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After paying it off, I just canceled my last bank credit card. My credit card debt has been slowly chipped away at and I’ve cancelled each of my cards as I’ve paid it off. When I called today to cancel the card, it was met with choruses of “don’t you need the credit card for emergencies?” by the customer service representative. Even if you have the best credit card, you don’t need it and here’s 10 reasons why:
1. I have $1000 put aside for emergencies. I used to use my credit cards for emergencies, but the funny thing is that my cards would reside at or near the maximum credit level, so I would only have $100 worth of credit to use for an emergency. That doesn’t even make sense. Having cash on hand makes sense.
2. I never want to be at the mercy of banks that will ding me for being literally an hour late making an online payment. The same is true for being at their mercy for interest rates, annual fees, a universal default clause, etc. Even with the new changes in the law, even the best credit cards can change their rates on your future balances.
3. Credit cards are not necessary for travel, online purchases, credit card protection coverage, renting a car, etc. any more. Bank debit cards with the Visa or MasterCard logo work the same as a credit card (I do need to have cash in the account to cover the hold and the charges, but with the ATM card linked to my emergency fund account, it works just fine.)
4. I enjoy being “weird.” Most people have several credit cards and a mountain of debt. Weird people (like me) have no credit cards and no credit card debt.
5. If I can’t pay in cash, I will either need to buy something that I can afford, save money until I have the cash to buy the item I want, or not buy anything. Therefore, I won’t end up in debt.