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Yes, I also pay it automatically every month and I am very happy about it. Obviously it's used more like a delayed debit card but it comes with all sort of protections and benefits that I am happy to use as well.
We've done this for years and years. I would have to really look around for my checkbook at this point in time. I never use my debit card for purchases.
I charge everything on credit and pay the balance in full each month. I make between $1K-$2K in rewards by doing this each year. Easy money if you are responsible with credit.
You never heard of someone getting their credit card stolen? Or their card being used to purchase something without their knowledge? Credit cards aren't foolproof.
"Credit card theft or credit fraud affects millions of Americans every year. The Identity Theft Resource Center estimates that more than 10.7 million people are affected by ID theft annually. No matter how careful you think you are about protecting your accounts and keeping your credit card out of harm’s way‚ thieves employ many methods to get a hold of credit information."
In fact, there are quite a few ways that thieves can get hold of your credit card. Here are some here: Steal cards
The simplest way for a criminal to get card data is to steal someone's card.
Offline account takeover
Breaking into mailboxes and stealing bank statements or other personal information can let a criminal conduct identity theft.
Hijacked terminals
A terminal can be hijacked by replacing the operating system with a compromised one
Data breaches
Capable hackers are able to crack the security on merchants and other card data holders, and access large volumes of card data.
Sure cash can be stolen (like everything else); however, it is the most liquid as well. People are smarter today about how and where they store their cash. If not, they'd better learn. Like I wrote before, when the SHTF you WILL need cash. Plastic won't be accepted....! Good Luck
Did I say credit cards were foolproof? Hardly. But I have protections if my credit card is stolen. If my cash is stolen, I'm SOL. And a person who knows I'm carrying/storing credit cards may be interested but know it's not as simple as if they know I have a big wad of cash to simply take. Cash is hardly foolproof either.
Personal information stolen? I've had plenty of personal information stolen from non-credit-card sources, thanks, so apparently not having one doesn't make a person immune.
My debit card use came to an end after having my account hacked years ago. Now I use cash for everyday purchases (gas, groceries, restaurants, coffee, pharmacy, car repairs etc.). The gas station near my house offers a $0.10 discount for cash. Smaller merchants prefer cash since they have to pay transaction fees for credit purchases. We all pay higher prices with the excessive credit card use these days so that reduces the cashback benefits that may be offered. I will even use cash at the larger stores (JCPenny, Target, Home Depot etc.).
With that said, I still do dabble in the credit card game. I have my electric, cable and car insurance automatically charged to a credit card each month. I would charge my other recurring bills if I could but it's either not an option or there's a fee. The airline and hotel reward cards do sound appealing but I've never applied for one. I will of course use a credit card to book a vacation and when I am on vacation since I have a small local bank with no branches beyond a 50 mile radius of my house. I guess I could bring a wad of cash but that would be risky especially while traveling.
An airline specific credit card makes the most sense for someone who travels on the same airline 3-5 times a year and likes to check bags. At that point, you get a lot more in savings in terms of early boarding and bag fee waivers than the annual fee costs.
If you're an airline free agent, cards that offer reward points that can be transferred to multiple airline and hotel programs (Chase Sapphire, certain American Express cards, Citi Premiere, Capitol One Venture) are often a better deal. The American Express Everyday is a nice starter card if you want to dip your toe into transferrable rewards points because it has no annual fee unlike the other transferrable reward points cards, gives 2x at grocery stores and provides access to the occasional good American Express promotional offers (example- spend $250 on the card at Hilton Garden Inns or Hampton Inns in the next four months, get a $50 statement credit rebate)
What is a good interval to use a card to keep it "active"?
I have several cards that I use once per year to keep them active. I wonder if that's the right interval.
Is there a certain frequency or % of credit limit they look for a customer to spend within a specific timeframe???
Just curious how that works.
Define "active". From being closed out? in order to keep certain benefits?
Your card issuer should be able to tell you how often you need to use your card to keep it from being closed out. I have a few cards that would send me reminders annually to use it to keep it active.
I have a credit card with my CU that I need to use every quarter in order to maintain a certain member status. So I just tie that card to a streaming service. The card never leaves the sock drawer.
DH and I have three credit cards for Costco, Macy’s, and then an AmEx that gives us favorable transfer rates to American Airlines. The Costco card gives us cash back and the Macy's card provides enhanced rewards. We pay off each bill every bill assuming there's a balance. Just about everything that isn't bought at Macy’s or Costco that we buy goes on the AmEx including utilities, car payments (when we have one), and the mortgage (when we had one).
We don’t have any debit cards and only ATM cards for the occasional money withdrawal. If a purchase is less than four dollars or so, then I will usually just pay with cash.
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