Time for a Credit Card?

[Biffard]

I'll start by saying that my wife and I and have never owned a credit card. A quick history, I have stayed away from credit cards in an attempt to be frugal and keep better control of my finances. My credit score is in the mid-700's and I had no problems getting a car loan 8 years ago or our mortgage 3 years ago.

However, in the past 12 months we have had 3 stolen identity issues in which our debit card information was compromised or used fraudulently. Our credit union and VISA have been great to work with and, thankfully, we got all of our money back.

Because of these recent events, I've been debating on getting a credit card to help protect ourselves. On the other hand, we've made it this far in life (late 20's) without a credit card so why start now?

I'm looking for your feedback in an attempt to get other's opinions before we do anything. Do we change our financial approach and get a credit card or do we stay the path since it has worked so well for us in the past (apart from the identity theft)?

[bjl584]

I'd get one for no other reason than the one that you pointed out. Security.

Also, you can get some decent rewards through a credit card. Either cash back, points towards flying, or hotels, or whatever you might be into.

As long as you are responsible with a credit card there is no reason not to have one.

[TheCudder]

I'd get one for no other reason than the one that you pointed out. Security.

Also, you can get some decent rewards through a credit card. Either cash back, points towards flying, or hotels, or whatever you might be into.

As long as you are responsible with a credit card there is no reason not to have one.

Agreed. You can be just as frugal with credit cards & gain rewards as long as you track what you spend and pay the balance monthly. And although initially it will knock your credit score down a tad, long term a credit card can increase your score.

[snafu]

You've proved yourself financially responsible and can benefit from the security offered by CCs. The important difference is to track Due Date, making sure you've paid the balance in full, two business days in advance to avoid interest charges. If you dislike using a card you can cease using it. Before choosing one, have a look at the various benefits offered by the various cards. Some SA participants rotate thru new CCs for the cash bonuses offered for opening a card and spending the set sum required due to planned/required expenditures.

Some cards charge a fee but you can ask it be waived. Other cards offer one free period, nearly a year, so be sure to cancel that particular card in advance of fee date.

[feh]

Run a search on this topic. You'll find all the benefits to using a CC, assuming you are responsible with it.

[YolandoAmaya]

You people don't like to use any credit card, but I think it would be good to continue with it.

[constancechase143]

reply

I think everyone is afraid of credit cards due to the surplus of irresponsible people who have given them a bad name. If you exercise some self-control, it’s good to have that extra money available when you need it. Since you’ve made it this far without damaging your credit, and overcame that stint of identity theft, it should be pretty easy to get approved but the real question is “With who?” I can’t answer that neither can anyone else who hasn’t seen your credit report or financial statements. I opted against playing the guessing game and went with an unsecured financial broker instead. After doing some research, I decided to work with FastUnsecured.com. They didn’t want any money up front and didn’t ask for Western Union or some other form of sketchy payment like some of the other ones I found. They gave me a free credit analysis and worked out some magic bringing me $60k in unsecured credit card limits. Did that mean I went out and charged a new car to them, no. I make responsible purchases and pay my bill on time, my credit score has already jumped from a 730 to 765.

[BrokeGirlGetsRich]

in the past 12 months we have had 3 stolen identity issues in which our debit card information was compromised or used fraudulently

Wow, that is a lot.

Just my two cents... I'd be in favor of using a credit card. I'm in my late 20s also and have been using credit cards for years without going into debt or over-speding once. I pay the bill the instant it comes in and have the added benefit of reaping rewards points for when I travel.

Whatever you decide... good luck & I hope you don't have nearly as much trouble this year.

[Drake3287]

I'm another that can't believe that anyone who's financially responsible like yourself wouldn't have at least a couple of credit cards. There are many positive reasons for having a CC, anything from an emergency purchase away from home, renting a car and just the protection that a credit card provides with many purchases. Credit Cards have gotten a bad rap over the years because of people that can't or won't be responsible.

I have several credit cards, and I charge EVERYTHING for reward credit's and I haven't paid a penny in finance charges in 20+ years. I've easily kept my credit score of over 800 just by being responsible like yourself.

[Leo]

Get a credit card with a cash back or some kind of reward and without any membership fee. Always pay in full and be responsible. Credit card is not a bad thing if you use it wisely. Credit cards have lots of benefits not just security.

[MKKShah]

I would second the above. Get one immediately!

Here are some of the reasons why I have a credit card (in fact I have several):

- Security (Fraud protection)
- Concierge services (I had 3 business trips planned last year with their help)
- Cashback / Points - I split my spending between a cashback card for groceries (6% discount!), and a travel card for points towards Air tickets. In fact my American epress cashback preferred gets 6% upto the first 6000 in grocery purchase.
- Establish a good credit history - help your FICO score.
- Get 0% APR balance tranfser offers from time to time.
- Get rental car insurance protection (Loss Damage Waiver) when using card
- Discount coupons to preferred vendors (I bought a 60 inch TV using one such deal)
- Accounting - Easy to keep track of your epenses. I tie my credit card account to Mint.com and track my epenses there.

Of course, don't spend more that what you can pay off monthly and pay on time. You are all set.