topic Re: Using Credit Cards for EVERYTHING? in General Credit Topics

Using Credit Cards for EVERYTHING?

Anonymous — Wed, 30 Nov 2011 21:01:19 GMT

I have read over and over again that some of you folks use a credit card instead of cash/debit for every thing you buy, including paying your bills with a credit card. I am learning SO MUCH about credit that I never knew. What bills are you paying with a credit card?

Re: Using Credit Cards for EVERYTHING?

MarineVietVet — Wed, 30 Nov 2011 21:13:55 GMT

@Anonymous wrote:
I have read over and over again that some of you folks use a credit card instead of cash/debit for every thing you buy, including paying your bills with a credit card. I am learning SO MUCH about credit that I never knew. What bills are you paying with a credit card?

I have auto pay setup for my water, cable, XM radio, gas and DSL bills each month. I think that's all of the recurring expenses.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Using Credit Cards for EVERYTHING?

pizzadude — Wed, 30 Nov 2011 21:16:02 GMT

Pretty much everyone takes CCs these days, with the exception of some utlities. I pay Gas Company, Sewer and Electric by bank account autodraft, but everything else goes thru a CC or Debit Card.

Re: Using Credit Cards for EVERYTHING?

llecs — Wed, 30 Nov 2011 21:19:47 GMT

water, cable/phone/internet, power, ADT, car insurance, umbrella insurance policy, cell phones, and kiddos' school tuition. The only check I ever write is to the trash folks because they don't take debit/credit.

Re: Using Credit Cards for EVERYTHING?

Anonymous — Wed, 30 Nov 2011 21:19:58 GMT

@MarineVietVet wrote:
@Anonymous wrote:
I have read over and over again that some of you folks use a credit card instead of cash/debit for every thing you buy, including paying your bills with a credit card. I am learning SO MUCH about credit that I never knew. What bills are you paying with a credit card?

I have auto pay setup for my water, cable, XM radio, gas and DSL bills each month. I think that's all of the recurring expenses.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Do you still use cash or debit for anything?

Re: Using Credit Cards for EVERYTHING?

MarineVietVet — Wed, 30 Nov 2011 21:22:32 GMT

@Anonymous wrote:

Do you still use cash or debit for anything?

Not often but yes I use cash and my debit card from time to time.

Re: Using Credit Cards for EVERYTHING?

Anonymous — Wed, 30 Nov 2011 21:25:29 GMT

@llecs wrote:
The only check I ever write is to the trash folks because they don't take debit/credit.

I haven't written a check in a LONG---LONG time but, I do use debit for a lot of things that I guess I should start using a credit card for.

Re: Using Credit Cards for EVERYTHING?

Anonymous — Wed, 30 Nov 2011 21:28:26 GMT

Is there a "reason" for using credit sometimes and debit other times?

Re: Using Credit Cards for EVERYTHING?

laz98 — Wed, 30 Nov 2011 21:28:54 GMT

we use plastic for everything. we do use our debit card to pay things, but we use it like a credit card, no pin number. so to me it's just another credit card. the only thing i can't pay with a credit card is the exterminator that we have come once in a while, & i could probably ask them to take a credit card over the phone, i've just never bothered to ask.

Re: Using Credit Cards for EVERYTHING?

llecs — Wed, 30 Nov 2011 21:35:22 GMT

@Anonymous wrote:
@llecs wrote:
The only check I ever write is to the trash folks because they don't take debit/credit.
I haven't written a check in a LONG---LONG time but, I do use debit for a lot of things that I guess I should start using a credit card for.

There's nothing wrong with a debit card, IMO. I find a CC easier because I can never ever remember when these transactions occur. I don't want to be juggling balances on my checking acct too other than to stroke a e-check and pay the CC bill off. I also don't trust bank's billpay services. That's me I guess.

In terms of cash, I'd rather use cash for everyday purchases. I still use cash for gas, groceries, everyday purchases, meals out, etc. However, when I have cash in hand, my temptation is to spend it all. When I have $0 in my wallet, I tend to tighten my spending and I won't use my CCs because in my mind I'm broke, though I could easily hit the ATM for more.

Re: Using Credit Cards for EVERYTHING?

MarineVietVet — Wed, 30 Nov 2011 21:37:07 GMT

@Anonymous wrote:
Is there a "reason" for using credit sometimes and debit other times?

I don't suppose there is an exact answer for that. I use my debit if I think it's a better choice. For example right now many gas stations where I live are offering 10 cents off each gallon if you use a debit card. IMO sometimes that's a better deal than using a CC but that's just me.

I try not to overthink all of this. It's just not worth it. If at tmes I don't save as much or make a few dollars more in cashback I simply don't care. Life is much too short worrying constantly about such things.

But once again that's just me. We all have to do what we think is right.

Re: Using Credit Cards for EVERYTHING?

GregB — Wed, 30 Nov 2011 21:42:03 GMT

What is a debit card?

I am pretty sure I don't spend $1000 in cash in a year between business and personal expenses. I probably average more than $1000 per day on CC.

Re: Using Credit Cards for EVERYTHING?

Anonymous — Wed, 30 Nov 2011 22:13:01 GMT

It is my goal to use a CC for everything I can. Since right now I have one card with a small limit ($500) I still have to pay my rent with a debit card and use my banks bill pay for the cable and electric bill.

In a perfect world once my credit score improves a little more and I can get a prime card I am putting everything I can on the card to maximize rewards. Comcast is my cable provider and I am pretty sure I can pay with a credit card, I do know my electric company charges a 2.95 convienience charge for credit card payments so that negates any rewards so I would just continue using bill payment for that. However if it is possible to set up automatic electric bill payments to my CC then I would consider the convienience charge worth it to have it hit my card automatically.

That is one thing, I will never use a credit card if I am charged extra to do so. I have been watching my gas station closely and so far I am only being charged the price on the sign for my gas, nothing extra. I don't know anything about a cash discount though but if the cash discount is bigger than the rewards, then it is worth it.

I hadly carry cash around. Only sometimes for a few local businesses I know of that are cash only.

Once I have a prime card with a good limit by debit card becomes just a glorified ATM card.

Re: Using Credit Cards for EVERYTHING?

Anonymous — Wed, 30 Nov 2011 23:54:39 GMT

@Anonymous wrote:
I have read over and over again that some of you folks use a credit card instead of cash/debit for every thing you buy, including paying your bills with a credit card. I am learning SO MUCH about credit that I never knew. What bills are you paying with a credit card?

I use CCs for everything except rent. Basically I use CCs anywhere that accepts them.

Re: Using Credit Cards for EVERYTHING?

Duke-of-Earl — Thu, 01 Dec 2011 05:33:47 GMT

@Anonymous wrote:
What bills are you paying with a credit card?

Apparently mine is a minority view, but I don't really like using CC accounts for recurring expenses. Why involve another company in a transaction between me and the gas company? Why cycle it through another account, then have to check that it's been done right twice?

I try to use my bank's online bill-pay for almost everything like that. The only exception I make on the CC payment method is the el-cheapo long distance serivce I use on my land lines, where I only get their best rate if I use a CC. I also make exceptions to online bill-pay and use checks for two local utilities that don't know how to accept online payments.

I do use my CCs for retail and online shopping, restaurants, gas pumps, airline tickets, etc. Paying for various types of expenses as I described here makes it easier to track my spending and reconcile my statements.

Re: Using Credit Cards for EVERYTHING?

MarineVietVet — Thu, 01 Dec 2011 05:59:02 GMT

@Duke-of-Earl wrote:
@Anonymous wrote:
What bills are you paying with a credit card?
Apparently mine is a minority view, but I don't really like using CC accounts for recurring expenses. Why involve another company in a transaction between me and the gas company? Why cycle it through another account, then have to check that it's been done right twice?

I try to use my bank's online bill-pay for almost everything like that. The only exception I make on the CC payment method is the el-cheapo long distance serivce I use on my land lines, where I only get their best rate if I use a CC. I also make exceptions to online bill-pay and use checks for two local utilities that don't know how to accept online payments.

I do use my CCs for retail and online shopping, restaurants, gas pumps, airline tickets, etc. Paying for various types of expenses as I described here makes it easier to track my spending and reconcile my statements.

Your opinion is just as valid as anyone here. The main reason I put recurring (very small) monthly charges on a CC is that way I can show activity each month and I don't have to keep track and remember "Now which card is in the rotation this month for activity?" It just makes my life easier.

But I would never say it's the best or only way to use a card; just another option.

Re: Using Credit Cards for EVERYTHING?

Anonymous — Fri, 16 Dec 2011 13:49:51 GMT

I use CC's for everything and pay off throughout the month. I do DirecTV, AT&T (cell and internet), gas(heating), car insurance, home insurance, property taxes(they charge a fee, but for the amount of miles it's worth it), water/trash/sewer, all online shopping and all daily expenses. I even got a USAA Amex to use at Costco, we did a lot of shopping there as well as buying gas and we were using a debit card, but they stopped offering rewards on debit because of the new financial acts so I opted for a cash back AmEx. The only thing I don't use CC's for is electricity (small company,they charge a fee), mortgages and car loan.

I use the Citi Exec World Elite MC card primarily ( I travel a fair amount) and rack up the AA miles as well as other perks and the Amex for Costco purchases.

--wes

Re: Using Credit Cards for EVERYTHING?

Anonymous — Fri, 16 Dec 2011 13:51:22 GMT

@Anonymous wrote:
Is there a "reason" for using credit sometimes and debit other times?

I do it for cash back rewards (USAA AmEx) and AA miles/travel perks (Citi Exec card)

--wes

Re: Using Credit Cards for EVERYTHING?

Anonymous — Fri, 16 Dec 2011 14:06:37 GMT

I pay for EVERYTHING but my mortgage(they or set up to do actual bank withdrawals) with a credit card and it is to accumulate airline miles(I receive one mile for one dollar spent). In one year, I have over 48,000 miles. You have to pay bills and buy goods and services anyway, you may as well look for the best deal for yourself. I pay the balance off 2 or 3 times a month, but run everything I can through(groceries, vet bills, utilities, ect.) CITI American Advantage. Going back over to Europe in 2012, on "the miles".

Re: Using Credit Cards for EVERYTHING?

Anonymous — Fri, 16 Dec 2011 14:16:31 GMT

I use my credit cards for everything so that I can collect "points" from the credit card company. I pay off 100% of my credit card every month so that I never pay interest. Even though I pay off my credit card bill in full each month, using credit cards is HURTING my credit score. Apparently, FICO doesn't know or doesn't recognize that I pay it off each month. All they know is what my "current balance" is. Since I charge A LOT every month on my credit card and since there is a "float" period between when I get a credit card statement and actually pay the bill, it always looks like I have a large credit card debt, when in fact I pay it off each month. This has (?? Unfairly / inaccurately) caused my FICO score to DROP significantly. Can't they fix the FICO calculation so that they recognize that I pay off my credit card every month and recognize that in fact I am an excellent credit risk?????