Clark Howard is a big fan of credit cards if you can use them responsibly. What credit cards do you use? Do you have any tips or tricks to maximize rewards? Should you cancel your card? Share your questions and opinions here.
I agree whole heartedly with Clark on credit card preference vs debit cards for all the reasons he shares. One thought on debit cards though that I learned the hard way – I didn’t have one for years, didn’t use ATMs. But then in 2020 due to c*v!d fears my credit union closed their doors unannounced. My usual method of getting cash fizzled. Later when I could, I did get a debit card. I keep it expressly for that type of dilemma. I don’t carry it or use it with any regularity.
Credit cards can be used like debit cards if you pay the bill in full before interest is charged to your account. I have a debit card that I use for ATM withdrawals, and that is about all.
I pay most things with a credit card. I track all my spending using Quicken. I watch for transactions to post and especially for anything that I did not purchase. I don’t wait for my monthly bill. I pay my credit card balance every 7 to 10 days using the credit card’s website or by using my bank’s bill pay system. As a result, I never have any fees or interest charged to my account.
I do not have any credit cards that pay rewards or points. I have credit cards that pay cash back. I watch for promo offers by the credit card companies and try to utilize those. For example, American Express offered a 20% immediate cash back if I visited a specific restaurant and used the American Express card to pay the bill.