Some people work with cash and avoid CC’s for obvious reasons.

Trying to get our shit right I’m looking into a credit card JUST for household expenses or maybe just day care and pay it off at the end of the month.

As far as points go tho. I’m not up on that game but we are going to start traveling more so I want to get as many perks as possible.

Now that we are finally making a lil something I want to maximize our shit.

It has 1% points, basically every $10,000 you spend you get $100 back.

I put ALL normal bills, plus gas, groceries, and eating out on it when possible.

The I pay the entire balance as I go, like every few days I check and I transfer the balance from checking to it so there's never a balance owed.

I think in the past 5 years I have paid less than $10 in intrest.

But the good thing about using a credit card is : If you get scammed you have a very good chance of getting the money back. Debit cards certainly don't offer that.

There are cards that offer far greater rewards, but I'm using mine more for protection than rewards.

Some pages:
https://www.fool.com/the-ascent/credit-cards/best-rewards-credit-cards/

Example: Bank of America® Cash Rewards credit card

HIGHLIGHTS
*No annual fee
*$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
*Earn 3% cash back on gas or your choice of one of five other popular categories, 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases

Example: Blue Cash Preferred® Card from American Express

HIGHLIGHTS
*Earn a $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
*NEW 6% Cash Back on select U.S. streaming subscriptions.
*NEW 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more.
*6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 3% Cash Back at U.S. gas stations. 1% Cash Back on other purchases.
***$95 annual fee.

I used it for pretty much everything that I paid for all year other than mortgage and car payments. Paid the cable, electric, water and phone bills with it, paid car insurance with it, all food purchases, gas, clothes, etc. Paid it off at the end of each month. There’s no interest for the first year anyway though. I got like $750 back at the end of the year from their rewards categories. Money for doing nothing, lol.

too as well as the virtually all spending outside rent.

Only time I use cash is for the taco truck that doesn't take cards.

It seems like cashiers are shocked whenever folks pull cash out of their pockets lol

I use two Chase cards. Pay off each every month.

Chase Freedom has 5% cash back on rotating categories. This quarter, it's gas. Other times it's stuff like grocery stores, department stores.

Chase Sapphire Reserve. Big annual fee ($450). But the rewards make up for it. 3% back on restaurants and travel.
Airport lounge access (ballin!!)
Trip delay insurance (they paid for my hotel and food when my flight was cancelled).
They pay for TSA pre-check and global entry

Trying to change our approach to CC’s and how we operate financially so we can kill these debts faster.

and some of barbers even take Venmo now

i know in general these are not good. i have a target one that i paid off months ago. i got a letter the other day saying if i dont use it in a few months it will be closed. it didnt say how much time i have. should i keep this open or just let it close? i know if you aren't going to use them it helps to keep the cards open, does that apply for store ones too?

I don’t effe with store cards but since you can buy food, drank and house products you may want to make a few purchases a month to keep it open.

just to keep it open.

i feel like its a trap though lol. its so weird, i think the last time i went to target was to get my switch. before that i cant even remember. i used to go like monthly. i never really liked their food options, i would mostly go to avoid walmart. i gotta figure out what would make sense to buy.

I closed a Capital One card and my credit score dropped 42 points

>just to keep it open.



<=========================================
https://cdn0.vox-cdn.com/thumbor/PYzh4v9cSf4FDnq3yMQyqNqh79o=/800x0/filters:no_upscale%28%29/cdn0.vox-cdn.com/uploads/chorus_asset/file/4079674/jlio.0.gif

is seen as a negative

They need that swipe.

and the credit bureau doesn’t like when an account is closed.

credit bureaus don't care if you're swiping. they are more concerned with you debt to income. that affects your score.

I have 3-4 cards that I never use. used them prior, but they're all zero now. but my score reflects well with the available credit across those cards.

If it is inactive, they are losing money. They are spending money processing your account and by giving you credit access. So some will drop you if you are inactive for too long.

Your credit score will drop if you are dropped (or if you cancel the card yourself) because your available credit will go down and your number of accounts will go down. From a pure numbers standpoint, it will look like you are not as worthy of credit as you were before

the interest is normally hella high on store cards. if you're not using it, let it close. maybe you don't need it?

however, it will affect your credit negatively. so you may look into getting a major card before letting it close. btw, I've never heard of a major card trying to force you to use their card.

other option is to use it once a month for something small. pay it off monthly. that way you are still in good standing and not getting new credit.

i usually only use store cards for their interest free promos. 75% of the time i pay off the balance in time. i think i only need to make a purchase every 6 months or something. i guess ill call to find out. its the first card that has sent me such a letter. ive had other store cards with 0 balance open for years. maybe their just bluffing. the credit limit it on it is much higher than i remember so maybe theyre just trying to get me in on a big purchase. ill probably buy some toilet paper and call it a day lol

> the credit limit it
>on it is much higher than i remember

for this reason. it will have a big impact on your credit score
go buy a cereals or something (its target, right?)

the everyday card has 0 annual fee and offers pretty good cash back options
but the best thing about the amex (i think) is that they have the planit option- you can make large purchases (well over 100$ so not really large)
and then set up a plan to pay it off in e.g. 3, 6, 12, or 18 months
you pay a plan fee and fixed monthly payments but no interest in that time period - up to 10 different plans
its been pretty useful for managing certain purchases

--
im going to be traveling a lot internationally once i'm done with school and plan to upgrade to the platinum card
mainly for the lounge access, and i think the annual cost does pay for itself in benefits (global entry, airline fees etc)
still thinking it over, though.

if you have the discipline for it. I don't lol. tried it and just ended up with a large cc bill. and the points weren't worth much.

BUT, I do have an amex skymiles card. the annual fee is dumb. however, I get a free companion plane ticket when I buy one for myself.

my bad. this was supposed to be for the op.

>if you have the discipline for it. I don't lol. tried it and
>just ended up with a large cc bill. and the points weren't
>worth much.

i'm also looking at the sapphire card
which seems comparable in a lot of ways (and visa is more accepted on the continent than amex, tbh)
but....yea. still not sure. that annual fee is something.
i really want lounge access and the hotel benefits - since im going to be travelling a lot
but i need to figure out if this shit will pay for itself (im convincing myself by saying its like 45$ per month, lol)
going to decide in Jan - once i get a sense of just how much travel

1. hold on to your oldest card ...for dear life. age of credit history counts toward to your score (moreso than if you close more recent cards)

2. call your credit card companies and request an increase. your goal should be to have the maximum amount - even if you never plan to use it.

3. doing #2 will help with your debt-credit ratio. you don't have to pay off your cards every month... you do need to make sure your ratio is below 30%. if its higher than that- that should be your priority.
getting an increase is one of the easier ways of getting there (in tandem with lowering your overall debt)
(im in gradschool with no regular income (thanks useless ass hopkins) and its been a struggle sometimes and this immediately affects your score)

4. if you have a capital one credit card- they have a very useful credit core simulator that tells you impact on your score if you pay off (or add, i believe) certain amounts

5. you can maintain zero balances on your cards- its not a use-it lose-it type deal (in terms of your score- i don't know about store cards- last one i had was bestbuy in college and had to close that cause i was being foolish)

6. get mint.com -i cant recommend this enough. its a great way to keep all your finances in one place and has useful budgeting tools
i havent found anything better in the almost 10 yrs i've been using it

7. everyone advices pay the minimum, at least. yes. i say, pay the minimum when its due... plan to make an additional payment before the next statement period. that is if you cant just do it once.


add on....

#edit: avoiding CC's is the worst thing you can do. at least keep one card open. age of credit matters.

sell your data?

I've always been nervous about those 3rd party budget apps.

... i dont think they do, but how do you check these things?
they got recently bought by intuit/turbotax though

i will say it has been the best way for me to keep track of all my finances
i'd recommend it for anyone trying to consolidate their $ as well as get a bottom line on their net worth

Of course they are doing something with the data. For sure, they are targeting you with ads. But who knows what else

I still use it anyways

>2. call your credit card companies and request an increase.
>your goal should be to have the maximum amount - even if you
>never plan to use it.

Only do this if it will be a SOFT PULL or if you really want/need the additional credit. Calling up multiple credit card companies for credit line increases ("CLI") could result in multiple hard inquiries on your report, and it may not be worth it, especially if you plan on making a large purchase soon.

In my past experience, cards issued by Citi, Synchrony, Capital One, Discover and AmEx* don't result in a hard pull when I request a CLI. Chase Bank does, and that's why I haven't requested an increase with them in four years. Sometimes Barclays does, too.

The MyFico message boards are a good place for investigating this type of stuff.

*I have too many cards. ;-)

> for credit line increases ("CLI") could result
>in multiple hard inquiries on your report,

none of my cards result in any effect on my report.
weird that they'd do this tbh.

yes, beware.

I got railroaded hard in the recession by unscrupulous rates and fees and ended up getting my credit card discharged.
It took FOREVER for me to get a new job and get my money right and by the time I was back on a path of stability I was done done with credit cards
It wasn’t until I had some medical issue and credit was mentioned that I started to monitor my credit score and it was shit
Paying bills on time was fine. But I had zero credit available. Zero
So after researching I used the shopping cart trick to get a credit line from wayfair (whatever site recommend it) I think I got about $2000 off rip. From there my score went up and I got a capital one card for 5k.
And boom 7k of credit and minimal usage, my credit score jumped through the roof
Fast forward to just last year and while my credit score was doing just fine I noticed that it could be better. The dreaded need more credit popped up again in credit karma
But then I came across an article about lifetime value score. And how certain credit cards don’t look so great
Basically a capitol one card is like having an Altima for credit purposes
It’s not bad, just ubiquitous
So I made the leap to get an Amex card, more “prestige” and sure enough, between that and now more credit ... score went up again.
I barely use ether of them. Airlines, hotels, rental cars, pay off at the end of the month
Bank the points to the balance and it’s been solid
Recent ally Amex doubled my credit limit.
Odd I thought for a country about to hit a recession
So my 2008 brain kicked in. And I started to spend even less and payoff more (Amex I have a year of zero interest)
I didn’t want a company extending me credit, again, that I couldn’t pay off (recession) and I figure that’s the hustle. They give you more than you can handle to later hang you with.

We work strictly with cash but we have been carrying balances and it’s time to shut it down.

How can I be down

I basically use it as a debit card and pay off the balance in full every month. It's nice to have the miles. A lot of times I use miles for one way of a flight and pay out of pocket for the other half.

all the points it racks up

I haven't come out of pocket for a vacation flight in a while now

always keep spending to at least 30% less than the card's limit. anything over that threshold hurts your credit.
also, apply for a limit increase every so often, probably after 6 months. not to use necessarily, but it boosts your credit score.

my cards let me earn points with Delta (AmEx), American (MC), Amtrak (MC) and Marriott(AmEx)(previously Starwood which had better incentives).

I have 2 bank CC's. I don't ever use them and I keep a minuscule balance to auto-pay a couple utilities for a rental property that I'm not renting out. I got them as a student and the benefits are low, I don't want to cancel them and have them tucked with my passport for a just in case scenario.

Chopping it down quick fast.

I have the Discover IT card and they gave me an increase which helped my percentage.

>the benefits are low, I don't want to cancel them and have
>them tucked with my passport for a just in case scenario.

Some companies allow you to "upgrade" a credit line. Sometimes it's reported as a new account, sometimes it is not. And often, you don't have to suffer a hard pull on your credit report.

For example, I had a medicore Capital One Platinum card with no points or cash back benefits several years ago and I upgraded it to a Quicksilver ONE card. Then I upgraded it again to the regular Quicksilver Rewards. https://www.capitalone.com/credit-cards/quicksilver/

I'd like to get rid of all my CapOne cards one day but it's nice to have a better version of what I used to have in the meantime.

There are reports of simliar upgrades online. For example: One person on MyFico spoke of having their Chase Freedom Unlimited (FU) upgraded to a Chase Sapphire.

i suggest chase preferred
i would take a look at thepointsguy

paying off at the end of each month (after statement balance has been reported to the credit agencies)
is really important if you want to see score increases
i fucked up an paid it on the day it come out and $0 was reported
and dropped a couple points
won't be doing that again lol

My approach is to have a few cards with no annual fee, unlimited cash back as the perk, and cards that give higher percentages for specific types of purchases I frequently make. I've got 3 cards, and each one gives 3-4% cash back on either gas, groceries, restaurants, or travel expenses. That covers the majority of what I spend.

The alternative to cash back is cards that give you air miles, hotel points, etc. But you might end up spending more money to take advantage of those perks (e.g. taking an extra vacation you wouldn't otherwise take). I prefer cash back because it's always a net reduction to my bottom line.

Its great for building credit and if youre already spending that money, why not get some perks like miles or cash back? Credit cards don't have to be for buying stuff you can't afford.

>Its great for building credit and if youre already spending
>that money, why not get some perks like miles or cash back?
>Credit cards don't have to be for buying stuff you can't
>afford.

Credit should only be for business and/or purchasing investments. If you can’t afford to buy doodads then you should learn to do without. So you can still get perks or miles if you are using it for things that will bring income back in return to help pay for the credit you just used. Usually credit cards are used for things that you can’t afford though. It’s about time that we get smarter about spending choices and how credit is used. People need to learn to sacrifice the things that they want in life to build businesses and investments, so that they can have the capital to do whatever they want and need.

Just pay the full balance off every month. Not that big of a deal. Also I'm assuming youre classifying buying a home as an investment, and that you think no one should ever buy a car unless they can pay cash for it.

So buying your groceries or gas with the credit card and getting money back for doing so is a bad thing?

Credit cards give you money back and offer protection. Debit cards do neither.

Credit cards > debit cards whenever possible.

>So buying your groceries or gas with the credit card and
>getting money back for doing so is a bad thing?
>
>Credit cards give you money back and offer protection. Debit
>cards do neither.
>
>Credit cards > debit cards whenever possible.

This is the faulty logic that has people in mounds of debt. Getting more credit to pay off debt. If you can use cash to buy food and groceries regularly then something is wrong.

Paying cash when you can use a credit card and get cash back or discounted travel for doing nothing other than using the card instead of cash is dumb. You're throwing away free money. See how stupid building credit is when you try and get a loan for a house.

>Paying cash when you can use a credit card and get cash back
>or discounted travel for doing nothing other than using the
>card instead of cash is dumb. You're throwing away free money.
>See how stupid building credit is when you try and get a loan
>for a house.

The small amount of cash they give you is not worth the debt nor interest. Like I said if it is for business or investments then fine, but for regular everyday purchases then you need to budget your cash for that.

Word.

You balling

or lying

I get a great deal in doing so. I don’t have to worry about paying 2 to 3 times the cost of the house in interest. I also don’t want to spend a ton of money on a property. I stay in the hood and I can get a fixer upper if I choose. Pay my fellas to do the work and I saved a boatload of money in interest. That comes in handy for rentals.

I CAN buy food with cash/debit.

I choose to buy with credit because they give me money back, in effect making the purchase cheaper.

I just got $35 back from my CC for the last month....a month in which I literally made no purchases beyond basic necessities and paid bills with it.

I shouldn’t be surprised by anything at this point....but....

so why the hell...

Nah, forget it.

>so why the hell...
>
>Nah, forget it.

Unbeknownst to you I stated the right way to use a CC, but...

Nah, forget it

or who don’t know what they’re doing.

Anyone else would know better though.

Whether you have discipline or not... no what you doing or not credit cards or credit period should only be used for business or investments. Apparently that seems to be darn near everyone who gets credit cards that don’t know what to do with them. Sensible debt does not include paying for gas, food, etc.

If you know what you’re doing(which is not difficult at all), the points and bonuses are free money.

This is true, but the reality is that a vast majority don’t do this. They only pay a little bit because they can’t always afford to pay the balance off every month.

How many times do you have to be told this is about best credit cards for people who use credit cards the right way? The right way being using it for your every day purchases and paying the card in full every month?

Paying for groceries with cash instead of card isn't gonna get people in a position to buy a house in cash any sooner.

Get back to your Dave Ramsey book.

which stated that people use cash over CC’s. You can’t speak on this issue without looking at the entire situation. So since the majority of people can’t use CC’s properly then I will speak however I choose to.

There is no sensible reason to use CC’s for everyday purchases (doodad’s). Cash will always be the best way to pay for your day-to-day transactions.

The first sentence of this post is clearly stating there are obvious reasons to avoid credit cards because there most certainly wrong ways of using credit cards.

The first sentence is implying that the poster knows there are wrong ways to use credit cards, but that this isn't what this post is about. This post is about the RIGHT way to use credit cards, which there is a right way to use (using them for purchases you can afford and would have bought with cash regardless and paying your bill, in full, at the end of every month). The OG poster reiterated this here: https://board.okayplayer.com/okp.php?az=show_topic&forum=4&topic_id=13345646&mesg_id=13345646&page=#13347489

The first sentence is there to keep people such as yourself who want to preach "STAY AWAY FROM CREDIT CARDS!!!!" because the people in this post want to have a discussion about what credit cards to use because the assumption is the people in this post already know how to use credit cards the right way and are using them as such.

There is no sensible reason to not use cash-back credit cards for every day purchases (again, we've already established this is a discussion for people who use credit cards THE RIGHT WAY which I do not feel I have to define once again but since you obviously aren't getting it I will, the right way being using them for purchases you can afford and would have bought with cash regardless and paying your bill, in full, at the end of every month) because if you do not you are just leaving money on the table. You are literally losing money by paying with cash instead of getting 1-5% back. I've earned nearly $3,000 by using my credit card instead of paying in cash in the last 7.5 years.

He has the doodads

>He has the doodads

the right way to use CC’s is for business and investments. So the real issue is that you don’t agree with my way of using them, which is fine. So don’t act like I’m not understanding what the post is all about.

you are shaming folks for using credit cards and paying it all off and getting perks like cash back or points.

That doesn’t make sense.

>you are shaming folks for using credit cards and paying it
>all off and getting perks like cash back or points.
>
>That doesn’t make sense.


That is obvious that there are more than two ways. You can use credit cards for whatever you want. You asked for good ways to use them and I gave you a response. Problem is you appear not to accept my response. That’s not my issue though. My main concern about debt is that we get so caught up in the rat race and we over extend ourselves. People fail to budget, or stuck to it for that matter. You all need to get out of your feelings and look at what I said logically. If you think that I am shaming folks then yeah go with your gut. My stance on credit won’t change for anyone. Use your cash as much as you can, and your CC’s very little.

I've already cashed in/used ~$2000 in the last 7.5 years.

Never not paid a bill on time and in full (shoutout to auto-payments), never been charged interest.

But please, tell me all about how I'm using my credit cards wrong.

Also, I can ASSURE you that if I wanted to go to the ATM every time I went out to grocery shop, fill up my gas tank, etc there is more than enough money in my bank account to do so, but I'd rather not carry more than $50 or so in cash unless I absolutely have to.

How do you pay for car rentals and hotel stays with cash?

I’ve tried doing this with my debit card in the past, and got the kibosh. Most places ONLY want credit.

>How do you pay for car rentals and hotel stays with cash?
>
>I’ve tried doing this with my debit card in the past, and
>got the kibosh. Most places ONLY want credit.

but pay with cash when I check out (I prefer air bnb’s though). I don’t do car rentals. I will either drive my vehicle, or use taxi or Uber when I get to my destination.

5% on Amazon purchases and Whole Foods
2% on gas, restaurants and drugstores
1% on everything else

I have two older CC's with BofA with very low interest rates. Is it worth switching to say, the Cash Rewards cards which may have a higher rate or keep the current ones?

and he isn’t on the deed

Fuck that.. lol.

"Get ready....for your blessing....."
"Bury me by my Grand-Grand and when you can come follow me"

Going to use it for household bills and pay it off every month.

Reading his answer to if he paid cash for his house...

It reads like he would pay cash.. but hasn’t yet.

and I ain’t trying to stay in the hood. No shade but I didn’t go to school and work my ass off to raise my daughters in the hood.

I needed the laughs this afternoon. This one was a straight riot.