quote:
Really surprised by the amount of anti-credit card people on the money board. i have always been of the opinion that not using a card is throwing money away - the 1-2% rewards is basically baked in to the price of everything you buy. it's no different managing your money with a credit card than a checking account - just spend less than you make and you're goo

The average person will spend more when using a credit than when paying with cash which is why the card companies are offering the incentive. Knowing the finance types running the credit card companies are not giving away money I figure I am saving a lot more than 1-2% just by buying less because I am paying wit cash.

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Posted by Sigma

Fairhope, AL

Member since Dec 2005

3643 posts

Posted on 8/28/14 at 3:14 pm to EA6B

quote:
The average person will spend more when using a credit than when paying with cash which is why the card companies are offering the incentive. Knowing the finance types running the credit card companies are not giving away money I figure I am saving a lot more than 1-2% just by buying less because I am paying wit cash.

This is true, but most of the cc guys here won't admit it.

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Posted by yellowfin

Coastal Bar

Member since May 2006

97615 posts

Posted on 8/28/14 at 3:23 pm to Zach

quote:
Maybe I can explain it this way. When I was young back in the 1950s I would stoop down to pick up a penny. Today, I will only stoop down to pick up a quarter...and that would be for the car wash machine.

A credit card reward of 1 percent does not interest me. If it was 20 percent, we'll talk.

It's not really worth it if you don't spend a lot of money, we'll charge 5-7k a month on a card so it adds up quick. Add in a couple sign up bonuses and I'll make about 3k this year

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Posted by lsujro

north of the wall

Member since Jul 2007

3919 posts

Posted on 8/28/14 at 3:55 pm to EA6B

quote:
The average person will spend more when using a credit than when paying with cash which is why the card companies are offering the incentive. Knowing the finance types running the credit card companies are not giving away money I figure I am saving a lot more than 1-2% just by buying less because I am paying wit cash.

this is accurate. however, my reading of the money board doesn't reveal many "average" individuals as far as financial understanding. i'd say the average person would not comprehend 90% of what is discussed on this board. i wasn't addressing why the general population doesn't utilize credit more frequently, i was specifically addressing the group of financially literate individuals who post regularly on here.

if you spend less because you pay with cash, that is an issue with your own psyche. that's not the case for everyone. regardless of whether i spend more than i would with cash, if i pay it off, card company takes nothing out of my pocket. i understand the logic behind using cash only. i just didn't imagine that as many on here would have to trick themselves into spending less.

credit cards are also valuable to me because they offer immensely more data to analyze in tracking my spending. this benefit immensely outweighs anything i may be tempted to overspend because i'm not limited to the $20 in my wallet.

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