Best Credit Card?

[william schmaltz]

You may not pay interest and get a few bucks back, but I guarantee you most if not all of you are spending money you wouldn't otherwise to garnish those peanuts. It encourages spending. Why do you think those programs exists? You think you are smarter than the CEO's getting 50 million/yr? I think not.

There’s levels to everything. You are correct for some broke and impulsive 20 year old or someone with the keeping up with the Jones’ syndrome. I suppose those are the folks that are paying for the benefits of those of us who have never paid a cent interest. I use mine in place of a debit card. It automatically gets paid a week before the due date. I buy what I need or have already planned and that’s it. I’ve never thought “so glad I have my CC today so I can afford this” or ever bought anything with a CC I would’ve otherwise used cash for. Absolutely have never justified a purchase because it’s 3% “off” or because it meant more air miles.

When I was on an AK Air flight a couple days ago they had a commercial to use inflight entertainment where the premise was “I need to buy these expensive things so I’m closer to my free trip to Hawaii.” So you’re absolutely right that they market it and get probably millions of people that way. They were very clear on that.

My wife just traveled with two kids. We paid full price for her ticket, $100 companion fare for second, and used miles for the third. What would’ve cost $1800+ was about $700. So $1000+ savings and we do that twice a year. At minimum I go to Bethel 2x a year and Kodiak 1x for personal stuff. Total for those three round trips is usually 30k miles and about $30. Often times my whole family joins or just my wife. So that’s another $1-2k+ savings. My family will also join me on Seattle work trips using miles. I guess I’m not going to just leave $3-4k+ in flight savings on the table every year. It costs me ~$100 in annual fees and in over a decade we’ve never gave them a penny of interest.

 

[woods89]

I actually find that when I have cash in my wallet, I have a habit of spending it. For me it's quite clear that when I swipe my card I'm spending money, and I think that's the mindset one has to adopt.

Where it's a real no-brainer, to me, is for small business owners. When you can run 6 figures of ordinary business expenses a year through it it can get you some really nice perks.....

 

[neil.hansford]

This is only half true. The credit card enables spending that you wouldn't spend if you were paying cash. So instead of spending $1000 every month on the card and paying it off every month, spend $600 in cash and save the $400.

No, it's fully true for what I quoted. He asked why people are making payments for "cash back". I explained that most people responding aren't. They're buying things they normally would and paying off each month. They obviously have the "cash" to cover it. So it's just a timing thing....pay throughout the month. Or at the end of the month.

You may be referencing people who spend more on a credit card than they would with cash. Yep, there are those people for sure, and they'll need to be careful to not overspend. All about personal responsibility.

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[Dos Perros]

What does a credit card allow me to buy that I wouldn’t other wise be able to purchase with other means?

Maybe I wasn't clear. I am referencing the Dave Ramsey theory that when you are forced to count out your hard-earned cash and plunk it down on the counter for something you 'feel the pain' of whatever purchase your make, and there is a stick effect of making large purchases. Alternatively, when you swipe a card, it's one swipe whether it's a pack of gum or some Swaro EL's.

I promise you, if you went to all cash, you would spend less than your credit spend minus rewards, and be ahead.

 

[Dos Perros]

No, it's fully true for what I quoted. He asked why people are making payments for "cash back". I explained that most people responding aren't. They're buying things they normally would and paying off each month. They obviously have the "cash" to cover it. So it's just a timing thing....pay throughout the month. Or at the end of the month.

You may be referencing people who spend more on a credit card than they would with cash. Yep, there are those people for sure, and they'll need to be careful to not overspend. All about personal responsibility.

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Apologies, I didn't read your post thoroughly.

With regards to personal responsibility, there are those who think they are responsible, but who actually aren't. Some of them are posting in this thread!

 

[CorbLand]

I promise you, if you went to all cash, you would spend less than your credit spend minus rewards, and be ahead.

What do I get when you lose?

I guess I dont understand the mentality of "if saving one dollar is good, then two dollars is gooder." Set yourself a budget and stick to it. All of my bills are paid, savings funded and investments made each month. After that, I spend everything left over. Money is just fun coupons.

If one doesnt have the self control to set life up that way, its not the credit cards fault.

 

[dreadi]

What does a credit card allow me to buy that I wouldn’t other wise be able to purchase with other means?

Thousands of dollars worth of a service immediately, remotely.

 

[CorbLand]

Thousands of dollars worth of a service immediately, remotely.

A credit card is the only thing that allows for that? Couldnt do the same thing with a debit card?

 

[dreadi]

A credit card is the only thing that allows for that? Couldnt do the same thing with a debit card?

If you have enough in your bank account to cover it, maybe. If your bank allows large debit transactions, possibly. However, with the right credit card you can charge a multitude of expensive services or products without immediately having cash available. Some cards have no spending limit, and if you need to acquire a product or service immediately such as, renting forty 55" multi touch monitors and have them shipped via Southwest Airlines Freight for AM pickup the next day and a courier to deliver them, you might want to have a credit card instead of tieing up your cash.