Why do people use anything other than credit cards?
I only use credit cards anywhere they are allowed since my credit card gives me 3% cash back. It’s a Chase Freedom card. I set it up to automatically take the payment out of my bank account every month so I don’t have to worry about paying it. Using debt cards and cash where you could be using a credit card just seems like a waste to me. Are people just dumb or is there some other logic behind not always using reward credit cards?
Using credit is a good idea if you have the ability to pay it off every month without interest, and you know what your limits are and don’t exceed those. Unfortunately, a lot of people tend to do poorly when using credit because they don’t quite view it as real money. People spend more than they have, buy things they normally wouldn’t buy if they were paying cash, and end up with maxed out cards and interest.
There are also a lot of people who can’t get credit, or who already have maxed out cards and don’t want to get more cards (or can’t get more cards.)
There are also people who simply don’t like the concept of credit cards at all, and prefer to work with what they have.