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OP, I don't chase interest rates or CC deals or cash back, or open accounts just for sign-up bonuses. I have the cards I have. And I'm good.
I'm just all about convenience. I use my CCs for everything, and usually pay off everything at the end of the month. Sometimes I do. Sometimes I don't. And it's not the end of the world. I don't lose sleep over paying what I think is reasonable interest, if need be for a short period of time.
For example, IF it's a month with only regular daily expenses on it, I'll pay the entire thing off.
But also, over the course of a year, in March. April, and July -- I'll put my RE taxes, my homeowners insurance, umbrella policy premium and any semi-major car maintenance on the CC. Like, if I take the car in for an oil change, but it needs something else over say $500. Some of those things, like the umbrella policy premium, or anything under say $500, I'll just cash flow out of my pay check and pay that and the monthly expenses off (within the week) or certainly before the there's any interest on them.
I can't cashflow the RE taxes or homeowners out of ONE month's paycheck. But I can over three months. So I spread it out over three months. Could I take it out of savings? Yeah, I could. I don't want to, and choose not too. I don't like touching savings.
I guess I just accept that IF I pay a bit of interest I'm OK with that. Does it technically cost me money -- given that I could take the money out of savings and repay that (meaning myself) "for free?" Yes. But I'm not going sweat paying something off over three months.
Because of the way those higher ticket items are due (overlap)-- March, April and July -- I suppose I do run a balance, say maybe, six months out of the year. My interest rates are low enough, my cash back is good enough (which ameliorates some of the interest) -- that I'm OK with that.
Some people are so anti-interest that, IMO, it's fanatical. But that's them. It works for them. They're not paying interest, but I am. I can't get worked up about it.
So, OP you do what's good for you. If you like the convenience of having one or two cards get them -- and use them in a way that works for you.
To be honest I'm not sure how someone works in today's environment without a credit card. Just the amount of cash for every day incidentals is more than I'd want to have on me.
It's called a debit card, it's a great invention.
Quote:
Originally Posted by tnff
Beyond that is a lot of businesses expect credit cards to do business with them, esp travel related businesses. I've had a couple of friends that tried the all cash/no credit card lifestyle and had to give it up because too many places demanded a credit card rather than cash.
Again, a debit card can be used exactly like a credit card. Your friends either don't exist or they are very ignorant. Any card terminal will give you the option of "credit or debit" when you use your debit card. Any debit card with sufficient funds can be "pre-authorized for security deposit" for hotels and rental cars.
Quote:
Originally Posted by tnff
The worst case was a friend who took his family on vacation to a major tourist area. Both the hotel and rental car company demanded a major cash security deposit when he checked in and picked up the car because he didn't have a credit card.
Again, this friend either doesn't exist or is very ignorant. A debit card is cash. And when you run low on cash, as you claim your friend did on his vacation, you go to an ATM with your debit card to get more cash.
Furthermore, a credit card does not mean you have sufficient funds to cover a hotel or rental car expense, nor would a cash advance from a credit card be good for your finances.
I have both credit cards and debit cards, but I smell some BS from your story.
Again, a debit card can be used exactly like a credit card. Your friends either don't exist or they are very ignorant. Any card terminal will give you the option of "credit or debit" when you use your debit card. Any debit card with sufficient funds can be "pre-authorized for security deposit" for hotels and rental cars.
The ‘pre authorized for security deposit’ costs can be very high and can take a couple days to drop off after you end a rental. Would someone rather have a 1,000 security deposit blocking access to funds in your checking account or have that same hold be on a credit card with a 25K limit where you don’t even really notice it?
What I'm doing "works for me," but free stuff (especially cash) sounds good too!
Be careful. The CC companies use "rewards" to get you to spend more money. Even if you don't think you are doing so, your brain often makes small decisions largely outside your conscious awareness. I'm not saying you should not get a credit card, only that you should have some reason other than "rewards". For example, if you make a lot of otherwise less secure online purchases, or to use if a gas station won't take your debit card due to a technical glitch.
Again, a debit card can be used exactly like a credit card. Your friends either don't exist or they are very ignorant. Any card terminal will give you the option of "credit or debit" when you use your debit card. Any debit card with sufficient funds can be "pre-authorized for security deposit" for hotels and rental cars.
Again, this friend either doesn't exist or is very ignorant. A debit card is cash. And when you run low on cash, as you claim your friend did on his vacation, you go to an ATM with your debit card to get more cash.
Furthermore, a credit card does not mean you have sufficient funds to cover a hotel or rental car expense, nor would a cash advance from a credit card be good for your finances.
I have both credit cards and debit cards, but I smell some BS from your story.
But don't forget, the OP was asking about their credit score. Debit cards do nothing for your credit score.
The ‘pre authorized for security deposit’ costs can be very high and can take a couple days to drop off after you end a rental. Would someone rather have a 1,000 security deposit blocking access to funds in your checking account or have that same hold be on a credit card with a 25K limit where you don’t even really notice it?
1. That's not the point. The poster I responded to clearly doesn't know about debit cards when people say they "only use cash." He thought these people literally only carry cash everywhere, which makes zero sense, or these "cash only" people are very dense.
2. Unless you're staying at the Ritz Carlton or renting a Porsche, no company is going to put a $1,000 security deposit on your card.
3. If you have CCs with a $25K limit, why would you notice a $1000 security deposit hold just because it's in your checking?
4. Debit cards have fraud protection, fraud reporting, and transaction disputing.
Just because one has a preference for credit cards, doesn't mean they have to create lies or fake stories about debit cards. I use both and they both have their pros and cons.
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Originally Posted by ndcairngorm
But don't forget, the OP was asking about their credit score. Debit cards do nothing for your credit score.
OP, I don't chase interest rates or CC deals or cash back, or open accounts just for sign-up bonuses. I have the cards I have. And I'm good.
If you are responsible and want to work at it why not open accounts for sign up bonuses? Or chase deals? After a little learning it’s very easy to pickup a lot of value doing it. Not for you? Great. But telling others not to do it meh
If you are responsible and want to work at it why not open accounts for sign up bonuses? Or chase deals? After a little learning it’s very easy to pickup a lot of value doing it. Not for you? Great. But telling others not to do it meh
I certainly did not tell anyone to NOT chase rates or bonuses. Didn't even imply they shouldn't.
If people want to do that, fine. They'll make money doing it. More power to them. I guess they get a kick out of it. I don't. That's all.
I don’t agree they are watered down. The benefits list has been a growing one and it just depends on what’s useful to you or not
Perhaps. I find the benefits to be much weaker than they used to be. The coupon book is thick with it's uber credits, Saks credit, Walmart+ credit, etc, but that's not all that comparable to annual free domestic airline tickets, free companion flights, access to 1000s of coworking spaces, airline club partnerships (not just priority pass), and many of the other lifestyle and travel benefits.
Sometime in the early 2000's the card changed to attract the masses... which is fine, but it's just not what it used to be and I see it as a watered down coupon book that provides me, personally, less value than it used to.
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