I use my credit card for everything. Anyone else?

[Special K]

Originally posted by: Eeezee
I use my credit card for everything

And FYI, the Bank of America keep the change thing is not "free money" it's money that you already owned being put into your savings account from checking. A more effective way of getting "free money" is to empty your checking into savings and use your credit card for everything. Get 1%-3% cash back on all purchases (so there's free money right there) and get 5% APY on the savings account (more free money). At the end of the money check out your balance. Move that much money into your checking account from savings, pay off card the next day. Make sure your credit card has a grace period (Chase cards are at least 20 days after the statement) so you don't have to pay finance charges.

There are no fees or extra charges if you pay off the card within 20 days of the statement. I know some other cards are even 30 days. By using a credit card I'm also protected against online fraud, I can dispute charges at any time if, say, a seller never ships an item or ships it broken. I have the Chase freedom card, 1% cash back on everything and 3% back on restaurants/gas/groceries (which make up 90% of my spending).

It is only occasionally inconvenient when some restaurants or stores require a minimum purchase. Some stores also don't take credit for some reason (cheap mexican place I go to only does debit). Otherwise, I don't understand why someone would use a debit card instead of credit.

How long does it take to transfer funds from an online savings account to a traditional checking account? Is the transfer free?

 

[smack Down]

How long does it take to transfer funds from an online savings account to a traditional checking account? Is the transfer free?

No fees, unless you do it a look (more then 6 times a month). I think it takes a few days for the money to move.

 

[txrandom]

Originally posted by: Xylitol

Originally posted by: Lumathix

Originally posted by: minendo
I use my debit card for everything. No transaction fees and I enrolled in Keep the Change through Bank of America so annually I end up getting free money in my savings account.

How is it that having your bank round all your purchases up to the nearest dollar (thereby charging you more than cost), then putting that extra money in your savings acount "free money"?

if you buy something that costs 1.01 bucks, you get 99 cents into your bank account. If you buy something that costs 9.95 bucks, you get 5 cents to your savings account.

And guess where that money is coming from? Your checking account. They are just redirecting money from checking to savings for people who are too dumb to do it in the first place.

 

[smack Down]

Originally posted by: txrandom

Originally posted by: Xylitol

Originally posted by: Lumathix

Originally posted by: minendo
I use my debit card for everything. No transaction fees and I enrolled in Keep the Change through Bank of America so annually I end up getting free money in my savings account.

How is it that having your bank round all your purchases up to the nearest dollar (thereby charging you more than cost), then putting that extra money in your savings acount "free money"?

if you buy something that costs 1.01 bucks, you get 99 cents into your bank account. If you buy something that costs 9.95 bucks, you get 5 cents to your savings account.

And guess where that money is coming from? Your checking account. They are just redirecting money from checking to savings for people who are too dumb to do it in the first place.

And to top it off they charge you an annual fee.

 

[minendo]

Originally posted by: smack Down

Originally posted by: txrandom

Originally posted by: Xylitol

Originally posted by: Lumathix

Originally posted by: minendo
I use my debit card for everything. No transaction fees and I enrolled in Keep the Change through Bank of America so annually I end up getting free money in my savings account.

How is it that having your bank round all your purchases up to the nearest dollar (thereby charging you more than cost), then putting that extra money in your savings acount "free money"?

if you buy something that costs 1.01 bucks, you get 99 cents into your bank account. If you buy something that costs 9.95 bucks, you get 5 cents to your savings account.

And guess where that money is coming from? Your checking account. They are just redirecting money from checking to savings for people who are too dumb to do it in the first place.

And to top it off they charge you an annual fee.

I am not charged any annual fee and they match it at 5% per year (3% for first 3 months). BofA is not my primary savings account, I only use it for the match and then that money is transferred to another savings account.

 

[Dunbar]

Originally posted by: minendo
I am not charged any annual fee and they match it at 5% per year (3% for first 3 months). BofA is not my primary savings account, I only use it for the match and then that money is transferred to another savings account.

How much does the 5% match amount to? Even if you average one debit transaction a day we're talking what maybe $100-150 in funds that get moved to savings X 5%? Hardly even seems worth it, just keep enough money in your bank account to cover bills and transfer the rest to a 5% online savings account.

 

[GoingUp]

I use my credit card for absolutely everything. Its rare that I carry more than $5 in my wallet.

I always pay the bill off in full every month too 🙂

 

[minendo]

Originally posted by: Dunbar

Originally posted by: minendo
I am not charged any annual fee and they match it at 5% per year (3% for first 3 months). BofA is not my primary savings account, I only use it for the match and then that money is transferred to another savings account.

How much does the 5% match amount to? Even if you average one debit transaction a day we're talking what maybe $100-150 in funds that get moved to savings X 5%? Hardly even seems worth it, just keep enough money in your bank account to cover bills and transfer the rest to a 5% online savings account.

I max it out at $250 per year and only have to keep a minimum balance in my BofA account.

 

[MSCoder610]

Originally posted by: smack Down

How long does it take to transfer funds from an online savings account to a traditional checking account? Is the transfer free?

No fees, unless you do it a look (more then 6 times a month). I think it takes a few days for the money to move.

With EmigrantDirect it's 2-3 business days. With any transfer, it should be plenty of time to pay a credit card, between the time you get the statement, and when the payment is due.

 

[UTmtnbiker]

I don't see why people don't use their CC's. We're a credit card family here. Cash only when necessary. Why?

Easy, we pay it off every month like others have said here. Benefits we've received so far this year:

Starwood SPG - Accrue 1 pt for $1 spent at Starwood properties, getting a 4 night stay Sheraton Cable Beach Resort in Dec. Used 40,000 pts. Approx. value $900. Cash back percentage: 2.3%
Countrywide Visa - $200 towards mortgage principle in 2 months, 2% of total spending goes back towards your mortgage in $50 increments. At this rate, we'll pay off our mortgage early by about 4 years not even counting what we pay extra just for giggles.
Merrill+ Visa - 1pt per $1 spent but more importantly for me, after spending more than $50k, free enrollment in to Delta Crown Room Club ($400 value)
AMEX Blue - ~$300 cash back, use for what they call everyday purchases (groceries, gas, etc)
Amazon Visa - $325 in Amazon GC's

And this is just for somebody who doesn't really maximize the benefits of credit cards. Those guys on FW Finance are gurus with AppORamas, etc. I don't have time to keep that on top of things.

Granted, my wife runs her own business, so we charge a lot in a year and get these rewards. However, even before that, we were consistently getting about $300 to $500 cash back on just a cash only rewards card.

IMHO, if you're not using a credit card, you're leaving cash on the table.

 

[LtPage1]

I loathe carrying change, so I charge everything I possibly can (and pay it off at the end of the month, in full).

 

[Dunbar]

Originally posted by: minendo
I max it out at $250 per year and only have to keep a minimum balance in my BofA account.

You max what out, the 5% match from BofA? Can you explain how you do this? I am at a loss to figure out how you get to $5000, from 1-99 cents per debit transaction...

 

[minendo]

Originally posted by: Dunbar

Originally posted by: minendo
I max it out at $250 per year and only have to keep a minimum balance in my BofA account.

You max what out, the 5% match from BofA? Can you explain how you do this? I am at a loss to figure out how you get to $5000, from 1-99 cents per debit transaction...

Two debit cards (my wife and I) and we use the debit card for everything.

 

[Pepsi90919]

Originally posted by: mrSHEiK124

Originally posted by: Scouzer

Originally posted by: Pepsi90919

Originally posted by: Special K
What bank charges you a fee to use their debit card?😕

in canada, Interac, your bank, and the out-of-network ATMs can all levy fees. it gets ridiculous, sometimes taking out $20 will end up being $23.

we do not use visa or mastercard for debit, only credit or prepaid credit.

I've never seen Interac [Debit] itself levy fees. However, many local stores here charge fees for themselves when you use debit.

Out of network ATMs are ridiculous though. There is no BMO machine in my town, so I get dinged $3 anytime I want cash.

The way to go is goto Walmart and buy something tiny, then ask for cash back. Otherwise, you get screwed.

Know what I didn't understand in Toronto? McDonald's only takes "debit", no Visa or MC.

which location?

 

[Evadman]

/me raises hand

 

[Dunbar]

Originally posted by: minendo

Originally posted by: Dunbar

Originally posted by: minendo
I max it out at $250 per year and only have to keep a minimum balance in my BofA account.

You max what out, the 5% match from BofA? Can you explain how you do this? I am at a loss to figure out how you get to $5000, from 1-99 cents per debit transaction...

Two debit cards (my wife and I) and we use the debit card for everything.

You expect me believe you're doing roughly 10,000 debit transactions a year 😕 Are you using Wilt Chamberlin accounting practices to come up with this estimate?

 

[KoolDrew]

I barely ever do.

 

[KarmaPolice]

I s there a down side to having too many credit cards? Does it hurt your credit? If you stop using one is it ok just to let it sit or will you start gettting billed little fees or should you just cancel it.

 

[Mxylplyx]

Just picked up a Citi Dividends Platinum Select card to pick up any purchases that dont accept my AMEX blue. It's a 1% cash back card, with 2% on everyday purchases. The main reason I got it is they consider utilities an everyday purchase, so I'm going to get 2% cash back on my cable bill, gas bill, etc. Now my debit card will never get used.

Sweet.

 

[j00fek]

i use my visa debit card for everything

 

[Mxylplyx]

Originally posted by: j00fek
i use my visa debit card for everything

Depending on how much spending you do, you are throwing away possibly $100's a year in free money.

 

[imported_Imp]

Originally posted by: LtPage1
I loathe carrying change, so I charge everything I possibly can (and pay it off at the end of the month, in full).

No problem, turns out many men's wallet designers don't even add a change compartment. My lovely Roots leather wallet has 2 slots for paper money, about 30 for cards and zero for change. It's kinda nice not having to lug around a 5lb a 5lb wallet like I used to. Then again, I now have to carry a change purse in my purse... Yes, I carry a purse!

 

[Schfifty Five]

Originally posted by: Dunbar

Originally posted by: minendo

Originally posted by: Dunbar

Originally posted by: minendo
I max it out at $250 per year and only have to keep a minimum balance in my BofA account.

You max what out, the 5% match from BofA? Can you explain how you do this? I am at a loss to figure out how you get to $5000, from 1-99 cents per debit transaction...

Two debit cards (my wife and I) and we use the debit card for everything.

You expect me believe you're doing roughly 10,000 debit transactions a year 😕 Are you using Wilt Chamberlin accounting practices to come up with this estimate?

of course he doesn't expect you to believe it, he couldn't care less about you.

but LOL @ the wilt chamberlin comment.

CC for everything I can use it on.

 

[PingSpike]

Originally posted by: Mxylplyx
Just picked up a Citi Dividends Platinum Select card to pick up any purchases that dont accept my AMEX blue. It's a 1% cash back card, with 2% on everyday purchases. The main reason I got it is they consider utilities an everyday purchase, so I'm going to get 2% cash back on my cable bill, gas bill, etc. Now my debit card will never get used.

Sweet.

Might have to check that one out. I'm looking for a visa/mastercard compliment for the costco amex I just got. I like to have just two cards, its time to retire the crapital one.

I'd pay everything with a CC if I could, I HATE cash and you get consumer protection/rewards with a CC. I wish I could pay my mortgage with a CC...

 

[pontifex]

i pay cash for almost everything except online orders, and even then i try to use paypal if possible.

i tend yo buy more than i should sometimes so i can't always pay it off.
When I do make payments, I pay off as much as possible. I just sent $500 in on my last payment. before that payment, I had about $1300 on my card.