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I that that is the disconnect. If you are using your debit card, then you have the money for whatever it is you are buying (in theory). So there is no reason that you could not use your credit card for that purchase, get the extra rewards and protection and pay for it as part of your credit card bill at the end of the month.
Not being snarky at all. This is a genuine question. If you DO carry a balance, is there still benefit to the awards? I assume these are cashback rewards. For example, if we put day care on our Discover card, which offers cash back (can't remember how much it is), do you still really come out ahead if you have a balance? Our interest rate is 10%. Still trying to pay off that stupid car repair! lol
For me, it's just laziness. I was doing the credit card thing for awhile. I'd pay off the balance at the end of the month. I was gaining mileage, or points. All was good. I'm very meticulous about recording my spending habits. I even designed an advanced spreadsheet to record and calculate monthly, quarterly, and annual income/expenses. I just got tired of divvying up my expenses between CC and debit. Very minor, but that's why I choose my check card.
For example, if we put day care on our Discover card, which offers cash back (can't remember how much it is), do you still really come out ahead if you have a balance? Our interest rate is 10%. Still trying to pay off that stupid car repair! lol
Depending on how long you will have the balance, sometimes its better to do a balance transfer if the balance transfer fee will be lower than the interest rate paid for the life of the balance. At least that's the way I try to calculate it.
How exactly do you know which card someone is using? My debit card looks so similar to my credit card, I have to double-check which one I've pulled out of my wallet before I slide it through the reader. And at a POS station it's not as though you'd hear anything that would tip you off.
Really, though, your concern about my finances (and everybody else who uses debit) is very sweet. So let me thank you and the other rabid credit card users for your concern by telling you what you apparently want to hear:
You're all brilliant money managers, and the rest of us poor slobs are stupid to pass up all of the wonderful benefits credit card companies provide!
Do you feel better now?
I've been painted as defensive earlier in this thread, and I'll cop to that, because I don't appreciate being portrayed as irresponsible and/or stupid.
My apparently poor money management skills have provided me with a retirement fund that is well on its way to seeing me sufficiently through my golden years, a very nice paid off house (at age 39) in a major metropolitan area, and ample college savings for my kids, with enough left over for our family to live very comfortably on a day-to-day basis. If that makes me irresponsible or stupid, so be it.
Not being snarky at all. This is a genuine question. If you DO carry a balance, is there still benefit to the awards? I assume these are cashback rewards. For example, if we put day care on our Discover card, which offers cash back (can't remember how much it is), do you still really come out ahead if you have a balance? Our interest rate is 10%. Still trying to pay off that stupid car repair! lol
Even if you carry a balance, you still have a grace period to pay off new charges before they start charging you interest on them. Yes, carrying a balance negates the value of credit card awards. However, that has nothing to do with using your credit card for day to day purchases that you would use your debit card for instead.
This is simply not true. As long as your card has a MasterCard or Visa logo on it, you have the same coverage. In addition, they are federal regulations that dictate that the bank must reimburse you for unauthorized charges. I suppose their may be some exposure (a day or two) before the bank gave you its provisional credit while it is investigating your claim. Other than that, it is no different.
Agreed. Any credit card 'hijinks' only apply if you carry a balance. Otherwise it is a 30 day free loan. Free loan. Think about that. Your money can be sitting in the bank earning interest while you take a free loan.
Yep.
Quote:
Originally Posted by mathjak107
earning interest??????
Granted rates are not that great right now, but when they are higher, one can come out ahead. A few years ago we bought a new TV when we moved. We could have just paid cash for it (in our case, charge it to a CC and then pay the bill). Instead, bought it on the store's card that was 15 months no interest - we put the cash in a 12 month CD; when it matured, we paid the bill in full and made enough off of the interest to pay our Netflix membership for a year (so it was like a free year of movies to watch on said TV).
Quote:
Originally Posted by carolinacool
The added rewards don't mean squat if you carry a balance.
True
Quote:
Originally Posted by carolinacool
I'm sorry if my check card use in the grocery store offends you.
I don't think anyone is "offended". It seems fairly well established in this thread that no one sees a problem with the method people use to pay for things - we're just discussing the pros and cons of the various methods.
Quote:
Originally Posted by sherrenee
I still have zero intentions of getting a credit card. I spend what I have and if I don't have it I do not spend it.
And if that is your decision - totally cool - it is what works for you. However, again, do not imply that all people who use CCs are spending money that they do not have. Many people use CCs very responsibly.
Quote:
Originally Posted by sherrenee
I don't give a rip about the rewards because more times than not they are not worth it.
Again - personal choice and all well and good. Some of us do make out well with rewards.
Quote:
Originally Posted by sherrenee
I worked in banking for 8 years I know first hand the games credit card companies and banks play. Heck you don't even need me to tell you that, just read the news.
I do not disagree - but for those who use CCs responsibly and do not carry a balance; we are largely immune from the hanky-panky.
My wife and I have decided to pretty much stop using our credit cards completely. I don't feel like giving BoA (or any other big banks) any more business. We've never carried balances month to month. I just find it's an extra hassle to make sure you get that payment in on time each month. We are just going to use our debit cards or pay cash.
I also think using a credit card tends to lead to more spending than strictly using a debit card. Not for all people, but some.
Not being snarky at all. This is a genuine question. If you DO carry a balance, is there still benefit to the awards? I assume these are cashback rewards. For example, if we put day care on our Discover card, which offers cash back (can't remember how much it is), do you still really come out ahead if you have a balance? Our interest rate is 10%. Still trying to pay off that stupid car repair! lol
Well, then, that is simple. Why carry a balance?
Use your credit card like a debit card and keep your money safe in the bank (or investment accounts) for the extra 30 days earning interest.
Why does everyone think that having a credit card means carrying a balance? I have had a credit card for 20 years and never even ONCE carried a balance, paid a fee, paid interest, paid *anything*.
Meanwhile, I have racked up THOUSANDS of dollars of cash back...in the last five years alone, it's been close to ten grand.
You want to leave that money on the table, that's your business. But you can see why I think it's foolish.
I don't think anyone is "offended". It seems fairly well established in this thread that no one sees a problem with the method people use to pay for things - we're just discussing the pros and cons of the various methods.
Offended wasn't the right word. But I do think one or two posters have insinuated that people who don't use credit for everything and pay it off have some financial flaws, whether real or perceived, or else they would be eager to reap the benefits.
And I agree with what someone has just posted. Most checkcards have a Visa or Mastercard logo. You have to be looking pretty closely at someone's card to see the words "check" or "debit" on it.
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