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I try to use my credit card to pay for everything. Anyone else?

Discussion in 'Lounge' started by Superself, Mar 28, 2008.

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  1. Superself

    Superself Season Ticket Holder

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    Due to the cash back rewards and no annual fees, I just see it as a win win situation.
    It also helps to establish and maintain an active and healthy credit history.

    I charge car insurance, utilities, cell phone, internet, magazine subscriptions, etc. all to my credit cards.

    Make sure you have a credit card which has no annual fee and pay off your balance in full every month.

    I use AMEX true earnings through costco.
     
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  2. Desides

    Desides Well-Known Member

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    Overusing your credit card actually hurts your ability to earn credit, since it gives the appearance that you're too free with your spending. IMO, a credit card should only be used to pay for food and gas, and occasionally a luxury item like a TV set or a new chair.

    Of course, carbuyingtips.com has made me paranoid about my credit.
     
  3. Superself

    Superself Season Ticket Holder

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    Well I pay off my balance in full every month. IMO, CCs are not a way to buy things you can't afford, they are a tool to make using the money you have easier to spend in certain circumstances.
     
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  4. byroan

    byroan Giggity Staff Member Administrator Luxury Box

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    I know a few people who do that. I haven't gotten around to it yet, it's something I've considered though.
     
  5. Den54

    Den54 Season Ticket Holder Club Member

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    I do the exact same thing SS. I would never use a debit card.
     
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  6. texasPHINSfan

    texasPHINSfan New Member

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    that's actually incorrect, and a common misconception. carrying high revolving balances will do that, but simply usage alone does not. what the OP said is perfectly fine as long as one has the discipline to pay them off every month. :up:

    In fact doing what the OP said will improve your credit standing, it shows you know how to effectively manage money. Added bonuses are earning rewards points, and protection of monies from fraud (something you won't get with using Debit cards)
     
  7. finswin56

    finswin56 Get a mop

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    Great thread SS. I was thinking about this exact thing earlier today.
    I was going to start a thread to see if anyone knows what are the best cards to use for this. Right now I just use a card with UPromise, but it sucks. (Take note young men. Never let your wife make financially based decisions without consultation ;) )
     
  8. finswin56

    finswin56 Get a mop

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    Exactly.
    I'm not sure about the last part though. I'm pretty sure that I've had BoA (or Visa, can't remember) contact me when someone stole my numbers and started charging things in another state. It was like a commercial, I didn't have to do or deal with anything other than that phone call.
     
  9. unluckyluciano

    unluckyluciano For My Hero JetsSuck

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    Why because she is a woman? SEXIST!
     
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  10. texasPHINSfan

    texasPHINSfan New Member

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    well no one said it wouldn't be a pain in the ***. :D

    bottom line - if false charges occur on your credit card, it is far easier to get them wiped out there than it is to go through your bank and try to recover actual bank account funds. :up:
     
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  11. texasPHINSfan

    texasPHINSfan New Member

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    American Express ONE is a good card (assuming you follow the OP's advice and pay off every month). Instead of earning "reward points" to be redeemed on certain things at certain times, they take your spending and put 1% of qualified purchases as CASH into a money market account... where it earns interest. :up:

    This way, you earn cold hard cash for your normal spending, are you aren't subject to blackouts or restrictions.
     
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  12. Superself

    Superself Season Ticket Holder

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    That sounds like a great deal.

    AMEX true earnings gives 3% back for gas, 3% for restuarants, 2% for travel and 1% back for everything else.
    With today's fuel prices, every cent back counts IMO. :)
     
  13. texasPHINSfan

    texasPHINSfan New Member

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    :up:

    AMEX cards typically have (overall) the best rewards attached to them... the downsides are they charge vendors more, ergo a lot of businesses won't accept them. I've found about 80% of the places i patronize accept AMEX cards, as well as gas stations, so i rock my AMEX most of the time. :)
     
  14. Boik14

    Boik14 Admin Club Member

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    I typically believe you do just the opposite and pay everything in cash except electronics food and gas. I dont like the idea of having to pay a large lump sum at the end of a billing period and would rather stagger it across the given time frame. I try and force myself to stay below a budget so I have money left over at months end to put towards soemthing I really want like a vacation or just to stash away.

    As far as credit cards go, I have had a great experience with Discover, as they are very consumer friendly. They give you 1% cash back on some stuff, 2 or 5% on other stuff. Cash back is the best reward from where I sit.

    I wont do Amex because I wont pay an annual fee to have a card. They should be paying me to carry their card.
     
  15. Superself

    Superself Season Ticket Holder

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  16. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    It has already been mentioned, but "over-using" your credit carg is a myth.
    As long as you pay it off every month, it does NOT affect your credit.
    I will tell the extent that we use our card. We just purchased a new vehicle and had 6000 saved as a down payment. We put the entire 6000 on the old Discover card, then just transfer the money ;-]
    What does that mean to us? Several free meals at Red-Lobster, Chili's or Olive Garden
     
  17. Boik14

    Boik14 Admin Club Member

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    also regarding the fact that carrying a high monthly balance does not lower your credit score...indirectly it does.

    One of the things looked at when securing any kind of loan is the percentage of available capital on your credit cards. Someone who uses a great percentage of their available Credit Card balance is a greater risk then someone who uses a lower percentage monthly. Soeone who uses the card for everything is more likely to fall behind on payments in instances where extenuating circumstances occur like layoffs etc. By showing lower monthly balances you leave less risk that you could get caught paying off two high interest loans at one time. In my house searching expedition this is something I have been told over and over again. Ive seen and heard the rates my friends got and the ones I am being offered are better because Ive never been late and rarely use credit cards except for the stuff I mentioned. Ideally you want to use the cards to establish credit and show you can pay it off monthly on time.

    Case in point was also when I went for a car. I was done in about 5 minutes and had secured a 0% interest rate which Toyota claimed they never gave with 0 down payment. And at the time I was coming off a stretch where I had been unemployed for about a year.
     
  18. Superself

    Superself Season Ticket Holder

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    Well there are a few AMEX cards without annual fees. Mine (AMEX true earnings) does not have one.
     
  19. Boik14

    Boik14 Admin Club Member

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    Ok, you caught me. I just for some reason really never liked them :tongue2:
     
  20. texasPHINSfan

    texasPHINSfan New Member

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    your entire argument is based off assuming the consumer has no discipline. If you DO have discipline and can maintain your budget, everything you just said goes out the window :up:
     
  21. brandon27

    brandon27 Season Ticket Holder Club Member

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    thats exactly right. I do the exact same thing, anything i can charge i do, but that is the key... making sure to pay off your balance every month. No need to spend money that you dont have just because you can charge it to a credit card and pay it later. The added bonus to this is if you collect airmiles, or any sort of reward points. they add up quickly that way. might as well get some free stuff for everything youd normally be paying for anyways :up:
     
  22. NJFINSFAN1

    NJFINSFAN1 Premium Member Luxury Box

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    I wish I could payoff my balance, on all 3 of them.
     
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  23. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    Maybe if you got off the internet and went for a job interview, you could Greg
     
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  24. NJFINSFAN1

    NJFINSFAN1 Premium Member Luxury Box

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    [​IMG]

    He, I told my wife to get a second job!
     
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  25. Den54

    Den54 Season Ticket Holder Club Member

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    2nd? Tell her to get a third.
    Last time I checked there was 3 eight hour shifts in a day.
     
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  26. Boik14

    Boik14 Admin Club Member

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    Thing is its not my argument. Its seems to be pretty standard. Its not about discipline, its about the capital you have available to you to pay off any significant debt. Someone who max's out their cards is not getting the same rate for loans as someone who only uses say half or a third of whats available to them. Youre expected to pay them off on time and thats where your credit score could take a big hit, but part of that credit score also seems to be determined by your equity. :up:
     
  27. azfinfanmang

    azfinfanmang Premium Member Luxury Box

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    Who's talking about maxing them out?
    I put EVERYTHING on my card, but manage to live within my means. Average is MAYBE 20% of card-max
    I do know my credit rating hasn't dipped below 800 for some time now ;-/
     
  28. unifiedtheory

    unifiedtheory Sub Pending Luxury Box

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    I use my credit card exclusively for buying online (concert tix etc.). In fact I don't even keep it in my wallet. It is too tempting. If I can't afford it I have to save or I don't buy it.
     
  29. Den54

    Den54 Season Ticket Holder Club Member

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    That's excellent Kenny.
    I take it a step further by living below my means.
     

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