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Comment by ljoshua | Hacker News Reader

Huh, that's weird. I fall into the age bracket mentioned in the article, but use a credit card for nearly every single purchase for 1) the fraud protection benefits and 2) points. With the anecdotal group of people I know most people are fine using CCs.

On the other hand, I pay off the statement in full every month, and therefore never have revolving debt that extends beyond 30 days. The article wasn't clear whether or not such credit would have counted in their analysis or not.

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At my bank, the fraud protection for any card with a VISA logo is identical whether it be debit or credit. Due to that, I never bothered with a credit card. I don't want the ability to spend money I don't have.

I did end up finally getting a credit card (in my mid-30s) not because I want one, but because I wanted a back-up card for when my debit card is out of commission for whatever reason. It's a constant struggle to remember to do transactions on it so it doesn't get closed for inactivity.

Here's the issue: you're paying for CC transactions anyway (cost gets passed on to consumer), so you might as well try to get some of it back (with reward points, etc.).

I've never understood the credit vs. debit aspect. I know my budget and can easily just not spend more than I can afford. Paying the balance is automatic, so the only difference between using one card or another is that one gives me an e.g. Amazon gift card every couple months.

Depending on your bank, you may be out the money that's in dispute until the dispute is completed. If your bank decides to spot you the money in dispute while things are figured out, you need to keep in mind that if the dispute isn't decided in your favor that loan will go away, and they will debit your account. If you were cutting things close, you'll end up in overdraft and the financial screwing begins in earnest.

My wife and I fit into that age bracket, and we also exclusively use credit cards for purchases anywhere we can. Just this morning, on a rarely used card, someone used the card and in about 10 minutes and a few purchases ran up to the limit. If this was a debit card, we would have been out the money in our checking account, and the onus would have been on us to recover that money. Instead, the fraudulent purchases were removed and a new card was issued - this took about 5 minutes, including looking for the card in question to find the number to call.

I've known both types of people in that age bracket.

Some feel underconfident with credit cards, and avoid them either for self-control or fear of fees and hidden surprises.

Many more have them and use them liberally, but won't carry a balance. It's like a debit card with fraud protection and cash back, which seems pretty popular at all ages.

This. The golden rule is to pay off your "Statement Balance" in full each month, thus accruing no interest month-to-month, but getting the added benefits of a credit card.

When I was young I racked up credit card debt and it was an expensive lesson. Now I use credit cards for everything but never carry an interest-bearing balance. The upside: never at risk with disputes, additional insurance/warranty coverage, free flights/hotels/etc using points, and up to 30-day deferred payment on all purchases.

Personally, I felt the article a bit silly. Especially when I reached the part quoting the PE-firm employee. I can't say that I know a single person who manages their money well that doesn't use credit cards.

IMO, strong financial acumen equates to using any available tools to maximize your output and utility. As long as you spend within your means and do not accrue any interest, credit cards literally give you free [insert rewards program here] for doing what you're already doing day to day.

That is the power & utility of a credit card.

but use a credit card for nearly every single purchase

I hope you never end up in divorce or any other sort of court, which will result in your credit card records (and pretty much everything else) being subpoenaed.

I have a credit card but use cash whenever possible. That way, transactions are more likely to be between me and one other party, rather than between me and many, many other parties.

Let me say in advance that I know the system is not perfect, that I know I'm hypocritical for having an iPhone, etc. etc., but I will still note that some level of privacy / anonymity is better than none.

This. It's really not that hard to do correctly. The fraud protections are much better, at least in my experience in the US, than using debit cards, you get the reward points, and you can "float" expenses over the course of the month, as long as you pay it off every statement - which is nice if you only get one paycheck a month.

That was my first thought - are they avoiding credit cards or credit card debt? - but later in the article it says:

"more recent data has also suggested that millennials are using credit cards less than people of a similar age did in the past"

Even that - are using credit cards less - is unclear to me. Are there fewer millennials with open cards, or are millennials spending fewer dollars via credit cards (and thereby avoiding debt)?

It was putting my last car's down payment on the credit card that got us enough points to get nearly free ($18 I think) first class tickets for airfare for vacation this year.

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