Living Car Free - Why a credit card?

A couple of my friends have credit cards, and buy things like TVs to build credit....whatever that means, haha.
People tell me I should get one to start my own credit, but I don't think it's really necessary for me.
From what I've observed, you only need credit if you want to buy huge things like a car or a house.

I already want to get rid of my car and I don't think I'm the type to buy my own house. Seems like too much to have. So what else is it there for? Some tell me it's "safety" for emergencies, but...how do you live without one?!? Cause right now I don't really want one, or see the need. Peace

It is mighty handy when making travel reservations such as booking flights & trains, securing hotel rooms, or obtaining rental cars. Those tasks are much tougher when dealing strictly with checks/cash, especially overseas destinations.

Okay, this can be tricky for some, but it works:

I have a working bank account - my salary is paid into it, and I can withdraw cash from it through an ATM - it earns no interest
I have a high-interest-bearing account with an internet bank that has no way to access money except through the working account - it's not convenience, but earns around 6.25%pa calculated daily
I have a credit card with a limit that is a couple hundred under what I earn in a month.

My salary pays into my bank account, I leave a couple hundred in there for cash purchases (coffee, thrift stores etc) and I heave the rest into the interest-bearing account. I pay for everything else I'm able to with the credit card. I don't put big things on it, just everyday things: groceries, restaurants, movie tickets, phone bills.

When the credit card comes due, I draw down exactly what I need to pay the credit card on time, so that I'm charged no interest by the credit card company.

Since there is up to 45 days between the day I make a purchase on the credit card and the day the card comes due for payment, I earn up to 45 days' interest on every dollar I spend on the credit card. This interest mounts up over the year, and pays for my family's Christmas gifts.

That's how I use a credit card. *shrugs* It works for me.

I haven't had a credit card since 1992. I use debit cards. The only time it was ever a problem was at a hotel in Las Vegas. It was over 10 years ago, so I forget the details--I think it was something to do with a huge pre-authorization for in-room phone calls and movies (things I'd never use) prevented me from using the card in their restaurant. It was straightened out.

A credit card is a tool, used properly it is a good thing but if misused can cause lasting problems. In today's world it can be difficult if you don't have one to do many things as Blue Jays pointed out. My suggestion would be to get a single card, Visa or M/C and charge a items that you normally would pay cash for and then pay it off every month. Then you will have built your credit rating. In many cases even renting an apartment will require a certain score on your credit rating. And I have worked for some companies that would pull one two. I guess they figured if you had a good credit rating you could be trusted with their money?

Aaron:)

Credit cards are a huge scam. Their sole purpose is to put your money in somebody else's pocket. You are very wise to not have or want one. If you can't get it without a credit card, you don't need it. There are always alternatives.

Becoming car free is part of a comprehensive plan to simplify my life and bring my lifestyle into line with my ideology. A couple of other elements of that plan are being bank-free and credit card-free. Some say I'm a fool. I say they are the fools.

We who once were fools and dreamers, then shall be the brave and wise.
There amidst the world new-builded shall our earthly deeds abide,
Though our names be all forgotten, and the tale of how we died.

--William Morris 1885

Aaron said it about right. Just make sure that you are are ready for one when you do get one.

Of course I was given one with a $5,000 credit limit on my 18th birthday. I was no were near ready for it at the time. I basically threw a 2 month party that I am still paying for and I'm 24 now.

My Dad on the other hand, has a card with cash back and all that good stuff. And has sometimes $5,000 or more in expenses for on his rental houses he owns. He puts EVERYTHING he buys on the card and pays it off at the end of the month out of the money he collects in rent. ( hes a slum lord). And he never gets behind in a payment, and allways gets "free money" out of the deal.

So yea, they can be a great thing in the right hands and a terrible thing in the wrong hands.

Try this. I have a Discover card. I pay it off in full at the end of every month. They grant a cashback bonus for every dollar I spend. I've had the card for just over a year now and have $60 in cashback bonus. If I redeem the bonus with one of their "partners" I can get as much as 2x my cashback bonus, thus I could have as much as $120 for free. Since I pay it off at the end of every month I have never once paid any interest on it. Sounds like a good deal to me. Essentially $60-120 just for buying stuff with their card and then paying them the exact amount I would have paid anyway if I had paid cash. Nice.

I use one for the majority of my purchases to increase my credit, but I also make sure to pay it off in full every month. I've had freinds who have dug themselves holes by spending above their limit.

I started out getting one just for emergencies, and then making sure I put under 100 a month on it in normal purchases. As I got used to using it, I've increased the amount, but it's important to decrease your other spending so you can pay the whole thing off.

We own a small business as well as being employed by others (that is going to change in the near future;) ) We typically use American Express to pay for a lot of our business expenses, then pay the bill in full when it comes in. I travel a lot in my job, if I had to carry the amount of cash that I spend in a two week period I would be concerned about robbery. It is not unusual for my expenses to exceed $3000 in a two week period. We get "points" for using Amex, we use the points for purchasing items for our business. So far a couple of digital cameras, a copier, printer and cash register have been acquired using points. Now if you are doing just for the points it isn't a good idea, if you are carrying a balance from month to month it isn't a good idea.

Aaron:)

as others have said: a credit card is just an (easily abusable) tool. it simplifies travel, builds a credit line, etc. Maybe now you're not the house-buying type but ask yourself: do you, right now, want to limit what you can do in the future? maybe 10 years from now you decide you want to buy a 50ft sailboat and provide chartered cruises. it will be easier to do it with a good line of credit....

from a purely economic standpoint, a smartly-used credit card will give you free money, as others have said. basically pay for your purchases 30-45 days late & continue earning interest on your savings, plus many cards have 1-2% cash back. i put every purchase i can on the card for just that reason. where a lot of folks get in trouble is buing crap they wouldn't have if they didn't have the card - as with everything else, self-control is paramount.

cheers

Vulpes, my credit cards don't cost me a thin dime since I pay them in full and never encounter a service charge or financing. I used accumulated points to obtain roundtrip airline tickets to southeast Asia in 2004 with no out-of-pocket expense. How am I getting scammed?

I have all my bills paid directly by my credit card.. so at end of month I only have to pay the CC bill.

Also, I once had a digital camera that fell out of case and broke when it hit the ground. Using the CC's consumer protection I had it fixed ... MasterCard reinbust my $110

Credit Cards are great... I get a 1% on all purchases, 3% on gas. I get a monthly invoice for all my spending. Dont leave home without 2, use one as a spare. Just pay it off each month.

Living without consumer credit is a valid option. There will be occasional inconveniences. The benefit is that it avoids the most common way to get in trouble with debt. That's a big positive.

...
From what I've observed, you only need credit if you want to buy huge things like a car or a house.
...

This is not true. Many companies include credit checks for employment, and Insurance companies regularly check credit and vary rates based upon the result (even for renters policies). Credit has become a defacto measure of responsibility. If you don't have a credit history, you will pay more for things like insurance, and may be denied employment.

My suggestion is to get a card with a decent limit (1-5k) and never rack up more than 75% of the limit at any time, and pay it off at the end of each month. In so doing it builds positive credit history, but really acts as a cash management tool, not a credit tool.

I have heard of a study where people spent quite a bit more when using a credit card then they did with cash. That alone takes away the few % that a bonus card would give you.

I work with someone who will literally drive across town and back (10 miles) to save $.25 on yogurt.

Sometimes saving money is not saving you anything.

I have heard of a study where people spent quite a bit more when using a credit card then they did with cash. That alone takes away the few % that a bonus card would give you.

I work with someone who will literally drive across town and back (10 miles) to save $.25 on yogurt.

Sometimes saving money is not saving you anything.

yep, but that's just stoopid:rolleyes:
used wisely a cc is a great financial tool. not for everyone, but a great tool nonetheless.

This is not true. .... Credit has become a defacto measure of responsibility. ...
I was going to point this stuff out too.

Buying a car with cash isn't real difficult, if you buy used (and if you're a miserly sort, you wouldn't be buying off the dealer's lot anyway, you'd want something at least 2-3 years old).

As far as buying a house goes--in some urban locales it isn't real practical, but I see it like this: unless you live in your car, you're buying a house either way--it's just a matter of who you're buying it for. You might as well buy it for yourself instead of a landlord.
~

I have heard of a study where people spent quite a bit more when using a credit card then they did with cash. That alone takes away the few % that a bonus card would give you.

I work with someone who will literally drive across town and back (10 miles) to save $.25 on yogurt.

Sometimes saving money is not saving you anything.

Maybe that is true for some or even most people. However, for myself, if I have cash on hand I don't think about dropping 1.50 for a drink now, .75 for candy bar 45 minutes later, 3.50 for a slice of pizza from the street vendor, etc... Before I realize it I have spent $50 with nothing to show for it and most of it was wasted on unneeded disposables (food, worthless nick-nacks, etc.) that were cheap and at the time didn't seem like much money (normally less than $5). However, when I am using credit for all or nearly all purchases, one it eliminates many impulse purchases for me (vending machines and many small vendors don't accept credit) and even when I can use credit I feel silly charging a 75cent purchase to my credit card (though I have done it before). Thus I actually spend less money with credit than I would if I kept cash on hand.

Credit cards are a huge scam. Their sole purpose is to put your money in somebody else's pocket. You are very wise to not have or want one. If you can't get it without a credit card, you don't need it. There are always alternatives.



Credit cards are a financial tool that if used properly will put money in your pocket, not take it out of your pocket.
If you use a credit card wisely, you will not charge more than you would normally spend in a month. By charging it to the credit card you are creating a 1 month float on your expenses. This float will allow you to place that money in an interest bearing account and earn some money on these funds. You won't ear a lot with todays interest rates, but its still better than nothing.

Basic example: Lets say yu average monthly expenses are $1500 usd. You charge 1500 in January and don't have to pay it off until Februay 28. This gives you an extra month to keep that money in the bank. The cycle repeats such that you can actually keep that 1500 in the bank for perpetuity. At 2%, you will earn 30.28 in interest over the course of 1 year. At the end of year 2, you will have $1,561.16 and all you've done is use the float a credit card allows. You still pay 1500 in expenses, your lifestyle is the same, and you are better off.

...credit history...

...Buying a car... buying a house...
There's an alternative. Join a member-owned credit union. Accumulate $1,000 in a savings account. Get a share-secured loan for $1,000 to buy a CD (certificate of deposit). That is, use your savings account as collateral for the loan. Pay off the share secured loan, now you have $2,000 in the credit union and a good credit history. Repeat as desired.

Worked for me.

I have heard of a study where people spent quite a bit more when using a credit card then they did with cash. That alone takes away the few % that a bonus card would give you.

When I first heard that was when I worked in a grocery store and the credit card machine company wanted us to put machines at every register rather then have one machine in the office. Even though it was marketing crap at the time I believe it can be true for some people because the credit card just like the no interest until 2010 deals disconnect people from the cost. With cash people would leave items they didnt' really really need. They still picked them up and brought them to the register but they ended up in returns. A credit card just allowed them not to think about it.

Of course credit cards is just another ploy like monthly billing ($44 is easier to swallow then $528) or what my company does in charging .002 cents or was it $.002 per a kilobyte. I mean your going to charge alot more then that.
Credit cards just give the possibility of another layer between a purchase and how much money you actually have to pay for it.

I do think just living on cash/check removes the possibility I think of spending more then you have because you can't incur debt as easily but it still happens.

In the event of a mugging, I'd rather lose my credit card than any cash.

I love my credit cards. Every purchase I make is insured. They are ultra handy booking hotels, test driving bikes, renting tools, buying stuff online. My credit card provider works for my interest in any transaction dispute. They have no doubt helped me achieve a perfect credit rating (which gives me access to very low interest rates). They give me free stuff for using them.

I never carry a balance.

I have my paycheck direct deposited to my LBS. Life has been much simpler for me since I did that.

When you're talking about the "goodness" of CC's, you really have to separate the big/societal view vs. the personal view.

I think they're a mix in the big view: They a great convenience but they encourage overspending and they act as a "tax" on the system as merchents have to raise prices to cover the fees. The trend is getting worse because cards with higher rebates and higher merchent fees are becoming more and more popular. If you're not using a CC, you're losing money.

From a personal view, they're a huge win if you use them carefully. Select the right cards with low/no fees and freebies you can use and pay off the balances each month and you're reaping a significant financial benefit. You're getting the 25-day float on the money and you're getting money back things of value like free travel expenses. As rebates increase, a person who pays cash is going to suffer more and more financially.

As a practical matter, it's pretty hard to lead a modern lifestyle without credit cards. They're essential to travel, online purchasing, and are becoming more and more a big part of one's electronic identity which is used for all sorts of things, many you don't even know about. Now you may reject this modern lifestyle and you can certainly live a full life without it. But if you want to partcipate in many aspects of our modern world, credit cards are almost a requirement.

- Mark

I keep one credit card and have a credit/debit card from my bank. The advantage of having a credit card is for emergencies or booking flights, hotel room and rental car when you have to travel. It is also handy if you have to order on line for items which are much cheaper than shopping at local stores plus they don't charge taxes on most purchases. It can be bad to have credit cards if it's use is abused and making the minimum payments at the end of each month. As stated by other posters, if credit card is used wisely, it works for you such as charging and paying off everything when the bill is due and not leaving an open balance.

I can't imagine travelling for work without one; especially out of country. It is the simplest and safest way to make sure that you have enough money for anything that might happen. I have directly experienced that the quality of a hotel room and of emergency medical care both greatly increased once I fished that VISA card out of my shoe; and without the subsequent increase in danger that would have occured if I had pulled out a roll of 50's.

Other than that, I was told that my rate on my home loan was lower because I had had a card for so long, but I have a feeling that might be BS, as the rate wasn't _THAT_ low.

Becoming car free is part of a comprehensive plan to simplify my life and bring my lifestyle into line with my ideology. A couple of other elements of that plan are being bank-free and credit card-free. Some say I'm a fool. I say they are the fools.

I also have a dream of becoming "bank-free". I got rid of my credit cards several months ago (not entirely for reasons of principle but that's another story). However, I don't have any good ideas of how to make do without a checking account.

You don't have to use a credit card as a credit card as others have pointed out. If you pay the bill by the end of the grace period you pay nothing in interest. There are a couple things credit cards are handy for - ordering things online, renting a car (can come in handy when you are car free as there may be the odd time when you do decide a car is useful), and annoying some places demand them as deposits for other rentals - like video stores.

You just need to pay your credit card on time to build a credit rating. Absolutely no need to buy something you can't afford or to carry a balance from one month to the next. Useful if you change your mind in the future about wanting a mortgage etc.

If you are "wronged" by a merchant and paid in cash...good luck with that negotiation! On the other hand, companies like American Express are legendary with assistance they provide to consumers.

If you are "wronged" by a merchant and paid in cash...good luck with that negotiation! On the other hand, companies like American Express are legendary with assistance they provide to consumers.
Unfortunately I have had to use that feature more times than I care, and yes it does work! I have never lost a dispute when using American Express.

Aaron:)

I use them for all the reasons above. My main card is a United Airlines card, and I've used it for all my home improvements. I've spent enough over two years for a free trip, plus of course all the protection when buying airfare, hotel, online stuff, etc, etc.

I haven't had a credit card since 1992. I use debit cards. The only time it was ever a problem was at a hotel in Las Vegas. It was over 10 years ago, so I forget the details--I think it was something to do with a huge pre-authorization for in-room phone calls and movies (things I'd never use) prevented me from using the card in their restaurant. It was straightened out.

I have never carried a debit card. My bank sent me one as a combined ATM/Debit card. I cut it up and requested a proper ATM card. Debit cards offer no benefit to the consumer and expose them to an unacceptable risk of fraud. If someone gets your card number they can empty your bank account.

Cut up your debit card, get a credit card and learn how to properly manage your money.

I have never carried a debit card. My bank sent me one as a combined ATM/Debit card. I cut it up and requested a proper ATM card. Debit cards offer no benefit to the consumer and expose them to an unacceptable risk of fraud. If someone gets your card number they can empty your bank account.

Cut up your debit card, get a credit card and learn how to properly manage your money.

It's interesting, in the United States, debit cards are almost unheard of, but in Canada and Europe they are everywhere. Debit Card fraud is easy to prevent, the key is the PIN, you simply make sure nobody can see you punch it in, and that is easily done by holding your other hand over the machine, and punching the numbers blind. Easy to do. once you get used to it, because the number pads are all the same size, with the numbers in the same relative positions. The fraud artist also needs to be physically present with the card, or a copy of the card in order to use it, that means that they can be seen on surveillance equipment in the store.

Credit card fraud is much easier, you need only the card number, the expiry date, and you can bill all kinds of stuff to a persons credit card. This information is so easy to obtain, it isn't funny.

It's interesting, in the United States, debit cards are almost unheard of, but in Canada and Europe they are everywhere. Debit Card fraud is easy to prevent, the key is the PIN, you simply make sure nobody can see you punch it in, and that is easily done by holding your other hand over the machine, and punching the numbers blind. Easy to do. once you get used to it, because the number pads are all the same size, with the numbers in the same relative positions. The fraud artist also needs to be physically present with the card, or a copy of the card in order to use it, that means that they can be seen on surveillance equipment in the store.

Credit card fraud is much easier, you need only the card number, the expiry date, and you can bill all kinds of stuff to a persons credit card. This information is so easy to obtain, it isn't funny.

In the US, debit cards can be used for signature transactions without the PIN. You can use them in exactly the same way as a credit card. I suspect that for any non-US debit card carrying the Visa logo, the same rules would apply. If somebody fraudulently uses your debit card, they can empty your Bank Account and suddenly you have no money, your checks bounce. You are basically screwed.

I don't see any advantages offered by a debit card. Providing merchants direct access to one's bank account is a problem waiting to happen. Used properly, credit cards are a better bet for most consumers.

Have never owned a credit card and hope to never half to. I'll use either cash I have laying around or a debit card.
With a debit card, I can make interest, not pay it like a credit card.

i thought most bank offered fraud protection with their debit cards.

Have never owned a credit card and hope to never half to. I'll use either cash I have laying around or a debit card.
With a debit card, I can make interest, not pay it like a credit card.

You have a lot to learn about personal finance. My credit cards earn me interest, your debit card costs you interest. My credit cards also earn me air miles and cash rebates at Costco.

The risks of using a debit card I have already explained in a previous post. The risk of using cash it you can lose it or it can be stolen. Another major disadvantage of cash is it makes it very hard to track spending. If you always use a credit card and download the transactions into Quicken or some other financial software, expense can be tracked to the penny (and you will have a much smaller collection of pennies).

I use a credit card whenever possible. I even pay my cable and phone bills with a credit card. I don't pay a penny in interest.

I also use only my debit card. However, an expired credit card is just about perfect to set the pitch on my V-brake pads so they don't squeel.

i thought most bank offered fraud protection with their debit cards.

Many do but while you try and sort everything out you will have no money in your checking account. This can cause all sorts of problems if you have bills due. Credit card victims of fraud are protected from liability by law. Debit card victims have to rely on the kindness of their bank.

Given that debit cards offer no benefit to the consumer over credit cards, I believe it is foolish to carry one. If your bank sends you one, cut it up.

You have a lot to learn about personal finance. My credit cards earn me interest, your debit card costs you interest. My credit cards also earn me air miles and cash rebates at Costco.

I don't pay a penny for my debit card. Unlimited usage for free.
I've never had any 'interest' in air miles, and dont shop at costco, so doesnt do me much good.


Another major disadvantage of cash is it makes it very hard to track spending. If you always use a credit card and download the transactions into Quicken or some other financial software, expense can be tracked to the penny (and you will have a much smaller collection of pennies).With my old bank, I would just download all my transactions (bills, income or just purchasing something) into MS Money.
Just switched banks and am still getting use to all that, though it seems the same.


I'm not going to say credit cards can't be useful for some people, I just dislike them and have no use for them.

I don't pay a penny for my debit card. Unlimited usage for free.
I've never had any 'interest' in air miles, and dont shop at costco, so doesnt do me much good.

With my old bank, I would just download all my transactions (bills, income or just purchasing something) into MS Money.
Just switched banks and am still getting use to all that, though it seems the same.


I'm not going to say credit cards can't be useful for some people, I just dislike them and have no use for them.

By using a debit card and cash, you are keeping less money in your Bank accounts which means you are losing interest on the extra money you could have.

While it is true you can download transactions from your Bank into MS money, cash transaction will not be recorded.

No one signs up for a credit card expecting to pay penalty fees and penalty interest rates up to 32%, but consider the following.

In March the Senate Subcommittee on Permanent Investigations held hearings on the subject of credit card company practices. Quoting from a news release by Sen. Carl Levin's office:

...“The credit card industry thrives on the confusion and powerlessness of consumers to both nickel and dime the average card-holder and to commit highway robbery of anyone who slips up even in the slightest,” said Levin.

The committee heard testimony from the CEOs of the top three credit card issuers in the U.S., as well an Ohio consumer, Wesley Wannemacher, who used a Chase Bank credit card in 2001 and 2002 to pay for approximately $3,200 in expenses for his wedding. These expenses exceeded the credit card limit of $3,000 by about $200. Over the next six years, he made payments toward the debt averaging about $1,000 per year, and as of February 2007, he had paid about $6,300 on his $3,200 debt. However, his statement showed that he still owed $4,400 – a total of $10,700 in charges for $3,200 in purchases.

“This case may seem extreme or unfair, but what our investigation has shown is that those types of charges and fees are actually common in the credit card industry,” said Levin, who added that Wannemacher was contacted by a Chase representative after he agreed to testify before the subcommittee and was told that they had reviewed his account and decided to forgive his balance....

[Emphasis added.]

Link (http://www.senate.gov/~levin/newsroom/release.cfm?id=270273)

By using a debit card and cash, you are keeping less money in your Bank accounts which means you are losing interest on the extra money you could have.

While it is true you can download transactions from your Bank into MS money, cash transaction will not be recorded.
+1
I have a cash back card, and I have the money in the bank to pay it off every month. I get cask back and earn interest on the money in my account. Win-win as long as you aren't stupid with it. And charging anything you can't pay off at the end of the month is stupid.

No one signs up for a credit card expecting to pay penalty fees and penalty interest rates up to 32%, but consider the following.

....

The committee heard testimony from the CEOs of the top three credit card issuers in the U.S., as well an Ohio consumer, Wesley Wannemacher, who used a Chase Bank credit card in 2001 and 2002 to pay for approximately $3,200 in expenses for his wedding. These expenses exceeded the credit card limit of $3,000 by about $200. Over the next six years, he made payments toward the debt averaging about $1,000 per year, and as of February 2007, he had paid about $6,300 on his $3,200 debt. However, his statement showed that he still owed $4,400 – a total of $10,700 in charges for $3,200 in purchases.



If Wesley had paid off his credit card in full every month he would not have paid a penny in interest. His wedding was clearly more expensive that he could afford and with a credit limit of $3000, he was probably considered a sub prime credit risk. The lesson here is don't use a credit card to borrow money. In fact, avoid borrowing money at all unless the interest rate is lower than the after tax rate of return you can earn in a money market account.

If Wesley had paid off his credit card in full every month he would not have paid a penny in interest. His wedding was clearly more expensive that he could afford and with a credit limit of $3000, he was probably considered a sub prime credit risk. The lesson here is don't use a credit card to borrow money. In fact, avoid borrowing money at all unless the interest rate is lower than the after tax rate of return you can earn in a money market account.
+1

I've never understood creating debt for what is essentially a big party. Guy is probably not the sharpest knife in the drawer.

No one signs up for a credit card expecting to pay penalty fees and penalty interest rates up to 32%, but consider the following.

In March the Senate Subcommittee on Permanent Investigations held hearings on the subject of credit card company practices. Quoting from a news release by Sen. Carl Levin's office:

...“The credit card industry thrives on the confusion and powerlessness of consumers to both nickel and dime the average card-holder and to commit highway robbery of anyone who slips up even in the slightest,” said Levin.

The committee heard testimony from the CEOs of the top three credit card issuers in the U.S., as well an Ohio consumer, Wesley Wannemacher, who used a Chase Bank credit card in 2001 and 2002 to pay for approximately $3,200 in expenses for his wedding. These expenses exceeded the credit card limit of $3,000 by about $200. Over the next six years, he made payments toward the debt averaging about $1,000 per year, and as of February 2007, he had paid about $6,300 on his $3,200 debt. However, his statement showed that he still owed $4,400 – a total of $10,700 in charges for $3,200 in purchases.

“This case may seem extreme or unfair, but what our investigation has shown is that those types of charges and fees are actually common in the credit card industry,” said Levin, who added that Wannemacher was contacted by a Chase representative after he agreed to testify before the subcommittee and was told that they had reviewed his account and decided to forgive his balance....

[Emphasis added.]

Link (http://www.senate.gov/~levin/newsroom/release.cfm?id=270273)
That's right Platy, credit cards are ultimatly foolish. It 's for people who don't have the money to pay for things and need to borrow it, it is that simple. Most people don't want to admit that..

Well besides the bus it makes car free a whole lot easier not have to worry about money.

Yep tool
pay it off every month.
rental cars are a big thing, won't take debit/credit cards.
Another good thing is you have all your reciepts in eletronic format.
What is that tax man you don't see all my college tutition?