I am going through credit card detox. I don’t use them anymore. I carry a balance, and I’m in debt slaying mode. However, for people who are responsible with credit cards and pay off their balances each month, there are big perks.
A new book, How You Can Profit from Credit Cards by Curtis E. Arnold, the founder of cardratings.com, will be out in July. Also, Liz Pulliam Weston wrote an article about credit card perks such as warranty protection and help with dispute resolutions with companies. She has a love fest with her credit cards.
I admire those who use plastic responsibly. I have friends who have taken trips to Mexico after getting credit card perks. Once I get through slaying the cards, I won’t put them back in rotation for perks. It’s too risky for my personality.
Do you use credit cards? If so, do you get perks or rewards? Do you think the hook ups given to credit card users are worth the risk of carrying a balance?
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{ 14 comments… read them below or add one }
I am typically pretty responsible with credit cards. For a long time I have had an Amazon credit card so I was able to pay college tuition on my credit card and get Amazon gift certificates to treat myself. I have usually been able to pay my credit card payments off when they are due.
Now I have another credit card that when it gets enough money on it, that will provide me with my airfare to Hawaii in a couple of years! So there are definitely perks….but you are right, you have to be responsible and that can be very hard.
I think whether or not someone uses CC’s depends on their discipline/ability to act responsibly.
I have an AmEx that I use almost exclusively. I pay the balance in full each month and receive frequent flyer miles. I have taken many many trips using those miles. The rewards are definitely worth it to me because they allow me to significantly reduce my travel costs.
In addition, I like the consumer protections that I get by using a CC vs a debit card.
I have not used a credit card in years, since college! Therefore I never carried a balance in 10 years
I use cash and a debit card
I’m like you, Frugalista: Killing off my credit card debt with no plans to put it back in rotation after its gone. To hell with Visa and its perks.
I am an idiot – I paid off one of my cards, started using it with the idea of paying in full each month, and now I have a small ballance on it (under $500). I feel SO STUPID about it.
If you are one of those diciplined people that can pay your card off every month, good for you. I am NOT one of you.
On the other hand, I just saved $40 of my $100 that I use each week for food, gas and entertainment, so I’ve added that to my emergency fund. Hopefully I can save as much again in the next week!
I recently paid off a very high interest credit card that I’d had since freshman year of college. They weren’t willing to at least get my rate under 10% so I closed it. The limit wasn’t all that high. I applied for another card with a way better rate and higher limit. I haven’t broken it in yet, and I hope when I do it’s for a very good reason. One perk of the new card is car rental and hotel discounts. I don’t travel all that much but my mom does for her job so I pass them over to her. Perks don’t mean all that much to me.
Great posts, everyone!
Wow am I late posting today or what??? lol
Ok I try not to use credit cards, but when I do i pay that baby off as soon as the bill comes. I know that I have earned points through my credit card but I have yet to use them for anything.
Yes, I have a ton of credit cards (probably 10-12) each with a special purpose/reward
1) Visa which gets 5% rebate on gas/grocery/drugstore purchases
2) Discover (just opened) which will pay $100 after $500 in spending
3) MC which gets 2% on all utilities
4) MC which gets 1% on all purchases that don’t fit into special categories (numerous cards have this)
5) Capital One which is one of the few that offers no foreign transactions fees, good for when traveling abroad
6) Various cards with 0% for 12-18 month offers
7) American Express which offers 3% on gas and 3% on restaurants
I do not carry any balances (except for those I put at 0% for 12-18 months to delay payment), so yes, the rewards are well worth it.
Switch to charge cards like American Express (not American Blue) and put any credit cards you have (like Visa/MAsterCard/Discover) that have whopping debt into a debt consolidation program (like Budget and Credit Counseling).
Charge cards, whose balance has to be paid in full every month, are a smart way of reminding you that: I am using this card because I don’t have enough money on me right now, NOt because I don;t have enough money in my savings.
Like Frugalista I’m trying to lower credit card debt so rewards/perks aren’t as important to me as lower interest rates and good balance transfer offers. So in that regard my favorite credit card right now it Discover Motiva. Every 6 months you get rewarded for making your monthly payments on time…they give you back the interest charged for that month and I normally apply it back to the card in the form of a payment. It’s an easy reward because I have my monthly payments set up to automatically deduct so I’m always on time.
Great post! hope to read more from you. thanks!
People with bad credit are blaming credit card comnpanies for their high bills.. and yes I agree to you. It is how we use our credit card responsibly.
There was another post I read awhile ago on another site that helped me in the same way yours has helped take me to the next step.
You do for making this subject easy to understand.
Thanks and best of luck!