I like to use my debit card when I need cash or want to transfer money, but rarely ever do I use it now to pay for day-to-day things. I have this trick that I use: as soon as I use my credit card to pay for something, I transfer money from my debit card to pay it off right away. This keeps my credit utilization low and also helps me keep my spending in check! I rarely keep a lot of money in my checking account (which is linked to my debit card) because the interest rate is unbelievably low.
I have learned that using a credit card for your daily expenses can pay off big time as long as you pay off your balance every month. Last year I received a check from my credit card company of over $800.00 in % back from money spent. Its like a free savings account an the end of each year. I don't know why I didn't figure this out years ago. The key is staying within your budget and making sure you pay off your monthly balance every month so your not ever paying any interest.
@Christie, that's amazing!! Paying off my credit card is such a good feeling.
I use my 2 credit cards and vary my purchases depending on the money back %, one varies quarterly.
I use my 2 credit cards and vary my purchases depending on the money back %, one varies quarterly.
@Susan, what credit cards have worked for you in terms of earning cash back? And would you recommend them?
I am loving my Bank of America cash back rewards card. I can change earning category for 3% beginning of every month and all purchases 1%. It came with a year no interest and no annual fee. I've been using in place of my debit card since March and have used the cash back monthly to pay towards my purchases which have primarily been my travel expenses for work which I get reimbursed for. I also signed up for the card thru Swagbucks and got $40 to sign-up.
I have several credit cards that I use occasionally to build up my credit, I make sure there is no annual fees and no interest rate for at least 2 years.
I have several credit cards that I use occasionally to build up my credit, I make sure there is no annual fees and no interest rate for at least 2 years.
No annual fees is a big factor to take into account! What are some credit cards you'd recommend that are big on rewards that don't have an annual fee?
What are Swagbucks? We live far from my wife's family so I chose the venture card from capital one. It has an annual fee of 95$ but I compared it to others and we make up the difference with the big bonus 2 percent miles on everything.
Swagbucks is a site you can earn extra money at. The points you earn on their site you can convert into money or gift cards. I've used it for a couple of years and used the additional income to pay off debt - https://www.swagbucks.com/refer/WVCouponDiva
I agree I always try to make sure there are no annual fees for a credit card that I apply for.
I use my 2 credit cards and vary my purchases depending on the money back %, one varies quarterly.
@Susan, what credit cards have worked for you in terms of earning cash back? And would you recommend them?
I have Capital One Platinum MC - 1.5% on every purchase. And Chase Freedom Ultimate Rewards - 5% on a quarterly category purchase and then 1% on everything else. I just use them as to which gives me the highest reward and cash it in back to the card.
I was reading earlier today about the 5% quarterly rewards on a Discover card. It said you have to turn on every quarter that it is not automatic. Does Chase send you email reminder?
I was using my cc for small purchases once a month but I think I am going to scale it back to once every 6 months. I use my debit card on a regular basis.
I use my credit card for gas purchases and always fight temptation to get a snack at the gas station. I think my major issue w/spending is impulsive small purchases here and there that add. I need thr constant reminder that there's food at the house and carry water and almonds in case i get the urge to snack on something. Also using invisalign is helping to snack as often. I've seen the difference in spending these last 2 months.
ALWAYS have a 2nd way to pay. The system could be down. A block could been placed on your card. Be careful with credit cards… in many cases they lead to bad finances
ALWAYS have a 2nd way to pay. The system could be down. A block could been placed on your card. Be careful with credit cards… in many cases they lead to bad finances
If you're okay with sharing, what happened with your finances, Roger?
I login to my accounts almost daily. I keep track of all the purchases / credits. I make sure I'm getting the correct rewards / bonuses. I RARELY use my debit card, or even my checking acct. Only for payments to cc accounts / 1 of my utilities. I WISH I could use it for my car payment - that would be great % back!
I login to my accounts almost daily. I keep track of all the purchases / credits. I make sure I'm getting the correct rewards / bonuses. I RARELY use my debit card, or even my checking acct. Only for payments to cc accounts / 1 of my utilities. I WISH I could use it for my car payment - that would be great % back!
Wouldn't it be?! I think about how nice it'd be to get CC points/rewards for paying rent, but that has to come straight out of my checking acct.
Like others, I use my points-earning credit card for nearly all daily purchases and payments. However, I use Quicken to review my expenses and income every single Sunday. I then transfer money from my bank account to my credit card to ensure no accumulation of debt. It helps, however, to accumulate points and miles for travel.
On occasion, a few expenses require carryover week to week but I'm mindful to pay these expenses as quickly as possible to avoid ongoing debt and costly interest. Using a points-earning card can be done but it takes diligence and regular maintenance of one's expenses.
The fidelity card gives you 2% on all purchase with no limit and puts it directly into your fidelity account - a small roth ira that you invest in a low cost mutual fund is the way to go on that account. Of course the trick is to only make payments on the card that you have cash for and pay it off completely every month.
Didn't know Fidelity had a card like that. Will be definitely looking into that. Thanks for the info
Love the Fidelity card idea! I have accounts with them already so that seems smart. What an easy way to save and earn a bit for retirement!
There are so many great ideas in each of your posts. I just opened a secured credit card with Citi cards to build my credit. I started with $500.00 and after 3 months they will review my account and hopefully release my funds once I prove I can keep my account in a positive stance. I think it’s a great idea to build credit.
