Why do you have a credit card ( your opinion )

[FICOtistical]

For protection (so I don't have to take as many chances of having my debit card hacked), and to re-build my credit after my recent bankruptcy.

[LilloEsquilo]

There are a few reasons.

I will say the biggest is fraud protection. Before getting cards, I just used my debit card for everything (it works as a mastercard). The problem with that is, if a thief steals my card info, they can drain my bank account and then I wrestle with the bank to get my money back. With a credit card they can't do that.

That is the primary reason. The secondary reason is FICO score. Without revolving credit, I'm pretty much stuck at the score I have now and I'll never be in the 800 club no matter what I do. I've projected my score out using the calculator on this sight and I can never get close to that without revolving credit.

[Anonymous]

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@LTomBerry wrote:

Rewards. I might as well get paid to buy stuff I was gonna buy anyway. Plus there's the consumer benefits e.g. warranty extension, travel insurance, etc.

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+1

Also building my credit so I can get a nice rate in the future on my mortgage/auto loans

[p-]

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@anybodii wrote:

After seeing so many people with so many different credit cards, just curious of each person's story as to why they have credit cards?

I know the most probable reason is the rewards or credit building, but some people have 10 or more credit cards with high limits... just curious of people's reasoning... and please nobody say because of the great interest rates lol

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1. To build and keep good credit scores - and having more than one and higher limits allows me to post a balance if I want without decimating my utilization.

2. Protect my bank account from fraud.  The better protections offered by credit cards means they are risking fraud, not me, and my number getting out will not result in an empty bank account.

3. Rewards.  Like someone else said, why not get a few bucks back from something I was going to spend anyway?

4. Travel.  I can book flights, hotel rooms, and have a pre-authorization higher than the room cost without having to freeze my own cash.

5. Debt repayment.  I keep a smaller emergency fund knowing that I can use the credit card if I have to.  This allows me to pay debt sooner and minimize interest charges.

6. Gas pumps.  When I put 3 gallons in my motorcycle and the pump authorizes my cc for $100.00, it's not my money that is frozen, just available credit I wasn't going to use anyway.

7. Work expenses.  My wife uses a card exclusively for work expenses, and gets all of the rewards.  By isolating these expenses it's easier to keep track of the items for her expense report and make sure she doesn't miss anything.

8.  Holiday Shopping.  We each used a different card at Christmas time for our shopping so the other didn't accidentally figure out the presents when looking at the bank accounts.

9.  Warranties, returns, and benefits.  My AMEX cards offer extended warranties, return protection, rental car insurance including deductible reimbursement, concierge service, and more.  And I make the AF back in rewards.

10. Psychology.  It feels good to be able to pull out a nice looking premium card and use it with confidence.  I know that doesn't mean much, but to a guy that once had to use a prepaid card it's pretty nifty.

11.  Because of the great rates.  Haha.  Seriously, though.  We have some cash headed out way in a few months earmarked for new furniture, and came across a really good deal on some high end nice stuff.  So, we put it on a 0% card, and will let it sit until the money arrives to pay for it.  Because we were able to buy earlier, we got a better deal, and the nice instant satisfaction.

[Guava]

P- about summed it up!

[LS2982]

I have credit card to rebuild my scores and satisfy my craving for new plastic!

[p-]

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@Guava wrote:

P- about summed it up!

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12:  Cuz they're SHINY!  :-P

[MissExcellentCredit]

Good answers P!  The shiny part was too cute! 

I mainly use mine for building scores, teaching good saving/spending habits, and excerising self-control.

[SoulMaster]

For me, it's all about rebuilding after a BK.  Using the CCs + Personal Loans to rebuild, hopefully to 700+ after 2 years, which should Q me for a mortgage, even after the BK.

I HATED that I had to BK... for years paid everything on time and revolved a nice chunk of credit, then job loss stuck me @ 10% what I used to make  for 2.5 years... It killed me (creditwise).  Now, back to 720+!

-SM

[Anonymous]

P- summed it up perfectly.

Since I don't believe I saw it mentioned I'll add in another benefit. (almost) 2 months of an interest free loan. You have a full month in your statement period, then a 25 day grace period which means if you buy something at the start of the statement you don't have to pay it back and avoid interest for almost two months.

I don't ever plan on paying interest and it is nice to have a 2 month cushion for any purchases I make. Came in handy a few months ago actually. My upcoming paycheck was going to go to rent, a few bills, and my car insurance, so really for 3 weeks I had literally 3.50 in my checking account. It was nice to have the float to buy groceries and gas and day to day expenses.

I have been using plastic for almost 6 years now, all but the last 6 months were on a debit card. It is definitely much nicer and rewarding using a credit card like a debit card. Also lets me track my monthly spending better. When you get your monthly statement and you are trying to save money and cut down on your spending, it is much easier to look at your monthly statement and set a goal to spend less on the next statement, and then see how much less you spend the next month.