Author Topic: How to Use a Credit Card the MMM Way?  (Read 4471 times)

Kiwi Mustache

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How to Use a Credit Card the MMM Way?
« on: April 18, 2015, 12:43:11 AM »
Do you have a credit card?

How do you use it on a monthly basis?

What do you spend on it? What do you not spend on it?

seattlecyclone

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Re: How to Use a Credit Card the MMM Way?
« Reply #1 on: April 18, 2015, 12:52:02 AM »
I have a few credit cards. I use them wherever possible to get the cash back. I never pay interest, nor do I purchase anything I would not have bought with cash.

okits

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Re: How to Use a Credit Card the MMM Way?
« Reply #2 on: April 18, 2015, 12:54:57 AM »
I have a few credit cards. I use them wherever possible to get the cash back. I never pay interest, nor do I purchase anything I would not have bought with cash.

+1

I get on DH's case about paying cash on bigger purchases when we could be earning credit card rewards.  They add up to several hundred dollars' worth every year.

louloulou

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Re: How to Use a Credit Card the MMM Way?
« Reply #3 on: April 18, 2015, 01:11:55 AM »
I put everything on the cc, pay it off monthly so not to incur any interest. I convert my points directly into my kiwisaver (retirement fund).
« Last Edit: April 18, 2015, 01:14:00 AM by louloulou »

Mrkineticz

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Re: How to Use a Credit Card the MMM Way?
« Reply #4 on: April 18, 2015, 01:46:57 AM »
what do you mean by convert points to an investment account?

Spondulix

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Re: How to Use a Credit Card the MMM Way?
« Reply #5 on: April 18, 2015, 02:47:03 AM »
I have a few credit cards. I use them wherever possible to get the cash back. I never pay interest, nor do I purchase anything I would not have bought with cash.
Yep, we even put our bills on the cards. Car insurance, house, gas/water bills. We're basically getting paid to have a credit card!

Kiwi Mustache

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Re: How to Use a Credit Card the MMM Way?
« Reply #6 on: April 18, 2015, 02:49:14 AM »
I put everything on the cc, pay it off monthly so not to incur any interest. I convert my points directly into my kiwisaver (retirement fund).

I'm living in NZ and have no idea what you mean by this either?

louloulou

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Re: How to Use a Credit Card the MMM Way?
« Reply #7 on: April 18, 2015, 03:02:06 AM »
I put everything on the cc, pay it off monthly so not to incur any interest. I convert my points directly into my kiwisaver (retirement fund).

I'm living in NZ and have no idea what you mean by this either?

I have a cc with ASB and my kiwisaver is with ASB also. I am able to convert my cc reward points so they go straight into my kiwisaver.

link about it here- https://www.asb.co.nz/transfer-true-rewards

Kiwi Mustache

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Re: How to Use a Credit Card the MMM Way?
« Reply #8 on: April 18, 2015, 03:04:23 AM »
I put everything on the cc, pay it off monthly so not to incur any interest. I convert my points directly into my kiwisaver (retirement fund).

I'm living in NZ and have no idea what you mean by this either?

I have a cc with ASB and my kiwisaver is with ASB also. I am able to convert my cc reward points so they go straight into my kiwisaver.

link about it here- https://www.asb.co.nz/transfer-true-rewards

Wow pretty cool. I worked it out several years ago about how much I spent on the credit card on any given month and the rewards points and all the costs involved with it. It worked out cheaper not to have one set up.

I've got a credit card with my bank (ASB Bank also) where I don't ever have to pay any credit card fees for having the card in place for the life of the card (basically meaning no fee until I die). Which is awesome!

Ricky

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Re: How to Use a Credit Card the MMM Way?
« Reply #9 on: April 18, 2015, 04:30:19 AM »
A credit card is simply an unnecessary layer of expense for companies that artificially drives up the price of goods. You're only perceiving to make money, though it's certainly money you'd otherwise be leaving on the table. So in reality, you're not making anything, you're paying for the convenience of the card and only getting back the money you were "owed" in the first place.

This is assuming you use a credit card like a responsible adult and pay it off every month.

kaetana

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Re: How to Use a Credit Card the MMM Way?
« Reply #10 on: April 18, 2015, 06:32:22 AM »
My husband and I have seven credit cards between us, and I'm always on the lookout for more! Here are the rules I try to follow:

1. Don't increase your expenses just because you have more funds available to you. Maintain your current spending level and seek instead to get as much back for what you're already spending.
2. Never pay interest. Pay off in full all cards which charge you interest on purchases. Always have enough money to pay off all credit card debt if you have to. Set up direct debit arrangements to automatically pay your cards off when they're due.
3. Do your research. Read the fine print. Read reviews of the card on forums. Call customer service and ask them all your questions before you apply.
4. Keep track of everything. Missing a payment date or the expiry date of a 0% balance transfer could be costly. Make sure you know what's due and when.
5. Don't be afraid to negotiate. Negotiate before you apply. Negotiate when a promotional period finishes. Negotiate when you're ready to cancel. You can often get a better rate just by asking.
6. Routinely check your credit rating. Too many credit card applications can ruin it.
7. Only get as fancy as you're comfortable with. If that's just one normal credit card, so be it. Only go the frequent flyer points-maximisation and musical balance transfers route if you can keep it all up easily.

Like I said, these are just MY rules. YMMV.

ender

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Re: How to Use a Credit Card the MMM Way?
« Reply #11 on: April 18, 2015, 07:27:20 AM »
I have a few credit cards. I use them wherever possible to get the cash back. I never pay interest, nor do I purchase anything I would not have bought with cash.
Yep, we even put our bills on the cards. Car insurance, house, gas/water bills. We're basically getting paid to have a credit card!

I can't believe this never occurred to me.

I wonder if my insurance company will let me pay with a cc, I normally transfer money directly from my checking account. If I don't get a discount for paying cash I'm absolutely going to do this, and get a few bucks back.

ColaMan

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Re: How to Use a Credit Card the MMM Way?
« Reply #12 on: April 18, 2015, 08:50:48 AM »
I have 3 credit cards -- all are reward cards.  I use them for all the expenses that I can (including basic expenses like auto/home insurance, water bill, etc.).  I generate a few hundred dollars per year in rewards.  In my view, it is free money, so long as  (1) you pay the bill in full each month, avoiding interest charges; (2) make sure you are not actually paying extra to use the card (some businesses impose a surcharge for credit card use, though most don't); (3) use cards only for expenses you would have incurred anyway.

seattlecyclone

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Re: How to Use a Credit Card the MMM Way?
« Reply #13 on: April 18, 2015, 10:16:12 AM »
A credit card is simply an unnecessary layer of expense for companies that artificially drives up the price of goods. You're only perceiving to make money, though it's certainly money you'd otherwise be leaving on the table. So in reality, you're not making anything, you're paying for the convenience of the card and only getting back the money you were "owed" in the first place.

Yes, we all know this. Credit card fees are baked into the price of goods. Since you generally can't opt out of this portion of the price when you're in the store, you might as well get the credit card to refund them for you.

midweststache

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Re: How to Use a Credit Card the MMM Way?
« Reply #14 on: April 18, 2015, 10:27:54 AM »
We only use rewards cards that have no annual fees, since we never put enough on them to recoup the annual fee cost. We pay them off in full every month (obviously).

We both have a Chase Freedom card and watch the 5% cash back offers like hawks. That way if the 5% cash back is for groceries, we always put our groceries for those three months on that card. I'm paying the bill for our upcoming wedding reception with my Chase card, since it's 5% cash back at restaurants (and our small reception will be at a local brewpub). If you do much ordering through Amazon (personal hygiene products like deodorant, razor blades, etc. and doggie supplies for us) the Amazon card might be worth having as well.

I think if you use a CC in an MMM way it simply means not spending more because you have credit, paying your balance in full, and making sure you're optimizing your use through points/rewards. (There are plenty of forums here on credit card churning if that's something you're interested in, but it's too much work for me.)

Syonyk

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Re: How to Use a Credit Card the MMM Way?
« Reply #15 on: April 18, 2015, 01:06:47 PM »
Do you have a credit card?

Yes, several.  Primaries include a Visa, a Discover, and an AmEx Blue (6% on groceries, 3% on gas).

Quote
How do you use it on a monthly basis?

I carry it around in my money clip and take it out to buy things. :p

Generally, my wife & I use whatever card is giving us the highest rewards on what we're buying.  Or, failing that, whichever one is supported.

I get on DH's case about paying cash on bigger purchases when we could be earning credit card rewards.  They add up to several hundred dollars' worth every year.

Is he getting cash discounts?  If I'm paying for something large, I always ask if there's a cash/check discount, and if so, I pay it that way.  CC fees are normally 3%, and I generally don't get that high of rewards for medical payments/dental work/etc, so I'll take the cash discount if it's better than what I can do with a CC.

A credit card is simply an unnecessary layer of expense for companies that artificially drives up the price of goods. You're only perceiving to make money, though it's certainly money you'd otherwise be leaving on the table. So in reality, you're not making anything, you're paying for the convenience of the card and only getting back the money you were "owed" in the first place.

Only true if you can negotiate a cash discount.  You're not going to negotiate a few percent off at a grocery store typically, so may as well use a rewards card.

nanu

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Re: How to Use a Credit Card the MMM Way?
« Reply #16 on: April 18, 2015, 02:24:59 PM »
If you do much ordering through Amazon (personal hygiene products like deodorant, razor blades, etc. and doggie supplies for us) the Amazon card might be worth having as well.
For 5% back on Amazon I have the Sallie Mae card - 5% back a month on the first $250/$250/$750 spent on groceries/gas/books every month (where Amazon codes as books).
It has no annual fee and anyone can get it, no just students or someone with a Sallie Mae loan.