31
Do you use a credit card? Why or why not?
(discuss.tchncs.de)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 21 Aug 2023
31 points (94.3% liked)
Personal Finance
3699 readers
1 users here now
Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!
Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)
founded 1 year ago
MODERATORS
US here. Yes, I use it for everything that I can because:
I haven't used a debit card in years (though I have two), and I haven't regularly used cash pretty much ever (though I carry some). I actually have like 10 credit cards, though I only regularly use 2.
If I had to pay extra to use credit, I would probably use it a lot less.
No foreign transaction fees? Could you expand on that?
Most cards charge a fee for any transactions outside your economic zone, e.g. the US and a Canada are separate economic zones, whereas much of the EU is one economic zone. Usually these fees are 3-5%, and sometimes there's also a currency conversion fee, but usually just the foreign transaction fee.
I'm in the US, so if I travel to any other country, I'd have to pay that fee. It turns out that some online retailers also charge this fee, such as Fanatical, even if the price is listed in dollars. My wife likes to order things intentionally, so we're careful about which card we use.
Most travel credit cards and some others have no or reduced foreign transaction fees, whereas most debit cards don't (Schwab and Fidelity in the US offer no foreign transaction fee cards in the US). For example, the a Capital One Quicksilver offers 1.5% cash back and no foreign transaction fees, and my Fidelity Visa offers 2% cash back and a 1% foreign transaction fee.
We like to visit Canada and my wife's home country, so we have some no foreign transaction fees hanging around that we bring on those trips. The rest of our cards all charge 3%.
Schwab’s Investor checking is a god send if you’re traveling to a country that deals largely in cash transactions.
The refund any and all transaction and conversion fees for ATM withdraws which can be egregious for visitors to some countries.
That way you don’t have to carry around gobs of cash your whole trip…
Fidelity largely does the same. So if you already have a Fidelity account, don't bother making a Schwab account, just get their debit card (make sure it's a Cash Management account though).