Is this a good idea

iVillage Member
Registered: 12-04-2003
Is this a good idea
8
Tue, 02-28-2006 - 11:28am

I just introduced myself below, and I already have a question!

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iVillage Member
Registered: 01-25-2006
Tue, 02-28-2006 - 1:19pm

I think the general rule is that this is a good idea as long as you are sure you will always pay the balance. Sounds like your family has not been struggling with CC use so it probably is worth it. That card sounds good. I would read the fine print as well as you can and the only other thing to look at is grace period length. You want the longest grace period possible when you want to use a card in this way.

One thing I know some people do is take the money out of your checking account register as you spend it, just as you would do with your debit card. I think this is a great plan.

The only other caveat you will see mentioned with this strategy is that some people believe people spend more when they use a credit card than cash regardless of whether they pay it off every month or not. Not sure if I agree with this but if you think it might be an issue, you might want to put some tracking in place to see if it is happening to your family. Would be easy if you are already using Quicken or Money.

Congrats on your financial health!

Peg

Avatar for 2locachicas
iVillage Member
Registered: 05-14-2003
Tue, 02-28-2006 - 1:22pm
We have one and we really like it. You have to be very careful with it though. It is very easy to overspend. Our rule is, if we can't pay it in full at the end of the month then it gets put away until it is paid off(usually the next payday) and we go back to cash until then. We made almost $400 last year. I pay all of our utilities, car insurances, cell phone, and a few other things on it as well.
iVillage Member
Registered: 02-12-2006
Tue, 02-28-2006 - 1:31pm

I think it's a good idea, if you can handle the discipline. My husband and I use 2 reward cards, the max back on each one is $$300/year so we get $600 back per year. We keep track of our charges on a spreadsheet so that we don't go over budget. We schedule some of our utility bills to be paid on these credit cards. It's very convenient.

So far, we haven't come across any hidden fees or surprise costs. We have the Citi Dividend Card and the AT&T Universal Rewards Card.

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iVillage Member
Registered: 03-27-2003
Tue, 02-28-2006 - 9:04pm
I do this with the twist of paying online every Friday. It just makes it more real for me than paying once a month. I haven't had any problems collecting the rewards and I put cell phone, satellite and DSL on there each month (automatic payments)
iVillage Member
Registered: 02-25-2006
Tue, 02-28-2006 - 10:13pm

There's a nationally syndicated radio show based out of my hometown in which the host basically says to rip up all credit cards. Without naming names, he wants people to call in and cut up, blend, chainsaw - do whatever to destroy the cards. He also loves to complain about fast food restaurants that take credit cards - "don't finance a cheeseburger, people!".

With that said, I tend to disagree in situations where people have control over their credit card spending, and this may be the case here. To echo previous sentiments, if you've read the fine print, and don't see any apparent hidden charges/fees, and you're confident you can maintain the discipline, then go for a "rewards" credit card. If you always pay your bills and don't have a fee-less rewards card, then you're leaving money on the table.

Good luck.

iVillage Member
Registered: 12-04-2003
Wed, 03-01-2006 - 9:43am

Thanks for the input everyone!

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iVillage Member
Registered: 02-09-2004
Wed, 03-01-2006 - 2:18pm
My sister does this all the time. They have a toysrus Visa and they put everything on it. Gas, groceries, clothes, etc. and pay it off every month. She saves up the gift cards ($10.00 for every $1,000.00 spent) and uses that to buy Christmas presents for her 3 kids. She has a budget program that she "takes" the money out once it is spent so that it is available to pay the bill at the end of the month. I think it is a great concept but I know I don't have the discipline to do it but if I could I would.

Avatar for endomagazine
iVillage Member
Registered: 11-09-2004
Wed, 03-01-2006 - 2:35pm

Hello,

I noticed the post about "getting something for nothing". Honestly, even if you aren't paying the credit card any interest or fees, the credit card company makes money from your purchases. Don't forget that merchants have to pay the credit card company about 3% (rough guess) for the privelege of accepting a credit card. Thus, the credit card company gets paid every single time you make a purchase (and can afford to send those rewards to customers).

Sincerely,
Lindsey Schocke

Sincerely,
Lindsey Schocke

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