what kind of credit card/debit cards do you use to earn what kinds of rewards?

Just a few years back, I seldom used credit cards/debit cards at all, and found myself hitting the atm on a weekly basis just to withdrawal the weekly amount of funds i needed to get by each week.

I liked doing this, as it allowed me to see just how much money I would spend in a week's time.

The downfall of this was that, I always had a pocketfull of loose change, and whenever i wanted to buy something towards the end of that week and came to a lack of fund, I reluctantly had to use the credit/debit card to complete the transaction.

Now, I dont go to atms at all, nor do i even use cash for any transaction. I seldom ever write check/use stamps. Virtually all of my transactions are now done on credit/debit cards, and just about every transaction i conduct i earn points towards some type of eventual redemption. the way i figure it, if im gonna spend money towards either essential or recreational items, i might as well get something in return.

I use Southwest/Chase visa card to earn a free flight from them. a low annual $59 fee is all it requires, and once i earn the ticket, i can use it anywhere they fly. the airline ticket is subjected to blackout dates, so i do have to book early to guarantee seat availability.

i also use discover miles card to earn vouchers that help subsidize the overall cost for my hotel lodging expenditures.

many people out there express various fears on using credit cards, citing reasons of "burying themselves in a pile of endless debt", or "not being able to control their spending habits" etc, etc.

I find that if you are the type that knows how to respect a credit card, and are willing to discipline yourself financially, then theres no fear.

it also helps to pay your full balance each month, and never a partial payment.

None, Debt is Dumb, Cash is King. No one ever got rich with Credit Cards or CC rewards. Your also forgetting the important aspect that with CASH a lot of places will bargain with you or give you a bigger discount. I got $9400 off the already marked down price was on my last car that I bought since I paid cash. $9000 less than bluebook. The discounts you get with cash far exceed any "reward" you get with a Credit Card. For opposite ends of the spectrum that will both agree with me, see Dave Ramsey and Mark Cuban's blogs.

According to personal finance magazines, your best bet is almost always cash rewards that you can use the way you want to versus the rewards for a particular company. The problem is though, the 2% cash back deals are hard to find right now though there are a couple of banks still offering it.

Metro, I am not opposed to credit cards. I am opposed to debt. Some of us utilize credit cards as an easy way to pay bills from groceries to monthly insurance premiums to whatever else we buy, and then pay them off each month. I put everything on a credit card (2% cash back) and pay it off with the click of the mouse and an electronic bank transfer. I never have to pay interest and I'm actually paid (2% back) to handle things this way. Granted, this is not a good plan for someone who does not have the means and/or discipline to do it like I've described. I listen to Dave Ramsey and he is spot-on when it comes to debt. I agree 100%. I just disagree with him on the credit card thing because I know how to make it work for me and not against me. But I've run into some Ramsey listeners, book readers, and those who have attended his seminars who are almost cult-like on the issue. Ramsey's way or no way for some of them. I've actually had people get heated with me when I explain the above system. They have no ready answer for me, they only know that Dave Ramsey says no credit cards - ever. If you disagree with Ramsey on one thing, many of them go ballistic.

I guess Dave never has to rent a car.

I guess Dave never has to rent a car.

Good point! And how does he fly? Paying cash for airfare is considered a red flag now.

Good point! And how does he fly? Paying cash for airfare is considered a red flag now.

I've never had a problem renting a car without a credit card..

Most will accept debit cards, and if I'm going on a trip, a travel agency can not only get me a better rental deal, but will take the payment right then and there in cash..

Same with plane tickets: debit cards, agencies, etc..

There's *nothing* you need a credit card for..

Some car rental companies won't accept debit. I got a free cruise for using my sea miles card. I pay it off every month and have no annual fee. So don't tell me using a credit card responsibly is bad.

And yeah, the Dave followers are a bit cultish

I have two cards that I typically use:
- HSBC Orchard Bank Mastercard - 2% on everything. I don't know if the no-fee card is offered anymore...it's typically a card offered with a fee to subprime borrowers with bad credit. But I was able to sign up for a no-fee card with the cashback. (I read a finance forum occasionally...many people there seem to use a reward card offered by Schwab that offers 2% cashback.)
- Citi Forward - 5 reward points per $1 on certain categories: entertainment, bookstores (this includes Amazon), restaurants, and a couple of others. You can cash out 10,000 rewards points for a $100 giftcard at various retailers...effectively giving you 5% cashback in these categories. (1% in all others)


None, Debt is Dumb, Cash is King. No one ever got rich with Credit Cards or CC rewards. Your also forgetting the important aspect that with CASH a lot of places will bargain with you or give you a bigger discount. I got $9400 off the already marked down price was on my last car that I bought since I paid cash. $9000 less than bluebook. The discounts you get with cash far exceed any "reward" you get with a Credit Card. For opposite ends of the spectrum that will both agree with me, see Dave Ramsey and Mark Cuban's blogs.

What about 'everyday' purchases where you can't typically get a discount for using cash? Most retail and online stores won't give you any sort of discount for non-CC payment methods, and rewards cards are good for those. But for large purchases where you will pay a decent fee (greater than the rewards you'd receive) to use a credit card...yes, you'd be silly to pay using credit.

Mike, I'm not as "cultish" as some followers, but those same "cultish" followers probably do not have the discipline to use cards wisely. Remember, most of them have paid tens of thousands off in credit card debt, so why bring back the temptation? Also as you know the overwhelming majority of CC users are not responsible with them. Heck 85% of NBA players are broke within 5 years of retiring. They make enough money in a year for their great grandkids to have a good life, and yet still poor money management.

Again, for opposite end of the spectrum, read Mark Cuban's (Dallas Mavericks owner and billionaire) blog. He says the exact same thing about credit cards, cut em up and don't ever get one again. A debit card has the same protections as a credit card, and is accepted anywhere the Visa or MasterCard logo is accepted.


Ramsey
http://www.daveramsey.com/article/the-truth-about-credit-card-debt/
Cuban
http://blogmaverick.com/2010/02/23/how-to-get-rich-part-1a/

"If you use a credit card, you dont want to be rich. - Mark Cuban"

Sorry, but if a BILLIONAIRE mogul and a Financial Advice person worth tens of millions both agree about credit cards, I'm listening them and not an upper middle class person who "manages their credit cards appropriately."

I usually opt for cashback on my card.

I started to put everything on my Mastercard to get American Airline miles. I started doing this because A. I wanted to miles to fly free to places and B. I pay my bill in full every month. I figured why use just a debit card when I can use a credit card and get something in return.