Are you a credit card person?

[Date_a_Snob]

This is a question Caleb Hammer asks his guests on the YouTube channel Financial Audit

[Peter_Penetrator]

Only for emergency uses. Then l work on paying it off asap. The average American has trouble enough paying bills to begin with. Why should you be the one to add another monthly bill to pay.


Credit card companies love offering you a high credit limit. Then charge you nearly 20% or more in interest. A person could easily face a $150.00 monthly credit card payment. Then you find yourself in an endless cycle of charging more over time because that $150 takes that potential cash out of your pocket and reducing your “disposable income”. With credit cards, you can find yourself chasing that payoff amount.


Get yourself a check register app for your phone. Then budget each paycheck in advance. Don’t use your bank issued debit card. Instead set aside that money as cash you keep at home and only carry what you will spend every two or three days. It is too easy to lose track of your debit card purchases. Set up automatic bill pay so you don’t have to stop to write those checks. Since that money is already there in your account, it will be deducted on a schedule. That schedule helps with budgeting.


If you write too many checks, you risk bouncing checks that could end up at the prosecuting attorney’s office or you will incur high NSF charges that chip away at your next paycheck.


Now, if you still don’t want to carry cash, get a prepaid debit card. Link that to your bank account, budget that amount into your check register app. This way you can make purchases online or places that accept debit cards, like pay at the pump gas stations. You may pay a small fee per transactions, but it beats paying NSF charges.


If you can’t pay for something in between paychecks, don’t buy it on credit. Pay your bills. Don’t skip out on paying a bill to buy something frivolous. Stop smoking, dipping, vaping, or over indulging on alcohol unless you are spending your “disposable income”.


Give my strategy a shot. I love it. Hope l can help.

[red324]

Pay it off every month and you won't pay interest. They pay you!

[Peter_Penetrator]

Not everyone is willing to pay it off every month. They will find something frivolous to buy rather than paying more than the minimum payment. The point is to save for the things you don’t need to survive.

[JacobJordan]

One should use all 3 types of payment. As a wealthier person i'll explain why. Cash is great for in person transactions and transactions you can do under the table. Debit card also good for in person transactions and a good way to not have to carry large amounts of cash. For any and ALL online purchases OR large purchases you use a credit card. Always!!! Remember if someone steals your credit card you are not on the hook and credit card companies are absolutely feral when it comes to protecting their clients so not only are they GOING to find the thief but they are going to have them prosecuted 6 ways from Sunday. Now when it comes to building credit when you are 18/19 early 20s I want you to use that credit card once a month. Right before you have to pay for the credit card bill. Buy 1 item (if you have no restrictions on purchase amount of course) and immediately pay it off. You can get a very high credit score very quickly without ever having to worry about being in debt. This will help qualify you for bigger loans, better interest rates and more. All you need is to use the card once right before the bill. This is something they should be teaching in school instead of what they currently teach but I digress

[electromagnetic]

I am!
I have not used a debit card in almost 13 years. A credit card just makes everything to simple for me. Especially because I travel a lot and most debit cards do not allow foreign access without hard penalties.

Tip, apply for a credit card that offers travel rewards and lounge accesses or has quality perks. Once you’ve used those benefits, hold on top the card until a new company offers perks and apply for that card. Closed the original card. That way you still maintain quality credit and aren’t racking up cards. BE SURE TO PAY YOU DEBT and not just minimal payments.

[loveslongnails]

Just an update; many cards no longer charge a foreign exchange fee. Neither my CapitalOne or my AA Advantage card charge that fee any more. However, every major airline has clamped down on lounge privileges for the $99 per year cards. On American for example, you now have $595 fee for a card that will give you unlimited lounge privileges. The Delta Amex card is $695 for an individual or $1,495 for an executive card. Both allow you 2 guests when traveling, but that's only work it if you travel very often in my opinion. Neither airline is selling day passes at this point, to my knowledge.

[electromagnetic]

@loveslongnails I forgot to mention the countries for those who have credit cards. Sorry for that.
Canada still had foreign charges. The loop holes is finding banks that still allow lounge accesses.
Amex platinum cards, most TD and scotiabank (again speaking in Canada ( still has perks. Downside being qualifying and the crazy annual services charges.
Air Canada has their own Aeroplan card which also has good perks but that’s if you fly with air Canada a lot.

It’s best to shop around based on country of residents and what they offer.

[loveslongnails]

Yes, that's an important point. I don't think Canada has a lot of choices for fee free or low free credit cards that don't have foreign charge issues. On the other hand, I have a TD Bank debit card because in the states, they don't have a foreign fee, they have a really good conversion rate, and they offer ATM reimbursement on all fees.

[Jessica405]

I use a credit card a lot. You can make a small amount of extra money for just a bit of effort.

You get paid once a month. Put you pay in a high intrrest account. Live on your credit card.

Next pay day, do the same. When your credit card bill comes in, wait until you justvavoid charges, and pay off your bill in full.

So you are living on your card for very nearly 2 months, with no charges, aand all that time, you are earning interest on the money you stacked away.

[DeeDeeDeVour]

I have credit cards that I only use when I'm travelling but I always pay them off since I use them like charge cards not as revolving credit cards.

I provide credit cards to my staff which auditors employed by me monitor and submit to me for payment approval.

[TenderFantasy]

I'm in big debt right now because of credit cards. I needed it to survive and go out with my boyfriend back when I was unemployed or underemployed. Lesson learned if you want to not get into serious debt is not to use them if you can! However though, it's not like I had a choice in the matter. I was looking for work, a good paying one, but it was hard to find for some reason at that time.

[BoopBoopBeep]

Absolutely. I have 14 for different earnings categories and different perks. Earn a LOT of airline miles every year and other benefits like status with rental car agencies/hotels, free lounge access, everything is set to pay off in full every month so no interest payments.

[loveslongnails]

Absolutely! I put everything I possibly can on my credit card because it accumulates miles and other benefits. Then I pay it off completely every month so I have no carry over debt, no interest, no penalties. Combined with my lack of other debt (no mortgage - paid off the house in 13 years, paid off the car 4 years ago), my credit score is 835. If I ever need a loan I can take out a line of credit on my house.

[Surely]

In today’s world you are almost required to have a credit card. But in the early days of credit cards. Business owners would sometimes give a discount if you paid cash. Now some businesses are charging a 3% usage fee. If you pay with a credit card!
So there are reasons to have and to not use credit cards. I use one and pay it off in full every month!

[Likes2drive]

I rarely use them but keep for emergency for car rental and motels when I go on trips, I always pay off the balance, otherwise I use my debit card and cash. I never use them unless I know I can pay them off at the end of the month or you’ll get yourself into a bad position. I learned that years ago

[midnightmoon05]

Yes. I out everything on my rcredit card and pay off every month…I limit myself each month since most stuff are not worth buying. That’s how you become rich loli

[Siri137]

Nope. I've always only ever used cash. I wouldn't even know how to use one of those cards. As the saying goes, "Cash is King" (or Queen, or gender-confused monarch, LOL).

[foxrider77]

I use 95% of the time. 0 interest since I never leave a balance on them. Also, receive hundreds back in credit from rewards. Get $200 off a year on hotels too.

[IslaTheWitch]

Locally, I use a debit card. When traveling, use a credit card. Fortunately, it's one and the same card for me :D

[Kaneki05]

Fastest way to be poor is to have debt. I will and try not to ever have it. So nope don't have a credit card.

[AviatorTom]

I rarely use cash, credit card whenever I can. I pay off the balance every month, so I don't pay interest charges.

[rosemilk]

nope. i only used it to build a credit score. that's it.

[Dinklex3]

I am now, yes. Sad I was late to the game, but they’ve given me quite a lot.

[Simslover92]

I wish I never owned a credit card. In so much debt because of them.

[Kristenxoxo]

I’m use them once in a while, I’m trying to build up my credit

[elecguy73]

I am a cash, and credit card guy, but I pay the balance off every month, because I like having no debt. And hate interest.

[OfDeath]

They’re good to have for the sole purpose of keeping a good credit score as long as you don’t miss payments. But once you get what you need, you can cancel it.

[newboy78]

Yes, also collect all the credit cards that give free airport lounge access 😂

[Zestyassmf1997]

No. I literally don’t even have a credit score cause I’ve never taken a loan in my entire life. I don’t plan to either.

[jamesgoldman]

Had two, used them, made money doing it and just had the AMEX cancelled for inactivity

[Date_a_Snob]

they cancelled your card?

[jamesgoldman]

Yeah didn't use it or have a balance for two years

[bowenw]

Use it for as much as possible, pay it in full monthly, and use the points for trips.

[Dargil]

Debit card. I keep my credit card for emergencies.

[ChicoFromThe305]

Not really, I'm more of a cash person, I don't like having a trace of my purchases.

[Sharkstealth]

Primarily. I make money off of them but I never buy something I can't afford and always pay off with in a week of transaction.

[Redstang88]

Yeah got 3. All kinds of perks and freebies from them

[Carly2005]

I am money kinda dirty if you think about. But I track what I spend I learn that from my mom she been doing this since she was 16.

[Guido]

I use a credit card for everything and pay it off monthly. I get cash back with my card on everything I buy and have 1 bill at the end of every month.

[Circushowcowboy]

I use it for most purchases then pay it off monthly

[Twalli]

I get almost everything online, so I kind of have to be.

[LunarEclipse433]

I accumulate points on my card but pay it off each month so no interest. So yes

[mandyfire98]

I am. I earn points with my credit card.

[red324]

Same here. Unless I know it's something I can get a deal with paying cash

[mandyfire98]

Very true

[red324]

I may not be able to get laid to save my life. But I've always been good with money. 😂

[mandyfire98]

Hahaha being good with money is more important skill

[milyjohn]

Yes, smart people are.

[Grond21]

I use them often and pay them off every month

[Lowiu]

Not credit but I pay a lot with debit

[sheikalana]

Nope. Never owned a credit card.

[CozyCoffin]

I have two and are doing well with them.

[RickyRage]

Yes I am. I use them very regularly.

[elaphe]

I have one but don't use it much.

[Liketotry]

Sure, it’s a cashless society we’re in now

[Bklynbadboy12]

I have 2 but I hardly use them

[Slim57]

I'm not but maybe soon

[Anonymous]

I am a debit card user.

[Booklover_90]

Noooo.

[jahaims]

Nope

[eagle1951]

i have 5