Current Events > How do you use your credit cards?

(+) Yeah! (+)

Mine is option 3, with a mix of option 2
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Use it, then pay it off the next day. I get cash back on it, so I make money from using it.
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Will be in super debt til April. After that I pay it off as I go.

Yeah I'm gonna be a lot more careful with my purchases now. I used to just use my CCs willy nilly but now I want those $5,000 and up limits that people end up getting so I'm going to just farm credit score by paying more than the minimum on each card and not using them until my balance is near max, then buy something small like a few bags of candy then pay it off.
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To scrape ice off of my windshield
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The idea was to use them and pay them off every month.

Now I just use one of them as a general use card and the rest I just try to pay down at a reasonable rate
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I use it for every purchase I make, and pay it off as soon as the bill comes in. No interest, and I get my cash reward.
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Im too responsible to use one, not that Im "afraid of debt", I just guilt trip myself into never buying anything unless I can pay straight up.

I bought a $300 laptop with nothing quarters from selling cigarettes in college.
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Use it for damn near everything and pay it off as soon as the transactions posts. In other words, as a debit card, like you're supposed to.
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use it on everything

pay it off as soon as the statement hits

if i start seeing my balance creeping past 10% (which is rare), i'll pay it down before the statement comes out
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Super Saiyan 3 Goku posted...

Use it for damn near everything and pay it off as soon as the transactions posts. In other words, as a debit card, like you're supposed to.

Typical millennial. This doesn't improve your credit score at all. They are meant to have a running balance on them each month.

As much as possible for the reward points, to build even better credit, and it is often easier then carrying cash at times.
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I try to use it for big purchases or emergencies only. I've gotten a little overboard with it the past few months so I'm cooling down on it now and trying to pay off some of it.
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I use it to but literally everything and pay it off in full on the 14th of every month.
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Pretty much use them every time I go somewhere that accepts them.
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Super Saiyan 3 Goku posted...

Use it for damn near everything and pay it off as soon as the transactions posts. In other words, as a debit card, like you're supposed to.

No, you're supposed to use all credit cards as charge cards
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Hell_Fire_Thief posted...

Super Saiyan 3 Goku posted...

Use it for damn near everything and pay it off as soon as the transactions posts. In other words, as a debit card, like you're supposed to.

Typical millennial. This doesn't improve your credit score at all. They are meant to have a running balance on them each month.

Who said anything about credit score? I use my card the way I do to rack up tens of thousands of points with a $0 balance. I don't care what the score is.
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I use it for nearly every purchase for rewards and to track my spending.
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I have no such credit cards.
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I exclusively use credit cards to make purchases, unless I happen to have cash on me. With the rewards it's literally free money (providing you aren't paying interest because you aren't fully paying off your card)
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I put everything on it and then pay as much as I can every month. If I can't cover the total balance I transfer money from my line of credit which has a much much lower interest rate.

I should add that I do this because my card is cash back. Last year I got almost $500 back.
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I use my credit card for everything I can put on it for travel points. I've probably gotten at least a thousand dollars in travel purchases scrubbed out just by using the card.

I use one of my credit cards for pretty much everything throughout the month, then pay it off before the bill comes due.

Hell_Fire_Thief posted...

Super Saiyan 3 Goku posted...

Use it for damn near everything and pay it off as soon as the transactions posts. In other words, as a debit card, like you're supposed to.

Typical millennial. This doesn't improve your credit score at all. They are meant to have a running balance on them each month.

If you mean you don't pay off your bill each month and end up paying interest on unpaid expenses...you're severely mistaken. This is a common myth that is just not true and bad financial sense.
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on everything. I don't think i've used my debit cards in the last five years. cash is sporadically used,
I usually carry a $20 around just in case

Hell_Fire_Thief posted...

Typical millennial. This doesn't improve your credit score at all. They are meant to have a running balance on them each month.

a running balance does not improve your credit score
that being said, there's no reason to pay everything off immediately. you can do it once a month and have no negatives
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a running balance does not improve your credit score
that being said, there's no reason to pay everything off immediately. you can do it once a month and have no negatives

Exactly, and I very well may adjust to that method. But to pay interest with the (false) belief that it'll improve my score and credit report? Please.

The bank will never ever see my money.
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prince_leo posted...

that being said, there's no reason to pay everything off immediately. you can do it once a month and have no negatives

If I remember, it's often something like an average of the past month's balance with a 21-day grace period or so.
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Does it matter what you use your credit card for? Like will it affect my credit if I just use it for $100 of grocery shopping each month or random shit?
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cjs28 posted...

Does it matter what you use your credit card for? Like will it affect my credit if I just use it for $100 of grocery shopping each month or random shit?

no it doesn't matter

only things that matter are that you use it, you pay it off each month, and you keep your credit utilization low
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Hell_Fire_Thief posted...

Super Saiyan 3 Goku posted...

Use it for damn near everything and pay it off as soon as the transactions posts. In other words, as a debit card, like you're supposed to.

Typical millennial. This doesn't improve your credit score at all. They are meant to have a running balance on them each month.

I'm pretty sure your credit builds faster if you pay off everything in full each month >_>
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Pay for everything with it and pay it off before it draws interest.

"Keeping a balance" is a myth meant to trick you into paying interest.

Keep your utilization relatively low. The company doesn't give a shit if you buy a $0.50 pack of gum or a $500 TV with it as long as it's proportionate to your credit limit.

I laugh at the people who think they're "too responsible" to use credit cards. The majority of you will have a hell of a time trying to get approval for a reasonable car loan or mortgage.

MaverickXeo posted...

Use it, then pay it off the next day. I get cash back on it, so I make money from using it.

Your credit benefits more if you keep a balance of about 10-20% utilization, while still paying the statement balance every month to avoid incurring an interest change.
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NeonOctopus posted...

Hell_Fire_Thief posted...

Super Saiyan 3 Goku posted...

Use it for damn near everything and pay it off as soon as the transactions posts. In other words, as a debit card, like you're supposed to.

Typical millennial. This doesn't improve your credit score at all. They are meant to have a running balance on them each month.

I'm pretty sure your credit builds faster if you pay off everything in full each month >_>

Its better if you have a small balance, but its literally at max a 5 point difference. Not worth the hassle
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I'm confused, does everyone think that you accrue interest just by having a statement balance?

_Rinku_ posted...

"Keeping a balance" is a myth meant to trick you into paying interest.

When people say "keeping a balance", they mean paying the statement balance, not your TOTAL balance.

They can't charge you interest on any charge made less than 30 days ago. Since your statement balance is the SUM of your total charges in the past 30 day charges, but the DUE DATE is a few days/week or two past the STATEMENT BALANCE, any new charges made after the statement balance aren't included in interest charges.

Example, you buy a TV for $400 on the 1st. On the 30th, you have a statement balance of $400 (you didn't buy anything else the rest of the month). The due date is on the 12th, but on the 9th you bought a PS4 for $200.

Your total account balance is $600, but your amount due on the 12th is only $400. Even though you're "keeping a balance" of $200, that doesn't get charged interest, unless you keep that balance past the NEXT statement balance.
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Annihilated posted...

I'm confused, does everyone think that you accrue interest just by having a statement balance?

Yes, because they haven't formally learned how interest or credit actually works or read fine print.
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Unsugarized_Foo posted...

Its better if you have a small balance, but its literally at max a 5 point difference. Not worth the hassle

If only there was a convenient balance provided by the credit companies that just included the balance subject to an interest charge. We can call it a statement balance and even include it as an option for payment in that exact amount in a drop down menu.

Nahhhhh, too much hassle.
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Annihilated posted...

I'm confused, does everyone think that you accrue interest just by having a statement balance?

No, but most people are too stupid to keep track of their last 30 days and end up paying interest unnecessarily.

Soviet_Poland posted...

_Rinku_ posted...

"Keeping a balance" is a myth meant to trick you into paying interest.

When people say "keeping a balance", they mean paying the statement balance, not your TOTAL balance.

They can't charge you interest on any charge made less than 30 days ago. Since your statement balance is the SUM of your total charges in the past 30 day charges, but the DUE DATE is a few days/week or two past the STATEMENT BALANCE, any new charges made after the statement balance aren't included in interest charges.

Example, you buy a TV for $400 on the 1st. On the 30th, you have a statement balance of $400 (you didn't buy anything else the rest of the month). The due date is on the 12th, but on the 9th you bought a PS4 for $200.

Your total account balance is $600, but your amount due on the 12th is only $400. Even though you're "keeping a balance" of $200, that doesn't get charged interest, unless you keep that balance past the NEXT statement balance.

Thank you, I know exactly how interest accrues. Again, most people are too stupid to get this and "Don't keep a balance" is easier than trying to ram this into their heads.

If you have an ounce of self-control, there is no reason not to use it on everything
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_Rinku_ posted...

Thank you, I know exactly how interest accrues. Again, most people are too stupid to get this and "Don't keep a balance" is easier than trying to ram this into their heads.

Fair enough. You're right in that the "balance kept" should be relative to your credit limit of around 10-20%. I assumed you were in the camp of people who always pay off the total balance at the end of the month and don't know how statement balances worked. Sorry.
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Annihilated posted...

I'm confused, does everyone think that you accrue interest just by having a statement balance?

They shouldn't. At times, I'll make a certain purchase that'll put my utilization at around 10% when my statement closes (the 14th of every month). My statement summary will show the transaction, which will be paid off whenever it posts. Therefore, Chase sees that I'm using the card, but I never pay them I dime in interest.
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Soviet_Poland posted...

MaverickXeo posted...

Use it, then pay it off the next day. I get cash back on it, so I make money from using it.

Your credit benefits more if you keep a balance of about 10-20% utilization, while still paying the statement balance every month to avoid incurring an interest change.

Its not enough to make a difference. Aside from that, my credit is good enough for what I need.
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Just for Amazon and other places you're forced to use credit cards.
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I use them for all purchases, but I only buy things that I presently have the cash to cover.
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MaverickXeo posted...

Its not enough to make a difference.

But it comes at no harm to you. And years and years of that behavior does make a difference.

You just don't want to admit an irrational fear. It's like going out of your way to not walk under a ladder in your way.
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Soviet_Poland posted...

Unsugarized_Foo posted...

Its better if you have a small balance, but its literally at max a 5 point difference. Not worth the hassle

If only there was a convenient balance provided by the credit companies that just included the balance subject to an interest charge. We can call it a statement balance and even include it as an option for payment in that exact amount in a drop down menu.

Nahhhhh, too much hassle.

See? It really is
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