Most people feel that credit cards are evil....or at least can lead you into debt.
They are a tool if used properly but so many either don't know how or won't use it as the tool it was meant to be.
Resulting in many people getting into trouble with the improper use of credit cards.
If you are one of these sort of folks it's best not to even use credit.
With my frugal habits built up over the decades I am at a place were I don't need to put anything on credit....ever! I only buy things I can afford when I buy them.
The last time I paid credit card interest was 1995(I was pregnant and forgot a deadline.)
The last time I financed a car was 1994(and we paid that one off 3 years early).
The last time I paid mortgage interest was 2007.
This is not to brag(ok, maybe a little lol)but to show that getting debt-free can take time and by golly it takes a LOT of effort!
If you are regularly buying things on credit and can't pay that bill off then maybe you really can't afford to be buying those things, can you?
If you regularly buy things on credit and don't pay off the bill in full each month then you don't own those things, the credit card company does.
It wasn't easy getting to this point of not needing credit. It meant a lot of sacrificing over the years, giving up wants and just buying the needs.
And putting money away and not spending it.
And with time and regular money saving habits, it meant paying off large debts like cars and even a house and being totally debt-free.
Credit cards are now a convenience for me.
I am in a position that it I need/want to buy something and I don't have enough cash or a check on me, no problem.....I just whip out the vile credit card and purchase.
But I NEVER put a purchase on a credit card that I don't actually have the money for or am not prepared to pay-off before the c/c bill is due.
It's the only way I will use a credit card nowadays....pure convenience.
So since my credit card has a rewards program attached to it why shouldn't I use it for ALL purchases and reap the reward program benefit?
Yes, I am a bit slow sometimes. ;-)
And that is what I am going to do-start paying every bill I can with my credit card to earn points.
It's a win/win as I never carry a balance and/or pay interest on my card. Why not earn free rewards for purchases I have to make every month anyway?
I have paid cash for all my food purchases for many years now that it felt funny putting a grocery store purchase on a credit card the other day.
I'll get use to it though.
I know I won't earn that much more in rewards putting food on the c/c as I don't spend a lot on food/toiletries anyway(well, I have been spending much MORE lately since I am feeding 2 more adults)but every little bit counts, right?
I do know already that a few monthly bills I can't put on the credit card as they charge a "fee"(pass on the % the c/c company charges them to take credit payments).
The water and electric company here do this so those will still be paid via another method(check or direct checking account transfer)because having to pay that "fee" is the same as paying interest in my mind.
How about you?
Do you pay cash or put food/toiletries purchases on credit to earn rewards and is it worth it to do so?
Or do you have a credit utilizing problem and end up paying interest on credit card charges when you don't want to?
Do you think it's "worth it" to use credit cards for reward points?
Sluggy
