Is it necessary to have credit cards or a Paypal account?

[ManaMinori 4,145]

Can someone not have either? Are there benefits to having these over simply paying with cash? (aside from not being able to purchase things you might want online) What are the drawbacks? Do they outweigh the benefits of having credit cards/ Paypal or not?

[Ziggy + Angel + Rain 11,303]

I don't use a Paypal account.  I don't have - nor have I ever had - a credit card; though I pay for things online by debit.  Paper money can be stolen, of course, but there's always at least some risk (however small to you personally) of your card / card number being stolen and used by someone else.  There's also the chance that you could be charged erroneously; that doesn't really happen with paper money unless, for example, you aren't paying attention when the cashier scans the same item more than they'd ought to and pay the resulting price.  You get a receipt when you pay with either cash or card, but I believe you can peruse records of your expenditures online should you use a card.

 

Oh, and card is preferable when you don't physically handle paper money in public environments.  That applies specifically to me, though.

[Jackie Snack 1,498]

It ideally financial responsible to NOT have a credit card, if you can handle only cash/debit, but many places (realtors, phone companies, so on) that practically require you to have it. When I was choosing cell carriers, before I established credit, AT&T wanted to charge me a $500 down payment, in addition to the phone and plan costs. However, Verizon did not require this. (You can imagine who I went with.)

 

At the same time, you take a hit to your credit score if you open a card and never use it. Its a stupid vicious cycle. On the other hand, it's good to have in case shit happens and you run out of cash for any reason.

 

As for paypal, I only ever use that when commissioning artists. Its technically considered an alternate form of payment, but not preferred by most companies.

Edited May 21, 2015 by x0jackie0x

[Mesme Rize 15,686]

If i didn't had a paypal account, i wouldn't have my beautiful new Avatar. So i am very happy about my paypal account, because that way, i can order my stuff from Amazon or Ebay and i am also able to donate some money to this Forum.

[D1SC0RD 987]

pay pal is super easy. if you have a debit card that has a "VISA" logo on it, you can use your debit card to make purchases online. you just fill out your card number in the VISA section when you make your pay pal account and it will use the funds from your bank account.

 

credit cards are dangerous but im getting one when i turn 19 for the sake of building credit, which will be necessary when you need to apply for things that require a credit check (like when you sign up for a phone account as already mentioned). the safest way to use a credit card is to buy things with it ONLY WHEN you have the cash to pay for it. and then after you make a purchase with your credit card, immediately go pay it off.

[ManaMinori 4,145]

I don't use a Paypal account.  I don't have - nor have I ever had - a credit card; though I pay for things online by debit.  Paper money can be stolen, of course, but there's always at least some risk (however small to you personally) of your card / card number being stolen and used by someone else.  There's also the chance that you could be charged erroneously; that doesn't really happen with paper money unless, for example, you aren't paying attention when the cashier scans the same item more than they'd ought to and pay the resulting price.  You get a receipt when you pay with either cash or card, but I believe you can peruse records of your expenditures online should you use a card.

 

Oh, and card is preferable when you don't physically handle paper money in public environments.  That applies specifically to me, though.

I'm actually more worried about the card number being stolen, since you hear about it often.

[Jackie Snack 1,498]

I'm actually more worried about the card number being stolen, since you hear about it often.

 

It's freaky, but that happens to both credit and debit. Last year, I unwittingly had my card cloned at a safeway gas station and ended up finding myself with negative 500 bucks in my account. I had 2000 in it the previous day. In that situation, it's always preferable to pay inside and not at the pump.

 

Banks will give you the money back, usually. Just keep track of your transactions.

[Ziggy + Angel + Rain 11,303]

I'm actually more worried about the card number being stolen, since you hear about it often.

I only use our debit online - and only at reputable vendors.  I do almost all of my online shopping at Amazon.

[Guest]

Having and using a credit cards builds your credit rating (assuming you pay your bill on time), making it easier to get loans, good phone plan deals, etc. Having a paypal account and an associated credit card allows you to easily and securely pay for things online. Chances are, if a site uses paypal, they are security conscious and you are therefore less likely to have your cc info stolen.

 

All of my transactions are charged to my credit card and then paid off on payday in order to build good credit. I only use cash for paying rent, or paying back a loan.

Edited May 22, 2015 by Guest

[Lost 1,410]

I have Paypal, i use it for just about every online purchase i make, its safer than giving out card information to people, i have had it hacked before and $300 stolen :/

 

I also have a debit card for my bank, which i use for all purchases in public areas, i prefer to only carry a small amount of cash on me for emergencies, i also have a credit card that ive used once, only to get my credit rating up.

 

I would say that generally its safer to walk around using bank cards, however if someone were to get the pin numbers and gain access to your account they would get away with much more money than if you were to be mugged and have your cash on hand stolen.

[Untitled Goose Q 5,137]

It's not essential, but it sure is very useful.

[Cloud Strife 928]

I'm actually more worried about the card number being stolen, since you hear about it often.

 

The thing with having your credit card number stolen is that you can report it into your bank and they can close your account without you losing any money, since essentially when you're paying for things using your credit card you aren't actually using your money, but the bank's. (Basically, you borrow from them and then pay them back later using your savings/checking.)

 

If you get your paper money or debit card stolen, in the latter case you can still close the account but any money you've lost is gone for good and you won't be able to get it back. That's why people prefer using credit cards or paypal, because in the case that your money gets stolen you have a back-up plan that prevents you from losing any at all. (Plus it allows you to purchase things while not having the appropriate amount of money at hand, so you have time to make that amount of money later to pay your bank back.)

 

The advantage, therefore, is more security, plus the already mentioned benefit of certain businesses only accepting credit cards. The disadvantage to having a credit card is that you will always have to pay them back, which for some people can be an added worry, especially if you spend more than you can actually earn. You don't need to have a credit card for most cases, though; a debit card does actually work for purchasing things online and is applicable in most businesses, and even in the cases that a business doesn't accept a debit card, cash or cheque work. Also, if you're unreliable about paying the bank back, your credit score goes down and you're applicable to borrow less money from them, which in turn makes less businesses want to work with you.

Edited May 22, 2015 by Luigi

[Midnight Solace 5,132]

I guess having a credit card or a Paypal account is necessary for buying things online.

[Kyoshi Frost Wolf 41,732]

Credit cards seem like such a risky thing, with the looming concept of possible debt but that entirely depends on the person. I do like having a debit card though, that is near essential for me. It is really convenient to have the money on there but more importantly is is obviously great for quick and easy online purchases or bill pay. Paypal can be the same sort of thing, with many options how the money is used on there. Might not be essential for some, but at least one of those seems quite important.

[RDDash 19,203]

Well you probably could survive on cash and debit cards alone, PayPal just makes it easier for you to pay for your entertainment.

[CypherHoof 26,483]

I don't have a credit card - but I do have paypal, because they charge much, much less for currency conversion than my bank do.

[Phosphor 11,532]

Credit cards can be a good way to establish credit, but fiscal responsibility is a must. Paypal and credit cards are also convenient for online purchases and have protections that debit cards might not have.

It's definitely possible to avoid them and use cash only. It's much easier to get a lower price on something with cash, especially at an antiques store or yard sale. Plus, there's a lack of paper trail with cash purchases. Another key benefit to having cash on hand is during a natural disaster. Without electricity, that plastic card is as worthless as the crumbled newspaper in the trashcan.

[Dreambiscuit 10,094]

If you want to buy online, credit cards and/or Paypal are necessary. Otherwise, you can get along without them and people have been doing so for years. It's good to have a credit card to build up a credit rating, which can be useful later on, and the risks of someone stealing your card number are no worse than someone stealing your cash. Everything has a risk factor, but at least credit cards give some level of protection. If someone steals your card or makes an unauthorized purchase it can be fixed with a simple phone call in most cases. 

[Cash In 22,502]

I don't have either, since cash has been doing me fine for ages. If I do need to use them to make a purchase, I'll ask someone I know.

Edited May 26, 2020 by Kaibah

[Here No Longer 5,276]

I have neither, but when I have money I'm thinking of getting a PayPal account.

 

As for credit cards, I'll avoid those because I don't want to risk the potential issues with credit.

[Peppermint Larry 203]

I don't have either, but I do have a debit card. It's way more convenient than cash, because it's easier for me to physically carry around without forgetting, I can buy things online with it, and I have set up my bills to be auto-paid so I'm not forgetting and raking up late fees.

My particular bank doesn't charge for the account so long as I'm putting so much money in monthly in direct deposits- which is also a plus, especially if you work wonky hours. This way, you wouldn't have to wait to cash your checks on top of paying a fee.

I'd say it's possible to not have any bank accounts whatsoever, and to just live off cash, but that would mean you'd have to go through the process of cashing the check, and physically driving out to whoever your bills go to every time they're due. I'm not entirely sure if that's possible when paying for utilities, though.

[Lucky Bolt 35,085]

I don't really know....in some situations having a debit card/PayPal comes in handy, and I tend to use my debit card as a means of payment way more often than I do cash, so....

[Cyclone 1066 3,621]

I wish I could go back to cash honestly.

[Rainbow Cloud 18,309]

Credit cards and Paypal depends mostly if you want to purchase stuff online but can be avoided, think debit cards are necessary though even if you use cash for offline purchases.

I don't have a credit card but I do have a debit card and paypal account. The paypal account is necessary for buying and selling stuff on ebay but I rarely use my debit card other than for withdrawing cash from the cash machine, I still prefer to use cash as my primary method of payment offline.

[maricaripan 6]

I use it for purchasing online content, ordering from reputable online shops, and recieving money from online friends. Just as long as you keep it safe, then it’s a good thing to use. I always rely on buying gift cards instead if I wanted to avoid directly using money from the bank.