What? That seems totally backwards. Don't spend money you don't have, which mean using debit. Credit is useful for the single use case of buying a house.
Why spend your own money when someone is willing to loan you money for free, will give you some of your money back, and will also protect you against consumer issues?
You’re leaving money and protection on the table by not using them.
You have to pay it back… one month later. You can keep your own money safe and invested until then. And you don’t have to pay any more if you pay it on time.
The bank wants you to use credit because they get paid by the merchant every time you do.
Not the original poster, but I don't want to spend my limited time on earth trying to minimize the money I'm leaving on the table -- thinking about credit cards, points, money systems and wheeling and dealing in order to eke out a little extra scratch is thinking I would personally rather put toward nearly anything else.
That's why I would rather spend my own money when someone is willing to lend it to me for free.
Well up to you but that’s irrational - it’s leaving money on the table and what’s more you’re actually paying for my free loan and my cash back and my protection and my free flights and not getting anything yourself, as I’m paying the same price for products as you.
It's not irrational, there's a whole bunch of other things you're not considering. For example, a debt creates a financial obligation and as such it diminishes one's personal autonomy. People who value their personal autonomy will take that into consideration before going into debt.
You're shipping a ton of personal baggage under "personal autonomy".
Why even take part in economic transactions at that point. If your definition of autonomy is that extreme, the concept that someone might have something you want but don't have must be a alien concept
My definition of personal autonomy is extreme? What definition? Why do you think it's irrational to assess how getting into debt affects my personal autonomy?
> Credit is useful for the single use case of buying a house.
I haven't paid a cent in interest on a credit card since I was in my early 20s. Thanks to credit card points/miles, I've flown all over the world (often in business class), enjoyed stays at hotels, had access to airport lounge access, received various upgrades on hotel accommodations, car rentals, etc. -- all for next to nothing.
Credit cards are an excellent tool if you are willing and able to use them properly.
> What? That seems totally backwards. Don't spend money you don't have, which mean using debit. Credit is useful for the single use case of buying a house.
Using credit in this sense means using a credit card, not necessarily running up a debt in anything other than a nominal sense. Using a credit card and paying off your balance in full every month (so that no fees are assessed) is way better for later loanworthiness and similar credit-based evaluations than using a debit card.
> Credit is useful for the single use case of buying a house.
If you can exercise self-control with spending, you can use a credit card for almost everything. I think Dave Ramsey advises you're less likely to spend money if you use real cash, but for some people, this is not an issue at all.
I've always noticed that cash has a way of disappearing from my wallet with me wondering "what did I spend it on?" With a credit card I have to think: will I punch myself in the face when I see that on my statement?
I took a loan on a new car. It is 0.9% APR. It's easy to have your money grow faster than that, so leaving my wealth invested and paying the payment nets me more money in the end than if I paid it up front. I could take money out of my investments to pay off the car tomorrow, but with the markets being as they are that would be insane. Even the bonds I own have higher returns than 0.9%.
