Living without credit cards!

[qtkitty]

Lynn4~ *lol* Your what the credit card companies call a bad customer *lol* .. its the people who are paying interest up to their eye balls who are the " good customers" because they are making money off them.

Debit cards through visa or some other company that makes them usable as a credit card with out the credit is useful .. but even then it is tempting at times to whip it out... it seems harder to seperate with cold hard cash expecially a $100 bill seems once one of those are broken they poof disapear!! ( also less convienient to carry a wad of dough around ) *lol*

[mndtrp]

I like my credit card, I don't pay an annual fee and I have never paid a penny in interest. I get cash back rewards on my charges and I apply it to my balance. I actually make money off my card. But I understand it's not for everybody.

Same here, although I have to get a check from the company. They won't just let me apply it to the balance.

I came across this article tonight, which may be important to people without credit cards that want to rent vehicles.

5 Surprising Things That Hurt Your Credit Scores

Renting a Car With a Debit Card

I learned about this credit-busting issue the hard way: after I rented a car in 2009 from Avis using my debit card.

I thought I was being responsible by using a debit card linked to my checking account. After all, I figured, a debit card would help me avoid unnecessary credit card debt bills and stick to my zero debt lifestyle.

But noooooo. In the fine print of its rental agreements, Avis includes a clause that basically says the company has the right to pull your credit report if you use a debit card as opposed to a credit card. In all fairness, most other car rental companies have contracts with the same clause.

This makes absolutely no sense to me, especially since under the Fair Credit Reporting Act, companies that pull your credit rating are supposed to have a "permissible purpose" – as is the case when you're seeking a loan, credit or employment.

But renting a car doesn't fit into any of these categories. Obviously, car rental businesses see it differently. They want some extra protection for the privilege of "loaning" you a vehicle. If that's the case, instead of pulling credit reports, why don't they simply ask debit card users for upfront deposits, just as they do with those who pay by cash or credit card?

In any event, after I made the mistake of using my debit card to pay for my Avis car rental, the next day I received an email alert from my credit monitoring service. It notified me that there was an "inquiry" on my credit report from Avis and that my FICO credit score had dropped by 14 points. Needless to say, I've never used a debit card at a car rental company since.