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Personally I've never had issues. I just set payment to 100% and never spend over my limits.
These days there are also other kinds of credit cards. Here in Portugal we have MBnet which is like a virtual credit card for online shopping. You set a limit and whatever you buy gets taken out of your account like a debit card. It is recognized internationally as a credit card and works well.
You can also get pre-paid (I imagine it is only used for travelling).
But either way I like having a safety net. Sure I pay for it, but you never know when you're going to have an emergency.
Not sure why I've never read this yet when credit cards get debated here, but the big reason why many (maybe most?) Americans use credit cards is because credit card companies offer cash back bonuses. Most people that I know pay their balance off in full every month, but we end up saving money with 1%-5% cash back or by earning frequent flier miles. It makes me feel silly when I pay $3 for milk with a credit card, but hey, I'm getting money back, so why not? Most credit cards do not charge a fee for using/having them, and if you pay your balance off in full within a month you pay no interest whatsoever. Also, debit cards here often charge a small ($0.25) transaction fee. In other words, it has nothing whatsoever to do with a cultural difference.
Of course, for all that money that the companies lose on their cash back bonuses, they more than make up for in fees and those times when someone gets desperate and puts down an important payment on a high interest credit card...
Edited 2012-07-24 06:01 UTC




Member since:
2005-06-29
You are aware you can just ask your bank for one ?
A credit card costs money. On top of that, it's a cultural thing. A least here in The Netherlands, credit cards carry a stigma, because they're associated with spending money you don't have and getting into serious financial trouble. People are actually afraid of them, and would rather not own one. As far as payment methods go, credit cards are pretty damn expensive.
With a debit card you spend the money you actually own. That seems like a small difference, but it's actually a huge conceptual shift.
Edited 2012-07-23 14:29 UTC