Credit vs Debit Cards: Which One Should You Use?

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[@elizabethadahl]

I’ve been an avid credit card user since I got my first card 11 years ago. I’ve never paid interest, always paid in full. However, I will say that credit cards make you feel like you have more money than you actually do and there have been months, especially when my income was lower, that I struggled to pay the full balance. I always paid it because I didn’t want to pay 25% interest, but I spent more than I could afford tbh. I’ve been deeply looking into my financial habits lately and it has made me decide to use the credit cards much less. Only for online purchases and once I make the purchase I pay the credit card off within a week. I don’t put it on the card if I don’t have it in the bank. Don’t borrow money from your future paycheck!

[@whitent4988]

Oh I put myself in the same situation. I got paid monthly around 2k and the bank gave me a credit card with 5k limit so I fucked it up and ended up having to pay almost 7k to the bank, I am going out so sad tho. I already canceled the card and there is still 3,5k to be paid. And the thing that I've spent the money with, guess what I don't even have it anymore. I spent money that I didn't have on something that I didn't need it. I will never use credit cards again I've this promise to myself. I don't wanna go to bad thinking about the bill that I gotta pay next month. Greetings from ur broke boy from brazil❤🎉

[@user-yb5bg8im5g]

my CC is tied to my CA. purchases are deducted immediately and my balance is paid off each moth. will never understand why rarely does a financial site mention this.

[@pey7777]

"I don't think I would've been a net worth millionaire today if I still had my credit card " - George's comment here is absolutely true because Dave would've never hired him or kicked him out

[@1crumpet]

Making it a moral issue is what's icky to me. I'm guessing he still uses a cell phone and laptop with all the cobalt extracted using slave labour? He is ok supporting that system. Credit cards are a problem first and foremost for people who live paycheck to paycheck, and secondly for people that think they suddenly have more money because they have a credit card. So idiots basically.

[@KufLMAO]

Ramsey only hires millionaires? Damn

[@benjaminhough8804]

I believe BOTH guys are correct. Graham is correct, if you are diligent, if you are disciplined, then yes, you can make tons of money with credit cards. BUT, George is also correct, EVERYONE, thinks they can be that person, but the data proves that MOST people cannot be that person. I believed I can be that person and I have years of credit card use to prove it, BUT I found it freeing to stop worrying about it. I buy something, I own it. No one can take that from me, it’s mine. The biggest reason I left credit cards was due to the predatory nature of the industry. My rewards were paid on the backs of debt.

[@user-yb5bg8im5g]

latest yahoo finance story says 44% pay their balance off each month. happy to be a 44 percenter.

[@iluvuvibez6644]

I don't know how people feel like its morally wrong or feel guilty because I don't look at it like that, there are some people that are in debt for their own reason.

[@docsays]

Credit cards are the safest method of payment, plain & simple. Zero liability, fraud protection, extended warranty, price protection. etc. Yes, you can get some of that with a debit card, but its still your money, not the banks money.

[@StephanDavisson]

It’s not zero liability. Credit card companies can and do sometimes deny disputes after doing their investigation. You just don’t hear people talk about it much, but it does happen.

[@docsays]

@@StephanDavisson - yes that is possible but those are the exceptions & not the norms. In the 30 years that i have used credit cards, i have never had a refuted charge denied by a credit card company. Just sayin.

[@AboveAllBeOriginal]

dude in the glasses is so dense lol

[@jeffscalfano3100]

Pay it in full every month... Graham is right. Work the banks don't let them work you.

[@tcgtpl]

A Ramsey Solutions Team member admitting it’s possible for responsible credit card usage? I hope Papa Dave never sees this.

[@Alex-mj5dv]

Dave has said much the same before.. you can be very controlled, but that’s 1% CC users that are responsible. Most people use them as a means to fund a lifestyle they can’t actually quite afford. It increases your risk should life go awry in any way, and makes you ‘slave to the lender’.

[@user-yb5bg8im5g]

actually yahoo finance says the pay off rate is 44% don't think those kids are going to trumpet that number...@@Alex-mj5dv

[@itsagreatday9765]

It's really NOT hard to figure out if you are that guy who can control yourself. If you never carry a balance and pay zero in interest, you are fine. If you pay anything in interest, then go checkout Dave Ramsey's plan because that is the audience they are great for. I will say though, someone who is responsible and pays their credit cards would never make it on the air since all calls are heavily screened before they ever make it on air so I totally believe George when he says that's all he hears from

[@MayaRose-nz5gx]

Not true.the Ramsey show gets calls from people who says they pay their credit cards off and never pay any interest.and Dave still don’t like credit cards.

[@itsagreatday9765]

@@MayaRose-nz5gx they will not allow anyone on the air for a debt free scream who used credit cards (responsibly) while getting out of debt. They have a questionnaire that weeds this type of person out. Search youtube. There are several people who were close to getting on the air but were told they couldn't because they had credit cards (or Dave-ish as he would classify them)

[@warpfrenzy]

He talks about not wanting to take advantage of the credit card rewards like the company sees rewards and interest as tied together. They will raise interest rates as much as they can regardless of what happens on the reward side.

[@GSR978]

I understand both sides. It makes sense for Ramsey to be completely anti-credit card so there's no ifs or buts. I'm a strong believer in credit cards if you only spend what you can afford and you pay your CC off every money. I was late only with one payment over the twenty years I've had a credit card. That one payment was in my first year. This was an incredibly civil conversation with two different views on credit cards. 👏🏻👏🏻 5:54 5:56

[@feliciavale4279]

I think Dave takes his position in order to do the most good. Fact of the matter is, 75% of the population misuse credit cards or get into trouble with them. I think if you asked him off the record he wouldn't care if you used a card but just paid it off every month.

[@xxtoptankxx6873]

@@feliciavale4279 absolutely. The way I look at it. Credit cards have put more people into financial hardship than a credit card make some financial successful.

[@drummerhq2263]

So you’re saying, you never paid any interest? You’ve done very well. 👍🏼😀

[@GSR978]

@@drummerhq2263 paid interest once, in the first year I had a credit card.... I'm frugal AF lol

[@ethanennis8]

@@xxtoptankxx6873I’d argue they’ve never made anyone financially successful. Just giving menial rewards that provide a small bump to the financial diligent.

[@eddiea3782]

I pay cash for everything. Credit cards are a big mistake. I don't have them in my life. My home was paid for in cash. I own two cars both paid for in cash. I don't have any debt in my life other than real estate taxes, utilities, clothing and groceries. Don't put your wedding reception on a credit card. Starting your marriage off in debt is dumb. Don't even have a reception and honeymoon on a credit card. Put that money towards a home instead.

[@therealjonasmancuso]

It's like saying if you smoke cigs you might get lung cancer. Will everyone that smokes get lung cancer? No. But is a huge risk you take. Using CC's can lead to financial cancer.

[@davidfountain4229]

I use a credit card and payoff the balance every month (I use cards with rewards). One of the main reasons I use credit cards rather than debit cards is because of the number being stolen. Even though I may get it back eventually, I’d hate for my bank account to get cleaned out. I’ve had charges on my credit cards before that weren’t mine and it was easily fixed. Enjoy y’alls show!!

[@10RRASK]

It’s easily fixed with a debit card too. I’ve only had debit cards for the past 3 years. I had my number stolen, used to purchase $300 in door dash orders. I noticed the charges, called my credit union and they removed the charges and refunded the money instantly. If it doesn’t happen like that, you need a new bank.

[@jmr18p]

great discussion, and i loved hearing the view points from both sides. for me personally, i am a credit card guy. i get that you have to be disciplined but for me, ITS NOT THAT HARD. i wouldnt even say you have to be disciplined. if you dont have the money on your debit card to make the purchase, you dont make the purchase. its that simple. i dont get how people cant follow that one rule especially when it comes to their money. your debit card would decline you anyways. i mean, i usually pay off my credit card at the EOW / every other week leaving a small balance after closing date. so it literally feels the same as seeing my money disappear from my debit card

[@jpknowledge8852]

Credit Cards are absolutely amazing if used responsibly. The problem is, most people are not educated on how to properly use credit cards. If you take just a little bit of time to study how they work, you'll understand how lucrative they can be for the amount of work required. I understand why the Ramsey crew doesn't want thier students using credit cards, and it comes done to disapline. Many of them are in debt because of a lack of disapline. For those who are disapline, use credit cards just like they are debt cards, pay them off immediately, and then use the rewards to either invest or travel the world for free!

[@xxtoptankxx6873]

Eh from my experience they only encouraged me to spend more. I never had an interest charge and actually have made money off my 3 credit cards. But they are over hyped IMO. I only have them now for credit score

[@jpknowledge8852]

@XxToptankxX I 100% agree that for some they over spend and it changes their way of looking at money. But it has never encountered me to spend more since I am very disapline. I've traveled the world in business and first class all on the banks dime. I have a $12,000 first class flight next week, all from 1 sign up bonus. Going to Tokyo for free is pretty awesome benefit if you ask me.

[@es429]

Caleb Hammer says it best to those who cannot manage their finances… “we are not credit card people!”

[@nigelmckain7630]

If I have a $500 expense I was going to use cash/debt to pay it off, why not use the credit card; gain the points/cash back, then use that same $500 towards paying the bill. It's that simple, credit cards also come with insurance benefits. How about we teach how to be more responsible than to avoid the real issue. Everyone can do it, knowledge is power. Let's be better teachers.

[@theomnistrone]

Facts. I’m 25 and learning this just now

[@PyroDellaqua1]

Credit Card with a reasonable limit is an absolute must. Just an easy and safe way of making payments, and the credit card companies are very very efficient in resolving issues.

[@moslimislam5714]

“Free money”. It’s pretty naive to think anything is free.

[@laz7354]

It always comes down to risk. Credit card use is a risk, and when you adjust for risk you are not being rewarded.

[@user-yb5bg8im5g]

life is a risk... ''choose your poison.''

[@angied1178]

Sorry but I side with George on this. Credit cards and spending are super addictive for most. Kind of like cigarettes... Most people will get addicted, but there are some who don't. If you're part of the small subset of people who won't over spend when you have a credit card... Great-use that and collect your rewards. But most people will get addicted and will experience financial pain from it. Credit card companies are banking on people to get addicted to spending... They wouldn't just provide all of this to be nice. They're betting that you'll over spend..and are usually correct on their bet. Although Graham is correct on great benefits... He's wrong in assuming that most people are like him and be responsible with credit cards.

[@covener]

This 'most' is a tough argument to make, nearly every survey/statistic (even Ramsey statistics) show more people carry no balance month to month than do. Further some of the minority that carry a balance aren't doing it because of some addiction.

[@angied1178]

@@covener good point, but I wonder if the "no balance carry over" thing is because people learned they can't handle it-- and just leave it open so the "closing" doesn't ding their credit--and don't use it at all. I'd be curious to know how many people actively use and pay the full balance. How many people can truly handle it?

[@Brianpeckin]

You're a moron if you think he's right and you have zero control over your finances and emotions lol

[@94SexyStang]

I Love my Debit Card......I only buy what I need.....Im terrible with Cash, I HATE carrying it, I'm compelled to empty my wallet, Just the way I am..... But Debit Card is a different mentality for me, I Know it's plugged into my bank account, money I've worked for, so I'm just instantly frugal. When it's Cash, I just feel like Whatever, Cash is meant to spend....different thought process for me.

[@jeffreysirkin7120]

George finally being normal thank goodness! Good work George!

[@C_G1234]

He’s not allowed to think logically working for Dave

[@amirmoradi9595]

Its not rocket science. If you just spend the same amount you normally would have but on the credit card, then you'll be fine. Only apend what you have in cash to pay off. Yeah there is that psychological aspect to debit vs credit. I lay off my credit cards on a weekly basis to make sure i see the money in my savings account deplete, giving me the same psychological effect as using debit cards.

[@JohnJohnson-hp4so]

I find it interesting that fraud protection wasn't brought up. I get the argument that people aren't disciplined in their spending and/or paying off the balance each month. I don't have credit cards due to rewards as much as the fraud protection it gets me. You can argue they are the same but I've had fraud on both types of cards. One I have to initiate the process and the other it's mostly done automatically. One can impact me directly while the other impacts the card company. It's safer for me to use a CC for nearly all purposes. They are also easier to use in certain circumstances (renting a car, etc). For me, I have a very hard time finding a reason to not use a CC. I have a monthly budget I follow and I pay off the balance every 3 weeks.

[@rafterh2181]

Most people are not disciplined with cards, better to cut them up.

[@robertogonzalez819]

100% agree with George, 2% return on a credit card is not going to make you millionaire, this it is a great conversation ......way to go guys !!

[@MrJimmy3459]

You're not even going to see any major difference in your financial life using CC

[@docb77]

Nobody ever said it would, but if I've budgeted a hundred dollars for groceries, what difference does it make how I pay it, and why not save 2 bucks at the end of it rather than the whole hundred.

[@tcgtpl]

If you’re going to crap on credit card rewards because it’s only 2-5%, then you better also be against using coupons because coupon clipping won’t make you a millionaire either.

[@robertogonzalez819]

​@@tcgtpl Exactly, if it takes too much time to find the right coupon to save 2 dollars for the ketchup I would pass, I prefer to use that time doing something more productive.

[@robertogonzalez819]

​@@docb77 because there is a high possibility of overspending, there are tonnes of studies that show that if you use your credit card on average you end up spending 16% (16%-2% rewards:14% total of overspend) more than what you were planning on the first time, one thing I do and highly recommend is online shopping (walmart) with my debit card, by doing so I always stick to my shopping list and avoid buying things I didn't plan to buy at the store, it really helps me and my family, Regards

[@hjchamp04]

I'll continue to travel for free thanks to those who overspend and carry a balance. It's part of the game.

[@Moriningland]

Credit cards are amazing if you are disciplined.

[@eatpigsnot]

right, because life never going to negatively impact disciplined people

[@Moriningland]

@@eatpigsnot that’s why you have an emergency fund of six months or more. If an emergency happens I can pay it from that but my credit card lets me pay a charge over 3 to six months interest free. I keep the emergency fund in a high yield savings account and I simply work overtime so I don’t have to even touch my emergency find that is accruing interest. It’s risky but only if you’re irresponsible I even had a fridge totally refunded because Lowe’s sent me a lemon, the manufacturer wouldn’t fix it so my credit card company gave me the charge back on full. And yes, once a year I get around 700 in points And guess what, if someone steals my wallet, I don’t have to worry about my checking account getting drained. What’s funny is that Dave is super conservative but doesn’t thing personal responsibility bleeds into finances.

[@eatpigsnot]

@@Moriningland the emergency fund can be tied to a debit card, which has none of the trappings of credit cards i have listened to Dave Ramsey since 2011. he definitely tells people to be personally responsible re: finance for some non Ramsey perspective watch PBS Frontline episodes The Card Game and The Secret History Of The Credit Card. Maxed Out, IOUSA, and In Debt We Trust are also informative while i agree personal responsibility should always be a thing, i also recognize predatory lending, deceptive marketing, usury, etc... are real, and no one should be doing let alone profiting from those practices

[@xxtoptankxx6873]

Eh my experience has been minuscule. Now granted. I’ve gotten 2 free $70 dollars games with cash back or sign on bonus. However, I think my spending has increased slightly. I’ve never held interest or fees. But overall spending might’ve went up a little. I think CCs are over hyped. Only have for credit score

[@eatpigsnot]

@@xxtoptankxx6873 Credit score is really over hyped. What a ridiculous asinine concept we got sucked into

[@ArtaxForever]

I enjoy dave, but still use credit cards. Ive never payed a cent of interest, have a fico of 800. I understand psychologically how you can become addicted to money, i get addicted to different things but money im fine with.

[@tastysnack1]

The big question - will you pay more with a credit card vs a debit card? I could readily see the difference using cash vs credit. But debit? There is no pain with a debit or credit (until it is time to pay).

[@macarari]

I use credit card as a form of insurance. I don't carry a balance every month

[@BrosciuttoJZ]

I think you should only charge to a credit card if you have the money to pay it off immediately from your savings.

[@johnsantiago4810]

As soon as a buy something using my credit card, I pay it immediately the same day, by 9 pm, all the time. If I don't have the money to buy something, I don't buy it. That's being responsible. If you are not responsible, then by all means avoid using a credit card at all and just stick with a debit card.

[@caden3243]

George acts like credit cards are some evil trap. Treat it exactly like your debit card and you literally get more money. Not everyone is a statistic and if you’re smart you can manage it.

[@esonon5210]

I don't like to use the term evil but they are predatory. And most people are stupid when it comes to money so I understand why George sweeps with a broad brush. You just gotta know what works for you.

[@StephanDavisson]

They are an evil trap. You might not get caught in the trap yourself, but that doesn’t mean they don’t set it every month it hoping you will. I don’t like to get in bed with that type of business, but hey….to each his own.

[@Random-ld6wg]

the problem with ramsey people is that they are so closed to the idea of using debt or credit and often justifying their stance by quoting scripture. for people that use credit cards responsibly it is a good tool. i pay what i can pay with my CCs. while working, paying conference fees and travel which will be reimbursed later so i get the points. now my health insurance instead of auto deduction from my bank account. so i get the points for cashback. i put that cashback in the s&p.

[@Cwho9ss]

Both sides made great points.

[@OhYeaMista]

First time I’ve actually seen George admit that it can be beneficial on paper if you’re diligent about it. That’s all I needed. If George and Ramsey have a philosophy against them that’s fine; it’s just the sanctimonious attitude and deflection of math when challenged on it that annoyed me about their channels. It took a lot to squeeze that admission out of him though haha.

[@craigholland2274]

Never have I ever paid interest on ccs and I've used them for over 20 years. Just depends on how financialy discipline you are.

[@zeel4840]

Yeah 100% true! But credit card messed me up. I won't be coming back haha. Other people are just good with paying instantly

[@LouisGandara]

Debt.. lol

[@MrOfficer235]

Ive been perfectly fine with our Amex

[@QueenConsious]

Exactly #TeamAmex

[@earlh]

I am with George on this one, I feel like you guys care a little bit too much about credit cards. If you are dilligent and and and you can make a some money out of it. If your goal is to make money or save money, your energy is better spent somewhere else. Credit cards wont ever make you a millionarie, it's like some risky passtime for finance nerds and financially illeterate.

[@lewislouis6246]

The logic between credit card points feeling eeky because they are paid out through intrest is absolutely rediculoius logic. The world isn't a rainbow planet. The gold the diamonds we wear has eeky background. The gasoline we put in our cars, the material we use in our smart phones, the taxes we pay, almost everything that we do has a system of eekyness & credit card intrest is no different. Credit cards can't be singled out when we live in a entire system thats run off of debt and interest.....i have 0 clue what he was talking about with that point.

[@benchoflemons398]

Recommending debit cards and high fee active investments is what turns Dave Ramsey from decent advice into total clown world status

[@freedomring3022]

spoken by a clown world commenter

[@MrJimmy3459]

$6,000 average balance on CC debt in this country says otherwise, hate to break it to you but majority of people lack discipline look at all the fat asses you see in public nowadays

[@iam7617115]

@@Gulpathfinder lol you basically outlined responsible people who don't need the ramsey plan. 46% of cardholders carry a balance month to month. those are the kinds of people that shouldn't have credit cards and that this advice applies to. If you could convince me how someone carrying a balance on a credit card but gets 1% cash back is better off than using just cash I'll send YOU $100.

[@xxtoptankxx6873]

@@Gulpathfinder I mean I’ve never heard of someone say they became a millionaire from the cash back off their credit card. Now personally I am a Ramsey fan, however I do have some credit cards. Never paid interest. However I think my spending has gone up a little. So that could be a side symptom. Sure I never paid interest but my scenario I feel like my spending has gone up a little. Dave’s advice is much better for people who have no grasp on their financial situation.

[@xxtoptankxx6873]

@@Gulpathfinder fair enough, take care

[@jeremy6604]

blue shirt doesnt know what he's talking about, thats why his facts are all "I feel like". The levi jacket guy is 100% spot on. Often SMART people will put something like a car repair/whatever that they must get on their credit card, that $500 they know they need to pay off at the end of the month, but other unexpected expenses come up. Having a CC gives you the excuse to spend money you DO NOT have.

[@justanotherpotato5523]

Yeah people would probably put repairs on their credit cards but if they’re responsible enough they’d have an emergency fund to cover that

[@AustinWestbro]

I can’t stand this religious “never utilize any debt for anything for any reason!!!!” mentality

[@AustinWestbro]

@Southern Life lmfao yes not one single person in history has ever borrowed money for investments. Comment again when you're not completely brain dead

[@MrJimmy3459]

And I can't stand the use CC warriors pay it off every month for a measly 2% cash back, spend $10,000 just to get $200 back and people defend this crock........

[@AustinWestbro]

@@MrJimmy3459 I've gotten almost 1k now for free just for using a credit card instead of a debit card. Keep malding. I'll keep making money off of every day purchases.

[@matyasfegyver2898]

Do you have debt?

[@AustinWestbro]

@@matyasfegyver2898 I took on debt to start a business, invest, and acquire assets. Best decision of my life

[@user-yb5bg8im5g]

TIE YOUR CREDIT CARD TO YOUR CHECKING ACCOUNT!!! OMG, IT'S A SINGLE ASK OF YOUR BANK!!!

[@rockeyvalley]

Good discussion. Everyone got their points across without slinging mud. But just for the record I am #teamcredit 😀

[@garciaedd23]

Let’s have Dave answer this question? 😅

[@higiniomorales459]

I'm very self conscious whenever I use my credit cards, mainly because I look at them as though they're debit cards. So I'm mindful to not overspend, and I make a early full payment every Friday. When you look at them as debit cards, one tends to never use them unless you have the money in your bank account to pay it off at a moments notice. It will also be wise to call the credit card companies and ask them to remove the cash advance option or at least lower the balance as far as possible. Should help keep any temptations in check, also since the balance is low if you make certain transactions that will be charged as cash advances, the card will be declined because of the insufficient low cash advance balance.

[@MrJimmy3459]

I really don't understand the CC warriors, I've used CCs and the rewards are miniscule at best

[@tcgtpl]

It’s about getting more value out of the dollars you spend. The cash back of 2-5% is just the low end of rewards. Playing the points game you can get better than 5% extra value on your money spent, plus upgraded flights, hotels, restaurants, etc. all for free, so long as you use the cards responsibly. If you’re unable to use them responsibly, then it’s better to spend an additional 2-3% on all your purchases than an extra 16-30% on interest payments.

[@rohitchoudhari9648]

Well, probably because you don't earn 5% or 10% on your spends 😂

[@tcgtpl]

@@rohitchoudhari9648 Tell me you don’t know anything about credit card rewards without telling me you know nothing about credit card rewards. Cash back is one thing. You can redeem points/miles for more than one cent per point value, and you can get more than one point per dollar spent depending on which category & card you use.

[@lewissmith5764]

Neither use cash cash is king

[@Mishkafofer]

I am CPA and don't bother credit cards and their rewards. All that dopamine rush for cashbacks look silly to me. I don't even want to read cc rewards program papers.

[@justincaldero5174]

I used to use only credit cards, now i only use debit cards.

[@AustinWestbro]

I honestly feel like fear mongering over credit cards does wayyyyy more harm than good. I still would have no credit at 28 years old if I didn’t find graham’s channel. Building my credit allowed me to buy film making gear I never would have had access to before and start my career. Debt is not only fine, but beneficial if you know how to leverage it.

[@B_22_5]

You missed the point of this entire video, debt is great for people who use it responsibly (Graham’s audience). Most people are not like that (George’s audience)

[@AustinWestbro]

@@B_22_5 tbf most people are idots

[@MichaelCarrPilot]

It always seems to be the same reasoning, logic or not, from the Ramsey members.

[@feliciavale4279]

This is one of the only things I disagree with Dave Ramsey on. I use my credit card and pay it off every month, and I make a few hundred off the rewards every year. I even did the test he talks about sometimes, I used cash for a month and credit for a month, stuck exactly to my budget both months so I think I can put myself in the category of being financially disciplined.

[@nttwashere]

Just to play devil's advocate here, but paying off your card every month (ie paying your bills and buying stuff) is what you're supposed to be doing :). Not to say it's good or bad what you're doing, but it's not an example of being financially disciplined, as the term goes. Paying yourself first, having an emergency fund, sinking funds, staying out of debt, living on less than you make, purchasing good income producing assets...those are examples of good financial discipline...not merely paying for things you agreed to buy, ya know? :)

[@feliciavale4279]

@@nttwashere Well yeah but if you look at the stats most people don't. And I do all that other stuff too, but we were specifically discussing credit cards here

[@xxtoptankxx6873]

Wow, so you make a dollar a day with CC rewards…..kinda overhyped imo. Now I’m for someone financially responsible using credit cards. But come on, the only reason to have them is the score.

[@feliciavale4279]

@@xxtoptankxx6873 I don't care too much about the score. And I'm poor so those few hundred bucks in credit card rewards is a pretty big deal for me, at least in the grand scheme of things, and its not like it takes hours to do, the time invested is definitely worth the payoff.

[@xxtoptankxx6873]

@@feliciavale4279 I mean as long as your spending didn’t increase when you switched to CC like it slightly did for me than go for it. Just know it’s a snake in your pocket. Never know when it could bite. Take care

[@eatpigsnot]

do people think credit card companies give "credit card rewards" and "cash back" because they are generous, giving, caring, etc....?

[@rohitchoudhari9648]

It is taken from financially indisciplined people to financially discipline ones. I have a record of every month spends since the very month I started earning.

[@eatpigsnot]

@@rohitchoudhari9648 true, but anyone who thinks financially undisciplined people cannot get into trouble with credit cards, any debt for that matter, is not paying attention to the real world

[@khalidabdullah5176]

No it's clearly beneficial and profitable for them...but the user isn't their only customer. If I never pay a cent in interest but use my card regularly, the bank makes money in transaction fees to the vendor.

[@eatpigsnot]

@@khalidabdullah5176 vendor fees exist, no argument from me. but credit cards are designed to make the customer spend more. not on every transaction, but overall and in the long run, which is someplace very few people, especially americans, look financially. and just because a customer has not paid interest yet does not mean they never will

[@chrisjecre]

The problem is…If you have enough income to spend thousands of dollars on your credit cards(to get enough points to make it worthwhile) and pay it off every month, you don’t exactly need credit cards to go on trips. If you only have enough income to spend one thousand a month on credit cards, it’ll take forever to get repeated benefit.

[@tcgtpl]

It’s not about need. It’s about getting extra value out of the money you do spend. If you can get an extra 5-10% purchasing power out of the dollars you’re spending, why not? You’re not against using coupons or buying something you need when it’s on sale, right? It’s the same mentality.

[@chrisjecre]

@@tcgtpl my point is that the Ramsey point of view is valid. Watching people talking about credit cards, they act like they go on Europe trips on first class every few months with points. So people who aren’t disciplined will overspend to make the bonuses and be screwed.

[@nttwashere]

@@tcgtpl What credit cards are giving you 5-10% purchasing power? :) But, if folks are that concerned with getting free stuff, why not use a taxable investment account and use the money it produces to go on trips, get cash, etc when you can be making 7-9% on the stock market average? It requires no points/miles etc, you can spend the money anytime, don't need a special account (other than the brokerage account), nothing ever 'expires', you don't have to deal with any of the issues folks have with CC companies, plus you have the principal amount should a need arise. Just seems like a much more logical, simpler, and direct way of getting the same results, if not better results from a CC.

[@tcgtpl]

@@nttwashere American Express & Chase have several cards that offer multipliers of 3-6x per dollar spent depending on what you’re purchasing (flights, groceries, gas, etc.). There are others (Capital One, Wells Fargo, etc.), but I primarily stick with these two brands. Couple that with the ability to stack these multipliers with special offers they provide and even some online stores (Amazon, Rakuten) you can get even better return. Also, AMEX & Chase points can be redeemed for better than 1 cent per point, giving a return on spend of greater than 10%. Using a brokerage account does not make sense to me for this, because you’ll be paying taxes on whatever you pull out of that account. Credit cards points/miles are not taxed (yet) unless you get them from referrals. Getting sign on bonuses also can be upwards of 20x on spend. All of these perks are great, but if you can’t follow the 2 basic rules of responsible use: 1. Don’t spend money you don’t have. 2. Always pay your bills on time in full., then by all means stay away from using them.

[@Brianpeckin]

You don't understand credit cards I see 💀

[@drummerhq2263]

Not all cigar smokers die from smoking, but no one would recommend smoking. Not all people will go in debt when using credit cards, but the likelihood that crippling debt will occur is high, this means NO ONE SHOULD RECOMMEND CREDIT CARDS.

[@MrconsistentFGC]

The difference is smoking is inherently bad for your health, there is no way around it. With the usage of credit cards it can only damage you if you are irresponsible and allow it to. But if you dont you will reap massive rewards. Cigars are bad all around, there is no potential beneficial reward for smoking.

[@drummerhq2263]

@@MrconsistentFGC 1. No its not. Somepeople live there whole lives with no effect. It’s only harmful to some people. 2. Spending money that is not yours or that you dont have is never good. 3. Even if, an organization that reaches millions, shouldn’t promote it for only a few. Right.

[@MrconsistentFGC]

@@drummerhq2263 just like some people can borrow money there whole lives and theres no effect. Its only harmful for some people. Plus if they are smart and responsible it actually benefits them. Even if you smoke and it doesnt effect you there is still no potential benefit as there is with credit and borrowing money.

[@livingunashamed4869]

If you want to keep things simple just get the citi double cash card and get 2% off all purchases. I mean who doesn't want 2% cash back on everything they buy? Just pay the card off as soon as possible and reap the rewards not that hard guys.

[@QueenConsious]

The Wells Fargo Active cash card gets you 2% back also

[@livingunashamed4869]

@@QueenConsious Never be associated with that bank, they are awful.

[@QueenConsious]

@@livingunashamed4869 I have had them for over 8 years and I never had a problem with them I speak for myself not everybody else

[@rohitchoudhari9648]

I only have a mortgage with me, we have a budget, spend 40% of our income. Save 3% on every spend by credit card. Oh, yes, i paid goddamn 40% as a down payment for my home at age 30! So I think 1trillion dollar debt of credit card means nothing and claims nothing from me.

[@xDRZLx]

If my credit card is compromised and used they have the banks money. If my debit card is compromised and used they have my money. Guess what I use.