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Old 01-12-2015, 10:59 PM
 
2,303 posts, read 2,248,297 times
Reputation: 3832

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Quote:
Originally Posted by dd1153 View Post
I was on the strictly "cash" (debit) plan until a friend had told me I was leaving alot of money (miles) on the table. He convinced me to move toward a reward card and put my monthly expenses there, then pay off monthly. I've been doing this and wondering if its a good idea or if anyone else does this as well.

My main concern is spending more one credit than debit. Not like maxing out cards, but little things that add up over time we really don't need

On top of all this.. I was just charged $95 for an annual fee to keep the card. Thinking about cancelling after I got that charge , hence the reason for the post.

Any input appreciated
It doesn't sound like you're at the level that justifies an annual fee. The only cards I've ever signed up for with annual fees had pretty nice sign on bonuses (Chase Sapphire gave me $400 cash worth of points for example) and I cancelled the card before the fee was due.

The concept of getting points for your spending isn't a bad one. If you're worried about your spending though, just do it for your utilities. Those aren't going up just because you paid for them via credit card(exception being if there's a CC processing fee in which case you probably shouldn't).

If you can evaluate each purchase based on it's value and not spend money just because you feel like you have it, then you can go for it. Each person's different when it comes to that though. Some people are the financial equivalent of an alcoholic after AA and believe that using a CC will put them on the road right back to debt. Can't fault people like that for avoiding a CC, but that doesn't make it a bad tool for the rest of us either.
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Old 01-13-2015, 05:43 AM
 
8,132 posts, read 11,851,333 times
Reputation: 17641
Quote:
Originally Posted by jms493 View Post
I personally dont bother with points or miles or any of that stuff. I prefer to keep things as clean and as simple as possible.

If you told me i could make 20K off credit card points then I might be intrigued but usually people are talking about $500-$1000 a year....
Okay, how's this: Even at that level of earning points, if you saved them up for ten years, you could use them all at once and take a $20,000 trip for free. There you go; you just made $20k from cc points.
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Old 01-13-2015, 05:50 AM
 
8,132 posts, read 11,851,333 times
Reputation: 17641
Quote:
Originally Posted by Pitt Chick View Post
I would never use a card with an annual fee.
You are losing money right there....
Not necessarily. I have a Marriott Visa that has a fee, but among it's other benefits, it includes a free night in a Marriott each year that more than offsets the fee. Also, it helps to ensure that I maintain my Gold level status each year so that I get automatic room upgrades, access to the Concierge Lounge, and free breakfasts every day of each stay. I'm going to be staying at the Sydney Harbour Marriott at the end of next week and those amenities for that stay alone will save me beaucoup bucks.
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Old 01-13-2015, 05:51 AM
 
Location: NC
6,032 posts, read 7,528,222 times
Reputation: 6350
I have gotten as much as $2,000.00 free $$ in rewards card signup bonuses over the last 1.5 years. The key is to just plan a new reward card around major purchases and use that to meet the required spend amount.

I will usually cancel them before an annual fee kicks in and by them, I have redeemed my bonus points for gift cards, travel, etc...

Never leave a monthly balance fyi....

I do have one card I like and didn't mind paying an annual fee on because the card is fancy and the benefits are great. The card is made out of stainless steel, which is cool...
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Old 01-13-2015, 06:25 AM
 
1,618 posts, read 1,907,461 times
Reputation: 1747
I've never understood the notion that you will spend more money with a credit card then you will with a debit card. The only difference, regarding your checking balance, is with a CC it comes out once a month instead of every day. Can people really not mentally tally the debits (or even estimate) and deduct what they spend on a CC?

The benefits a CC offers over a debit card more then make it worth this cerebral challenge.

Last edited by clutchcargo777; 01-13-2015 at 06:38 AM..
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Old 01-13-2015, 07:02 AM
 
Location: southwestern PA
20,419 posts, read 37,470,794 times
Reputation: 39034
Quote:
Originally Posted by MadManofBethesda View Post
Not necessarily. I have a Marriott Visa that has a fee, but among it's other benefits, it includes a free night in a Marriott each year that more than offsets the fee. Also, it helps to ensure that I maintain my Gold level status each year so that I get automatic room upgrades, access to the Concierge Lounge, and free breakfasts every day of each stay. I'm going to be staying at the Sydney Harbour Marriott at the end of next week and those amenities for that stay alone will save me beaucoup bucks.
Okay... that's fine, for you.

I was talking to the OP who was just starting out.
I believe that HE is losing money by paying an annual fee.

And the sentence that *I* would never pay a fee still stands.

PS... I am also Gold, without the Visa and the fee.
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Old 01-13-2015, 11:39 AM
 
Location: Omaha, Nebraska
7,164 posts, read 4,086,181 times
Reputation: 17905
Quote:
Originally Posted by dd1153 View Post
I was on the strictly "cash" (debit) plan until a friend had told me I was leaving alot of money (miles) on the table. He convinced me to move toward a reward card and put my monthly expenses there, then pay off monthly. I've been doing this and wondering if its a good idea or if anyone else does this as well.
It's an excellent idea, and you're far from the only person doing this. The trick is to pick the right card for you. Since everyone has different spending and travel habits, it's tough to make blanket recommendations (although it's hard to go wrong with a 2% cash back card, especially if you want to keep tings simple).

Quote:
On top of all this.. I was just charged $95 for an annual fee to keep the card. Thinking about cancelling after I got that charge , hence the reason for the post.
You have to do the math and see if you're getting more than $95/year's worth of value from the card rewards. If yes, then the annual card fee is worth paying. If not, then it's time to switch cards.
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Old 01-13-2015, 11:44 AM
 
Location: Central Atlantic Region, though consults worldwide
266 posts, read 316,231 times
Reputation: 95
Quote:
Originally Posted by dd1153 View Post
I was on the strictly "cash" (debit) plan until a friend had told me I was leaving alot of money (miles) on the table. He convinced me to move toward a reward card and put my monthly expenses there, then pay off monthly. I've been doing this and wondering if its a good idea or if anyone else does this as well.

My main concern is spending more one credit than debit. Not like maxing out cards, but little things that add up over time we really don't need

On top of all this.. I was just charged $95 for an annual fee to keep the card. Thinking about cancelling after I got that charge , hence the reason for the post.

Any input appreciated
Everything in the known world is amolst completely backwards from behind the scenes, if you will.

Reward cards, hmm. A reward is a dangling carrot for the user while another awaitss to be rewarded. Be careful!
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Old 01-13-2015, 12:19 PM
 
Location: New Market, MD
2,091 posts, read 2,606,245 times
Reputation: 2619
I just use Citi double cash. It gives you 2% cash back on everything. I prefer to have flat rather that quarterly 5% which I can never remember.
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Old 01-13-2015, 12:29 PM
 
614 posts, read 1,044,610 times
Reputation: 706
Quote:
Originally Posted by dd1153 View Post
I was on the strictly "cash" (debit) plan until a friend had told me I was leaving alot of money (miles) on the table. He convinced me to move toward a reward card and put my monthly expenses there, then pay off monthly. I've been doing this and wondering if its a good idea or if anyone else does this as well.

My main concern is spending more one credit than debit. Not like maxing out cards, but little things that add up over time we really don't need

On top of all this.. I was just charged $95 for an annual fee to keep the card. Thinking about cancelling after I got that charge , hence the reason for the post.

Any input appreciated
All of my cc rewards cards have no annual fee. There are plenty out there so get one of those.
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