September 25, 2009
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Credit Card Ground Rules, Pt.2
Common sense reasons for learning:First, let's cover some of the great credit card benefits that we may be taking for granted until that catches up with us and we suffer for lack of proper care and feeding of them:
Emergencies: Hence the term, these suddenly appear when least expected and which we are least prepared for. These can involve medical needs, job-sustaining auto repairs of even emergency travel where we need accommodations and are short on cash. We can be turned away from necessary hospitalization or, at the very least, denied sufficient medical care. We could easily lose our jobs if we couldn’t get to work for too many days. Ever tried to book a hotel in a hurry located in a distant city without a credit card? Forget it. Without credit cards we’d be in a pickle.
In addition to the financial insurance we get with reservations (hotel, car rental, airlines, etc.), think about this. Not long ago, I was the person who took the call from an almost hysterical woman who had accidentally wrung up a credit check at a hotel for a family on vacation from far away. They had used a debit card instead of a credit card. When the clerk accidentally put the decimal in the wrong place, she suddenly realized but, alas, a little too late. That family’s bank account was suddenly drained. Thousands of miles away from home and they found themselves suddenly broke. At least until the processor could get around to fixing it. Typically, this can take from two weeks to two months. At the very best in case of emergencies, it still takes the better part of a week. Even that’s extremely lucky. Meanwhile, they have no cash to survive the trip back home. Forget about the vacation. That was a tough phone call.