# Can you manage without a credit card?



## Mrs Darcy (27 Oct 2011)

Hi, 

This is my first time posting, I'm just looking for some input from people more financially wise than myself. Basically, I have a credit card and there is nothing on it at the moment. I tend to use it for booking flights and hotels, online shopping(when they won't accept laser cards) and then I clear the balance. However, I did have issues in the past where I let it run up, loans to clear it, let it run up again etc. That was years ago though and I feel I have a good handle on my finances now. All the same I am thinking that having no temptation of that kind might be best for someone like me. 

What I want to know is can you mange without a credit card? Do you find it a hassle traveling without one for example? And is there less protection with your laser and the visa debit cards we will all be issued later this year. Last year I booked a hotel with a hotel booking company that went bust. As I booked it on my credit card I was refunded the money. This wouldn't have been the case if I paid by laser. 

Any input would be much appreciated. 

thanks

Mrs D.


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## callybags (27 Oct 2011)

I have a direct debit set up on my current account so my credit card is paid off in full every month.
When spending on the card I am always concoius of the fact that i will have to have the funds in the current account on the due date. This I find restricts my spending on the card to essentials- booking flights, hotels, concert tickets etc.

For other purchases I use laser.


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## Mrs Darcy (27 Oct 2011)

Thank you callybags, that's a good idea.


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## twofor1 (27 Oct 2011)

Mrs Darcy said:


> I did have issues in the past where I let it run up, loans to clear it, let it run up again etc.
> Mrs D.


 

Reduce your credit limit, I reduced mine to €1000.


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## Jazz01 (27 Oct 2011)

I find it very handy for on line purchases / booking anything.. once it's cleared the next month, then there shouldn't be an issue...

Think I would miss it a lot, if I was to give it up....


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## ClubMan (27 Oct 2011)

twofor1 said:


> Reduce your credit limit, I reduced mine to €1000.


I'd agree with this. In fact reduce it even further if you find it difficult to resist "temptation" and restricting the card to cashflow management (clearing the bill on time every month) rather than medium/long term borrowing. If, even then, you cannot resist "temptation" then maybe just bite the bullet and live without it in spite of the hassles that this might cause.


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## Mrs Darcy (27 Oct 2011)

Thanks for the replies everyone. I have my limit reduced to €1000 already but perhaps €500 might be better for me. 

Like Jazz01 I also find it really handy and I think I would miss the convenience. I guess its all about personal responsibility, which I have become much better at but a bit more wouldn't kill me!


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## ClubMan (27 Oct 2011)

Are there not other options such as prepaid cards that might be as widely accepted and a better idea if you have problems using a _CC _purely as a cashflow management tool?


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## Eithneangela (28 Oct 2011)

If you travel a bit then it's almost necessary to have a credit card as in some countries (e.g. France, USA, Australia..) Debit and Laser cards are not accepted everywhere. I had an accident in the States earlier this year and the only accepted form of payment in the Emergency Department was my credit card.
Also, if you travel a bit, then you don't want to carry too much cash. I'd go for 1 Credit and 1 Debit card to cover all eventualities.


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## ClubMan (28 Oct 2011)

Eithneangela said:


> I had an accident in the States earlier this year and the only accepted form of payment in the Emergency Department was my credit card.


Yeah - I've been through the "wallet biopsy" myself over there a few years back...


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## Tired Paul (28 Oct 2011)

Get rid of it and replace it Visa Debit Card. These work the same as Laser Cards and as far as i can see these are accepted wherever Visa is. Have advised my father to this 12 months ago and he's never looked back. He was in similar suituation as yourself and felt he "might need it " for certain things. As I said, he's never looked back and sees the benefit of not running up a bill and then budgeting to pay it next month.


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## runner (28 Oct 2011)

I also set my Visa limit to 1200 euro.
For above reasons and the risk of running into a scam!
Damages limitations. I find the above limit is adequate. Also use Visa Debit.


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## Eithneangela (28 Oct 2011)

Runner, my Visa Debit Card was refused in many retail outlets in France and the States. Visa Credit card always accepted. I wouldn't depend on the Debit card outside Ireland.


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## T McGibney (28 Oct 2011)

Mrs Darcy said:


> What I want to know is can you manage without a credit card?



You'll do well to book a hotel room in this country without a credit card.


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## Mrs Darcy (28 Oct 2011)

I was thinking that maybe the visa debit card would be the answer but it would appear not if its not always accepted in the States or France. And probably other places. Ok I think its going to have to be a visa debit (when my laser is replaced) and very careful use of my credit card. Probably only for traveling. Thanks for the replies everyone.


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## Billo (28 Oct 2011)

T McGibney said:


> You'll do well to book a hotel room in this country without a credit card.



I just did using Visa debit card. No problem.


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## beffers (28 Oct 2011)

I think that it all depends on what you plan on using the credit card for. Do you plan on booking hotels, holidays, car rentals etc etc on it? If so, then yes, keep it, as most car rental companies will not take debit or laser cards, especially overseas. You can make a booking (online or over the phone) with a debit card, but when you arrive to pick up your car, they won't give it to you unless you have a credit card. 

Hotels will take a booking with a debit card, but upon arrival at check in it is common for them to put a hold of up to 25% of the cost of the entire room rental on your debit card, in addition to the cost of the room rental itself. Those funds will not be available to you until you have checked out & the hotel is satisfied that you did not trash your hotel room or raid the mini  bar. It can take up to a week for some banks to refund those monies to your account. If you have tons of money in your account, that will not be a problem for you. But if you have standing orders waiting to be paid at that time, or other demands on your checking account at the same time, that could be a hassle in trying to juggle just how much money is available to you to draw upon during and immediately after your holiday.

Agree with the poster who spoke about the value of the security of having a VISA card. The credit card companies will fight your case for you if there is a fraudulent or disputed charge on your card. With a Laser card, you are pretty much on your own. 

So in short, if you don't do all that much traveling, a debit card is fine. If you do, keep the credit card.


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## Subtitle (29 Oct 2011)

This thread assumes that we all have a credit card.
I have applied yearly for one over the last 4 years and have never been granted one. I am self employed and up to date on taxes and bills. So you would think I have a good credit rating?
Anyhow to go back to the original question. YES. You can live without a credit card, I have for years. 
I have travelled and used cash. Sometimes hotels seem surprised that you only use cash.......
However..............


*They never turn you away!!!*


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## Connard (30 Oct 2011)

I wouldn't be able to live without some form of card. I buy a lot of things online and it's handy not having to bring around cash everywhere. Saying that I could get by using my visa debit but obviously the credit card has some advantages such as being accepted pretty much anywhere and the protection offered when you don't receive goods so I'll still hold on to my credit card. I've had it since I was 18 and haven't paid a cent of interest on it yet and I'm 25 so I'm doing well.


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## beffers (30 Oct 2011)

Subtitle said:


> I am self employed and up to date on taxes and bills. So you would think I have a good credit rating?



Your taxes and bills don't have anything to do with your credit rating. It is  based largely on how well you pay off debts that you have, such as a mortgage, a personal loan, credit cards, store charge cards, a car loan etc etc. The Dept of Revenue and the companies that we all have household bills with don't report your payment history to the credit reporting and rating agencies. The others do.


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## serotoninsid (30 Oct 2011)

Billo said:


> I just did using Visa debit card. No problem.


+1 - by and large, you will have no issue with booking using visa debit home or abroad.  If you do come across the exception, then it's the vendors loss.  Furthermore, there is just €5 stamp duty on a debit card whereas €30 for a credit card.


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