Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Are credit cards consistent with the philosophy of frugal living?
I find them wonderfully useful, provided you religiously pay the balance in full promptly every month.
I've had a card for more than five years. They haven't made a cent off me yet. I get a monthly accounting of all my grocery purchases and utility bills (1% cash back on both), so I can use my card statements to track those budget items.
I have a second card issued in connection with an oil company, so I get 3% cash back on gas purchases (almost ten cents a gallon). No annual fee on either of them.
The minute I get the invoice, I go on line and pay the full balance straight from my bank.
Location: Prescott Valley,az summer/east valley Az winter
2,061 posts, read 4,135,803 times
Reputation: 8190
I consider myself reasonably frugal~ and after 40+ years of having credit cards my total interest and annual charges on my credit cards have equalled zero. However I am currently about to recieve a $200 cashback bonus from one of my cards!
Are credit cards consistent with the philosophy of frugal living?
I find them wonderfully useful, provided you religiously pay the balance in full promptly every month.
I've had a card for more than five years. They haven't made a cent off me yet. I get a monthly accounting of all my grocery purchases and utility bills (1% cash back on both), so I can use my card statements to track those budget items.
I have a second card issued in connection with an oil company, so I get 3% cash back on gas purchases (almost ten cents a gallon). No annual fee on either of them.
The minute I get the invoice, I go on line and pay the full balance straight from my bank.
They actually have made money from you because they get a percentage of every purchase from the merchant.
I applaud your refusal to carry a balance. I pay the balance every month also. Credit card debt is stupidity.
I consider my credit card use "frugal" as well. It's a win-win for the credit card company, and for me. I get the cash back bonus (I accumulate close to $250/yr) while paying the balance in full every month. It allows me to track my spending very easily. On the other hand, my credit card company gets transaction fees every time I use it. So, they're making money off me too.
Everyone here is right on target. In addition, credit cards provide time in which you can dispute charges on defective purchases or make returns without one cent ever coming out of your account. Using a card and paying it off each month is essentially a 0% interest loan every single month and sometimes even better than that with cash back rewards. We'd be silly not to take it.
Everyone here is right on target. In addition, credit cards provide time in which you can dispute charges on defective purchases or make returns without one cent ever coming out of your account. Using a card and paying it off each month is essentially a 0% interest loan every single month and sometimes even better than that with cash back rewards. We'd be silly not to take it.
The CC companies are not making money OFF me. They are simply using me as an intermediary, enabling them to make money off the merchant. It is arguable that merchants might raise their prices to offset that, but if anybody uses a credit card there, then I am bound to that price whether I use a card or not.
The bottom line is that we get the benefits of the card free, and we are subsidized by the consumers that are carrying a balance, paying it late, and incurring other fees and penalties.
Fantastic that you are getting something back from the credit card and paying it off in full. The other important thing is you are building your credit. A friend of mine refused to get credit cards. When he went to go purchase a car, he couldn't get credit because he had no history. Go figure.
A friend of mine refused to get credit cards. When he went to go purchase a car, he couldn't get credit because he had no history. Go figure.
We bought an older truck at a dealership a couple of months ago. I paid for it with my credit card ($7000) and stopped at my bank on the way home to pay off that balance. I got my 1% reward on that purchase ($70). ha!
I have always always always been in the habit of paying my card off each month. I have a US Bank credit card and I am able to go into any US Bank branch and pay my bill at the teller window. I can use cash to pay and I get a receipt for my payment.
We bought an older truck at a dealership a couple of months ago. I paid for it with my credit card ($7000) and stopped at my bank on the way home to pay off that balance. I got my 1% reward on that purchase ($70). ha!
I have always always always been in the habit of paying my card off each month. I have a US Bank credit card and I am able to go into any US Bank branch and pay my bill at the teller window. I can use cash to pay and I get a receipt for my payment.
I get 1% back for purchases on my Discover Card, and 5% on certain things at different times. That's the reward program I like -- cold hard cash. I'm too busy and disorganized to deal with tracking miles, or making purchases with rewards points. I'd much rather have the cash.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
