Getting rid of Credit Cards

Discussion in 'Money Management & Banking' started by Darlinghurst Boy, 17th Oct, 2016.

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  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Do you still need credit cards? I have cut my up !

    Going for home loans etc they dont look too kindly on Credit Cards and always reduce the loan on your maximum limit .

    You can easily use your debit card now with the Mastercard Logo .

    Credit cards are old fashioned and a hindrance
     
  2. Hodor

    Hodor Well-Known Member

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    Pretty clear what you think on the topic.

    There are advantages of having a credit card, you can use an interest free period credit card all month and have cash sitting in an offset account decreasing the interest on your home loan. Costs you nothing and can have a large effect over 20 years.

    Credit cards provide you free insurance and other benefits on holidays and other purchases depending on the card you have. Credit cards don't need to cost you anything, some homeloan packages provide credit cards for free with these benefits so there is no cost.

    For many people the costs of having rewards points are not worth it.

    If your serviceability is so tight that a credit card is going to have you denied the loan I would be thinking very carefully if it is a good idea to move forwards with it. Rates are at all time lows and who knows for how long this might continue.

    I have had a case where I was buying something and debit cards (VISA and MC) weren't processing yet normal credit cards still were. I have no idea why this was the case.

    Therefore used appropriately I would say it is worth having a credit card.
     
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  3. WattleIdo

    WattleIdo midas touch

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    Have been credit card free for decades. Always use a debit card.
    I have the best credit rating I've ever heard of.
     
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  4. Heinz57__

    Heinz57__ New Member

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    Fully lucky is that you?
     
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  5. 158

    158 Well-Known Member

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    No, it's Darlinghurstboy! :rolleyes:

    pinkboy
     
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  6. jins13

    jins13 Well-Known Member

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    O god! This is the third forum which l have had the honour of seeing this fellow
     
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  7. D3xx

    D3xx Well-Known Member

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    I did a credit check recently. It came back as 'meh' - primarily due to me having 3 credit cards. Thats despite the fact that i never use two of them! Cutting up the cards was easily. Actually getting the accounts cancelled was harder.
     
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  8. mortyc137

    mortyc137 New Member

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    I have Amex because I got 100K free points and a travel credit to cover the annual fee. I pay it off on time and have only messed up once costing me $14 or so. I've built about 160K points so far which stacks up to 10 flights. Recently my credit report came back in the 900s, so pay bills on time and there shouldn't be an issue.
     
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Hopefully flights will resume soon so you can use your travel points!
     
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  10. mortyc137

    mortyc137 New Member

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    Me too. I've got two sets of credit. One can only be booked by phone