Credit cards and how you use them (finance pros)
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Originally Posted By: 04SE
Originally Posted By: Oldmoparguy1
I have an Chase Amazon card. 3% on Amazon, 2% on gas & food, 1% on everything else. i use it like a check book, pay it off every month. It has a 19% interest, down from 23%. I also have a NC state credit union visa. it Has an 18k limit with with 8% interest. I use it for short term loans. Last summer I needed 12k in a hurry. Went to a teller window, gave her the card, asked for 12k and put in in the checking account. 5 minutes and and done. I paid it off over 6 months as the insurance checks came in. I paid a total of $106 in interest. NC credit union is state wide. Really good people to work with, If you are in the state, it's worth looking into.
You paid 8% on a cash advance?
My credit union mastercard is also 8% on purchases but the cash advance APR is over 20%.
One benefits of a Credit Union! I've used my CU Visa the same way several times when necessary....
Originally Posted By: Oldmoparguy1
I have an Chase Amazon card. 3% on Amazon, 2% on gas & food, 1% on everything else. i use it like a check book, pay it off every month. It has a 19% interest, down from 23%. I also have a NC state credit union visa. it Has an 18k limit with with 8% interest. I use it for short term loans. Last summer I needed 12k in a hurry. Went to a teller window, gave her the card, asked for 12k and put in in the checking account. 5 minutes and and done. I paid it off over 6 months as the insurance checks came in. I paid a total of $106 in interest. NC credit union is state wide. Really good people to work with, If you are in the state, it's worth looking into.
You paid 8% on a cash advance?
My credit union mastercard is also 8% on purchases but the cash advance APR is over 20%.
One benefits of a Credit Union! I've used my CU Visa the same way several times when necessary....
If you have a couple cards you have plenty. Keep using for gas and online and pay off every month. Pay cash for everything else. Cards are proven to make you spend more. Stop hunting for the 0% deals. Those are only going to get you in trouble at some point.
I have no idea what my credit score is.
Originally Posted By: KrisZ
I have no idea what my credit score is.
I only look when I get a loan (auto or mortgage), and it's only because they give me a print with it on it. Since it's like 820 it's never been an issue for me, so I don't look otherwise.
I have no idea what my credit score is.
I only look when I get a loan (auto or mortgage), and it's only because they give me a print with it on it. Since it's like 820 it's never been an issue for me, so I don't look otherwise.
Originally Posted By: hatt
If you have a couple cards you have plenty. Keep using for gas and online and pay off every month. Pay cash for everything else. Cards are proven to make you spend more. Stop hunting for the 0% deals. Those are only going to get you in trouble at some point.
They are proven to make some people spend more.
We have had this discussion before. There are many that spend the same with cash or credit, and by using a credit card smartly, you can get some money back that you could not do with cash only.
But I do agree for the majority, credit cards can be a dangerous tool and takes self control.
If you have a couple cards you have plenty. Keep using for gas and online and pay off every month. Pay cash for everything else. Cards are proven to make you spend more. Stop hunting for the 0% deals. Those are only going to get you in trouble at some point.
They are proven to make some people spend more.
We have had this discussion before. There are many that spend the same with cash or credit, and by using a credit card smartly, you can get some money back that you could not do with cash only.
But I do agree for the majority, credit cards can be a dangerous tool and takes self control.
Originally Posted By: blupupher
Originally Posted By: hatt
If you have a couple cards you have plenty. Keep using for gas and online and pay off every month. Pay cash for everything else. Cards are proven to make you spend more. Stop hunting for the 0% deals. Those are only going to get you in trouble at some point.
They are proven to make some people spend more.
We have had this discussion before. There are many that spend the same with cash or credit, and by using a credit card smartly, you can get some money back that you could not do with cash only.
But I do agree for the majority, credit cards can be a dangerous tool and takes self control.
Is it "some" or is it "the majority?" If you're part of the tiny minority that don't spend a dime more with cards than with cash and rack up loads of cash back which you also spend responsibly you aren't asking for financial advice on the interwebs.
Originally Posted By: hatt
If you have a couple cards you have plenty. Keep using for gas and online and pay off every month. Pay cash for everything else. Cards are proven to make you spend more. Stop hunting for the 0% deals. Those are only going to get you in trouble at some point.
They are proven to make some people spend more.
We have had this discussion before. There are many that spend the same with cash or credit, and by using a credit card smartly, you can get some money back that you could not do with cash only.
But I do agree for the majority, credit cards can be a dangerous tool and takes self control.
Is it "some" or is it "the majority?" If you're part of the tiny minority that don't spend a dime more with cards than with cash and rack up loads of cash back which you also spend responsibly you aren't asking for financial advice on the interwebs.
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As long as you are not "borrowing" and got hit on interest you are fine. Personally I never use those 0% interest rate card as I always use the highest cash back and pay off each month, but to each of its own, especially if you have a loan of higher interest that you can prepay to reduce compounded interest in the future.
Originally Posted By: DBMaster
30% pay off their credit cards each billing cycle. It is possible to overspend, even doing that, but most likely not.
And most of those 30% spend more using cards than they would if they used cash. Cards cost you money.
30% pay off their credit cards each billing cycle. It is possible to overspend, even doing that, but most likely not.
And most of those 30% spend more using cards than they would if they used cash. Cards cost you money.
Originally Posted By: hatt
[/quote]And most of those 30% spend more using cards than they would if they used cash. Cards cost you money.
You know what? I'm glad I thought about this for a while. I agree with you. If you have to pay cash for everything it requires some amount of planning. A credit card makes it easier, so yes, you may end up spending more. I'm going to need to ruminate on this and I appreciate that your comment made me think.
[/quote]And most of those 30% spend more using cards than they would if they used cash. Cards cost you money.
You know what? I'm glad I thought about this for a while. I agree with you. If you have to pay cash for everything it requires some amount of planning. A credit card makes it easier, so yes, you may end up spending more. I'm going to need to ruminate on this and I appreciate that your comment made me think.
Originally Posted By: hatt
Originally Posted By: blupupher
Originally Posted By: hatt
If you have a couple cards you have plenty. Keep using for gas and online and pay off every month. Pay cash for everything else. Cards are proven to make you spend more. Stop hunting for the 0% deals. Those are only going to get you in trouble at some point.
They are proven to make some people spend more.
We have had this discussion before. There are many that spend the same with cash or credit, and by using a credit card smartly, you can get some money back that you could not do with cash only.
But I do agree for the majority, credit cards can be a dangerous tool and takes self control.
Is it "some" or is it "the majority?" If you're part of the tiny minority that don't spend a dime more with cards than with cash and rack up loads of cash back which you also spend responsibly you aren't asking for financial advice on the interwebs.
Some can be the majority. It is not proven that all spend more with a credit card than with cash.
You said cards are proven to make you spend more. I am one of the you that you are referring to, and I do not. There are quite a few others that say the same thing.
For me, cash makes me spend more. If I have a $20 bill in my wallet, I do OK, but once I break the $20, it is gone before I know it and have no real idea what I spent it on. Snacks, a drink, chips from work etc.
Originally Posted By: DBMaster
Originally Posted By: hatt
And most of those 30% spend more using cards than they would if they used cash. Cards cost you money.
You know what? I'm glad I thought about this for a while. I agree with you. If you have to pay cash for everything it requires some amount of planning. A credit card makes it easier, so yes, you may end up spending more. I'm going to need to ruminate on this and I appreciate that your comment made me think. [/quote]
I get what your saying, If I don't have the $150 cash on me I can't get it. I would need to go get the $150 first before I bought it, and maybe I would decide not to buy it later.
But I would not go somewhere to buy something that cost $150 and not have $150 on me, so why not use my credit card that gives me cash back, mileage rewards or whatever, and get something back on the $150 I am going to spend anyway.
Cash only helps control impulse buying, but if you are not an impluse buyer, then no difference.
Originally Posted By: blupupher
Originally Posted By: hatt
If you have a couple cards you have plenty. Keep using for gas and online and pay off every month. Pay cash for everything else. Cards are proven to make you spend more. Stop hunting for the 0% deals. Those are only going to get you in trouble at some point.
They are proven to make some people spend more.
We have had this discussion before. There are many that spend the same with cash or credit, and by using a credit card smartly, you can get some money back that you could not do with cash only.
But I do agree for the majority, credit cards can be a dangerous tool and takes self control.
Is it "some" or is it "the majority?" If you're part of the tiny minority that don't spend a dime more with cards than with cash and rack up loads of cash back which you also spend responsibly you aren't asking for financial advice on the interwebs.
Some can be the majority. It is not proven that all spend more with a credit card than with cash.
You said cards are proven to make you spend more. I am one of the you that you are referring to, and I do not. There are quite a few others that say the same thing.
For me, cash makes me spend more. If I have a $20 bill in my wallet, I do OK, but once I break the $20, it is gone before I know it and have no real idea what I spent it on. Snacks, a drink, chips from work etc.
Originally Posted By: DBMaster
Originally Posted By: hatt
And most of those 30% spend more using cards than they would if they used cash. Cards cost you money.
You know what? I'm glad I thought about this for a while. I agree with you. If you have to pay cash for everything it requires some amount of planning. A credit card makes it easier, so yes, you may end up spending more. I'm going to need to ruminate on this and I appreciate that your comment made me think. [/quote]
I get what your saying, If I don't have the $150 cash on me I can't get it. I would need to go get the $150 first before I bought it, and maybe I would decide not to buy it later.
But I would not go somewhere to buy something that cost $150 and not have $150 on me, so why not use my credit card that gives me cash back, mileage rewards or whatever, and get something back on the $150 I am going to spend anyway.
Cash only helps control impulse buying, but if you are not an impluse buyer, then no difference.
I love credit cards. I am probably more responsible than most. I pay my balance off every month. It costs me nothing. I rack up points which I get gift cards for. Probably well over $300 a year in gift cards for money I would spend anyhow on gas, bills etc. If I have to make a big purchase. I take advantage of 0 % interest. I see it as a tool. I Love it. I do have friends that think they are the devil and I agree. They can be.
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Originally Posted By: blupupher
I get what your saying, If I don't have the $150 cash on me I can't get it. I would need to go get the $150 first before I bought it, and maybe I would decide not to buy it later.
But I would not go somewhere to buy something that cost $150 and not have $150 on me, so why not use my credit card that gives me cash back, mileage rewards or whatever, and get something back on the $150 I am going to spend anyway.
Cash only helps control impulse buying, but if you are not an impluse buyer, then no difference.
If it is a planned purchase using a card would be fine. You have to check out the studies. Not only do cards increase impulse purchases, they also get people to buy an item at a higher price. If a study is out there I wouldn't be surprised if just the promise of cash back also increases spending. For most people, the cards(including debit), and their small % cash back and 0% this and that, need to be for specific areas.
I get what your saying, If I don't have the $150 cash on me I can't get it. I would need to go get the $150 first before I bought it, and maybe I would decide not to buy it later.
But I would not go somewhere to buy something that cost $150 and not have $150 on me, so why not use my credit card that gives me cash back, mileage rewards or whatever, and get something back on the $150 I am going to spend anyway.
Cash only helps control impulse buying, but if you are not an impluse buyer, then no difference.
If it is a planned purchase using a card would be fine. You have to check out the studies. Not only do cards increase impulse purchases, they also get people to buy an item at a higher price. If a study is out there I wouldn't be surprised if just the promise of cash back also increases spending. For most people, the cards(including debit), and their small % cash back and 0% this and that, need to be for specific areas.
Originally Posted By: hatt
Originally Posted By: blupupher
I get what your saying, If I don't have the $150 cash on me I can't get it. I would need to go get the $150 first before I bought it, and maybe I would decide not to buy it later.
But I would not go somewhere to buy something that cost $150 and not have $150 on me, so why not use my credit card that gives me cash back, mileage rewards or whatever, and get something back on the $150 I am going to spend anyway.
Cash only helps control impulse buying, but if you are not an impluse buyer, then no difference.
If it is a planned purchase using a card would be fine. You have to check out the studies. Not only do cards increase impulse purchases, they also get people to buy an item at a higher price. If a study is out there I wouldn't be surprised if just the promise of cash back also increases spending. For most people, the cards(including debit), and their small % cash back and 0% this and that, need to be for specific areas.
I am sure there are a lot of people out there that do spend more due to just the cash back part (but honey, I saved 5% buying this ).
I am not concerned with studies, I know my spending habits and patterns. My budget does not change depending on how I buy stuff (again, except for if I have cash on me, $20 disappears like magic). All my credit card receipts are recorded and classified by category spent in.
I know that I am coming out a little ahead using a rewards card vs cash, and for me, that is what matters. I am also sure that there are others in this world that are also smart enough to know how to make it work in their favor also (but a lot more that don't have a clue).
Originally Posted By: blupupher
I get what your saying, If I don't have the $150 cash on me I can't get it. I would need to go get the $150 first before I bought it, and maybe I would decide not to buy it later.
But I would not go somewhere to buy something that cost $150 and not have $150 on me, so why not use my credit card that gives me cash back, mileage rewards or whatever, and get something back on the $150 I am going to spend anyway.
Cash only helps control impulse buying, but if you are not an impluse buyer, then no difference.
If it is a planned purchase using a card would be fine. You have to check out the studies. Not only do cards increase impulse purchases, they also get people to buy an item at a higher price. If a study is out there I wouldn't be surprised if just the promise of cash back also increases spending. For most people, the cards(including debit), and their small % cash back and 0% this and that, need to be for specific areas.
I am sure there are a lot of people out there that do spend more due to just the cash back part (but honey, I saved 5% buying this ).
I am not concerned with studies, I know my spending habits and patterns. My budget does not change depending on how I buy stuff (again, except for if I have cash on me, $20 disappears like magic). All my credit card receipts are recorded and classified by category spent in.
I know that I am coming out a little ahead using a rewards card vs cash, and for me, that is what matters. I am also sure that there are others in this world that are also smart enough to know how to make it work in their favor also (but a lot more that don't have a clue).
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