OK, a lot of credit card users here.
I have always had credit cards and have always paid them off. It's not about "having a spending problem…." but….
I'm reading that a study shows that people spend 12% - 18% more using credit than cash.
On the debit card safety issue, I was going to cancel my debit card, but my bank has said that when you use a debit card "like a cc" then the protections are the same as a credit card. I do get nervous about having the account drained. On the other hand, I don't park large #s of dollars in my checking account either. We have other accounts for safe-keeping.
About credit score, I wonder. I currently have some stupid cards I should close, never used, just got sucked into promotions -- Best Buy, Toys R Us. I have some cards that offer rewards and coupons -- department stores, Target. And we have a couple cash-back or rewards cards. One for my personal, one for my husband's personal and one for my "hobby" business.
I think I could say goodbye to ALL the store cards and be perfectly happy. I would miss some coupons. I would miss 5% cash back at Target. I would probably shop at all those stores even less -- like maybe, almost never. I could cancel them, or just "put them away" and not use them and get more creative about shopping second hand for most of our purchases.
For credit score, We are old and established. We have a mortgage, we would probably hold on to one card at a minimum. I might like to get a small loan for investment real estate in the future. We want to buy future cars with cash. Our net worth statement should be decent for qualifying for a loan with a smart banker.
Is the 5% at target, a rare 20% at Macy's and a few 30%s a year at Kohls a big deal? Worth it?
Mostly I was thinking about the discipline of using cash again. Managing the cash and keeping tabs on the balances in Mint. It would make me a more conservative spender, and probably skinny up some of our spending on little frivolities and "wants".