What's Normal? - Do you pay off your credit cards monthly or carry a balance? (1 Viewer)

[Zow]

Carry a small balance. Per my financial advisor that helps with one's credit.

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I assumed this was a joke. If not, you need a new financial advisor.

We set ours to automatically pay the full statement amount every month, like I have since I opened a card 29 years ago (automatic wasn’t available then). Never paid a cent in interest. Score over 800.

It wasn't a joke and I've heard this from others as well.

I appreciate the corrective information. But, anecdotally, this myth seems to have permeated a lot of people including myself, my family, and my friends (who I don't think are collectively stupid).

When a bunch of people tell you to pay it off, and a bunch of others say not to.........do whichever one doesn't waste money.
Pay it off. Why waste money? Silly. Please pay it off. I strongly disagree with your financial advisor advising to give away money for no reason.

Yeah I've changed my practice after this thread.

 

[-OZ-]

Carry a small balance. Per my financial advisor that helps with one's credit.

- YouTube

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.

youtu.be

I assumed this was a joke. If not, you need a new financial advisor.

We set ours to automatically pay the full statement amount every month, like I have since I opened a card 29 years ago (automatic wasn’t available then). Never paid a cent in interest. Score over 800.

Or, better yet, no financial advisor.

I’m starting to come around on this one. Sort of. Definitely wouldn’t use AUM, but paying someone once a year or so, or just close to retirement to both get a second opinion and to help my wife if I died, whom I trust, would probably be worth it. Of course I don’t plan to die any time soon.

 

[ffmail4me]

I'll be 53 in a few months, I've never paid one cent of interest on a credit card. My pops taught me when I was a young teen that only "suckers" buy stuff they can't afford and pay interest and end up doubling the price of their purchase. That stuck with me.

 

[Keerock]

I'll be 53 in a few months, I've never paid one cent of interest on a credit card. My pops taught me when I was a young teen that only "suckers" buy stuff they can't afford and pay interest and end up doubling the price of their purchase. That stuck with me.

No mortgage or car payments?

 

[Terminalxylem]

I currently work with a dozen or so folks in the 20-26 range, and have been preaching (begging) them to do anything and everything they can to get their credit cards paid off.
Credit cards are definitely the devil.
I really hate hearing people say "well if you use them right and take advantage of the points blah blah...."
Yeah, hardly anyone does that responsibly, especially people.in their early 20s.

I think you're right for the general population, but it appears most FBGs use cc responsibly.

I use credit because its far more convenient than cash, and safer than a debit card. The benefits and cash back are OK, but not critical imo. But I'm not willing to game the system to maximize the rewards.

 

[MAC_32]

Carry a small balance. Per my financial advisor that helps with one's credit.

- YouTube

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.

youtu.be

I assumed this was a joke. If not, you need a new financial advisor.

We set ours to automatically pay the full statement amount every month, like I have since I opened a card 29 years ago (automatic wasn’t available then). Never paid a cent in interest. Score over 800.

It wasn't a joke and I've heard this from others as well.

I appreciate the corrective information. But, anecdotally, this myth seems to have permeated a lot of people including myself, my family, and my friends (who I don't think are collectively stupid).

When a bunch of people tell you to pay it off, and a bunch of others say not to.........do whichever one doesn't waste money.
Pay it off. Why waste money? Silly. Please pay it off. I strongly disagree with your financial advisor advising to give away money for no reason.

Yeah I've changed my practice after this thread.

I have no idea if this is legit or not, but since we usually want to make a big purchase every year or two I've just gotten in the habit on getting a new 0% APR card every 12-15-18 months. This way we have a card with a balance (the rest are paid off monthly) and leverage it to smooth out larger purchases so we don't feel the hit in cash flow. Speaking of which, it's about time for a new couch and patio set!

 

[DA RAIDERS]

I currently work with a dozen or so folks in the 20-26 range, and have been preaching (begging) them to do anything and everything they can to get their credit cards paid off.
Credit cards are definitely the devil.
I really hate hearing people say "well if you use them right and take advantage of the points blah blah...."
Yeah, hardly anyone does that responsibly, especially people.in their early 20s.

I think you're right for the general population, but it appears most FBGs use cc responsibly.

I use credit because its far more convenient than cash, and safer than a debit card. The benefits and cash back are OK, but not critical imo. But I'm not willing to game the system to maximize the rewards.

I game just enough that a lot of my ski trip flights are free. saved $900 for the 3 of us to utah last year.

 

[Terminalxylem]

I currently work with a dozen or so folks in the 20-26 range, and have been preaching (begging) them to do anything and everything they can to get their credit cards paid off.
Credit cards are definitely the devil.
I really hate hearing people say "well if you use them right and take advantage of the points blah blah...."
Yeah, hardly anyone does that responsibly, especially people.in their early 20s.

I think you're right for the general population, but it appears most FBGs use cc responsibly.

I use credit because its far more convenient than cash, and safer than a debit card. The benefits and cash back are OK, but not critical imo. But I'm not willing to game the system to maximize the rewards.

I game just enough that a lot of my ski trip flights are free. saved $900 for the 3 of us to utah last year.

I have no doubt there are great cc benefits. I’m just too lazy to do the legwork to exploit them. Same goes for frequent flyer miles.

And I’ve frozen my credit, so I’m stuck with a single card, unless I want to go through the hassle of unfreezing.

 

[McBokonon]

I have something like 20 cards with about $280k in available credit that I’ve accumulated over the years and still adding. I do this to get the sign up bonuses and then maximize whatever deals there are as well as rewards. I love to travel so doing this is important to me. I have a ton of points/miles on standby to be deployed when I find out where Newcastle United is playing in the Champions League so I can book a vacation around it.

No, it’s not hard to track. I have each issuer’s app on my phone, all in a group. Every other morning or so I click through them (Face ID makes this fast) just to ensure nothing weird is happening. This might take a total of 3-4 minutes.

It can take a little effort to maximize the correct card for each purchase, but generally I really only have 2-4 that actually get used regularly, changing every 3 months based on rotating categories. Really not that time consuming even if it sounds like it.

I had to have unexpected major dental work last year, so I opened up 5 new cards simultaneously, all 0% for a year, all with sign up bonuses. Paid the balances off over the year. Didn’t pay interest and earned about 13% cash back on my expenses that I wouldn’t have received if I paid cash.

FICOs are all in the 780-810 range depending on the model. Only balances I tend to carry are Best Buy (0% on my new LG OLED) or Apple Card (0% if I get an upgraded phone or some other item.)

I know this doesn’t work for everyone but I couldn’t imagine being a cash only or 1 card guy.

 

[kupcho1]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

 

[brun]

I'll be 53 in a few months, I've never paid one cent of interest on a credit card. My pops taught me when I was a young teen that only "suckers" buy stuff they can't afford and pay interest and end up doubling the price of their purchase. That stuck with me.

No mortgage or car payments?

Or student loans?

 

[McBokonon]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

 

[Ministry of Pain]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

Vry dangerous to have $280,000 in CC limits available to you, why have that much?
It could flip on some folks and they would e $280k in debt quickly but not folks like you obviously but this is a terrible blueprint for most folks, they can't handle that much unsecured credit

No offense bud

 

[McBokonon]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

Vry dangerous to have $280,000 in CC limits available to you, why have that much?
It could flip on some folks and they would e $280k in debt quickly but not folks like you obviously but this is a terrible blueprint for most folks, they can't handle that much unsecured credit

No offense bud

It’s not for everyone. If you need Suze Orman
or Dave Ramsey to constantly tell you not to spend it, then you shouldn’t do this. And that’s probably most people.

I don’t need the limits. If they got lowered I wouldn’t care.

 

[Ministry of Pain]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

Vry dangerous to have $280,000 in CC limits available to you, why have that much?
It could flip on some folks and they would e $280k in debt quickly but not folks like you obviously but this is a terrible blueprint for most folks, they can't handle that much unsecured credit

No offense bud

It’s not for everyone. If you need Suze Orman
or Dave Ramsey to constantly tell you not to spend it, then you shouldn’t do this. And that’s probably most people.

I don’t need the limits. If they got lowered I wouldn’t care.

Why are we desecrating Suze Orman and Dave Ramsey?
I personally don't watch or listen to them but I know who they are and sorta their schtick.
If you think those are the only two people that advocate the average American from going into debt...it's a basic common sense thing.
I used to be in mortgages and I wrote so many mortgages where we had to pay off loads of credit card debt and use up home equity to try and just get folks back to ZERO

Glad you got all the rewards, you should be on TV as a Capital One spoke person

 

[massraider]

I think you're right for the general population, but it appears most FBGs use cc responsibly.

The ones who don't aren't in here.

 

[Terminalxylem]

I have something like 20 cards with about $280k in available credit that I’ve accumulated over the years and still adding. I do this to get the sign up bonuses and then maximize whatever deals there are as well as rewards. I love to travel so doing this is important to me. I have a ton of points/miles on standby to be deployed when I find out where Newcastle United is playing in the Champions League so I can book a vacation around it.

No, it’s not hard to track. I have each issuer’s app on my phone, all in a group. Every other morning or so I click through them (Face ID makes this fast) just to ensure nothing weird is happening. This might take a total of 3-4 minutes.

It can take a little effort to maximize the correct card for each purchase, but generally I really only have 2-4 that actually get used regularly, changing every 3 months based on rotating categories. Really not that time consuming even if it sounds like it.

I had to have unexpected major dental work last year, so I opened up 5 new cards simultaneously, all 0% for a year, all with sign up bonuses. Paid the balances off over the year. Didn’t pay interest and earned about 13% cash back on my expenses that I wouldn’t have received if I paid cash.

FICOs are all in the 780-810 range depending on the model. Only balances I tend to carry are Best Buy (0% on my new LG OLED) or Apple Card (0% if I get an upgraded phone or some other item.)

I know this doesn’t work for everyone but I couldn’t imagine being a cash only or 1 card guy.

How much junk mail/electronic solicitations do you receive? Has your identity even been stolen, or fraudulent activity occurred?

How big is your wallet?

 

[McBokonon]

I have something like 20 cards with about $280k in available credit that I’ve accumulated over the years and still adding. I do this to get the sign up bonuses and then maximize whatever deals there are as well as rewards. I love to travel so doing this is important to me. I have a ton of points/miles on standby to be deployed when I find out where Newcastle United is playing in the Champions League so I can book a vacation around it.

No, it’s not hard to track. I have each issuer’s app on my phone, all in a group. Every other morning or so I click through them (Face ID makes this fast) just to ensure nothing weird is happening. This might take a total of 3-4 minutes.

It can take a little effort to maximize the correct card for each purchase, but generally I really only have 2-4 that actually get used regularly, changing every 3 months based on rotating categories. Really not that time consuming even if it sounds like it.

I had to have unexpected major dental work last year, so I opened up 5 new cards simultaneously, all 0% for a year, all with sign up bonuses. Paid the balances off over the year. Didn’t pay interest and earned about 13% cash back on my expenses that I wouldn’t have received if I paid cash.

FICOs are all in the 780-810 range depending on the model. Only balances I tend to carry are Best Buy (0% on my new LG OLED) or Apple Card (0% if I get an upgraded phone or some other item.)

I know this doesn’t work for everyone but I couldn’t imagine being a cash only or 1 card guy.

How much junk mail/electronic solicitations do you receive? Has your identity even been stolen, or fraudulent activity occurred?

How big is your wallet?

Some? Doesn’t bother me anyway. Sometimes I get great offers, too. I love Big Brother having my data so they can tailor offers that make sense for me. I’m well aware I’m in the extreme minority here.

No, but I also get free credit and ID monitoring through several of these cards and track it closely.

I only carry a clip with 3-4 cards at a time. Use Apple Pay anywhere they accept it (5% cash back from Discover doing this right now.)

 

[Terminalxylem]

I'll be 53 in a few months, I've never paid one cent of interest on a credit card. My pops taught me when I was a young teen that only "suckers" buy stuff they can't afford and pay interest and end up doubling the price of their purchase. That stuck with me.

No mortgage or car payments?

Or student loans?

I‘m not ffmail4me, but the only interest I‘ve incurred in 51+ years on the planet was for mortgage, which I paid off in 7 years.

I know that’s not the soundest approach financially, but there’s something to be said for the liberating feeling of carrying zero debt, and delaying gratification until funds are actually available.

 

[-OZ-]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

Vry dangerous to have $280,000 in CC limits available to you, why have that much?
It could flip on some folks and they would e $280k in debt quickly but not folks like you obviously but this is a terrible blueprint for most folks, they can't handle that much unsecured credit

No offense bud

It’s really not that dangerous if you’re intentional.

First, monitor the accounts at least weekly. Report any fraud.

Second, anyone with decent discipline isn’t rushing out to max their credit cards. I don’t even know most of my limits (or interest rates) and haven’t come close to maxing any. Quick math puts me really close to $280k.

finally, credit cards are a lot more secure for the user than cash or debit.

You’re barking up the wrong tree here, many of us use cards and have high total limits with no issues.

 

[-OZ-]

Use Apple Pay anywhere they accept it (5% cash back from Discover doing this right now.)

it didn’t even occur to me to use that category. We’re using discover for gas right now at 5%, but I just started using Apple Pay - linked to the card giving me most at the restaurant or store. I didn’t even consider that discover would pay the 5% for another category when using Apple Pay.

Thanks for the tip!

 

[Ministry of Pain]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

Vry dangerous to have $280,000 in CC limits available to you, why have that much?
It could flip on some folks and they would e $280k in debt quickly but not folks like you obviously but this is a terrible blueprint for most folks, they can't handle that much unsecured credit

No offense bud

It’s really not that dangerous if you’re intentional.

First, monitor the accounts at least weekly. Report any fraud.

Second, anyone with decent discipline isn’t rushing out to max their credit cards. I don’t even know most of my limits (or interest rates) and haven’t come close to maxing any. Quick math puts me really close to $280k.

finally, credit cards are a lot more secure for the user than cash or debit.

You’re barking up the wrong tree here, many of us use cards and have high total limits with no issues.

That's a lot of work for a lot of society and I think its humorous that folks are trying to support others expanding their credit limits beyond what they could ever pay back just to get some airline miles and some cash back on bananas in the Produce department

I'm teasing but again very few people can handle having $280,000 available in unsecured debt. You can spin this thru Capital One however you want, you're drinking the CEO Kool Aid from them. go for it and get you some. Numbers don' lie and the average American is carrying well North of $10,000 in credit card debt. We've magically gather a large amount of financially astute people here who would never pay a penny of credit card debt but I've seen too many credit reports and I love when people say they don't have any credit card debt and you add up $20,000 on their credit reports. It's comical

Again, good for the Sunday coupon clippers but really bad for the average American.
Why do you think they give you all that stuff? They are gambling that many WILL NOT pay it off at the end of the month
Guess What? They're right!

 

[-OZ-]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

Vry dangerous to have $280,000 in CC limits available to you, why have that much?
It could flip on some folks and they would e $280k in debt quickly but not folks like you obviously but this is a terrible blueprint for most folks, they can't handle that much unsecured credit

No offense bud

It’s really not that dangerous if you’re intentional.

First, monitor the accounts at least weekly. Report any fraud.

Second, anyone with decent discipline isn’t rushing out to max their credit cards. I don’t even know most of my limits (or interest rates) and haven’t come close to maxing any. Quick math puts me really close to $280k.

finally, credit cards are a lot more secure for the user than cash or debit.

You’re barking up the wrong tree here, many of us use cards and have high total limits with no issues.

That's a lot of work for a lot of society and I think its humorous that folks are trying to support others expanding their credit limits beyond what they could ever pay back just to get some airline miles and some cash back on bananas in the Produce department

I'm teasing but again very few people can handle having $280,000 available in unsecured debt. You can spin this thru Capital One however you want, you're drinking the CEO Kool Aid from them. go for it and get you some. Numbers don' lie and the average American is carrying well North of $10,000 in credit card debt. We've magically gather a large amount of financially astute people here who would never pay a penny of credit card debt but I've seen too many credit reports and I love when people say they don't have any credit card debt and you add up $20,000 on their credit reports. It's comical

Again, good for the Sunday coupon clippers but really bad for the average American.
Why do you think they give you all that stuff? They are gambling that many WILL NOT pay it off at the end of the month
Guess What? They're right!

They pay because it’s marketing and the merchant pays. They pay because on average, they’re right. But for those of us who have had credit cards for 30 years and have never paid a cent of interest, the money the company makes is from the merchant.
You could argue that we’re feeding of those who carry balances and pay interest and off merchants. There’s truth to that aspect.

You mention credit report totals, presumably you know those reports show the amount owed for the bill, which doesn’t necessarily mean the user is paying interest on that amount.

 

[massraider]

That's a lot of work for a lot of society and I think its humorous that folks are trying to support others expanding their credit limits beyond what they could ever pay bak just to get some airline miles and some discounts at Costco

I think it's humorous your worldview doesn't extend past the nearest Waffle House.

It's a "Lot of work"? Holy cripes. I fly anywhere in this country I want, whenever I want (literally), because of "some airline miles", and I am going to wager people would have to work a LOT to pay for the flights I get for free. Much harder than me trying to avoid pulling a muscle as I apply online for a credit card (the key is to lift the laptop with your legs, not your back).

Someone else's lack of self control isn't my problem. People can discuss fantasy football in here without you barging in talking about gambling addictions, and I don't tell people not to go into supermarkets because they have sugary cereal there, so let's just stipulate that CC debt is bad.

What, you think @McBokonon lies in bed at night, with his 20 credit cards calling to him from his desk, and he has to fight the urge to get online, and order every Pokemon card at 4 in the morning? No, he applied for a card, got the bonus, and stuffed it in his sock drawer, and forgot about it. That's how grown-@$$ adults behave, who have a modicum of discipline.

 

[Nugget]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

Vry dangerous to have $280,000 in CC limits available to you, why have that much?
It could flip on some folks and they would e $280k in debt quickly but not folks like you obviously but this is a terrible blueprint for most folks, they can't handle that much unsecured credit

No offense bud

It’s really not that dangerous if you’re intentional.

First, monitor the accounts at least weekly. Report any fraud.

Second, anyone with decent discipline isn’t rushing out to max their credit cards. I don’t even know most of my limits (or interest rates) and haven’t come close to maxing any. Quick math puts me really close to $280k.

finally, credit cards are a lot more secure for the user than cash or debit.

You’re barking up the wrong tree here, many of us use cards and have high total limits with no issues.

That's a lot of work for a lot of society and I think its humorous that folks are trying to support others expanding their credit limits beyond what they could ever pay back just to get some airline miles and some cash back on bananas in the Produce department

I'm teasing but again very few people can handle having $280,000 available in unsecured debt. You can spin this thru Capital One however you want, you're drinking the CEO Kool Aid from them. go for it and get you some. Numbers don' lie and the average American is carrying well North of $10,000 in credit card debt. We've magically gather a large amount of financially astute people here who would never pay a penny of credit card debt but I've seen too many credit reports and I love when people say they don't have any credit card debt and you add up $20,000 on their credit reports. It's comical

Again, good for the Sunday coupon clippers but really bad for the average American.
Why do you think they give you all that stuff? They are gambling that many WILL NOT pay it off at the end of the month
Guess What? They're right!

I think credit utilization would be a much better metric for the point you are trying to make. A rolling 5K spend that is paid of each month on a total limit of $280K seems much safer than someone who owes $22K with a total limit of $28K.

If I can reduce my household spend 2-5%+ per month, through 20 minutes of planning and using credit cards, it seems like a no-brainer.

 

[Ministry of Pain]

That's a lot of work for a lot of society and I think its humorous that folks are trying to support others expanding their credit limits beyond what they could ever pay bak just to get some airline miles and some discounts at Costco

I think it's humorous your worldview doesn't extend past the nearest Waffle House.

It's a "Lot of work"? Holy cripes. I fly anywhere in this country I want, whenever I want (literally), because of "some airline miles", and I am going to wager people would have to work a LOT to pay for the flights I get for free. Much harder than me trying to avoid pulling a muscle as I apply online for a credit card (the key is to lift the laptop with your legs, not your back).

Someone else's lack of self control isn't my problem. People can discuss fantasy football in here without you barging in talking about gambling addictions, and I don't tell people not to go into supermarkets because they have sugary cereal there, so let's just stipulate that CC debt is bad.

What, you think @McBokonon lies in bed at night, with his 20 credit cards calling to him from his desk, and he has to fight the urge to get online, and order every Pokemon card at 4 in the morning? No, he applied for a card, got the bonus, and stuffed it in his sock drawer, and forgot about it. That's how grown-@$$ adults behave, who have a modicum of discipline.

It''s a real joy flying these days, enoy those airlines miles

 

[Zigg]

I love flying and travelling and absolutely enjoy my air miles. Like others in this thread, I’m not responsible for others misuse of credit, and happy to take advantage of credit card companies praying on them.

You have taken a very weird stance in here.

 

[ghostguy123]

I currently work with a dozen or so folks in the 20-26 range, and have been preaching (begging) them to do anything and everything they can to get their credit cards paid off.
Credit cards are definitely the devil.
I really hate hearing people say "well if you use them right and take advantage of the points blah blah...."
Yeah, hardly anyone does that responsibly, especially people.in their early 20s.

I think you're right for the general population, but it appears most FBGs use cc responsibly.

I use credit because its far more convenient than cash, and safer than a debit card. The benefits and cash back are OK, but not critical imo. But I'm not willing to game the system to maximize the rewards.

I'd bet even though most of us are responsible, most of us all probably spend more because of the credit cards than we would if we didn't have them. Even if by just a small amount.
Also, some places charge you a fee to use a credit card now (more and more places all the time doing this), and the fee is more than the rewards earned.

I do it, and I know I do it, but it's convenient, and I am still well within my budget.

 

[DA RAIDERS]

earned about 13% cash back on my expenses

Please explain how you got 13% cash back. The percentage you get back from each card isn't additive.

Looked at my spreadsheet and you’re right, it was closer to 10%. Bonuses were all $200-300. Bonus total was $1,200 across 5 cards. Regular cash back on top of that was $200. Total in cash back was $1,400 on just under $14,000 I had to spend no matter what.

ETA: if you prefer, I saved 10% by not paying cash.

Vry dangerous to have $280,000 in CC limits available to you, why have that much?
It could flip on some folks and they would e $280k in debt quickly but not folks like you obviously but this is a terrible blueprint for most folks, they can't handle that much unsecured credit

No offense bud

It’s really not that dangerous if you’re intentional.

First, monitor the accounts at least weekly. Report any fraud.

Second, anyone with decent discipline isn’t rushing out to max their credit cards. I don’t even know most of my limits (or interest rates) and haven’t come close to maxing any. Quick math puts me really close to $280k.

finally, credit cards are a lot more secure for the user than cash or debit.

You’re barking up the wrong tree here, many of us use cards and have high total limits with no issues.

That's a lot of work for a lot of society and I think its humorous that folks are trying to support others expanding their credit limits beyond what they could ever pay back just to get some airline miles and some cash back on bananas in the Produce department

I'm teasing but again very few people can handle having $280,000 available in unsecured debt. You can spin this thru Capital One however you want, you're drinking the CEO Kool Aid from them. go for it and get you some. Numbers don' lie and the average American is carrying well North of $10,000 in credit card debt. We've magically gather a large amount of financially astute people here who would never pay a penny of credit card debt but I've seen too many credit reports and I love when people say they don't have any credit card debt and you add up $20,000 on their credit reports. It's comical

Again, good for the Sunday coupon clippers but really bad for the average American.
Why do you think they give you all that stuff? They are gambling that many WILL NOT pay it off at the end of the month
Guess What? They're right!

i was a moron with cc when i was younger. but i play the same game as @McBokonon. for 2 people. my wife has multiple cards as well that i manage. i don't even know the combined total of all of them. i'll have to add it up. when we started our kitchen remodel a few months ago. we opened 4 new cards that had 65K? total. when i bought the new appliances, i paid it off as soon as it hit the cc. i don't wait for the statement on large purchases. works for us. i do get a good laugh on the minimum payment number. i had one that was 14K. minimum due? $40 so wrong


we each only have 1 card in play at any one time. all the rest are in the safe. pay everything off immediately. i set all of my cards to alert me if $1 is spent or received. so far, no issues.

we are looking to fly to europe in first class next summer. for free.

 

[Mrs. Rannous]

How big is your wallet?

Isn't that kind of personal?

 

[McBokonon]

we are looking to fly to europe in first class next summer. for free.

MAYBE YOU SHOULD BE A SPOKESPERSON FOR AMERICAN AIRLINES!!!111

 

[DA RAIDERS]

we are looking to fly to europe in first class next summer. for free.

MAYBE YOU SHOULD BE A SPOKESPERSON FOR AMERICAN AIRLINES!!!111

i will trick myself out to whoever gives me the best transfer on points. may end up on british airways

 

[ffmail4me]

I'll be 53 in a few months, I've never paid one cent of interest on a credit card. My pops taught me when I was a young teen that only "suckers" buy stuff they can't afford and pay interest and end up doubling the price of their purchase. That stuck with me.

No mortgage or car payments?

Nope the last 2 cars I bought (2020 and 2022) I paid in full at time of purchase. House is paid off as well, a bit of unique situation on the house though.

 

[Dr. No]

I overpay my card. At any given time they owe me between 500 bucks and 2k. I hate credit I hate owing people. But the points are just way too valuable to ignore. #nodebtever

 

[Capella]

I have something like 20 cards with about $280k in available credit that I’ve accumulated over the years and still adding. I do this to get the sign up bonuses and then maximize whatever deals there are as well as rewards. I love to travel so doing this is important to me. I have a ton of points/miles on standby to be deployed when I find out where Newcastle United is playing in the Champions League so I can book a vacation around it.

No, it’s not hard to track. I have each issuer’s app on my phone, all in a group. Every other morning or so I click through them (Face ID makes this fast) just to ensure nothing weird is happening. This might take a total of 3-4 minutes.

It can take a little effort to maximize the correct card for each purchase, but generally I really only have 2-4 that actually get used regularly, changing every 3 months based on rotating categories. Really not that time consuming even if it sounds like it.

I had to have unexpected major dental work last year, so I opened up 5 new cards simultaneously, all 0% for a year, all with sign up bonuses. Paid the balances off over the year. Didn’t pay interest and earned about 13% cash back on my expenses that I wouldn’t have received if I paid cash.

FICOs are all in the 780-810 range depending on the model. Only balances I tend to carry are Best Buy (0% on my new LG OLED) or Apple Card (0% if I get an upgraded phone or some other item.)

I know this doesn’t work for everyone but I couldn’t imagine being a cash only or 1 card guy.

I do the same thing. Have a ton of cards with signup bonuses I rotate through. A BOA one just paid me 450 in bonus money last month alone. I’ve made over 6k the last two years doing this. Like you I check all the apps and then my credit report to make sure nothing weird is going on.

 

[-OZ-]

I overpay my card. At any given time they owe me between 500 bucks and 2k. I hate credit I hate owing people. But the points are just way too valuable to ignore. #nodebtever

Why though? Automatic payments set a week or a few days before the due date works perfectly fine. Giving a free loan to the credit card company seems suboptimal.

 

[Keerock]

I overpay my card. At any given time they owe me between 500 bucks and 2k. I hate credit I hate owing people. But the points are just way too valuable to ignore. #nodebtever

Why though? Automatic payments set a week or a few days before the due date works perfectly fine. Giving a free loan to the credit card company seems suboptimal.

For me it's OCD. I like to pay in even amounts. As I said earlier, I round up to the nearest $50. Same thing when I tip... if the bill is 25.66 I will tip 5.34 to make the charge an even $31

 

[-OZ-]

I overpay my card. At any given time they owe me between 500 bucks and 2k. I hate credit I hate owing people. But the points are just way too valuable to ignore. #nodebtever

Why though? Automatic payments set a week or a few days before the due date works perfectly fine. Giving a free loan to the credit card company seems suboptimal.

For me it's OCD. I like to pay in even amounts. As I said earlier, I round up to the nearest $50. Same thing when I tip... if the bill is 25.66 I will tip 5.34 to make the charge an even $31

Fair enough.
I always round for tips and I need to remind myself to not fill gas up to the next dollar.

 

[Keerock]

I overpay my card. At any given time they owe me between 500 bucks and 2k. I hate credit I hate owing people. But the points are just way too valuable to ignore. #nodebtever

Why though? Automatic payments set a week or a few days before the due date works perfectly fine. Giving a free loan to the credit card company seems suboptimal.

For me it's OCD. I like to pay in even amounts. As I said earlier, I round up to the nearest $50. Same thing when I tip... if the bill is 25.66 I will tip 5.34 to make the charge an even $31

Fair enough.
I always round for tips and I need to remind myself to not fill gas up to the next dollar.

I always round the gas up. That's an upcoming WN? poll BTW.

 

[-OZ-]

I overpay my card. At any given time they owe me between 500 bucks and 2k. I hate credit I hate owing people. But the points are just way too valuable to ignore. #nodebtever

Why though? Automatic payments set a week or a few days before the due date works perfectly fine. Giving a free loan to the credit card company seems suboptimal.

For me it's OCD. I like to pay in even amounts. As I said earlier, I round up to the nearest $50. Same thing when I tip... if the bill is 25.66 I will tip 5.34 to make the charge an even $31

Fair enough.
I always round for tips and I need to remind myself to not fill gas up to the next dollar.

I always round the gas up. That's an upcoming WN? poll BTW.

I used to, but after reading and talking to a mechanic friend, no more.

Another WN? Question - is your garage (if you have one) mostly used for storage of stuff or for your car?

 

[Terminalxylem]

I overpay my card. At any given time they owe me between 500 bucks and 2k. I hate credit I hate owing people. But the points are just way too valuable to ignore. #nodebtever

Why the overpayment?

ETA NM, I see it has already been asked.

 

[ghostguy123]

Me and the wife each have two credit cards. We've had to replace the cards a couple times the last couple years for small fraudulent stuff.
Wife is on the phone now cause of some door dash purchases. Small stuff, 9 bucks here, 17 bucks there.
Seems like the person should obviously be charged with something once we report it, right? Guessing they won't.