This. As long as you use it for relatively small things that you can pay off in a reasonable amount of time, it's advisable to build your credit. I often think of it is a slight cash advance on my next paycheck or two and subtract the amount I spent from them. If I can't cover the value of what I'm buying in a paycheck or two and have money for my daily expenses then I try to hold off unless necessary.
Meh I see this a lot but I'm more focused on saving money. ... I've looked into things like Costco corporate and I wouldn't even make my money back on it. They try to upsell you " just buy your house insurance here ". Yeah no.
right but you can't do that sometimes. e.g. when I would pay certain costs at university, they didn't allow an instant transfer. the uni had their own finance/tuition portal and you'd enter your banking information and then they would say that a transfer would occur in a certain number of business days. but it wouldn't show as pending or anything on my banking account, because the transaction hadn't been initiated yet.
This was me. Totally changed my financial life. If I didn't have it, I'd look at my account and think I had a lot to spend. But really, it's all spoken for between emergency funds, annual expenses, and retirement savings. The best thing ever.
This is what I do. Have a rotation of 4 main cards I use for specific purchases + the target debit card (5% back on all target purchases)
Uh, no. Every single payment I make is on my credit card. I don't carry debt on my card, it helps build my overall credit limit and raise my credit score. This is silly advice.
This type of advice is most suitable for irresponsible people who can't curb their vices. If you're at a counter - or an online checkout - and have the choice between debit and credit, always go for the latter, especially if it's a purchase you would otherwise have to make regardless of how you were going to pay for it. The benefits are twofold: More credit history and credit points redeemable for cash.
Do you pay for a YNAB subscription?
I did (my iOS app store tells me I used it before). I guess I'll just use an Excel sheet.
Horrible advice for anyone living paycheck to paycheck instead only use the card for bills and gas and pay instantly.
and reflect on the amazing times I had when I was younger and my body wasn't falling apart? Sounds good to me. My 401K and Social Security will be plenty. I'm not going to deprive myself a life so I can sit on a mound of cash on my death bed. The point of life is to live it.
Plus if your credit card gets compromised it's an easy fix. If your bank account gets compromised it's a nightmare.
