I love learning about finances….and I love my Credit Card!

May 24, 2008 · 2 comments


So I got a Credit Card that awards one airline mile for every dollar I spend. I know most people recommend cutting all credit cards up to avoid high interest on any consumer debt, but I am quite a fan of my card. I have never needed to use the “credit” aspect of my credit card. I treat it like a debit card and pay the full balance every month. If I don’t have the money, I don’t buy it. There are two BIG advantages to using my credit card for EVERY purchase I make.

The first is that I get one airline mile for every one dollar I spend. I put everything from a $1 pack of gum to my $1,000 laptop on my credit card. Just by using my credit (instead of debit) card for ALL my purchases I basically rack up enough points to earn a free flight every year. I don’t know about you, but I’ll take a free ticket any day!

The second advantage to using my credit card is basically free money for one month. This allows me to make purchases before my paycheck gets auto-deposited in to my account. For example, I bought my laptop for $1,000 dollars on the 10th of Jan. At that time I only had $900 saved for my new laptop, but since I charged it to my credit card I was able to walk out the door with it before I had the full $1K saved. I got my paycheck two weeks later and took my “$100 a month laptop fund” added that to the $900 I had already saved and paid off my credit card balance in full. The laptop didn’t cost me any more then it would have if I used my debit card, but I was able to get it two weeks earlier.

I’m fully aware of the dangers of owning a credit card. It takes discipline, but as long as you don’t spend money you don’t have, I’m convinced that credit cards ¬†are an asset to my financial success. I have plenty more to say about credit cards and I would love to hear what you all think about them. Keep looking for more of my financial habits and advice.

What do you think?

1 Dual Income No Kids

Hi Guys,

Thanks for checking out our blog. I’m glad that we are inspiring other bloggers out there. Keep up the good work, it’s well worth it!

As for the use of credit cards, I think I’d agree with all of your points here. Basically you’ve got to be great at discipline, but they can also pay off greatly in rewards if you can do so. We’ve had many debates about credit card use, with lots of comments from readers, if you want to check these out to get a sense of what folks have to say on the subject.

Good luck with all!

Miel

2 Emma

I consistently use my credit card for purchases. Mine gives me free groceries (unfortunately not at 1 point per $1 – rewards take a little longer with it), and if I use my card at a store with Presidents Choice products, they offer “bonus points” – bringing my own bags, having a balance over $1000 on the first of the month (required for my rent and metropass payments anyways), and weekend specials where you earn 5X or 10X the points for purchases at a grocery store.

In a year, I really only get something like $100 extra for food, but as far as I’m concerned, if I was spending the money anyways, why shouldn’t I use my card? When I swipe it, I get free things. I still live by a budget, I still set monthly goals for how to spend my money and try to stay under my $450 for “discretionary spending” – food, entertainment, clothing, gifts, etc.

In the end, if you treat your credit card as though it’s your cash (and never get anywhere near that huge limit they give you), you can’t go wrong. If you behave like my parents and can’tlearn to live within your means, that’s where the problem starts. Spend less than you earn and plan for emergencies – as long as you hit those targets, things can continue to work. I don’t make a lot of money and I have high expenses (ie: rent), but I manage because I’m realistic.

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