Re: What are the advantages/disadvantages of not owning a credit card?
While it isn't impossible to rent a car or hotel room without a credit card, it can be more difficult. Take my brother as an example, he hasn't had a CC for years, just a debit card with a Visa logo.
A few years ago he went to Vegas and rented a room. Not only did they put a hold on his debit card for the amount of his stay (room rate x number of nights + tax) but they also put on an additional $500 hold on his funds (in case he charged stuff to his room or damaged the room, I guess). This tied up all his funds he wanted to withdrawl for gambleing, shows, bar hoping, etc. I forgot how he resolved it, but he was not a happy camper.
Fast forward to just last week. I'm a travel agent, and booked my brother a car rental for when he comes to visit me next week for Christmas. He told me he doesn't have a CC (I'd forgoten that) so I called Hertz to find out if they take a debit card since not all car rental companies do. They said that they do, but the put a hold on funds in the account for the estimated amount of the rental plus $100 (not bad, really). The kicker is that they run a credit report on you, and if your score is too low they won't rent you the car, period. The guys at the car rental counter don't actually see your score, the computer runs the check and just says "yes" or "no" so they couldn't even tell me the minimum score required. My brother still has a crapy score from past mistakes so is unsure if they'll approve him or not. He now has a real credit card on the way, hopefully he'll get it in the mail before he leaves for the trip. He decided to just get one with a low limit, just for use when he travels since he's had so much trouble traveling with his debit card.
Anyway, my take is that CC's are great, IF used wisely and carefully. Always be aware, they will take advantage of you at every turn if you let them, and they can often be misleading and give confusing or conflicting information. I also feel that debit cards are a wonderful tool, but they do have their limitations. I think the average consumer should have both a credit card and a debit card, and use the one that makes the most sense for whatever purchase you are making.
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