Comments on: Life without credit cards – 2 week update http://www.investingintelligently.com/2005/11/28/life-without-credit-cards-2-week-update/ Not just another (Canadian) financial blog Sat, 16 Oct 2010 15:22:19 -0700 http://wordpress.org/?v= hourly 1 By: Investing Intelligently » Blog Archive » Rewards, Rewards, Rewards http://www.investingintelligently.com/2005/11/28/life-without-credit-cards-2-week-update/comment-page-1/#comment-164 Investing Intelligently » Blog Archive » Rewards, Rewards, Rewards Wed, 22 Feb 2006 10:28:21 +0000 http://www.investingintelligently.com/?p=84#comment-164 [...] I just read one common misconception a few days ago: “Hunting for rewards is worthwhile only if the entire credit card balance is paid in full every month.” While technically correct (in my opinion) for a small minority of the population, as the Wealthy Barber says, “many people who pay off their balance each month are still hurt by their use of credit cards.” Just because one pays of his/her credit card bill every month does not mean that the credit is just acting like a convenient replacement for cash. In fact most people spend more using a credit card without even realizing it, even those who pay it off every month. And if you accept this fact, than hunting for rewards programs is not worthwhile. Which brings me to one of the best blog posts I have read in a long time about cash-back credit cards. Okay, the hottest thing going today, in the financial realm, is the “Cash Back” credit card. Almost every major credit card issuer is offering one of these “wonderful” things, promising you cash back for the purchases you make. Some promise cash back for groceries, gas, or everyday purchases. You can get bonus miles, bonus cash, and bonus gift cards. Wow! These things are wonderful… [...] [...] I just read one common misconception a few days ago: “Hunting for rewards is worthwhile only if the entire credit card balance is paid in full every month.” While technically correct (in my opinion) for a small minority of the population, as the Wealthy Barber says, “many people who pay off their balance each month are still hurt by their use of credit cards.” Just because one pays of his/her credit card bill every month does not mean that the credit is just acting like a convenient replacement for cash. In fact most people spend more using a credit card without even realizing it, even those who pay it off every month. And if you accept this fact, than hunting for rewards programs is not worthwhile. Which brings me to one of the best blog posts I have read in a long time about cash-back credit cards. Okay, the hottest thing going today, in the financial realm, is the “Cash Back” credit card. Almost every major credit card issuer is offering one of these “wonderful” things, promising you cash back for the purchases you make. Some promise cash back for groceries, gas, or everyday purchases. You can get bonus miles, bonus cash, and bonus gift cards. Wow! These things are wonderful… [...]

]]> By: Dave http://www.investingintelligently.com/2005/11/28/life-without-credit-cards-2-week-update/comment-page-1/#comment-42 Dave Thu, 08 Dec 2005 01:07:48 +0000 http://www.investingintelligently.com/?p=84#comment-42 Well you don't have to carry cash around all the time, but you have to have some cash on hand in case some place doesn't take Interac/debit. But cash is always necessary anyways as there are times when you can't use credit card or Interac/debit. For necessary items, I'd rather use Interac from a chequing/savings account or cash, assuming one doesn't get dinged with a huge number of bank charges. Then at least I'm not going into debt. Well you don’t have to carry cash around all the time, but you have to have some cash on hand in case some place doesn’t take Interac/debit. But cash is always necessary anyways as there are times when you can’t use credit card or Interac/debit.

For necessary items, I’d rather use Interac from a chequing/savings account or cash, assuming one doesn’t get dinged with a huge number of bank charges. Then at least I’m not going into debt.

]]> By: anonymous http://www.investingintelligently.com/2005/11/28/life-without-credit-cards-2-week-update/comment-page-1/#comment-23 anonymous Thu, 01 Dec 2005 20:12:11 +0000 http://www.investingintelligently.com/?p=84#comment-23 Not using your credit card is easier said than done! You have to carry cash all the time. I think it's fine to use your credit card for "necessary" purchases like parking and groceries, as long as you keep on top of paying it off (hopefully the same day as the purchase). In terms of using it for "want" items, I agree with the author that it entices you to spend more and you're better off using cash or debit. Not using your credit card is easier said than done! You have to carry cash all the time. I think it’s fine to use your credit card for “necessary” purchases like parking and groceries, as long as you keep on top of paying it off (hopefully the same day as the purchase). In terms of using it for “want” items, I agree with the author that it entices you to spend more and you’re better off using cash or debit.

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