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.

 

[jonesn3]

Following. For a long time I only used debit and cash. But, years ago when my traveled abroad, I got a CC for more security while traveling. Since then I’ve really enjoyed the Capital One interface for tracking expenses and cash back. Wife had Chase for quite but the annual fees didn’t make sense after while. She also had Alaska and Southwest for a time before we got married, the Alaska card kinda wasn’t great cause of the app/mobile interface but nice if you had extra checked bags, but we ultimately dropped those years ago. Right now we primarily use Costco Citi Visa and Capital One. We treat the card like a debit or cash, pay it off in full each month on the due date and carry a zero balance. Make use of the points for travel, and a CC is nice for work expense that ultimately get reimbursed to me.

 

[JasonWi]

I only have one CC a Chase Freedom Unlimited that does 1.5% cash back. I’ve had it about 7 years. I typically only earn a couple hundred per year. Always a zero balance, pay off weekly.

I’ve debated adding another CC that offers 2%, but for a 0.5% improvement decided it wasn’t enough to even bother.

The only reason I keep mine open is so I can apply for all my NR hunts and don’t have to worry about draw results posting and it happening when the checking account doesn’t have sufficient funds to cover an unexpected OIL tag.

 

[BChunt]

I like the Citi Custom Cash card. 5% back on your top spending category of the month up to $500 in spending. 1% on everything else.

 

[haywoodhunter]

Citi double cash does well for me. I also got an academy card because I buy a lot from academy and it’s 5% off when you use the card.

Always pay that balance off before it’s due and enjoy some cash back and no interest

 

[Snowwolfe]

Rules to follow:

1. If cash will save you at least 3% off the price then use cash.
2. Your wasting money if rule 1 does not apply and should be using a CC.
3. Pay off the balance every month.

It is unbelievable how many people brag about not using a CC. This is like saying I don't know how to manage my finances and enjoy tossing money away.

 

[CorbLand]

Rules to follow:

1. If cash will save you at least 3% off the price then use cash.
2. Your wasting money if rule 1 does not apply and should be using a CC.
3. Pay off the balance every month.

It is unbelievable how many people brag about not using a CC. This is like saying I don't know how to manage my finances and enjoy tossing money away.

Nothing wrong with not using them. I know a couple people that dont have the self control to manage them, recognize that about themselves, and choose to not put themselves in the position to get in trouble because of them. Its a great choice for them.

The baffling thing for me is when people like that make the automatic assumption that you are like them and should do everything like them. I have had it happen in person where people tell me that using a credit card will just lead me to debt and buying things that I dont need/want because I have it. Got to the point where I just tell them "tell me more things that I dont know about myself."

 

[Gobbler36]

Scheels!

 

[slowcal]

my favorite is the fidelity rewards card. it's the only card i know that is 2% back on everything and no annual fee. no need to always try to remember which card to use. keeps things simple.

 

[pirogue]

Scheels!

X2. Felt good to take a pair of Swaro NL Pure binos to the counter at Scheels, and plop down $900 worth of gift cards, to reduce the price(and then get 5X points on balance). And NO, I’ve never paid interest, since I pay it off each month, and I never use it where I would be charged more for using it, rather than a debit card.

 

[Stache Attack]

great thread here, I’m reviving it. I hate credit cards typically, I just had an unused card close I got in 2012 used for a couple years(always paid off) in college just for some protection of fraud in a larger town… once out I went back to cash and debit card.

It closed last week since I cut it up years ago and dropped 60 points off my score.

I am looking into rewards and believe I have the gumption to carry no balance on it. I don’t mind the Scheels but really want something better and where I won’t just go spend money. I hoard cash and gift cards already feel like I wouldn’t use the gift card, or it would come with increased spending on top.

Or just say I’m done stick with debit and cash and leave card alone

 

[CorbLand]

great thread here, I’m reviving it. I hate credit cards typically, I just had an unused card close I got in 2012 used for a couple years(always paid off) in college just for some protection of fraud in a larger town… once out I went back to cash and debit card.

It closed last week since I cut it up years ago and dropped 60 points off my score.

I am looking into rewards and believe I have the gumption to carry no balance on it. I don’t mind the Scheels but really want something better and where I won’t just go spend money. I hoard cash and gift cards already feel like I wouldn’t use the gift card, or it would come with increased spending on top.

Or just say I’m done stick with debit and cash and leave card alone

My theory with cards and what you get back is, decide for yourself what you want. Sometimes it’s nice to have points at a store you shop at to buy random things that you wouldn’t really spend money on. Sometimes it’s nice to just get cash back that you can use wherever.

I have a Cabelas card and the points just add up. One day they put a muzzleloader on sale and I used my points and paid 8 bucks for it. Same with a single shot 410. Both were things I probably wouldn’t have just gone and bought but they are fun to have around. Broke a guys radio this last year. Waited for them to go on sale Black Friday and bought him a new set, used my points and it cost me 25 bucks out of pocket.

For you, sounds like cash back would probably be best.