Debit vs. Credit Cards

[Sigarms]

Heaven help me if I ever need to take out a loan. I haven't had debt and monthly payments on debt in forever. I probably have a credit rating of zero.

I sincerely believe credit can be a good thing, as long as it's used wisely.

When my wife convinced me to get high dollar hearing aids through the doctor, 0% interest was my friend, even though I understand that in life, generally things are not free.

 

[two_bit_score]

We did similar, it was better than sex at the time. Well maybe not better, but close.

A famous person once said “Money makes women ho***y“.

 

[two_bit_score]

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[JethroB]

Heaven help me if I ever need to take out a loan. I haven't had debt and monthly payments on debt in forever. I probably have a credit rating of zero.

I do carry a CC and a DC, I tend to use the DC for groceries and gas and the CC for other items. No real logic behind that, just habit. CC is paid off ahead of due date.

You have reason to be concerned, in a funny sort of way. It’s been 15 years since I have had debt. I went to buy a second Kubota recently and take the 0% financing rather than raid my investments to pay for it. Kubota Credit balked. I gave them a peek at my retirement portfolio and all was good to go. I’m retired with no wage income.

 

[MossRoad]

I sincerely believe credit can be a good thing, as long as it's used wisely.

When my wife convinced me to get high dollar hearing aids through the doctor, 0% interest was my friend, even though I understand that in life, generally things are not free.

Yep.

Buy a new air conditioner, get a free furnace!

Who are they kidding?

 

[Fuddyduddy1952]

Credit card can be cheaper than cash if you get 1%-2% off purchases and on autopay paying balance in full.

 

[Oaktree]

I sincerely believe credit can be a good thing, as long as it's used wisely.

When my wife convinced me to get high dollar hearing aids through the doctor, 0% interest was my friend, even though I understand that in life, generally things are not free.

Agreed. Obviously, no one is lending you money for free, interest charge most likely baked into the price. I wonder if you'd get a discount to pay in full.

Credit card can be cheaper than cash if you get 1%-2% off purchases and on autopay paying balance in full.

I always pay in full each month, though I pay by check, never autopay. Again, no one is giving you cashback bonus out of the goodness of their heart, I'm sure they just charge the merchant more who adjusts his prices to compensate. No free lunch, but you might as well take advantage of the gimmickry.

 

[Sigarms]

Agreed. Obviously, no one is lending you money for free, interest charge most likely baked into the price. I wonder if you'd get a discount to pay in full.

I can speak from my own industry and say that when someone offers 0% financing, the finance price is built into the cost. Some guys will offer a cash discount and some guys will just pocket the difference even if you do pay cash.

However, since my hearing aids were the same price even if I paid cash from the doctors office, I would be dumb IMO not to take up the offer of financing. I have no doubt that the doctors office is rolling in the dough.

Like I said, when it comes to Best Buy, I really hate that company, but I'll save the 5% off and use 18 months same as cash. When you drop a couple of grand on a computer, I'd much rather pay $112 a month for 18 months vs than taking 2k out of the bank. Generally on buys like that, I'll just double the payment to cut the time in half.

 

[Fuddyduddy1952]

Agreed. Obviously, no one is lending you money for free, interest charge most likely baked into the price. I wonder if you'd get a discount to pay in full.

I always pay in full each month, though I pay by check, never autopay. Again, no one is giving you cashback bonus out of the goodness of their heart, I'm sure they just charge the merchant more who adjusts his prices to compensate. No free lunch, but you might as well take advantage of the gimmickry.

Well, no...when I had my company I started accepting credit cards early on and I was charged $0.35 per transaction and 1.9% fee (retired 9 years now...from memory). I never added this into my fee or gave a discount for cash. My business jumped when I started accepting cards so to me that offset this charge. Rarely someone wanted to charge something for, say, $1.00 and we would ask for cash.
Autopay saves stamps & writing checks. I'm on autopay for everything.

 

[TheMan419]

Agreed. Obviously, no one is lending you money for free, interest charge most likely baked into the price. I wonder if you'd get a discount to pay in full.

When I bought my tractor they had a 0% "deal" going. I asked this question, what is the price if I bring in a bank check? They said same price. Great sign me up for the 0% financing. My investments can keep earning a return and you will get a few bucks a month from me. Seems like a silly idea, but what do I know.