Okay, I have to ask, because I've read about similar stories a couple of times now:
Why do people even pay with credit cards? In my country such cards have really become mainstream these past couple of years and you can too, like in the USA & Canada, see people getting paid their salaries in cash relatively rarely. However
, I don't understand why do people pay everything with them, such as hotel stays as suggested by the article for example, and not just draw money about once a week from an ATM and then using the cash? Is such thing only possible with debit cards and not by credit cards? I recently opened my first bank account at Societe Generale and they gave me a debit card. What I do is to draw the cash from one of their ATMs (for no fee) once a week and then use the cash. I understand that in America it's more complicated, because people want to use their credit and not debit cards more frequently, since they want to have a good credit score - they want to establish a trustworthy relationship with their bank and hopefully further down the line to leverage that trust in order to get a lower interest on a bigger loan, such as a mortgage. However, I don't get, wouldn't your bottom line be worse off even if you manage to get a mortgage at favourable rates, because you paid so many years monthly interest on your credit card bills beforehand and also all those transaction fees for every single purchase? To put it mathematically:Future discount with good credit score on a mortgage < Credit card interest bills & transaction costs throughout your history in establishing your good credit score
I am sorry if this strays away from the original topic or if it's a potentially silly question. Nobody in my family's history has ever taken out a loan, so I am not all that familiar with the subject. I just think that carrying a debit card and only using it to draw relatively small sums of cash from a bank-owned ATM is both the cheapest and the safest way to operate with your operative funds.
Edited by Just_One_Question, 19 April 2017 - 04:35 PM.