Why are credit cards needed ? .?

My brother who is now fast getting towards retiring age has steadfastly refused to have a credit card, preferring a debt free existence. Credit Cards are a relatively new way of life catering for the 'I want it now' majority of the population.

The insidious thing about credit cards is that a great many, possibly a majority, of users do not look at the debt, just at the monthly minimum repayment figure. As long as they can meet the monthly minimum payment they keep spending. Then they lose their job, or their partner announces she is pregnant and will be packing up work etc etc. and that monthly minimum suddenly takes on a different look. Young couples starting up in their own home want the same standard of comfort in it that it took their parents many years to arrive at, but they want it all the day they move in and that little piece of plastic makes it possible - at a price. I have'nt used a credit card for years now, i buy what i can afford. A 42" flat screen TV is NOT essential, nor is 60 quid a yard carpet etc etc. Comfort is a matter of perception, if you are sleeping rough on a park bench, an 8x6 garden shed is luxury.

While i agree most people misuse credit cards, they can be very helpful when used correctly.

You still need a credit card to rent a card, most hotels require them. Buying things on line require a credit card in most cases. While more and more places are allowing the use of debit cards for alot of these items, debit cards work different and it can really screw stuff up.

An example would be a rental car. When you rent a car say for 5 day's. The total rental fee may be 250.00 but the rental place will run the card authorization for say 500.00. You are not being charged this, they are just checking that that change and any added fees will be ok. Well they do the same thing for debit cards. However with a debit card this places a hold on you bank account for that 500.00. Which you may not be expecting. Also it can take several days or a week for the hold to be released. Several of these hold could cause checks to bounce, as all the money in the account is tied up with holds.

No, credit cards are not strictly necessary, but used correctly (paid off each month so there are no interest charges at all), can make purchases possible when you don't carry around big sums of cash. They also help give you a credit score or credit rating, which banks refer to when deciding if you are a suitable reliable person for a mortgage or other loan.

I live perfectly well with no credit card. I used to have one until the government here slapped on an annual fee, and I cancelled mine as I felt I was being taxed enough already.

Yes, credit cards are an uneeded issue many have that put them into debt. The main reason for them is to establish a credit and show your reponsibilty to the public. It helps when it comes down to buying something big such as a house or car and when making a payment plan. The best way to handle a credit card is to make one large purchase (which you have the money for, of course) and pay it off immediately, Afterward, don't worry about using the card. Just use it at first to establish your credit.

While credit cards are not technically a necessity, they do provide great convenience to people who use them responsibly. It is very important to be educated about how they work and to buy only what you can afford, just like with any other type of loan. We've created a website dedicated to helping people learn more about credit and how credit bureaus, credit scores and credit cards really work. If you are interested, check it out at www.creditgumbo.com.

Are credit cards needed? No. However, credit cards and similar credit increase the standard of living by allowing people to buy items they otherwise would have to save for. This promotes consumption (both needful and needless) which increases jobs and overall income, thus creating more demand. Buying on credit also allows people to budget easier.

While to some extent, credit cards and credit takes some income out of the consumer's pocket (interest payments cannot be spent on other things), that lost income goes to the credit card merchant/bank who uses it to create jobs (creating more national employment) and profits (creating a return for shareholders and as such more income). Money made but not distributed via dividends goes into retained earnings and either shores up the bank's reserves or is used to lend out more money, inducing investment in the economy.

I don't have a credit card because I've no need for one

I use my debit card for online and store purchases.

People are too used to credit nowadays which is not always a good idea

as they end up spending more than they can afford

Off course credit cards have their uses as they offer some protection

on certain purchases

Its just how you use them ,and abuse them, that matters

I would say that credit cards are not need. I know I'm having difficulties with mine right now which might be one of the questions that you are referring to but I always prided myself in keeping things under control. Unlike most people I know what is wrong with mine and I intend on fixing it right away.

if you have the cash to buy a $2000 computer or a $5000 living room furniture set, more power to you. most people don't have that much cash for big purchases