Credit Card Strategy

#1
Tri-CitiesVol

Tri-CitiesVol

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#1
For the longest time I resisted and used cash or debit card for everything. Last year was my first foray into the credit card game with a cash back card and the Chase Sapphire Preferred. It’s incredible the benefits you can rack up if you are just able to pay your balances responsibly. I’m not full on nerd with it yet, but curious who out there is and maybe some advice on the approach you take. Welcome offers, build points, best ways to redeem them. Whatever you’ve got.
 
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#2
#2
Tri-CitiesVol said:
For the longest time I resisted and used cash or debit card for everything. Last year was my first foray into the credit card game with a cash back card and the Chase Sapphire Preferred. It’s incredible the benefits you can rack up if you are just able to pay your balances responsibly. I’m not full on nerd with it yet, but curious who out there is and maybe some advice on the approach you take. Welcome offers, build points, best ways to redeem them. Whatever you’ve got.
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Put it on autopay. Interest rates can push 30% if you make a late payment.
 
#5
#5
superdave1984 said:
If you get a credit card, pay the balance in full and on time every month. If you are not able to do that, don't get a credit card.
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I always pay on time, does it help your credit to pay things off early before you get your statement?
 
#7
#7
I avoid points, cash.

You can find cards that pay big, like 5%, on one category. They're hoping you won't use that card for just one category, but of course you should.

I was pretty surprised the first time I saw a $200 or $500 handout offer, but they do pay.

Just don't buy anything you wouldn't have bought if you weren't using a credit card.

The only thing we have with a fee is a bonvoy and an IHG at $95 each. The benefits are basically identical, you get a free night every year, so I am acting as if those free nights are worth $95. Other than those, I won't really look at a card with a fee.
 
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#8
#8
mrorange211 said:
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I read your post earlier but didn't have time to respond. Not sure why you edited, but I think it's really smart. Personally recently I've gotten into the game, but I'm just trying maximize cash back. If you are on reddit, visit the creditcards subreddit, it's full of people like you. It's where I learned about all of it. People who think credit cards are the devil are really missing out.
 
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#9
#9
I've had good experiences with Chase's Sapphire Preferred (for travel and dining out, unless some of their periodic promos in the app are of interest) and the Fidelity Visa credit card (2% cash back on everything, which goes into my brokerage acct). I pay both off each month. I also have a Visa through my credit union as a backup, but that one stays in the safe except for once or twice a year when I make a small purchase and then turn around and pay it off just to put some activity on it.
 
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#11
#11
K-town Vol Fan said:
I read your post earlier but didn't have time to respond. Not sure why you edited, but I think it's really smart. Personally recently I've gotten into the game, but I'm just trying maximize cash back. If you are on reddit, visit the creditcards subreddit, it's full of people like you. It's where I learned about all of it. People who think credit cards are the devil are really missing out.
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I thought I put too much info out there. People who want to know more can respond and we can exchange contact info.

The thing about cash back is that you don't get the biggest bang for your points. Use Chase Travel or, whichever card's travel portal, and you can literally redeem up to 8x-12x the value. I've literally gotten deals where my points were worth .9-.12 cents each. my family like to travel, and this is helping us go around the world for basically free. I currently have about 23 credit cards that I cycle through yearly.
 
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#12
#12
I've had the Capital One Venture for about ten years and charge literally everything to it unless the merchant charges fees for a CC transaction. I make sure to only redeem the points for something they class as "travel" so as to maximize the value, and usually end up with $1000-$1500 in statement credit each year. There are additional perks as well. Every five years I get a $100 credit to cover the cost of PreCheck/Global Entry, and they cover any foreign transaction fees if you are out of the country. I think they also cover the full insurance on any rental cars, roadside assistance similar to AAA, possibly some sort of trip cancellation insurance, as well as access to some airport lounges.

As others have said, just be sure to pay the bill in full every month so that you never incur interest charges, and the benefits start to add up to a decent amount of money pretty quickly.
 
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#13
#13
As others have said if you can't put it on auto pay you probably shouldn't use a CC.

I have the Citi AAdvantage card($99)/yr for American Airlines flights. I built houses from about 93 to 2007, and I'd buy my materials with it. I would typically have a balance of one million miles plus. I just recently went to near zero. I will probably cancel that card.
I have the Chase Sapphire Preffered($99/yr). It is the card we use most to accumulate points. If we don't use it to travel we can cash in the points.
I have the Capitalone Quicksilver card(no fee). We use it to travel. Nice benefits.
At 73/74 years old we are ready to curtail the travel. We will likely dump the Citi card soon.
We might get rid of both cards that have an annual fee. Find one that pays the most in cash back.
I think all Americans, but especially Boomers, are starting to travel. I can't believe how much a business class seat cost for a flight to Europe. The dam flights cost more than the rest of the trip by far.
 
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#14
#14
Firebirdparts said:
I avoid points, cash.

You can find cards that pay big, like 5%, on one category. They're hoping you won't use that card for just one category, but of course you should.

I was pretty surprised the first time I saw a $200 or $500 handout offer, but they do pay.

Just don't buy anything you wouldn't have bought if you weren't using a credit card.

The only thing we have with a fee is a bonvoy and an IHG at $95 each. The benefits are basically identical, you get a free night every year, so I am acting as if those free nights are worth $95. Other than those, I won't really look at a card with a fee.
Click to expand...
I have the Bonvoy one. I initially got it for work expenses and would rack up loads of points on the hotel charges, which meant I ended up with enough free nights to pay for a couple weekends of short vacations/staycations every year. Since COVID, not so much, but I already have the card so it is what it is. It doesn't have international transaction fees so it's the one we use outside the US.
 
#15
#15
I use a cc for everything. Amex Blue I get 6% back on groceries. Sam's Club MC, I get 5% back on gas. I have a PNC & BofA cash back card that offer really good cash back on restaurants & online purchases.
 
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#16
#16
I'm 68, retired and only use one credit card, Fidelity Visa Signature. It offers 2% cash back. No annual fee. Have it on Autopay the balance on due date and not had to worry about not having enough in my Fidelity checking account. I use it for most purchases and rarely carry much cash. I have a local bank checking account but mostly my wife uses it, not me.
 
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#17
#17
Boca Vol said:
I use a cc for everything. Amex Blue I get 6% back on groceries. Sam's Club MC, I get 5% back on gas. I have a PNC & BofA cash back card that offer really good cash back on restaurants & online purchases.
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Same here with the same card. And I just pay off the balance every month.
 
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#18
#18
mrorange211 said:
I thought I put too much info out there. People who want to know more can respond and we can exchange contact info.

The thing about cash back is that you don't get the biggest bang for your points. Use Chase Travel or, whichever card's travel portal, and you can literally redeem up to 8x-12x the value. I've literally gotten deals where my points were worth .9-.12 cents each. my family like to travel, and this is helping us go around the world for basically free. I currently have about 23 credit cards that I cycle through yearly.
Click to expand...

@ yahoo with no spaces. Just let me know when you have it so I can pull it down.
 
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#22
#22
A contrary opinion here to consider

People who pay cash spend 15-20% less than credit card and those who use a debit card spend 12-15% less.

Its been said many times but the majority of Americans do not pay in full each month. The #1 reason people who do not pay a card off each month get a specific card is the rewards program.

Anecdotely speaking, those that try to aggrssively maximize rewards and pay it off each month have significantly lower net worths than those with similar incomes who do not maximize rewards. Just goes back to the spending.

With that being said, there are some ideas if you want to maximize rewards if you are disciplined enough to pay off each month.

1. Pay stuff you need via CC (assuming no convenience fee). Life insurance, homeowners, car insurance, groceries, internet, utilities, etc

2. Go online/app and pay off your balance at least 2x a week (Tuesday and Friday, for example).
 
#23
#23
BigOrangeMojo said:
A contrary opinion here to consider

People who pay cash spend 15-20% less than credit card and those who use a debit card spend 12-15% less.

Its been said many times but the majority of Americans do not pay in full each month. The #1 reason people who do not pay a card off each month get a specific card is the rewards program.

Anecdotely speaking, those that try to aggrssively maximize rewards and pay it off each month have significantly lower net worths than those with similar incomes who do not maximize rewards. Just goes back to the spending.

With that being said, there are some ideas if you want to maximize rewards if you are disciplined enough to pay off each month.

1. Pay stuff you need via CC (assuming no convenience fee). Life insurance, homeowners, car insurance, groceries, internet, utilities, etc

2. Go online/app and pay off your balance at least 2x a week (Tuesday and Friday, for example).
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1. Yes

2. What? Put your cash to work. Pay it off when due.
 
#24
#24
95 Vol Alum said:
1. Yes

2. What? Put your cash to work. Pay it off when due.
Click to expand...

On #2, by paying 2x a week, you are treating it almost like a debit card with rewards. People who use debit cards spend 12-15% less than credit. You'll spend less and more than cover the $5-10 in money market interest income you might get each month. Put an extra $10 in your investments in each month...
 
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