Do you use credit card or cash?

[me203]

The average interest rate on credit cards is now over 20%. The average is at a record high. IMO: Don't keep balances on your credit cards.

But it's un-American to pay off credit cards each month!

 

[metta]

But it's un-American to pay off credit cards each month!

lol. I always pay off my credit cards at least weekly, and I have done that for over 20 years. I just use them for convenience, safety and points. Over the years, I have gotten several thousands of dollars just from the points.

 

[Kahaih]

. . . . Over the years, I have gotten several thousands of dollars just from the points.

But, is that enough to compensate for paying extra at the pump?

 

[Dargelos]

The average interest rate on credit cards is now over 20%. The average is at a record high. IMO: Don't keep balances on your credit cards.

Aren't I glad I haven't got a credit card.

 

[metta]

But, is that enough to compensate for paying extra at the pump?

At the pump, they only take debit cards where I go. It is the only place where I use debit cards. It is more risky to use debit cards and can take longer to get corrected.

 

[metta]

Aren't I glad I haven't got a credit card.

Not if you plan on building your credit. You just have to use them responsibly. Use them to make a little extra money and for safety. They also help to build your credit for when you need a loan (auto, home, etc.). The best way to use them is to always pay off the balance. I do it weekly to keep the risk down. Any balance when the credit agencies check your credit can drop your score by 25 points. I think it is a mistake to not have them and use them unless you have the money to buy everything with cash and don't need loans in the future. It takes time to build up enough credit history.

I have worked very hard on my credit score. It was fun to see how high I could get it.

 

[eddielee]

I use my debit card for local purchases such as groceries or paying bills. I use my credit card for online purchases because it offers some protection. I only use cash at some restaurants.

 

[ShadowCat]

Cash for 99.98% of everything!

 

[Thula]

Debit Card for everything

 

[smokeshadow]

Most of the time, if the cost of something retail is less than $ 50.00, I'm going to pay cash. I typically can make $ 100.00 in spending money last two or more weeks.

 

[afterhours]

Most of the time, if the cost of something retail is less than $ 50.00, I'm going to pay cash. I typically can make $ 100.00 in spending money last two or more weeks.

I tend to use Apple Pay on my watch.It's by far the easiest way to pay - no tapping a card or getting out cash -it's seamless.
My apple pay is linked to a debit card but you could also link it to a credit card.
Looking at the comments, here America seems a long way behind Europe!!

 

[EJMichaels]

Not if you plan on building your credit. You just have to use them responsibly. Use them to make a little extra money and for safety. They also help to build your credit for when you need a loan (auto, home, etc.). The best way to use them is to always pay off the balance. I do it weekly to keep the risk down. Any balance when the credit agencies check your credit can drop your score by 25 points. I think it is a mistake to not have them and use them unless you have the money to buy everything with cash and don't need loans in the future. It takes time to build up enough credit history.

I have worked very hard on my credit score. It was fun to see how high I could get it.

Another thing that makes a notable difference -- percentage of your credit limit you use, regardless of paying it off on time. I once made the mistake of making a not-small purchase with a new card that still had a low limit, and it lowered my score enough that my car insurance went up -- it happened to coincide with the time they checked my score to adjust my rates. I think it was a 1% increase. It didn't matter that my score was around 800 -- it had gone down because of that one purchase. I think the guideline is to not use more than 30% of your limit. It also didn't matter than the card was one of six, and all the others never went over 30%.

 

[rareboy]

I started building my credit score when I was 14. With a 300 dollar loan from the bank that my Dad co-signed for, but I paid back over a year...even though I had the cash in hand.

By the time I hit Uni and needed some loans, I had a credit record and did well... without the P's having to co-sign.

I remember telling the mortgage officer at the TD bank to go fuck himself when he asked for my parents to co-sign the mortgage on the farm and then about a decade later, when we had paid the mortgage in full, telling him that we no longer needed any of their money for business or personal loans...and to not treat young borrowers like they treated us...and of course a lot of this was because we had built a solid credit score.

So never pooh pooh credit cards and small loans early on to get you the cred.

 

[me203]

^While reading this, I remembered something I heard in high school, when they did a career day. One speaker (who ran a store) asked a question. You have $500 in a savings account and want to buy a new stereo. So how do you do it? Many people would think to withdraw the money. But he suggested that if one used that money to secure a loan, one would be able to buy the stereo and build credit. One would also pay interest, which isn't fun. But he apparently felt building a credit rating was well worth that.

The other thing I remembered commenting that has stuck: he envied businesses (unlike his) that did not have inventory. He didn't go into details, but I can imagine that running a store with inventory had costs and hassles that got tiresome.

 

[PrinceCory]

I would say I'm nearly 100% credit card. I only use debit card (my bank charges me 15 cents to use the debit card on purchases) if I need some cash-back at a store or ATM. I use cash to pay for a haircut every 3 weeks and if I'm just spended $1 to $3 on something.

I pay off my 2 active credit cards each month. The reward dollars I sock away into my vacation fund (which is also funded by tax returns and other rebates). Since I only travel overnight somewhere less than once a year the fund builds up. I've always been able to manage my money so I don't over spend on cards.

 

[bankside]

I took out $300 the last day before Canada shut down for the pandemic. I still had $260 after 18 months, and I had to travel to another city and spend cash on propose for my travel expenses to get rid of it.

We have now travelled 3 times outside the country since the pandemic lifted. (A tale of a bunch of cancelled flight credits having to get used plus an anniversary flight). We left and returned with the same amount of 3 kinds of foreign cash. I don’t think we use he stuff any more. There’s one crackpot wing nut type from 30 years ago on my Facebook who is convinced this is a secret plot by the prime minister to trick us into eliminating cash and forcing us to use tap-to-pay. And the rest of us are like “Oh no! Not tap to pay!!!” <tap>

 

[fredroy]

I did the car loan thing when I bought the '75 Cordoba. My first car, rich corinthion leather and all. The guy at the bank said you have plenty in Savings, just buy the car. He was right.. But I wanted to build my credit score because it's suppose to be a big deal. So I got a one year loan. Hated that shit and paid it off in six months. I have no idea what happened to my credit score. I had other things to do, there were some cute guys around, ya know?

I use to sit and write a lot of checks every month. Like, 35 or so. Rent, water, gas, electricity, book club, magazines, and on and on. That's mostly gone.

Now? The electric bill drafts the checking account. The cell phone bills hits the CC of the phone owner. Online banking is AWESOME. I clicky click and pay the two credit cards off every month. And get some cashback. Ain't much, but it adds up over time.

For writing checks, there are still a few. The feed store tacks on 3% if using plastic. I can write a check.
License plates? Same deal, but the fuckers tack on 4% if you use plastic.... on top of their new "service charge".

Rent? I mean Property Taxes. They'll take plastic now but add 4% service charge. I can still write. So they get a check. That somehow hits my bank account the next day.

I'm down to scrawling maybe 6 checks a year.