Does anyone live without a credit card? I only have one left to pay off and I am thinking of closing all the accounts I have left open. Is that a good idea? Does it affect things like renting a car? Your tips would be appreciated.

I don't know very much about credit ratings but I think that having few cards is good, but having no cards is bad. Also you might just want to keep one account open for "emergencies" and the like. You never know when you are going to need a tow truck or a last minute plane ticket. By the way, good for you for paying off your credit cards!

Congratulations on paying off your credit cards. I know how hard that is. I'm finally down to only $3000 on one card (this is after many years with several cards and several student loans). I have closed every account that I've paid off. I'm planning on keeping this one card even when it's paid off. I'm going to ask them to lower my limit to $2000 (it's currently at $14,500!) and I will pay it off completely every month.

You absolutely need a credit card if you want to rent a car. They won't take debit cards. And you never know when something unexpected will come up that you just don't have the cash for. As long as you promise yourself that you'll pay it off when the bill comes, then you'll never get yourself into trouble again.

Congratulations again!

I only recently got a credit card. Just the one, just for emergencies. But, I have always paid for car rental and hotels and the like with my visa check card; it's never been a problem.

xoe

It does affect renting a car and a hotel and other things like that. I saw (if you think you'd have the will power) just keep it for situations like that and emergencies. You could even keep it in your house if you want (or people on another message in the article board said they have frozen it in a bowl of water in the freezer).

***edited to add: many cards now have online payment features, so whenever you spend $ on them you can go online a pay it automatically, makes it bit less like a credit card and more like a debit card (if you actually do this). But, with some (maybe all) cards you can only make so many of these payments a month (like 5 or so)...

If you don't have money in savings, I would try to keep one for absolute emergencies when you have no cash. If you do, well, it's up to you. After paying them all off, my husband and I don't have any credit cards. I think two of the major car rental places do take debit cards/a cash deposit... We were able to rent a car for our honeymoon without one, I think from Budget.

The debit card companies are aware that people use their cards more and more like credit cards and are adjusting to allow for that. For example, your per-day cap on withdrawals is waived when it's car-rental places, plane tickets, or hotels doing the charging. I think that credit cards are probably easier to use in these situations, but if you don't trust yourself with one or would rather live without one, it can be done.

**and p.s. there are also many video rental places that will take a debit card or a check in lieu of a credit card. That hasn't been a problem for us either.

Why not close all but the one you have left to pay off, and once you pay it off, live as if you don't have one but keep it. That way you can still get a video rental card at the local blockbuster, just never use it. My theory with the credit card is it's just an easy way to use my money. I never buy anything I can't pay off immediately. If I can't afford it I'll just wait until I can. Usually anything I can't afford I don't really *need* that badly anyway :)
jt

we payed all ours off- i have a debit card, it's like a credit card with no interest rates- and you have to note in your checkbook when you soend money like your using a check. it's a tad less convienent but you can only spend what you have and keeps you from goign card happy. it's accepted everywhere a visa is accepted.

If you will not run it up again, it is a good idea to keep a credit card. Not only are things that require a credit card, such as renting a car or a hotel room, hard to do, but it also affects your credit rating. If you don't have any active credit cards, it makes it seem like you couldn't get any to a company checking your credit. And then there's the "emergency" thing, such as a visit to the emergency room or a car breakdown in the middle of nowhere that can cost more money than you have access to at the moment.

I have one that I pay off every month. I put large purchases on it so I get to hold on to my money for a few more weeks and earn a few more cents in interest. But if you find yourself letting a balance accumulate, it's better for your overall financial well-being to just cancel it and deal with the other consequences.

I have a Mastercard check card, which is just like a credit card except the purchases come out of your checking account, not out of your credit line. It totally rocks.

Definitely do keep one credit card for emergencies. Keep it as clean as possible. And *leave it home.*

--lynda