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Getting rid of Credit Cards

Discussion in 'Money Management' started by RabbiMoshe, 17th Oct, 2016.

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  1. RabbiMoshe

    RabbiMoshe New 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
     
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  2. Hodor

    Hodor Well-Known Member

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    hodor
    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. Pearla

    Pearla New Member

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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?
     
  5. pinkboy

    pinkboy Member

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    No, it's Darlinghurstboy! :rolleyes:

    pinkboy
     
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