interest if you carried a balance. I do know 1 person who got use out of their points, but it was her business credit card. In general, not worth it!
My favorite quote from the article: “I get all these goodies largely because so many other folks play the credit card game so badly. The profits they generate for the credit card issuers essentially pay for my freebies.” So, she plays the “game” well, and you pay for her rewards and benefits. Why not just get out of the game? Use debit cards or cash. You’ll save more money in the long run!
Tags: Budgeting, Credit Cards, Debt, Finances, Personal responsibility
