Question

What are your thoughts of using credit cards for reward purposes? My friend says her and her husband only use credit cards and then pay them off? I was thinking of doing that if we can pay the balance each month or pay it every week. Especially food shopping because we would get 2% cashback each time.  

Answer 1

We use our credit cards for things we’re already buying and then immediately pay them off. Groceries and gas mainly.  

Answer 2

NOPE. Not worth it. We tried this (paid it off every time, for years), then found ourselves using it more often and not tracking as regularly, as life happens. Credit cards are too tempting. "They" are making millions (billions) off of humans failing to pay them off; initially starting with good intentions (i. e. rewards). Save yourself the time and energy. CASH first, then debit.  

Answer 3

I only use my rewards cards for gas and groceries. I’m working on rebuilding my credit so I make sure I pay them off weekly.  

Answer 4

Like others have said - it is all about discipline. We didn't use a credit card for 10 years and have been debt free for almost 3. We just started using credit cards for the sign up bonus a month ago. It felt SOOOO strange. We pay it off every Monday. Husband and I also set up rules for how we will use it and if we cross any lines we cut it up.  

Answer 5

I've used a reward credit card since I was 18. I stopped for a couple of months to try using cash when I found TBM but went back to it as its free money at the end of the day ‍♀️ I pay it off most days as I transfer it from my bank account to the credit card account on my banking app. I see it as extra savings and use the money earnt to put towards bigger purchases or emergencies so forget about it being there most of the time

Answer 6

I do not. Too risky.  

Answer 7

I do it. If you are disciplined enough then it’s great. But if it triggers you to spend more, then better stay away

Answer 8

If you can’t pay it off at that moment don’t get it. I’ve really liked my Citi Costco card. I get enough cash back to cover most of Christmas (just throw into the safe and don’t touch it ).  

Answer 9

My husband and i made a “credit card” envelope. We still use the cash envelope system but instead of spending the cash we use the card and then put the cash in our credit card envelope to pay it off. It helps us learn to be more disciplined with what we are putting on the card. We have to have cash for it or we don’t do it. It’s really helped have a visual of how much cash we have left to spend before we swipe

Answer 10

We do. I do most of my grocery shopping using Walmart pick up. We have their MasterCard which gives you 5% back. As a family of 7, we spend a lot on groceries so that definitely adds up.  

Answer 11

I’m trying it. I decided to pay it weekly instead of when it is due. I use the app Simple Budget to keep track of what is on my “envelopes”

Comments

@jaddo it’s free. bi hope it works well for you. This is a screen shot of mine.  

Answer 12

I do this with the cashless envelope method for ALL expenses! I use the points for travel

Answer 13

I pay in full and with my Hilton Amex I get free hotels when I visit my daughter in college and with my American Airlines I have 2 free round trip tickets. I’m waiting until I earn a third so my family can go on vacation

Answer 14

We do this with the Costco citi card since we shop at Costco a lot. But we are very disciplined. I put the money aside into a depressed checking account and pay it off from that account. I always make sure this balance is $0 for the following week.  

Answer 15

I’ve used my Discover card for 90% of all monthly expenses for 23 years and have paid it off monthly in full every month except maybe 6 times. I earn about $1000 in cashback bonus every year, which we use either for Christmas spending or toward vacation. It’s worked for us! I agree, you have to be disciplined.  

Answer 16

My friends/family do this and earn TONS of rewards. They don't even have debit cards. I am not this person. I get swipe happy. Don't be like me.  

Answer 17

I do it. I get back between $800-$3, 000/year. I charge it to my card, then immediately pay it off. I don’t wait until the statement comes, or payday. I just pay it immediately.  

Answer 18

We do this in our house! We immediately transfer after a purchase or make a payment at bank asap

Answer 19

It is a great way to get benefits back but you have got to be disciplined and track it in the same way you would your checking account. Pros: “free” stuff and services. Cons: Easy to over extend yourself.  

Answer 20

I don't. we are done with those forever!  

Answer 21

I don’t mess with credit. I don’t care what benefits they give. I have yet to meet someone who is debt free and well on their way to living large who claims getting perks from credit cards helped them reach their goal. If something happens and you’re not able to pay, interest is usually higher on those cards. Just my opinion.  

Answer 22

I only do this for things I already have cash for like gas. Sometimes groceries. But gas I get a higher cash back and I never want to get both kids out to go pay in cash. So for me it works. But I always pay it off monthly before it even hits the statement

Answer 23

I use credit cards for everything because of the rewards it’s literally thousands that I save up to use at the end of the year for Christmas and travel. I do track my spending on an app called my daily budget and Mint to make sure I don’t overspend and always pay them off in full every months.  

Answer 24

I use my cc for all online purchases and gasoline for our cars. I take the cash out of appropriate envelope when I get my statement.  

Answer 25

Credit cards are most of our debt and we would be much better off financially if we didn’t have them. They’re not worth it.  

Answer 26

Only if you have never had credit card debt and are currently using and sticking to a budget. We pay off our cards every payday and use our rewards for travel.  

Answer 27

I put EVERYTHING on my CC, but pay it off weekly.  

Answer 28

I do the same. I earn rewards through the amazon card and through Rakuten

Answer 29

For me, it’s not worth it at this point. I would overspend and not pay the balance.  

Answer 30

I have a rewards credit card and charge everything on it, even the smallest of purchases. I keep a ledger of everything spent on the card and the bills paid so that I know exactly how much money I have. Then I pay the bill out of my checking account and reconcile both. I use it all through the year and in November, cash it out for a check and use it for Christmas presents. It’s a bit of work because I have to make sure to log every single purchase but it’s worth it. Oh and I pay it off every month.