Post # 16
When I got my first card my parents told me they would cut it up if I wasn’t paying it off every month and proceeded to show me how expensive interest gets. I have been paying my card off every month in full since I got that card.
We have three cards in constant use. One gets 6% and 3% back on groceries and gas, one has revolving categories at 5% and the other is 2% on everything else.
I have heard many people talk about how “bad” credit cards are but they’re not bad unless you misuse them.
Post # 17
I just got 2 new rewards credit cards: Capital One Quicksilver and Discover IT. Quicksilver has a balance that will be paid before my 0% intro interest rate runs out in 6 months (using that for a trip) and my IT card has 0% for 12 months (using that for my ering). Both will be paid off before the 0% interest runs out. So the balance are enough that I know can be paid within 6 months and 12 months.
Post # 18
Whoa, great cash back rates. Hate to turn this into an advertisement, but which card do you have that has 6% all the time on groceries? Mine is 1% on everything then rotating 5% on various categories quarterly.
Post # 19
You should. My credit score is SIGNIFICANTLY higher now than it was when I had the “no credit card” mentality. It looks good if you’ve exhibited the discipline and consistency of utilizing credit, but not charging above a certain threshold and making timely payments. Credit scores are everything these days, even some employers run credit checks. So not only does credit help with purchasing larger things like a home or car, but it can also impact employment opportunities.
Post # 20
Idk if it’s the same card, but my American Express Blue Cash Preferred card does exactly that, 6% on groceries, 3% on gas and 1% on everything else. It does have an annual fee (my only card that does, it’s $75) but the huge rewards totally outweigh the fee for me, as this is my primary card.
Post # 21
I do not carry a balance forward and I do not pay interest. I charge all groceries, gas and a few other costs monthly. Then I pay it off. DH does the same.
Post # 22
We have none. Have three cards with a total credit limit around $50 k (great for the credit rating!) but we pay off whatever we spend each month. The card with the largest limit is linked to our frequent flyer points so we’re using it for literally everything until / including the wedding (but never letting the balance carry over week to week hence no interest), then using all the accrued points to upgrade our honeymoon flights – which are 12 hours long each way – to business class. Win!!
Post # 23
I know one of the cards American Express offers has 6% cash back on groceries, but it has an annual fee. So, you’ll have to determine if the annual fee will be worth it. Personally, I prefer cards with no annual fee. I just hate the idea of basically paying to use a card. But it can be worth it if you spend enough to earn the rewards to offset the annual fee.
Post # 24
I have too much. Due to being stupid as a young adult, I racked up too many bills. I’m looking at around 8K for credit cards alone. Slowly paying them off though. Once my wedding is over I can make bigger payments too.
Post # 25
Other PPs are right, it’s the American Express Blue Card Preferred. There is a $75 annual fee but when we compared our grocery costs from previous years we found it was more beneficial to pay the fee and get 6% back vs the 2% back on our card without fees.
Post # 26
I pay it off each month. However, a few years back I had about $7K in debt from CCs. Luckily, I made some money off the sale of my condo when I moved in with DH, so some of that money went to pay off that debt – and was still able to put a good chunk of that into an account to use later on.
I used to pay it off every month and was very smart with my money, then went through a phase where I realized I had money so I spent it on clothes, and going out with friends one summer… and the debt just kept adding. Stupid me.
I use my credit card as the primary way to pay, that way it all gets paid from my checking account when it’s due. I mainly use my debit/checking account for very small purchases since I get a kick back into my savings (rounded up to the next dollar) when I do.
I actually got this advice from Frank Abagnale – the guy who inspired Catch Me If You Can. He came and gave a talk 4-5 years ago (I work for a bank and their credit cards), and that’s what he told his kids to do. You are protected more by using credit than your debit/checking account if there is ever fraud.
Post # 27
I have zero, I pay for everything with my card that I can, and pay it off each month.
FH has a small balance that we’re focusing on paying off. It’ll be paid off by end of this year.
Post # 28
Your last sentence is something I learned recently. I had my debit card compromised last month (We’re assuming it was skimmed because I never lost it), and I had to dispute the transactions that cleared in order to get them reversed. I had to cancel my debit card and physically go to the bank when I needed money while waiting on my replacement card. I had to change the card information with several companies that I pay through auto-pay (Gym membership, etc…). Not to mention the inconvenience of having my actual money tied up in the process! Whoever skimmed my card made sure to take care of home because they racked up some purchases at Home Depot, Target, and Walmart. My bank finally caught on when they went to two grocery stores back to back and ran it as credit (which I never do, I run it as debit), then they blocked my card. So yeah, my debit card gets very limited use now lol! It’s also easier to keep up with fraudulent charges on a credit card that you pay off monthly. I didn’t even notice the fraudulent charges on my debit card until my bank blocked my card because I was doing a lot of transactions myself. I had to look through my transactions very carefully to identify which ones weren’t mine because I’d used my debit card so much! It definitely would have been more noticeable on a credit card.
Post # 29
I have none. I use my credit card for everything but pay the balance monthly. DH does the same. We earn lots of rewards (he vets travel points and I get free groceries) and it works out great.
When I was single my credit limit was $1300, which was equal to one paycheque for me. I didn’t want to even make it an option to get myself into any sort of major credit card debt. Even if I maxed out my card I could still pay it off in a month.
Post # 30
I have 2 credit cards, 1 will be completely paid off before the 0%APR is up, the other one has a balance transfer that I am paying off before the 0% APR is up as well. Currently while paying them off, I have not been using them, but once I get them paid off I plan to use it so that I can get the rewards, but pay it off every month as well.