Saturday, January 9, 2016

Credit Cards

I've been reading about credit cards from My Money Blog recently ( Jonathan has a great blog, and it's full of great information. I've been interested in obtaining another credit card to assist in rebuilding my credit score.

Since I've been thinking about credit cards lately, and thinking about potentially not using my credit cards to help with rebuilding the credit score, a couple of things came to mind.

  1. If I stopped using a credit card, I stop getting cash back bonuses. 
  2. If someone swiped my debit card digits, and there was fraud committed against me, that money would instantly be drained from my checking account. 

Those are two reasons why I will continue to use credit cards, with the second reason being a MAJOR reason. I don't get a ton of money from cash back bonuses, but 1% cash back is cool and numerically, it's higher than a 0% cash back bonus.

As for the second reason, I have a quick story to tell. Some time ago, I walked downstairs at my house and found my mother crying at the computer. She was on the phone while looking at our computer. I didn't know what my mother was crying about, but I was instantly worried and confused. She was on the phone with the credit company because she was looking at her bank account and ~$800 had been charged to her credit cards from purchases that she didn't make. After looking at the transactions, it was for T-Mobile service all the way down in Georgia. For one, we use Verizon, and two, we've never ever been to Georgia.

The charges got taken off, but I was very angry for what had happened because it made my mother cry. If the fraud happens on a debit card, that money will be deducted from your checking account. If the fraud happens on a credit card, at least there is a barrier in place before the money gets deducted from your checking account.

So for now, I will continue using my credit cards.



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Thanks for your thoughts!