- Centurion Member
- Posts: 4913
- Joined: Sun May 20, 2012 4:35 pm
- Location: WI
I admire your desire not to be in debt. It would have been better for them if a lot of people had carefully considered debt before plunging in.
Just so you know, debit cards do not have as strong of protection against fraud as credit cards. If your card or card info gets stolen, they are taking your money, not the credit card company's money, and you have to fight your bank to get it back.
Also just because you have a credit card does NOT mean you have to carry a balance. I've never paid a penny of interest on any of the cards in my signature, but a number of them have given me back hundreds of dollars this year in rewards.
Also, you can't get the best possible credit score without the use of credit cards and installment loans. As stated, you don't have to pay them interest on credit cards, and installment interest is usually pretty low IF you have good credit. Without good credit, you'll pay in other ways, such as insurance, anyway, and find getting a place to live, and jobs, harder (as if that needed to be any harder these days).
I also have a debit card in addition to my credit cards, and my banking fees are $0/year. That's a minor issue but you could even get that I'm sure. If you have a good relationship with your bank, the 25 bucks a year isn't a big deal.
Anyway, staying out of REVOLVING debt is a fantastic idea for your credit and financial health, but not having any credit cards isn't the greatest idea overall. It wasn't that long ago I thought like you do, but I found my score wouldn't go up beyond a certain point, and I've since learned that a debit card is a lot bigger vulnerability than a credit card, and that you can actually get credit cards to pay YOU if you do it right instead of the other way around. Just food for thought.