What's everyone's thoughts on credit cards?

"E90M3" (e90m3) 12/19/2019 at 14:38 • Filed to: None

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Curious to know what everyone’s thoughts are. Credit cards seem to be a divisive subject, and I really haven’t heard opinion besides they’re great or they’re the devil.

Personally, I use a credit card for everything besides rent, and when I had it, car payment. I pay it off every month, so I’m not carrying a balance . Personally, I don’t understand why everyone doesn’t use credit cards for everything. To me, if you say you’re afraid of credit cards what I hear is “I have no self-control when it comes to spending.” I have two cards, a Bank of American cash back card and an American Express Delta card. I even got $1350 back earlier this year on my BOA card, which went towards paying off my 328i. They literally gave me money for spending my money. I’ve also got a good amount of skymiles that’ll help pay for a trip to Europe next year.

Money wasn’t something my parents really ever talked about, but I know they use their credit cards for everything as well. They’re also not carrying a balance. I think my dad said something along the lines of “you get a bill and you pay it” with regards to credit cards when I was younger, as if it was that simple. So I pretty parrot them on that. My dad is also thinking about a second BMW for himself, because the apple never falls to far from the tree.

So, what’s everyone’s thoughts on credit cards? 

MUSASHI66 > E90M3 12/19/2019 at 14:42

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Points, miles, cash back, purchase protection, and I never paid a cent in interest in my 19 years in states. What’s not to like? 

functionoverfashion > E90M3 12/19/2019 at 14:44

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I have a few, and I use them for 98% of my purchases - from coffee to utility bills - then pay off the balance in full before the due date every month. I get miles so I can fly places for free (or discounted), I get dividends with REI, I get free shipping and returns with LL Bean.

Building up debt on a credit card is a quick path to financial ruin, if not managed fairly aggressively.

Those are my thoughts.

CB > E90M3 12/19/2019 at 14:44

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I’m in a similar boat. I pay off my card in full and only buy things I can afford. I also only have one credit card, the basic cash back card from my bank. I don’t spend enough to justify a higher cash back card with an annual fee.

MonkeePuzzle > E90M3 12/19/2019 at 14:50

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please include date and security code

CompactLuxuryFan > E90M3 12/19/2019 at 14:50

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Yeah I use ‘em as much as possible. In fact, I almost never, ever use my debit card unless I’m at an ATM getting cash.

A s much as I would like to, I think being able to pay rent or a car loan with a credit card is really rare? Would simplify my life as well as get me some serious points but oh well.

I have a bunch of credit cards and use like 6 of them all the time so it can be a bit of a handful to keep track. Hoping to simplify down to 2 next year. I’m just a sucker for a good signup bonus.

Arrivederci > E90M3 12/19/2019 at 14:50

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My wife and I use one for all our spending and pay it in full every month . The only things out of the checking account are:
+ Mortgage
+ Her car payment
+ Utility bills

Everything else, credit card: daycare, car insurance, anything else. We get something like four or five free plane tickets per year on the points we accumulate.

slipperysallylikespenguins > E90M3 12/19/2019 at 14:52

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I had a coworker a few years ago who had to use his credit card for work expenses constantly. He racked up 650,000 miles in 3 years and got nearly perfect credit. I got a rewards card shortly after that.

3point8isgreat > E90M3 12/19/2019 at 14:54

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I use mine for everything I can, and pay it off in full.

The idea of NOT paying them off in full was so foreign to me that w hen I first got a credit card I don’t think I fully even understood how one would accumulate interest on one. I thought that if I didn’t pay it in full that I’d get charged tons of late fees and  instantly tank my credit score with a missed payment , making the interest more of a continuous late payment fee than a purposeful tool.

Milky > E90M3 12/19/2019 at 14:59

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I’ll be that guy in here I guess ... I dont have one.

My parents struggled with debt when I was young and I have a lot of student loan debt. That being said, I’ve been a functioning adult now for several years and have been thinking about one.  Like you and many others have said, if you’re smart about it, it pays to have one.  

Jake - Has Bad Luck So You Don't Have To > E90M3 12/19/2019 at 14:59

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I use mine as much as humanely possible and pay it off every week.

Mercedes Streeter > E90M3 12/19/2019 at 15:01

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With so many things in life, it’s not always black and white. I’d say they can be a lot of good, they can also be bad. It just largely depends on you and your situation.

Good: If you have the self control, it’s a fantastic way to build credit and you’ll even get some cool perks. And in a worst case scenario, it could be used like a short term loan without the horror that is an actual short term loan.

Bad: If you’re someone who regularly runs into money troubles, then a credit card is the worst thing you can do. At least, until you figure out why you’re running into money troubles and fix them.

Ugly: Many people who do have credit cards really shouldn’t.

farscythe - makin da cawfee! > E90M3 12/19/2019 at 15:01

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ive never had a credit card... and no plans on getting one

tho ill admit having one would have been handy at the start of this schoolyear... as i found myself having to cough up $900 for a laptop...turns out art college requires a pretty beefy machine.... had to take a little loan out for it...still kind of annoyed about that...first time ive been in debt (then a couple months later the gubment smacked me with a 7 grand bill for a true taste of being in debt...but thats been resolved now...thank fuck)

wpudvah: GTI, Super Beetle, now with more 80-Series > E90M3 12/19/2019 at 15:02

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I carry two cards - one for miles (Delta, Visa) and the other for cash back (Apple Card, Mastercard). Always pay off full balance every month. Simple as that!

AestheticsInMotion > E90M3 12/19/2019 at 15:02

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Use em for absolutely everything, and reap the rewards. My trip to Asia was funded almost solely on rewards points. Thousands of dollars, given to me for free? Yes please. Caveat being credit cards are terrible if you ever hold a balance, as interest will negate (and t hen some) a ny rewards you’d receive generally.

someassemblyrequired > E90M3 12/19/2019 at 15:03

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The only real disadvantage is that it makes it easy for people to bury their head in the sand if they have messy finances. I always tell people who get in over their heads with cards to switch to paying cash for everything.  Having to think about going to the ATM or staring at a mostly empty wallet makes people think more closely about what they actually need.

I like cars: Jim Spanfeller is one ugly motherfucker > E90M3 12/19/2019 at 15:03

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I use mine for everything. That said, I wish I didn’t have to generate debt and pay it off every month just to have sufficient credit history to secure future debt. It’s a dumb game that we’ve all decided we have to play.

Chuckles > E90M3 12/19/2019 at 15:03

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“Personally, I don’t understand why everyone doesn’t use credit cards for everything.”

Congratulations on having excellent self control when it comes to finances. Not everybody has that. I wouldn’t say that I have no self control, but it’s a lot easier to stick to a firm budget when you remove the option of saying “I’ll just use the credit card and pay it off when I get paid on Friday.” I’m usually pretty good, but not always. And if you ever get stuck paying interest, it becomes obvious pretty quick just how much they outweigh the cash back you get using a card. I've had credit cards, and I've been stuck paying interest. I have it under control now, but I'd rather just not have them.

Ash78, voting early and often > E90M3 12/19/2019 at 15:06

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Personally, I don’t understand why everyone doesn’t use credit cards for everything

I’m 99% credit, paid off every month (since about 1995 in high school when I discovered how credit cards work....I always thought they started charging interest on day 1. When I learned about the grace period, I thought people were messing with me) .

I understand cash for certain things (say, getting a discount with a contractor or independent mechanic). Or occasionally a check for kids’ school stuff where I can’t use Paypal. But I never understood the appeal of debit cards.

Here’s another thought for everyone to chew on: The cost of things you buy are already priced higher in order to cover credit card processing fees (which in turn pay for rewards back to you). By NOT using a credit card, you’re overpaying and getting nothing back.

E90M3 > Ash78, voting early and often 12/19/2019 at 15:10

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It took me a minute to wrap my head around how they worked, once I understood that, I was good to go.

It’s the cost of doing business these days. Might as well join in and reap the rewards. 

If only EssExTee could be so grossly incandescent > E90M3 12/19/2019 at 15:11

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Credit cards are great IF you can control yourself and not use them to live beyond your means. I have two that are used for most of my purchases, and I just pay them off weekly when I get my paycheck. I’ve n ever pai d a dime of interest on them.

I don’t have as good of rewards as you because I have no-annual-fee cards, but my good one has miles I can redeem to knock off purchases and no foreign transaction fees.

I like them because they give me a bit of fluidity for large purchases. W ith the credit card I can, say, book a trip on the card and then pay it off in installments, leaving me with more cash for unexpected purchases.

Not to mention it gives me credit history if I ever need to take out a loan or something.

Gone > E90M3 12/19/2019 at 15:13

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We have 7 cards, but only use 2 regularly that are cash back . We pay them off every month. We u se them for everything that we don’t have to pay extra fees on. So stuff like mortgage, truck payment, HOA dues, and utilities come from checking.

E90M3 > Chuckles 12/19/2019 at 15:14

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I can understand where you’re coming from,it is a lot easier to have self control if you don’t have to option to be frivolous. I never did understand the mentality of “I’ll pay this off when I get paid.” Probably down to the fact that I haven’t had to live pay check to paycheck. It’s just such a foreign concept to me. 

E90M3 > MonkeePuzzle 12/19/2019 at 15:14

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You forgot ZIP code, gonna need that as well. 

E90M3 > I like cars: Jim Spanfeller is one ugly motherfucker 12/19/2019 at 15:17

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I don’t really view it as debt, more as my monthly expenses. It is debt, but I guess since I pay it off every month, it doesn’t feel that way to me. I know what I can spend every month, and as long as it’s bellow that threshold, I’m good. 

E90M3 > CB 12/19/2019 at 15:18

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The BOA card is free, and the AMEX is $100 a year. Got 30k miles for signing up so it was worth it. I understand not wanting a fee, there are a lot of sweet cards out there, albeit with fees, but, like you, I don’t spend enough for it to be worth it. 

Spanfeller is a twat > E90M3 12/19/2019 at 15:18

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Cash is still king on my side of the fence; I do have a credit card but I have it in order to be in the credit bureau for the future; I stick to debit or cash unless it’s necessary.

Credit here is either surprisingly  cheap or egregiously expensive.... its because only around a third of the population has a bank account. 

Biggus Dickus (RevsBro) > E90M3 12/19/2019 at 15:18

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Great cash flow management tool IFF you have the discipline. I make literally three payments from my actual bank account per month: rent, car payment, and credit card balance payoff. I used to use the Delta Skymiles card buy i dont really fly much anymore. I now use a standard Amex Platinum which offers essentially equal flying benefits but the flexibility of being able to use points on pretty much anything. 

E90M3 > Arrivederci 12/19/2019 at 15:19

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Kind of surprised you don’t also put utility bills on there, unless there’s a sufficient discount for using your checking account.

Free plane tickets are sweet. 

E90M3 > AestheticsInMotion 12/19/2019 at 15:20

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Yes, they are horrible if you hold a balance, but I hear a lot of people who have a hold of their finances express trepidation when it comes to CCs.

E90M3 > someassemblyrequired 12/19/2019 at 15:21

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I think it comes down to self control and understanding of finances . I get some people don’t have those, but it’s such a foreign concept to me.

Demon-Xanth knows how to operate a street. > E90M3 12/19/2019 at 15:21

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If you use them for SHORT TERM credit, they are good. Meaning, a few months tops. But if you rely on them month to month to make ends meet, you aren’t making ends meet and you should find a way out of the hole you are in.

TheRealBicycleBuck > E90M3 12/19/2019 at 15:22

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If you’re single, have good discipline, and are diligent about paying them off, then I think credit cards are fine. But if you’re married and have a spouse who may not be so great at those things, it’s best not to have one. We haven’t had one since we paid ours off  nearly 15 years ago.

Sampsonite24-Earth's Least Likeliest Hero > E90M3 12/19/2019 at 15:24

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I got into trouble with credit cards in my late teens and early 20s. Now currently trying to dig my way out of it

E90M3 > Mercedes Streeter 12/19/2019 at 15:24

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Like you said, it’s not clear black and white. It really does depend on your situation, and it can be really easy to get into trouble if you make a couple wrong moves. 

E90M3 > CompactLuxuryFan 12/19/2019 at 15:26

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As much as I would like to, I think being able to pay rent or a car loan with a credit card is really rare? Would simplify my life as well as get me some serious points but oh well.

I can pay rent with it, but the 2.5% surcharge keeps me from doing just that. Pretty sure every place I’ve lived has had that option, but the pros don’t outweigh the cons in that case. Don’t think I had the option with the car loan.

E90M3 > Sampsonite24-Earth's Least Likeliest Hero 12/19/2019 at 15:26

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I mean, that’s fair. 

E90M3 > Demon-Xanth knows how to operate a street. 12/19/2019 at 15:27

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This is a good point, and I guess I’ve never had to look at them other than this is the bill I have to pay at the end of the month. 

HammerheadFistpunch > E90M3 12/19/2019 at 15:28

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most of my money routes through my credit card and I pay off the balance each month.  Free money that pays for christmas.

Dakotahound > E90M3 12/19/2019 at 15:32

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Something that I don’t think anyone has mentioned is the year-end statement. I use a single credit card for everything possible, and pay it off at the end of each month. At the end of the year, I recei ve a statement itemizing all of my purchases broken down by the month and  quarter . This is very helpful for retirement planning because it shows me exactly how much I will need for food, clothing, gas, travel, etc. I know - I could do this manually - but the credit card makes it easy.

someassemblyrequired > E90M3 12/19/2019 at 15:33

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It was to me too, until I worked at a bank. Dumb advice like “you need to carry a balance to build your credit” and “pay off the lowest balance first” is ingrained in a lot of people.

E90M3 > Dakotahound 12/19/2019 at 15:35

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This is true, I had forgotten about that. I route all my transactions  through BOA and I get a breakdown on spending, it is quite nice. 

Arrivederci > E90M3 12/19/2019 at 15:36

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For whatever reason our utilities don’t seem to have that as an option, but I might just be missing that.  I might need to investigate.

E90M3 > someassemblyrequired 12/19/2019 at 15:37

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I never really understood the snowball method, strictly from and math perspective. I get it from an emotional/psychological perspective, but I can’t prescribe to it. I also don’t really understand the people who follow Dave Ramsey. 

CompactLuxuryFan > E90M3 12/19/2019 at 15:37

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2.5% isn’t bad, actually! Get a 3% card and you’re set. I also have the option, but it’s like a $750 fee or something ridiculous. 

BeaterGT > E90M3 12/19/2019 at 15:38

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Wouldn’t be able to travel so easily without credit cards. Anyone else using a Sapphire Reserve?

E90M3 > BeaterGT 12/19/2019 at 15:39

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I know a couple colleagues used their debt cards while we traveled, I just floated it on a credit card until we got remitted. I don’t know why you wouldn’t want to do it another way. 

Chuckles > E90M3 12/19/2019 at 15:40

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“Probably down to the fact that I haven’t had to live pay check to paycheck.”

That is exactly why it is a foreign concept to you.

I’m not living in poverty by any means, and a lot of people have it worse off than me. But money gets tight sometimes, and when you are worried about making sure there’s enough in your checking account to cover your routine bills, plus you need groceries, it’s easy to put that on a card. Suddenly, you find yourself taking money out on payday to cover those groceries. And then because you did that, money gets tight before your next payday. Before you know it, you’re carrying a small balance and paying interest. It can get out of control even if you don’t splurge on crazy purchases.

Thisismydisplayname > E90M3 12/19/2019 at 15:43

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It’s also a good security measure as the credit card companies are on the hook for fraud after the first $50, but I’ve never had them charge me for the first $50 when we’ve had fraud on the account.  Just don’t carry a balance and you’re okay.  And get the points they offer.  Win win

E90M3 > Thisismydisplayname 12/19/2019 at 15:44

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I don’t think anyone else has mentioned the extra layer of security you have. 

Chariotoflove > E90M3 12/19/2019 at 15:48

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I use credit cards like you do. They are a way to avoid carrying lots of cash or the checkbook. They also rack up the rewards points and are a great way to organize and facilitate your budgeting. I have never carried a balance in my life. Same as you, I learned from my parents’ example. 

RiceRocketeer Extraordinaire > E90M3 12/19/2019 at 15:49

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The cost of c redit card rewards are baked into the prices of many things these days  so you’d actually be losing out by not using one.

Highlander-Datsuns are Forever > E90M3 12/19/2019 at 15:49

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I got a couple and pay them off monthly. I even have one with returns! Thinking of getting an Alaska Airlines card so I can fly my family to Hawaii for holidays on air miles too. 

CompactLuxuryFan > Biggus Dickus (RevsBro) 12/19/2019 at 15:50

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I’m thinking I will downgrade my Platinum Amex to a no-fee one before my next annual fee. It’s really hard for me to get my money’s worth there. If I didn’t live in a Centurion Lounge city I would probably have gotten rid of it already. 

Textured Soy Protein > E90M3 12/19/2019 at 15:53

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I do the same thing of paying everything off every month and never running a balance. Wasn’t always the case as when I was in my early 20s and out on my own for the first time I did get a little in over my head. Thankfully the numbers themselves weren’t all that high, just not something I could get in front of with the low income I had at the time. Once I started making more money I paid everything off and now at 37 my score is well over 800.

Those of us who pay their statement balance every month, on time, are in the minority. We get to have the benefits with none of the consequences. The credit card companies are of course making money hand over fist on everyone else.

Thisismydisplayname > E90M3 12/19/2019 at 15:54

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Yeah that’s a big deal.  Debit cards do not offer that protection.  

someassemblyrequired > E90M3 12/19/2019 at 15:55

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The part they miss is that you have to pay the minimums on all of your bills, plus all of your utilities and rent. Otherwise, you’ve just made the situation much worse on the remaining accounts .

E90M3 > Textured Soy Protein 12/19/2019 at 15:58

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The only stupid finicial mistake I tried to make in my early 20s was trying to take on a $1,000/mo car payment.

You’re right on everything e lse.

Cé hé sin > E90M3 12/19/2019 at 15:59

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I pay for almost everything with my phone, which has to go through my credit card as my debit card is with a bank who won't support Google Pay. Always pay the bill by direct debit so it's all quite painless.

E90M3 > Cé hé sin 12/19/2019 at 16:00

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The last time I had any reasonable amount of cash was when I was in the UK, even then I used my credit card a lot. 

fintail > E90M3 12/19/2019 at 16:03

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I’ve never even had a debit card, and I’m over 40. 2 credit cards that are paid off every month 98% of the time, and an ATM card. Take advantage of those sweet rewards, I have 100K+ air miles on one, and I’ll be getting back ~$500 from the Costco card after the new year.

E90M3 > fintail 12/19/2019 at 16:05

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I had a debit card when I was 17, and that doubled as my ATM card. I don’t think I ever had a non-debit card. 

GoodIdeaAtTheTime > E90M3 12/19/2019 at 16:16

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Bad. I got in big trouble once, took me a decade to dig out. Went years without a credit card. Then had an emergency I couldn’t absor b with my savings, and couldn’t get a loan quick enough . It feels like I will be paying on it until my 60's. Used it once and cut it  up. Me and money don’t get along. 

ranwhenparked > E90M3 12/19/2019 at 16:18

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Full disclosure, I work for a financial institution, but am not authorized to represent them in any sort of official capacity not specifically approved.

T hat said, I honestly think it is way too limiting in modern society to function without a credit card. From hotels to rental cars to airline tickets to shopping online to paying at gas pumps, you really should be utilizing a credit card for that. Merchants can put significant holds on your debit card when you pay in that manner, which aren’t always released in a timely manner, and if your debit card gets compromised, a thief now has direct access to your checking account. Fraud protections and issuance of credit for disputed transactions are faster and stronger for credit cards than they are with checking accounts. Plus, with rewards cards, you do get something back with each purchase - negligible cash value, but the points do add up over time, and at least it’s something.

If you just use a credit card as a direct substitute for cash or debit and pay the balance off every month, you’ll never get hit with any interest and won’t have any problems. Just because you have a card in your wallet with a limit of x$ doesn’t mean you’re obligated to use all of your availability and run up a huge balance, just use it responsibly, don’t spend more than you know you can afford. Having a larger limit doesn’t mean you have to use it, but it can be helpful to have it there in case of a serious emergency where you need funds fast. Plus, using only a small percentage of your total credit availability doesn’t exactly look bad on your credit report.

EDIT: I want to add that I used to only keep a low limit card for emergencies and use debit for everything else, but that attitude changed when my business credit card was skimmed 5 times in 12 months and we had to go about disputing those transactions - really drove home how prevalent skimming devices are on gas pumps these days and how things can happen with online shopping. I now have one credit card that I use exclusively for hotels, restaurants, and airlines and another with a lower limit that I use pretty much just for gas pumps and online shopping, and pay them off every month.

Demon-Xanth knows how to operate a street. > E90M3 12/19/2019 at 16:18

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Same here, I consider “When the bill comes” to fall into the short term as well.

E90M3 > ranwhenparked 12/19/2019 at 16:20

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All very good points.

Just because you have a card in your wallet with a limit of x$ doesn’t mean you’re obligated to use all of your availability and run up a huge balance

I feel like some view this as a golden ticket and end up racking up a massive balance because they can. They gave me a 25k limit when I opened my Delta Amex, I know that would frighten some people, but I’m not intending to spend anywhere near that. 

Tripper > E90M3 12/19/2019 at 16:23

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I use my AMEX for everything because I get cash back, and they are amazing with customer service. I like the added security of being able to contest a charge with a credit card, you’re fucked with a debit card.

fintail > E90M3 12/19/2019 at 16:25

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Mine has no Visa/MC logo, just a bank logo, only works at ATMs.  I use it now and then, as I generally like to have ~$100 cash on me just in case.

Eric @ opposite-lock.com > E90M3 12/19/2019 at 16:25

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Me, either. I got my first checking account in 1996 and though I haven’t used my ATM/debit card as a debit card since I got a credit card, I haven’t ever had one that didn’t double as a debit card.

Eric @ opposite-lock.com > E90M3 12/19/2019 at 16:32

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The first time I went to the UK, I brought a lot of cash and I still have quite a bit of it. Even back then, nearly everything went on a card and it has only grown worse.

It even works in most developing nations, which are the only places I carry much cash anymore.

In the US I rarely even carry my wallet in my pocket anymore, as my phone allows me to make most purchases at places on or near campus.

atfsgeoff > E90M3 12/19/2019 at 16:32

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Have three credit cards, and the only one I ever carry a balance on is an Amazon Store card, when I do a big-ticket purchase with 0% financing so I can pay it off over the course of 6 months or a year. I think I’ve used the special financing like twice, and I didn’t even need it on one of the purchases. I just like keeping a certain level of cash available if I need it.

I try to pay off my card balances before the statements hit , but that’s not always possible. I at least pay them down as much as possible right before the statement date to keep my credit utilization low.

E90M3 > Eric @ opposite-lock.com 12/19/2019 at 16:39

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Think the last place I used a lot of cash was Russia, mainly because it was too hard to split the bill otherwise. 

Eric @ opposite-lock.com > BeaterGT 12/19/2019 at 16:39

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I have a Reserve and all the consumer UR ecosystem cards . The points mostly go to hotels and rental cars (exploiting the 1.5x redemption rate) because we have other cards with better discounts for the main airline serving this area.

Eric @ opposite-lock.com > Dakotahound 12/19/2019 at 16:41

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Everything goes through Mint (because I’m old) for me. It’s hard to track the tens of accounts we have.

Eric @ opposite-lock.com > someassemblyrequired 12/19/2019 at 16:45

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I blame boomers that have a very superstitious relationship with credit cards that they have propagated to younger generations (some are just as superstitious, but they have the same oddball ones).

Some of these come from outdated baseless money advice that has been around for a very, very long time.

Eric @ opposite-lock.com > E90M3 12/19/2019 at 16:58

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Same here. It’s deeply illogical.

Most of the stuff Dave Ramsey sells is either common sense, severely outdated/inaccurate, or otherwise simply bad advice based on superstitions that it boggles my mind. On the other hand, he c learly made a lot of money for himself selling it to stupid people...

Mid Engine > E90M3 12/19/2019 at 17:03

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I divorced my ex-wife as she drove me to the bri nk of bankruptcy with her disregard for credit, she’s a financial dumpster fire. Re-married to a wonderful woman who is extremely frugal, but we do have se perate bank accounts and whatnot.

I use my Costco Visa card pretty much all the time, Amazon Visa card for Amazon purchases, occasionally I use my Alaska airlines card because buy- one get- one- free tickets once a year (it does have an annual fee though). I have more than six months of savings in the bank in case of emergencies, and have made it a habit to pay my credit cards in full every two weeks => I get paid, the cards get paid. I spend no more than what I can afford, and I’m happy to save for a year or more to buy something.

Eric @ opposite-lock.com > E90M3 12/19/2019 at 17:08

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It’s because their parents or someone they knew got into trouble and they are afraid of making the same mistakes.

I’ve known well educated people with good jobs that had a negative view of all credit cards, while they were willing to use debit cards. It completely baffles me.

Decay buys too many beaters > E90M3 12/19/2019 at 17:10

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I have several cards each for different purposes, I buy everything with them and pay the balance every month. I don’t even carry my debit card any more. 

Eric @ opposite-lock.com > 3point8isgreat 12/19/2019 at 17:33

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Which reminds me of charge cards. Why are these so rare today? I remember having an AmEx through my employer that had to be paid monthly and it made a lot of sense to me for most people. For me there was no difference between that and how I operate naturally, but for many it would teach good habits and keep them from going too far overboard.

RPM esq. > E90M3 12/19/2019 at 17:34

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I like getting paid to spend my own money, and if used responsibly it can be convenient to park a large purchase on a credit card while waiting for a paycheck or whatever. “If used responsibly” is the key here, as with anything else.

Eric @ opposite-lock.com > Spanfeller is a twat 12/19/2019 at 17:38

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I have never looked at credit agreements there. Could you go into further detail?

The fact so many don’t use banks is why you have to carry cash down there, even if most of your purchases go on a credit card.

Spanfeller is a twat > Eric @ opposite-lock.com 12/19/2019 at 18:28

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A basic one from Banorte for instance has an annual interest rate of around 55%; you really need to keep things tidy.

If you ask straight up for bank loans the rates can be smaller; but don’t expect anything under 20% annual unless you’ve got a great credit history

Grindintosecond > E90M3 12/19/2019 at 18:33

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They suck. They’re also great. We paid them off in full every month, until we had no cash immediately for the HOA mandantory landscaping after we moved in, then cancer treatment. But as we shovel a few thousand at them a month, well we fine soon.

Its the culture based on getting liked online for having things that addict a majority to riding balances. So and so has what I got and they're awesome on Instagram so I'll be just as awesome now...thanks Visa.

NKato > E90M3 12/19/2019 at 19:47

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I started out with a 1k credit card and a 5k line of credit. Used the 1k for personal things, and routine expenses. The line of credit, I’d transfer into my checking account to pay for larger items.

After a year and a half of this, I’ve been given the lowest possible APR on my credit card and bumped my LOC to 10k (just in time to pay my body shop bills). Currently, I am carrying no debt, but anticipating some next year for the last of the body work.

I plan on getting a higher cap cash back card with the bank. Maybe 5k or 10k.

AddictedToM3s - Drives a GC > E90M3 12/19/2019 at 20:24

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I do pretty much what you do. Use it for daily expenses and pay the balance each month. Credit cards add an extra layer of protection from someone getting into your liquid funds. I think of debit cards as a gentleman’s sausage — don’t stick it where it can be dangerous. Sketchy area? Swipe the credit card so you can quickly dispute if anything happens.

And the cash back cards basically mean you get money for spending what you normally would (assuming you are using it for only daily expenses). And my card gives 2% cash back on everything so I am a big fan of it

I hate when a place doesn’t take card or Apple Pay. This is a lot worse when I’m traveling. South Africa and India were the worst when it came to cards. As a result I have about $50 in INR that Chase refuses to touch (unstable currency) so it’s just a fun story whenever someone asks why I have rupees on my desk at home.

someassemblyrequired > Eric @ opposite-lock.com 12/19/2019 at 22:32

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Person to me: “ Did you know you can write off credit card interest?”
Me to person: “That ended in 1986.”

gmporschenut also a fan of hondas > E90M3 12/19/2019 at 23:16

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Credit for everything except bars . i hate waiting for a receipt

KingT- 60% of the time, it works every time > E90M3 12/20/2019 at 00:18

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A Necessary evil and best way to improveyour credit score IMO . Know to manage them and you’ll be fine.

Eric @ opposite-lock.com > Spanfeller is a twat 12/20/2019 at 01:07

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Wild. I mean, our credit card APRs are kind of ridiculous too (like 25% and higher on many cards), but that’s insane. If you pay them off it doesn’t matter, though.

I have a number that seem low, like 15% and under. I had one that I product changed that was like 8%, but it didn’t give any perks and I couldn’t find a reason to use it.

They’re also better than some really ridiculous things people do, like payday and title loans. Many of those have interest that makes credit card interest look reasonable.

Spanfeller is a twat > Eric @ opposite-lock.com 12/20/2019 at 10:00

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Poor regulations, probably a high default rate, given how few people are in the banking system also means they have more risk... but I bet it’s more to do with the regulation than with the default rate.... companies like Coppel and Elektra basically survive on predatory short term loans like some US corporations.

BeaterGT > Eric @ opposite-lock.com 12/20/2019 at 15:42

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I haven’t used mine on rental cars yet as I’m on a continuous road trip with my own car but the hotel redemptions have been great. Used points on airfare in the past. Had over 300k at one time, now I’m just under 200k. Truthfully if I wasn’t redeeming so much, I’d probably downgrade to Preferred or a no fee.

Eric @ opposite-lock.com > BeaterGT 12/20/2019 at 17:19

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Doing the math, if you’re putting something like $3333 a year in 3X categories, you’re doing better than spending quite a bit more on a CSP in 2X categories. I don’t know why the CSP exists, except for some  people that have more than 1 AU.

BeaterGT > Eric @ opposite-lock.com 12/20/2019 at 17:49

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Ooooh, thanks for crunching the numbers! I easily hit that spend and use the Freedom to back it up. The CSP exists because it pre-e xists the CSR :P

415s30 W123TSXWaggoIIIIIIo ( •_•))°) > E90M3 12/21/2019 at 11:54

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I was only using one for travel but I recently got a gas card, I thought I might as well get something if I can. So now my wife got the Amazon card and I have an Amazon Smile charity selected so I give both of us money now . I pay it off every month, I never liked the idea of cards but it’s giving us something for just spending. 

Dr. Zoidberg - RIP Oppo > E90M3 12/21/2019 at 12:18

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Unpopular opinion:

I kind of think chasing a few bucks with cash back rewards is a sucker’s game. If you are largely diligent and pay off the full balance monthly, great. But one extended vacation or slip of the brain and miss a payment, and you’ve more than lost the money you’ve “earned.” If you’re like me and don’t spend a lot (except for a heaping mortgage which eliminates the use of said credit card, of course) , 2% or 3.whatever% “back” amounts to very little. For the “average” American (read: in lots of debt) , c ash back exists as a tactic to compel you to spend more , not less. “Yeah this TV I wouldn’t normally buy was $600.00, but with cash back it was actually only $580.20 so I’m SMART! ”

I have a credit card, which I don’t really like using for buying a beer or tic-tacs so I often use my debit card for the littlest of things or spare cash. My credit score was 810 last I checked so I think I’m doing alright...