Is there anyone that does not have a Credit Card? Do you just use a Debit Card?

[ScoopKona]

I found that my most interesting, and best professors, were not the ones who told me what to think, but instead, the ones who taught a lesson, then asked me "What do you think, and why?"

The single best class I ever attended was the last class of the semester in my final economics class of my college career. Since it was the last class of the year, and exams were already done, there were only a handful of us in class. Most of the student body was partying, as they do.

Professor walked in, looked up, "Good! There are some people here. Some years I don't get anyone! The subject of this lecture is, 'Ten strategies for becoming a millionaire by the time you reach my age.'"

Then he walked us through 10 strategies, and took questions on ways we might tweak those strategies to better fit our career choices, lifestyle, risk-threshold etc.

 

[Talent312]

A few years ago, I purchased a new washer and dryer. I was all set to pay cash for them, when the company offered me, in effect an interest free loan. You know 1 year same as cash....

One of my newer CC's (Chase Custom) has a lengthy 0% intro rate (15 mo.) and if elected in the first 15 mos., a 0% extended pay option. I never expected to make use of that feature, but had some big-ticket items involving a trip to Europe next year and home improvements. It'll help my cash-flow and avoid dipping into the honey-pot, so why not?
.

 

[jehb2]

I use my Costco credit card for everything, no matter how small. I set it up so that the balance is automatically paid every month. I get about $2000 cash back annually. My husband and I both have Alaska credit cards just for the free companion ticket. So the $2000 I get annually from my Costco card pays for roundtrip tickets to Hawaii for my family of 4.

Southwest now has flight from Texas to Hawaii and the prices look great. So I‘ll probably be canceling my Alaska credits and use the money to fly on Southwest.

 

[Rolltydr]

The single best class I ever attended was the last class of the semester in my final economics class of my college career. Since it was the last class of the year, and exams were already done, there were only a handful of us in class. Most of the student body was partying, as they do.

Professor walked in, looked up, "Good! There are some people here. Some years I don't get anyone! The subject of this lecture is, 'Ten strategies for becoming a millionaire by the time you reach my age.'"

Then he walked us through 10 strategies, and took questions on ways we might tweak those strategies to better fit our career choices, lifestyle, risk-threshold etc.

Interesting. Mine was one of my first classes as a freshman. Western Civilization 101, Professor Pulliam. He was young, brash, irreverent, and unlike any authority figure, teacher or otherwise, a rural Alabama high school kid had ever seen. He questioned everything and everyone, including his own college administration. He forced us, well, some of us at least, to open our minds and consider ideas, religions, cultures, etc., that we had not learned about before, and that our parents would never have allowed us to read about or discuss. It was an eye-opening, mind-opening experience. Most of what I know about world history, various cultures and civilizations, I began learning in that class. But, most importantly, it began because he forced me to accept that we don’t have all the answers. We must continue to learn and explore and be open to changing our minds as we learn new information.

That’s why I bristle when someone is 100% certain they know what is best for anyone else. To me, that person has just shown they know nothing because they refuse to accept the possibility they could be dead wrong! When you are so certain you are correct, the only certainty is that you aren’t going allow yourself to learn any more than you already know.

 

[Janann]

My husband and I both have Alaska credit cards just for the free companion ticket. So the $2000 I get annually from my Costco card pays for roundtrip tickets to Hawaii for my family of 4.

Southwest now has flight from Texas to Hawaii and the prices look great. So I‘ll probably be canceling my Alaska credits and use the money to fly on Southwest.

I have a companion pass on Southwest Airlines that I earned 100% with the Chase Southwest credit card, thanks to some tips that were posted here on TUG.

 

[ScoopKona]

Interesting. Mine was one of my first classes as a freshman. Western Civilization 101, Professor Pulliam.

I found it amusing/satisfying/interesting that the first professor my first day in my first class (Western Civ 101), was also the professor who handed me my diploma four years later. (Luck of the draw.) My school liked to mix it up because we knew all our professors fairly well by the time we left -- despite the fact it was a largish state university.

I contacted him recently -- he's in his 80s volunteering at Mystic Seaport. Because history. The Economics professor with the "get rich slow" class is no longer with us. Long gone. He's probably responsible for more millionaires than the state lottery.

Which leads to... It drove the economics, finance and business schools, and every math professor on campus mad when one of our journalism professors won the state lottery. This guy said -- every year, every class -- that he was going to keep teaching until he won the lottery. Then he'd finish up that semester and retire. And that's exactly what he did. That was his retirement plan -- he had no savings and nothing put away.

The math professors were particularly upset. "Do you know how many probability and statistics classes you've ruined?!?!?!?!?"

 

[mdurette]

The household paper checkbook is also practically extinct. When do you all write paper checks? Thanks to online banking and online bill pay. I never order new checkbooks any more!

True - I only end up using checks to pay service work on the house or my pet sitter. What I find interesting is on a recent check reorder, it did not come with a register, if I wanted one I had to pay for it! My 16YO opened her 1st checking account, yep no register and only 1 deposit ticket in the book. I work for a bank, so I ended up just getting registers from the teller line!

 

[Talent312]

I only end up using checks to pay service work on the house or my pet sitter.

For years, my home HOA only accepted paper checks.
They finally adopted electronic payment option, but there a hefty fee.
So, its still the only check I write, twice a year. It's good to practice.

Some contractors I've used have electronic check systems, such as PayPal.
You might suggest to your pet sitter that they set up a PayPal account.
,

 

[AnnaS]

I am old school - I prefer paper statements/bills - I reconcile my checking accounts each month

I write checks to doctors, some utilities, checks to the 4 (soon 5) grandchildren for Valentine's Day, Easter, Halloween, Birthday's, Christmas and other special occasions like Baptism, Communion.

More than once, I have had to prove a bill was paid. I go to my file and make copy of returned check. Even though I pay my credit card on-line, I still get the paper statement. Until they are obsolete, I will keep using them (as long as there is no extra charge for any of it).

Don't have PayPal, Venmo, Zelle or a thousand APPS on my phone. That is another thread, every store I go to, Bank, etc. There is an APP . I need to keep up with the times soon wether I like it or not

 

[CanuckTravlr]

Debt is debt. I'm a CPA and university finance professor to answer your question. Many students think of debt as you do, selfishly. It's not your money that you spend, you are borrowing it. You're creating unnecessary costs for either you or businesses or both. You're paying for your freebies through higher prices.

I'm also a CPA and a retired CFP. I completely disagree with your characterization of float (also a recognized financial term) as debt. That is a very broad definition of "debt". If you choose to not use credit cards for whatever reason, such as your concern about small businesses, that is your choice, but no need to be hoity-toity and sh*t on everyone else's choices. Time to come down out of that academic white tower and lose the "holier-than-thou" attitude. It is most unbecoming.

 

[LannyPC]

I use my credit card whenever possible to get the perks such as cash back. We never carry a balance so we have not paid a penny in interest on our credit cards in over a decade! We also like to exploit our credit cards by paying the balance at the last possible moment before interest kicks in.

So if I purchase something on the credit card today, with the monthly cycles, I have until around mid-November to pay back the CC company before interest kicks in. In the meantime, that money sits in our chequing account collecting interest, ableiet rather miniscule interest.

 

[Ken555]

I have a debit card and never use it for anything other than ATM access. Years ago I had my bank send me an ATM only card because I didn’t even want to carry a debit card. Now I don’t bother since it’s just not worth my time to go through that hassle every year or three.

For myself, I am best served by purchasing everything on a credit card, earning points or miles for those purchases, and simply paying off the balance every month. I know others are much better off using their debit card for purchases as it is an easier way to assure payment without going over budget.

Over the last ~25 years I’ve earned ~3% or more in value by using credit cards, and that’s almost exclusively gone to travel expenses allowing me to stay in nicer hotels, business class international airfare, and more. I wouldn’t have had those experiences had I used a debit card. That said, credit cards are definitely not for everyone.


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[easyrider]

I use my Costco credit card for everything, no matter how small. I set it up so that the balance is automatically paid every month. I get about $2000 cash back annually. My husband and I both have Alaska credit cards just for the free companion ticket. So the $2000 I get annually from my Costco card pays for roundtrip tickets to Hawaii for my family of 4.

Southwest now has flight from Texas to Hawaii and the prices look great. So I‘ll probably be canceling my Alaska credits and use the money to fly on Southwest.

We use both our Costco credit card and our Alaska Airlines credit card. I think it was Ken555 that pointed out the 50,000 air miles was for $50,000 spent and that we might be better off using a cash rewards card to buy our air fare. I really am considering using the Costco credit card for everything and the Alaska Companion tickets with free luggage for the travel benifit.

Bill

 

[Ken555]

We use both our Costco credit card and our Alaska Airlines credit card. I think it was Ken555 that pointed out the 50,000 air miles was for $50,000 spent and that we might be better off using a cash rewards card to buy our air fare. I really am considering using the Costco credit card for everything and the Alaska Companion tickets with free luggage for the travel benifit.

Bill

I’m sure you can find some “experts” on YouTube that have a lot to say on this topic.

Of course it makes no sense to earn just 1% (or even less) redemption value when so many alternatives exist for 2%+. I don’t get caught up in the time limited specials (such as 5x restaurant, 8x gas, etc) - I want a consistent benefit that I can rely upon.

In addition, now and then I will sign up for a new credit card with a decent signup bonus. After a few years of no changes last week I decided to get the IHG business premier card, which includes ~10 nights at hotels based on my anticipated use (which would then be worth ~$1500 or perhaps more). Long ago I realized that I would derive more value from hotel cards than airline cards, and I find that especially true today when I would rather pay for premium economy on international flights (vs use miles for business as I used to) and get free hotels instead.


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[easyrider]

I’m sure you can find some “experts” on YouTube that have a lot to say on this topic.

Of course it makes no sense to earn just 1% (or even less) redemption value when so many alternatives exist for 2%+. I don’t get caught up in the time limited specials (such as 5x restaurant, 8x gas, etc) - I want a consistent benefit that I can rely upon.

In addition, now and then I will sign up for a new credit card with a decent signup bonus. After a few years of no changes last week I decided to get the IHG business premier card, which includes ~10 nights at hotels based on my anticipated use (which would then be worth ~$1500 or perhaps more). Long ago I realized that I would derive more value from hotel cards than airline cards, and I find that especially true today when I would rather pay for premium economy on international flights (vs use miles for business as I used to) and get free hotels instead.


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I did see a you tube video on the Marriott American Express Card last year and actually went for the deal only because of the hotel benefits which in my math was worth about 10 nights in Courtyard type accommodations for the yearly cost of $250. My plan was to use this up before renewal meaning the cost per stay would be $25 a night. We like Courtyard by Marriott and Hilton.

Bill

 

[Brett]

No surprise but it looks like almost everyone here uses credit cards

 

[Ken555]

No surprise but it looks like almost everyone here uses credit cards

Wait, what? You’re actually answering the OP?!

Thanks.


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[jehb2]

Even the merchants at the local farmer’s markets take credit cards. I pay my lawn guy in cash

I give my kids their allowance in cash. When they want something I usually pay for it with my cc and they pay me back in cash. I think it gives them a better understanding of how much things actually cost.

 

[ChiefIlliniwek]

Everyone makes choices. The merchant charge reduces a businesses profits or causes higher prices, the same way delivery apps like uber eats or Doordash kill small business. I forgoe the personal cc benefit to help small business.

I'm against debt so i don't like borrowing even for a month. I pay cash so i avoid all the problems with cc and debit cards. It's a shame people got sucked into cards as part of the consumer society conspiracy. Your sports team doesn't accept cash, my barber only accepts cash, yes there are a few things both ways.

I've read many times that card use leads to more spending. Which is probably why department stores began issuing them long ago.

 

[jwalk03]

I use my Southwest Credit Card for almost everything. Just re-qualified for my Companion Pass benefit again for 2023 with this month's statement closing! The only thing I ever use my debit card for is to take out cash at the ATM if I am going somewhere that does not accept credit cards (or doing a porch pickup of something my wife bought on the marketplace.)

I write one check per month for my combined electric/water & trash because the city I live in charges extra if you want to pay online and the drop box for the payment is not very far from my house.

Mortgage/insurance/natural gas/car payments that cannot be paid with credit are all auto debits from my checking.

 

[jabberwocky]

In Canada merchants can now (as of this past week) add up to 2.4% if you use a credit card for payment. I haven’t run across any stores that are doing this yet, but what do you think the chances are of them reducing their prices because they can recover the merchant fees now?

My guess is zero and the merchants are simply going to pad their profits. Of course if a store starts charging the fee I’ll be likely to shop elsewhere.

 

[Ken555]

In Canada merchants can now (as of this past week) add up to 2.4% if you use a credit card for payment. I haven’t run across any stores that are doing this yet, but what do you think the chances are of them reducing their prices because they can recover the merchant fees now?

My guess is zero and the merchants are simply going to pad their profits. Of course if a store starts charging the fee I’ll be likely to shop elsewhere.

A similar change happened in the US some years ago. For decades Visa/MC had a provision in their merchant agreement preventing merchants from charging a specific fee to accept payment by credit card, but they were challenged and lost in court. I’m not surprised to find Canada changing as well.

In my experience, a significant majority of retail stores do not charge more for credit card use. I don’t think the question is how many would reduce their prices, but rather how many will start to charge separately.


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[carl2591]

which CC do you find has the best cash back program??

... we have a capital one Venture card which give 2 miles for every dollar spent but has a $95 annual fee. if we charge 3000 we get 6000 miles which is like $60 bucks off airline ticket. they have other card that do the 1.5% CB with no AF..

I put everything on credit card. I looked it up and for year to date, I received $2790 on cash back just on one credit card. I also get other cash back from the Amazon Prime cc, Costco cc and points from my Bonvoy cc.

 

[ChiefIlliniwek]

I think you're very far from presenting a cogent debate position.

You also haven't offered what the alternative should be: Back to the gold standard? barter?

Here's what the new system offers: efficiency. I don't like shopping. It's a necessary evil. I like grocery shopping when on vacation. But that's the only kind of shopping I truly enjoy. Otherwise, I want to get in, get my stuff, and get out just as fast and quietly as possible. If I can walk into a store, pick up my widget, self check out in 30 seconds and leave the store without interacting with another person, that's a win.

So I prefer the way commerce works today compared to carbon paper, personal checks, and clerks who can't make change.

Yes...the pre-WWI gold standard was something to behold. That was real discipline.

 

[Ken555]

which CC do you find has the best cash back program??

... we have a capital one Venture card which give 2 miles for every dollar spent but has a $95 annual fee. if we charge 3000 we get 6000 miles which is like $60 bucks off airline ticket. they have other card that do the 1.5% CB with no AF..

Cap One Spark. 2% cash back on all purchases.


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