Cashless society? Not so fast, my friend!

For many your credit card use is spot on. For many others, me included, the use of my credit card is only to take advantage of the rewards offered.

If I use my CC in the supermarket for groceries (which I do 100% of the time), or for gas (which I do 100% of the time) or any transaction that accepts CC's (which I do 100% of the time), I make a payment from my checking account, via Bill Pay, that evening for the total spent that day. In a month I'll have made anywhere from 15 to 25 payments to keep my CC balance at zero. I pay absolutely zero interest or finance charges while receiving $3k to $6k in reward credits monthly.

Credit cards aren't always the devil, although they can be if you don't use them within your means.

 

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Yup.
I use a CC for the exact same reason. 2% cash back on all purchase. I pay it down once or twice a week.

Free money.

Most people can't be as regimented as that though. All it takes is one month where they get hit with a finance charge and all that 2% back for months is wiped away.

In this case we're not letting someone manage our debt.
We're letting them make swipe charges off of us and they are paying us for that.

 

I've taken many a trip using airline mile perks from my CC's. In today's day and age, since banks pay almost zero interest on savings, you'd be foolish not to take advantage of credit card perks. Of course, this assumes that you will use your checking or savings to pay the card off monthly so you don't incur interest charges.

 

I have it on reliable authority that the CC companies still make money from those of us who pay in full every month -- because they still impose a transaction charge on merchants. The more people pay off their balances without incurring interest or penalties, the more the CC companies will have to increase transaction fees.

I'm hoping to see the day when those transaction fees ring up on the cash register just like sales tax. So far, the CC companies have had the power to prevent that; until recently, they could block merchants from charging extra on CC transactions, and while that's no longer allowed, inertia and social expectations mean most merchants still eat the charges.

If I could choose between paying cash or paying a 2% surcharge, there are still plenty of times when I'd choose to use the credit card -- but I'd be using cash more frequently, especially for local purchases.

Instead, I pay the same price either way -- and this quarter, for example, I get 5% cash back if I use Discover to pay at a grocery store or pharmacy. Guess which card has gotten dusted off, after several years of being used only for a few autopays? And guess where I haven't spent cash lately?

 

I have a bank, actually two, pretty nearby and not inconveniently located. I just would rather not go there if I don't have to. And I don't have to. Plus, I don't use a credit card, I use a checking card that doesn't collect any interest, it's the equivalent of cash, so it's a complete wash. I can pay for 99.999999% of the things I buy with the card so I do. It just happened without me realizing it.

 

I like to go into the bank. Talk to the girls, maybe get some coins or currency to go over with the grandkids, occasionally some silver.

I use credit cards too, love the points. Pay off balance every month.

3 -- 6k monthly, Yikes, that's nice!!

 

$3k to $6k monthly? I could buy a lot of beer and maybe a coin with that!

 

I also pay off my credit cards in full every month so I don't have any interest charges. The rewards I get each month are a pittance compared to your $3k to $6k.

 

Yeah, so what's your point? I mean, why would I try to withdraw cash when I know I don't have the money in the bank? Or maybe people have forgotten how to balance their checkbook.