Poll:Using credit cards for monthly spending

[SpinDoctorTX]

Well, darn, they don't take it at the car dealerships??
And here i was hoping to use one of mine within the week to buy a used car.

I actually thought I saw a post recently from someone who did just that

The funny thing is when we offered it up last time, the Hyundai guy knew the answer immediately. Other buyers had asked the same before.

You'll never know if you don't ask. We're probably buying a Toyota or Subaru next time, so maybe I'll get a different answer next time!

 

[Kim451]

I bank at USAA and use their credit card for most purchases. It's cash back and then I go online and transfer the money from checking to the card to keep it paid off.

That was all I used for years, then broke down and got the Amazon card for 5% back on all my Amazon purchases. I recently added the Delta AmEx card for the 70,000 miles and free baggage and just used those miles for a first class ticket. I'll cancel at the end of the one year waiting period and may try the United mileage card if their bonus miles offers go high enough.

 

[jollystomper]

or those who pay by cash..
The credit card transaction fee is already baked into the cost of the merchandise, if you are paying cash you are effectively paying more

In some cases you can ask for a discount for paying cash instead of CC, and they will give it to you. But this is more typically for large purchases.

We are using our CCs more as it is easier to track expenses, especially for small purchases. Of course, this also means monitoring the account more frequently to ensure that we do not exceed our target "monthly payoff" limit.

We pay those regulars bills thru CC that do not add a surcharge for doing that.

We track expenditures in Quicken, so now I am inspired to see how our monthly expenditures break down in terms of paid for by cash, check, or CC and how much the trend has changed over time...oh the joys of FIRE and having too much time on ones hand...

 

[mamadogmamacat]

This varies from dealership to dealership. For my last two cars, I was able to use my cash-back credit card for the first $3000, and $10'000 respectively. The rest I had to cover with a check (or, I suppose I could have financed it).
I have heard of other dealers who didn't take ANY credit cards at all, so you'll need to check you own situation.

Thanks

The dealer at the one car still on my list knows I'm paying cash, but i did not even think to mention the CC. Will bring a check to today's appt, in case this next possible car is for me. But, will put as much as possible on the card. I'm one of those people who should probably never play poker, but I can look hang dog and sad enough to make them think I have to put some at least on a card. They do not need to know I use all cards as charge cards, not credit, and pay off every month.

 

[mamadogmamacat]

The funny thing is when we offered it up last time, the Hyundai guy knew the answer immediately. Other buyers had asked the same before.

You'll never know if you don't ask. We're probably buying a Toyota or Subaru next time, so maybe I'll get a different answer next time!

Thanks

Its Toyota for me now and forever.
Still have my 2004 and am keeping it.

This purchase is for a blow that dough I'm in the mood for a new toy that is not really a necessity kind of thing. It will be a used toy, however, but new to me at least.

 

[GenXguy]

I have automated bill pay that comes directly out of my checking account for some bills. I write checks for insurance and property tax.

I use my CCs for about all everyday purchases that I manually purchase and pay it off during the grace period so there's no interest. I also get cashback on all purchases.

Usually, fast food, particularly in the drive-through, is the exception for me, where I still tend to use cash. I don't spend much on fast food, though.

 

[mamadogmamacat]

Assuming the "finance" guy at the dealer was telling me the truth, the 3% VISA charge comes out of the sales persons commission, which is why, although they have no hard and fast max limit, they encourage people to pay with a check, for the down payment if they are financing or the whole amount if paying "cash". So, he first offered up 3k on my CC and the balance in a check, then seeing my face fall, he upped it to 5k. I decided to go with that as I liked the sales guy, and chose to believe the "comes out of his commission" story. If that was BS, so be it. Bottom line is I got a great deal, "exceptional" in fact if TRUECAR can be trusted, and cash back on 5k is nice too.

 

[sengsational]

I hope people realize this cash back is just coming out of your other pocket. Service providers charge merchants more for cash back cards, and guess who the merchants pass that along to, yes, you. tanstaafl

Perhaps. My understanding is that those who carry a balance and pay interest are shouldering most of the burden.

Yes, since most merchants just roll the CC fees into the price everyone pays, i feel I incurred a 1-4% “fine” whenever I fail to pay with a rewards CC

I feel just a little guilty to route everything through the cash back cards (and collect mega signup bonuses) because, yes, the people who can likely least afford it are carrying the weight. But not guilty enough to stop and pay the "tax".


There are bills that levy a "convenience charge" (convenient for THEM, certainly not ME), and I don't use a card for those. And I rarely break the $5 level (might now, after reading the $1.08 usages).



I've got the corner of a post it note on the cards...5% restaurants, 6% groceries, $527 more before Oct19 (sign up bonus spend), etc. I find that 'in the heat of the moment' I was using the wrong 'weapon' in my battle to shave a few bucks per transaction. The post it fragments give me a better edge. Fun games!

 

[kcowan]

Yep. If I don't, I end up with some metal discs in my pocket. Now what the heck am I going to do with these?

-ERD50

Yes since I can tap, it is quicker than cash.

 

[TrophyWife]

Thanks for the quick reply. I'll check out the pointsguy link. I was thinking about setting up monthly payments on electronic "auto-pilot" so we never miss a due date.

I do this

But usually go in and make payments weekly. My credit score is nice

 

[gooddog]

We buy everything on our CC's, even have our utilities go there. Get about $500/year back, free breakdown of spending, free insurance on some items, fraud protection, and so on. Why wouldn't you buy everything on your CC is more the question.

 

[Elizrogers]

I use CITI double cash (2%) for everything that can be paid with CC and pay off monthly. If I have a trip planned in the future, I will use Hilton Visa card for everything for a few months before the trip to secure free room. I don't much care for the care that only give you cash back on specific things like gas and restaurants, because I don't eat out that often and Citi gives me 2% on everything. If I have to purchase something I can't or don't want to pay in one payment, I can always find a balance transfer offer for 0% for whatever time I want to take. I only wish I could pay my taxes with CC without incurring more fees than cashback.

 

[OldConch]

We do. And with multiple cards
The costco citibank card is great at Costco & for dining out / travel - 3% back
The Amex card we have (forget which one) gives us 6% back at grocery stores.
The cap one card is 2% off on all other purchases.

Go to the Pointsguy.com or some of the other card gurus and you'll learn a lot. Be careful though. Good record keeping and timely payments are a MUST.

DW has a little sticky note in her purse to remind her of which card to use where.

An added benefit for us is that we download all transactions into Quicken so keeping track of our spending is easy too!

+1 on thepointsguy.com.

Read his "Points and Miles" Beginner Guide last year and have been to Vietnam, Maui, Denver, Boise, and Monterey so far this year largely paid for with points and miles. Aruba, Colombia, Boston, and South Florida to visit family are still on tap. JAL fights to Thailand in January are in the front of the plane thanks to AA miles. Earned a Southwest companion pass in April so all flights this year and next are basically BOGO as long as I travel with the DW. It's a pretty fun hobby.

 

[Carka]

I too have a Cap One account and use the credit card for most purchases, always paying it off at the end of the cycle. I also have an Amazon Chase card that I use for Amazon purchases, and points go toward following purchases. Occasionally, I pay cash for groceries and such when I have extra cash on hand.

 

[DeborahB]

I have almost all my recurring bills paid from my checking account. I lose a little by not charging, but it’s simpler for me. I have multiple credit cards and charge the rest of my purchases. My bills are all on autopay from my checking account, and I pay off the credit cards in full every month.

 

[RobbieB]

I still like cash because nobody knows what I bought.

 

[Elizrogers]

I don't have anything paid automatically from my checking account, because I don't want that many websites or databases to have by bank information. With all the hacking and breaches we've seen the last few years, even within the supposedly most secure companies, I would not feel very safe. Plus my checking account links to other accounts, so if they hack my checking they can get into savings, line of credit, credit cards and any other info at that bank. I pay bills that I can't put on CC online from the bank, but I won't give the numbers to anyone else. If my checking account gets hacked, the bank will be responsible, and they can fix it, because I haven't given it to anyone else.

 

[Sirka]

Why not it's free money?

Yes we use a Citi card 2% back. We have Electric, cell phone, cable, etc. auto paid from this card

+1
We also charge insurance & other bills to get the 2% cash back. I had an aha moment, when I did the usual auto Pay from our checking. Hey, I was giving up some free money.

 

[PointBreeze]

I also worry about overspending with a credit card. So i write down each credit transaction in my check register as if it was a debit transaction and transfer the money from my checking to a “credit card” savings account and pay the bill from that. I feel that seeing the account go down helps me out.

Every 3-7 days, I go online to the credit card site and add the transactions from our credit card to a spreadsheet where I track all our expenses. We have an amount budgeted for the the monthly credit card (which we use for all of our expenses except utilities and taxes), so checking the transactions often helps us to stay on track.

 

[Tracer]

I'm pretty much cashless. I use my Fidelity 2% cashback card for virtually everything. The only exception is when I get a bigger discount by paying cash. Most recently I offered cash at an auto body shop, a locksmith and an air conditioning contractor. They all offered me a discount much more than 2%. It doesn't hurt to ask.

 

[jazz4cash]

I’ve been doing this for only a couple years. Wish I’d started earlier. I’ve raised the stakes a bit by using auto pay for utility bills, homeowner and auto insurance. I’ll even pay a convenience fee as long as it is less than the Cashback. I also switch between 2 Cashback cards so I get about 40 days of float before the bill is due.....that’s like getting 4% on my money.

 

[davebarnes]

BA Visa for Avios. $50+K per year.
Twofer ticket at $30K spending.

 

[DeborahB]

I was just thinking about having bills paid automatically. I don’t believe they get my password. They get my checking routing and account number. But that is printed on checks so it’s not a huge secret. Any time I write a check, the payee has that info. So I feel reasonably secure. I use Ally - savings is paying 2.1% right now.

 

[Dtail]

I was just thinking about having bills paid automatically. I don’t believe they get my password. They get my checking routing and account number. But that is printed on checks so it’s not a huge secret. Any time I write a check, the payee has that info. So I feel reasonably secure. I use Ally - savings is paying 2.1% right now.

Actually Ally is down to 1.9%, but I hear ya.

 

[lem1955]

If you pay the card off every month it's the same as paying as you go. It's just consolidated. If you find yourself overspending, stop. But the secret to success is never incur a fee. Let the foolish majority pay for your cashback.

In the very few times I have missed making a payment I have called the CC company and asked to have the late fee reversed. They always comply. Typically, I set up automatic payment so I do not miss a payment. Once in awhile the card needs to be renewed or it's brand new and I have neglected to authorize it. If you are a responsible user and have good history, the bank will not deny you.