I know this might just reflect financial culture differences across countries, but let’s give it a try
Edit: as a clarification, I meant credit card compared to debit, not to cash
In the UK, as long as you are able to track your finances well enough to ensure you repay the balance in full each month (you can arrange for this to happen automatically), there’s no reason not to use a credit card.
You should especially use it for purchases over £100 as by law card issuers are jointly liable for problems with goods purchased, so if I have a warranty issue the retailer won’t help with I can go through section 75 with my bank
I have never purchased something on a credit card and had it on the balance long enough to pay interest though, the rates are insane.
Plus, some cards give you points. Which can later be used for things like upgrades on flights.
This is exactly what I use mine for, and I’m trying to convince my wife to do the same. We’ve had to buy some relatively expensive things for the house recently, so I’ve been using the credit card for the extra protection, while she’s been paying in cash / debit card.
Luckily, we haven’t had any major problems yet, but she doesn’t seem to understand that the extra protection is worth it.
I use a credit card because our laws in the USA protect credit-card purchases better than they do debit-card and other electronic purchases.
Although I use a credit card with revolving credit, I always pay the full balance each month. In this way, it acts as a debit card, but I get the benefits of a credit card. I have to remember to pay it on time, but I can set up autopay even for that.
My credit union (a kind of non-profit bank owned by its members) is the issuer of the card, and it gives a 2% cash award for credit-card usage.
I do this, too. Anyone with any sort of self control should do the same, unless they prefer cash.
Using a debit card is too risky.
If in the US, there is almost no downside to credit cards as long there’s no annual fee and you pay it off in full every month. Most credit cards have some kind of rewards like cashback, miles, discounts, etc., so you gain something from using them. Banks are also very strict with fraud (because it’s their money you’re spending), so they will most likely side with you if you file a claim for unauthorized purchases. If you used a debit card, it’s your money that gets stolen; and while the bank will try its best to recover it, they have less incentive to work for it compared to a credit card.
I use a credit card for everything, especially large purchases that don’t charge an additional transaction fee to use the card. I also pay it off each month. I get 3-5% back when I use it. It would be quite stupid/lazy not to take free money, while also keeping my credit score at 847 (last I checked).
In France, most of people don’t even realised that credit cards shown in american TV productions aren’t like our (debit) cards.
But that’s totally normal when you see someone paying with a card to assume that they have indeed pay, rather than assuming that they have indebted themselves despite being able to afford the product.I don’t. Used to have a prepaid credit card, but the services is gone now. I am seriously considering it for some time now, given that a lot of services, especially US based, require credit cards.
NZ here, I use it for online purchases. Credit cards have the advantage of extra fraud protection, as well as having a safety net of being able to do a chargeback in case the seller does fraud or something. I don’t need to pay any interest on it either because I make use of the interest free days. I have a direct debit set up so the bill gets cleared on its own every month, so I don’t forget and accidentally pay interest or something.
I never did, because in Europe people don’t need to build a credit score, and it is usually advised to only use money you have.
Anecdotal evidence, but the only people I know that use them have a tendency to overspend.
Where in Europe, if you don’t mind me asking?
I’m in the UK, and we have to build a credit score if we want to get a mortgage, a loan, or any sort of finance, unless it’s from somewhere predatory like a payday lender.
Spain. Interesting, I didn’t know you had credit scores in the UK
Totally! I always pay it off each month so there is no interest and I get tons of points.
They also give tons of other benefits, like accidental damage and theft protect on stuff for the first 30 days, double the manufacturers warranty, if I die over seas they will cover the cost to repatriate my body (I live in a foreign country)
There are tons of other things, too. Just don’t care to list them off. I do have to pay about $200/year to have the card, but I think it’s worth it due to the points back.
I have one to shift large expenses to the end of the month. Just to have more room. I dont spend money I dont have or saved
Based in germany
In Europe they are basically featureless, and the only people I have seen using them were those who struggle with consumerism.
Interesting to see our experiences align
American here, 99% of the time I use credit cards. It’s just generally easier than carrying cash and nearly all vendors accept it. Beyond that I get a % back as points to trade for gift cards or in my case plane tickets. Another item is that if I get robbed I can quickly recover or head off any lost money.
If you get a cash back/rewards card and pay in full every month, you get paid for shopping.
I use a prepaid credit card. Same benefits, more control over my money :)
(I live in France. They are not a thing here.)