Month: June 2017

I recently wrote about the fact that I haven’t had a credit card in years. In fact, the short period of time that I did have one (perhaps one or two years?) I didn’t use the card that much and simply stopped using it since the debit card was doing the same thing, the only difference was the money was coming directly out of my checking account.

However, credit cards had been on my mind lately. I know they can be used responsibly and paid off monthly before an interest charge takes effect. This is what I did, when I did have one. I learned that from my parents and Mike mentioned being the same way and also taking advantage of points that are offered by some cards. Guess what? Credit card companies refer to people that pay off their balance in full monthly as deadbeats.

In my thoughts about credit cards, I’d been thinking about worse case scenarios where I was unable to use my debit card, but that hadn’t happened to me… yet. However, I had heard stories of it happening to others. Also troubling was reading of accounts where some companies looked at your credit history to determine employment. While that really isn’t something I’m thinking about now (I work for myself and out of the home) perhaps it might be a concern in a few years if I choose to work somewhere else. I’ll be enrolling in college this fall to complete the courses needed to complete my nursing degree. Although, with that field, it most likely won’t be an issue finding work, but that revelation just gave me more to think about, and then it happened… I was at the Crown gas station using my debit card, as normal, and it was declined. Hmm? I’d just used it to purchase groceries at the store. I knew there was money within my account because I stay on budget. Also, quickly checking my phone confirmed that yes, nothing crazy was going on with my bank account. The money was there, my card was just not being recognized. Sighs… About a week went by and I decided to start researching cards and finally selected one. I’ve had it for a little over a month and I use it similar to my debit card, but there’s one additional step. Once the payment is made on my credit card, I log on to my account and pay the money the same day. Having read that it is wise to leave a certain amount until your credit card statement has posted, I have done that, but the next day the bill is paid.

So, now if/when I do run into issues with my debit card, well the credit card is there. Actually, when I’m out I now just use the credit card, since it carries additional security features that my debit card doesn’t offer I only started doing that about a week ago. The reason is simple, a FB’s friends checking account was compromised and instead of receiving their money instantly, they had to wait several days. Now for myself, that would be a non-issue, I have a budget, adhere to it and have an emergency fund, but it’s the principle behind that. It still feels a bit odd using a credit card, but I just have to go through one extra step, getting online to send money from my checking account, but I’m willing to jump through that additional hoop.

This is where Dave Ramsey and I part ways on our way of thinking. Even when I wasn’t using credit cards, his approach to them, they are evil seemed a bit over the top for me. Basically because he assumed that no one would be responsible with a credit card and I know that isn’t true. I was, my parents were and there are many others who are. Of course, having a credit card and using it wisely, is another great teaching moment for my daughter. It’s the first time I’ve had one since she’s been around and I’m showing, by my example, how they should be used properly. Pay the bill in full each month so you don’t have any interest charge and a nice little bonus is free points.  Sorry Dave, it’s highly unlikely that I will ever forget to pay my card bill. Auto payment would take care of that if I’m away from the computer for a month, but me being away that long is highly unlikely.