Debt is bad. Even for the small percentage, such as myself who used it somewhat in a strategic matter (it there is such a thing) and didn’t let it pile up to their eyeballs.
I need gas to get to work such, as does most of America. At the beginning of each month I’d put aside my gas allowance. Took my credit card with me only on the days I needed gas, and used it for that purpose only. No energy drinks or anything else they sell in the store. I also always paid online in full and with this specific company. Transactions made before the cutoff point would post the same day. In the three years I used them, I never had an issue. Sounds good right, why would I said I’d never use a credit card again?
I originally wanted to use credit to look good when applying for a mortgage. If it’s one thing I hate (there are several actually), it’s people who don’t practice what they preach. I’ll tell anyone in a heartbeat not to use credit. Granted, most people don’t have discipline to follow a plan. I just couldn’t be a contradiction. It goes against what I stand for.
1) What happens when you decide to close an account?
Here is where it got interesting. Every moment I’ve ever saved by swiping my credit card at the pump. I waisted that and more being bounced around from department to department, person to person. No agent wants to close an account. This hassle alone made me regret ever signing up. I’ve been fed the “my system is updating,” “my computer crashed,” “sorry I’ll have to transfer you,” etc.. I guess the cancel department gets worse equipment, because I don’t ever recall experiencing this with other departments. Many people would just hang up and keep the card till a later date. My persistence got it cancelled, my time is more valuable though.
2) The robot customer service representative
I say robot as in, without emotion or understanding, programmed for specific tasks. As if nothing else exists or is possible since it’s not in their system. We’ve all been there, I don’t think I need to further explain.
3) Poor security procedures
If you knew me, you’d probably agree I’m a nice person. Nice or not when I fly and go through TSA I get treated like everyone else. I don’t care if I sound like the coolest person in the world. When I call in, make me verify my information. I’ve made some significant changes to past accounts by only verifying my name and address. Something anyone who picked up my mail could have access to. Macys was my oldest account. I setup a security code when I opened it. The only time I was ever asked for it was when I closed the account. The potential for issue outweighs anything that could be considered a reward..
4) Credit will be issued without verification
This really is like 3B. I listen to the Dave Ramsey show pretty much daily. He always says creditors will issue credit cards to dogs and dead people. I didn’t take him as serious, but I know it’s a fact now. I’m neither a dog nor dead. However, I was added as an authorized user to a card without my knowledge or permission. If the primary card holder defaults, you’re responsible. Granted it was an honest mistake and although I would have literally read every word of the paper. I understand this mistake as it was falsely advertised as something else. If a credit card company will let you potentially mess up someone else’s life, what’ll think they’ll do to yours? I got it handled, but again. How many hoops did I go through?
5) Once two people know something it’s no longer a secret
This was probably my biggest concern. A lot of these companies outsource their employees. Even if not outsourced. The more people that have your personal information is. The less personal that information has become. I’ve done computer work for a lot of businesses. Therefore, I’m in many contacts. On countless occasions I’ve been emailed by mistake confidential information. I just delete it without reading once I realize it wasn’t meant for me. Not everyone is the same though. In other cases information may be stored locally on an insecure computer or network. Again, risk is just not worth it.
Many will say “I use a credit card and never experienced any of these issues.” Nobody ever experiences a problem until they do.