How much did you make this year? and how much do you have right now?

i think you're selling yourself short with not using CCs. if you've learned to manage your money, being responsible with CCs shouldn't be a problem. Rewards CCs can net you at least $500 annually, depending on your normal buying habits.

 

What program do you use? I'm with Wells Fargo and tried to enroll but they said it wasn't offered. I had a Target card but I don't care about Target points. What are good no or low-fee options?

 

Chase Freedom.

 

This. If you are purchasing things that you already have the cash for in the bank, use a credit card and set up an automatic monthly payment for the full balance. Your cash isn't earning money in the bank right now, but at least you get the rewards. The auto payment ensures you don't forget to make the payment and being stuck with unnecessary interest charges.

 

If you want cash back, go for the Fidelity AMEX. 2% cash back, no limit, and no annual fee.

 

Yup.

We use an United credit card to earn miles with our house expenses so might as well earn miles while we're at it. We earned a flight to Hawaii this year.

 

Cleverly disguised thread to recruit for Scientology

 

Chase has a couple of good rewards cards. The Chase Freedom gives 5% back on different categories quarterly and 1% on every else. The Chase Sapphire right now is offering 40,000 points which equates to $400 if you apply and spend $3000 in the first 90 days (i just qualified for it last month). After the 90 days, it's 2% on dining and travel expenses. Chase Sapphire does have a $95 annual fee which is waived the first year. I plan on downgrading before the year is over which will cost me nothing.

I also use Amazon Chase which is 3% on amazon purchases and 2% on restaurants and gas stations, 1% on everything else. also, they give an immediate $30 credit just for approval.

 

The problems with rewards cards is you MUST stay disciplined with paying them off monthly... if you can't do that or might get tempted to buy something and sit on it for a few months before paying it off then you completely negate the rewards you make that year.

That's the point. The card companies hook people with the "cash back" and rewards, and then people lose discipline and charge up on them. I don't recommend them for anyone who lives pay check to paycheck or on slim margins. If you have disposable income every month and never have trouble paying your bills, then it is worth it for the free perks. Otherwise steer clear.

 

Yes, always pay it off of course, that's the number one rule with cc.

 

that's why i said "responsible" in my post. DFWRocket seems like he's on top of things with his spending. but yea, rewards are pointless if you end up paying interest.

 

Warren Buffet is a farce. But he's a hell of a businessman.

 

It really is about how much you spend. Live within your means and you'll never have to worry about money.

 

Yup, I don't agree with all of his views on things... but I'll certainly listen to his financial advice wherever I can get it.

 

Just wanted to point it out because not everyone thinks about those sorts of things. If you live on slim margins an unforeseen problem with your car, your house or you have to miss some work due to family illness or the like can completely change your spending priorities in an instant. So while you have every intention of paying off that purchase and being responsible, you just don't know if you'll be able to.

I did this for a few years, and figured after calculating these sorts of deviations that the risk vs. reward simply wasn't good enough for me so I cancelled all of my cards but one which I leave locked in my safe for real emergencies.

 

I think it's much easier to stay disciplined in this day and age. It wasn't that long ago that I had to keep all my receipts, write everything I charged in a ledger, and wait 30 days for my statement to come in the mail. Nowadays, you can see exactly how much you've charged with a few taps on a smartphone.

Same thing with online banking. With the information right at your fingertips, folks really shouldn't be bouncing checks or unintentionally overdrawing their accounts anymore. Accidents do happen, but those incidents should be few and really far between.

 

the concern doing that is what happens if you rely on credit cards for emergencies and monthly bills and then have a loss of job, or lose work days due to health issues. Suddenly you can't pay the credit cards and get hit with the uber-high interest rate from missing a payment. Last month my wife lost 3 days of work due to an unforseen surgery and her paycheck was about $500 less. You never know when your budget will be significantly less and you may not be able to pay the bill off like you thought you would.

Also, studies show that even responsible spenders will spend an average of 15% to 18% more at the register when using credit cards than those who use cash. This is because there is no emotional connection to credit cards like there is with cash. Credit card users are more likely to say "Yes" when asked if they want to supersize their order or if they want an apple pie with their order. When you have cash in your hand..you are less likely to let it go.

 

I recommend www.mint.com as a tool to keep track of personal finance.

 

What's your name?
Who's your daddy?
Is he rich like me?

 

I just use quicken.