@@blipblop92 true but who said every vacay had to be to Hawaii? I legit make about $600/yr in rewards and all I spend is monthly revolving bills, restaurants, groceries, and gas. Things I woulda had to pay with cash to begin with. Bigger spenders really do get better perks I.E. Amex platinum.
Treat your credit cards like debit cards. Only use what you know you can pay back right away. Not even by the end of the month. Just having a balance on your credit cards will decrease the score in a matter of days.
@@HH-le1vi well for me, I have 0 balance on all my cards and my credit score is at 810. If I carry a balance by even a few days my score goes down because it gets reported to the credit bureaus. My advice is for those who want to keep their score at its highest, pay it off right away. That’s what works for me.
Can you explain to me then 👀 do you pay the portion due each month or the full amount? If so do you pay the full amount once the first bill comes in or before that? I do the full amount before the bill comes in but I've been confused on this subject 🤔
@@morgan3481 you absolutely have to pay off the full balance before the grace period ends or you will be charged interest on your entire account balance. Hello compound interest! 😅
YES!!!! YOU BETTER SAY IT!!! I LEARNED THIS FROM A LADY THAT TOLD THIS STORY ON THE RADIO. SHE STATED SHE PURCHASE A CAR WITH HER CREDIT CARD FOR $10,000. SHE STATED THAT WHEN IT WAS TIME TOO PAY THE BILL. SHE HAD THE $10,000 TO PAY THE BILL. AND GOT REWARDED IN REWARDS POINTS . SHE ALSO GAIN A HIGHER CREDIT SCORE. WHY THEY DIDN'T TEACH US THIS IN SCHOOL. A LOT OF PEOPLE WILL LEARN THE BENEFITS OF HOW TO HANDLE 💵 MONEY. THANK YOU FOR THIS INFORMATION
You can't buy a car on a credit card. I KNOW I tried. A car is a fixed asset & can't be paid for with a credit card. I put everything on a credit card. This is one of the only things I couldn't buy on a card.
@@TopVillain try it. I've tried to buy a car in both my visa platinum and black Amex. They all say NO! It may vary by state... but here... car purchase was declined.
Not to mention, using a credit card offers a line of defense from “hackers”. There are more protections on a credit card than there are a debit card. And also protects your bank account from being completely drained if there is a security breach. Edit: Oh yeah, and it’ll keep your bank account from being frozen while they investigate the security breach.
This! It’s why I started using a credit card for EVERYTHING. I had my checking account drained one time by someone who’d gotten my account information from using my debit card. Now I get the rewards and know that if my credit card information is stolen, the thief is spending the credit card company’s money, not mine.
Exactly. It's about understanding what *your* specific budget can handle and staying within that. She can afford a 2k purse (and maybe other things), and that works for her. Maybe I can only realistically afford to put up to $200 in charges on a card. As long as you stay within your limits and keep careful track of things, you won't end up ruining your score in missed payments.
"The banks don't make money off of rich people. They make money off poor people who spend beyond their means." Exactly. The whole business model relies on marketing to and preying off of poor people. The moment poor people become class-conscious enough to realize they're being preyed on, the moment credit cards stop being a good move for rich people. No profit = no reason to offer perks.
The only thing about this that isn’t true is that the credit cards _definitely_ do make tons of money on the rich, too. They do it by means of those invisible interchange fees that retailers are contractually obligated not to tell their customers about. That’s why there are some gas stations that offer a “cash discount” - it isn’t really a cash discount, they’re just tacking on an extra few percent to the price of the gas to cover those interchange fees for customers who pay with a card. Your rewards aren’t free money - they’re being bought and paid for by the retailers you’re shopping with, and those retailers aren’t paying for those fees out of the goodness of their hearts - they’ve baked that cost into the price of the goods you’re buying. But in that regard, it’s actually a bit like an employer’s 401k matching - if you aren’t taking full advantage of those rewards by buying things on credit cards where you get to redeem those rewards, you’re leaving money on the table that you’re spending to subsidize people who are smarter, wiser, or richer than you are. Don’t ever do that (unless you’re just not actually able to be responsible enough to do this wisely yourself, which some people really aren’t - and it’s not a judgement or a character flaw, you’re just wired differently and it doesn’t work to your advantage in this case, it works to the advantage of other people).
Rich people are more likely to have learned this. People who grew up poor are less likely to have been taught good habits. But it's all about education and, as you say, responsibility.
But it is… yes one can be more “responsible” but the only reason they can is because they have access to money that helps them become “responsible” to pay what needs to be payed in their credit account by a certain date lol
@@angelic680 while our BFF is posing this from an SJW perspective, I think that the flip side of the coin is that even poor people who don’t always pay on time, are still given the opportunity to have credit cards. This is not the case in other countries. There is so much in America that people take for granted.
Nobody forced anyone who can't really afford it to buy something they don't need on credit. That's on them. But if you can afford it, you'd be leaving money on the table not to charge through credit cards. All kinds of benefits from warranty to cash back to fraud protection.
I do this, though CC companies make the most money from merchant transaction fees, not interest. Pro tip - set your card limit to an amount you can pay off in a month or two, so it can't get out of hand even if you're not great with money.
Yes!! My husband & I started this in the early 90’s! We arranged to pay utilities, mortgage, property tax & even cars on credit cards! Took 2 or 3 to buy a car bc of limits…. We even paid for expensive things for my mom & dad & they wrote us a check to pay for the item! They raised our credit limits on the cards all the time bc we always paid in full when the bill was due. We flew everywhere, stayed in great hotels & had nearly free rental cars! And of course we paid for the flights, hotels & car rentals with the mileage cards too (double dipping!)
Listen to this! Straight talk. When poor ppl buy on revolving credit, they are actually spending their future income. That’s trying to fill a hole by digging deeper.
Guys. Even if you pay your credit card in full using a credit card makes you spend more. Credit offers , cashback make you spend more. The credit card reward are like 25 - 80 ¢ on every $100 you spend. Studies show that you spend 15 - 20 % more when you use a credit card. So if you don't use a credit card you end up saving 15 - 20% which is way more than your rewards. Just think are you smarter than the entire marketing and product department of big credit companies.
The real benefit comes from getting a better credit score. It's fucked up because I was always taught never to go into ANY debt, and never to get a credit card buuut it sucks when you actually need to take a loan out for anything and dont have a good credit score
Ooo me. I love doing this. Also, the bank will try and get you to mess up by saying you can only make the payment on the day it’s due or that you can’t put extra money in your credit card to give you a positive balance. Tis all LIES! Make that payment early and throw in some extra money, not just what you owe. By doing so, you never use their money, meaning you never owe them as well as you reap all the benefit of getting all that cash back and everything else in between. Best hack ever!
For the life of me, I don’t understand why people would go beyond their means with a credit card. Treat it like a debit card and tackling it from that pov alone will have you well off in terms of your habits
Because a lot of times, people don't have enough to cover basic expenses or emergencies. Going beyond your means looks different when you're not making enough to cover your bills, it's not always some middle-class person with consumer debt from too much shopping.
This is actually how I save on flights. I maximize points and rewards by getting cards that have deals with certain places (like 2x points on groceries and gas) and then purchase what I’m incentivized to do. Pay my bill in full to avoid interest and I’m being rewarded to buy what I was already planning to buy on debit anyway
@@rsimmons1980 if you plan well and spend only on what you need, you won't spend any cent more than what you usually do. Not even the credit card annual fee. Just pay everything that you usually do with debit, and you can even enjoy more.
I think another perspective is only buy what you can afford. Sadly it is rare in the US that people are taught about budgeting and most importantly living within their means.
This is my husband's hobby. We've been on numerous trips abroad just on credit card points. We're flying to London first class on points, we only had to pay taxes and fuel costs.
Thank you credit card people. 2022 you paid me $2830 in cash back to buy the things I wound be buying either way. I've not paid interest in forever now!!!
There should be an after or before video explaining how to manage a credit card by treating it like a debit card in the sense that you pay it off immediately after you use it and not at the end of the month
If I wanna shop online I go through my credit card app...it provides a direct link to more cashback than it would otherwise if I go directly to the store sites.
I’ve been raised to do this. Have gathered enough points or cash back to pay for flights, brand new appliances, etc. Never have paid interest in my life.
All sounds great unless you’re the retailer on the other end. When we get those types of cards at our business, we are charged way higher rates to take them. Small businesses don’t like them at all.
This has helped my score so much! I charge the card then immediately transfer the money from my account to pay it off. I never carry a balance and my score goes up!
Yes, I always forget that a credit card is technically a short-term loan because my mom never used it that way and I never have. We're definitely not rich, but at least credit card companies never made money on us!
I used to love my credit card (responsible paid in full monthly). I knew how shady the credit card business is: targeting young people and vulnerable. But I thought that's not MY problem. Then one day I thought about it more. Would you be ok if the mafia came to you and said. "Hey come use our services! As long as you're ahead we'll give you a tiny reward. Oh but if you fall behind, we'll pretty much ruin you... also, we've set things up so that essential services are more and more dependent on us and those that don't work with us have a harder time. You're a responsible user not like those poor saps we have pinned down, C'mon work with us!" Even though I was a responsible user, I couldn't keep participating, while knowing how predatory and slimy the credit card business is.
I am Dutch I've only ever had a debit card. Only people with money would get approved for a credit card. I am 33 now and still don't own a credit card BUT I also do not have ANY debt what so ever.
My boss taught me to do this with vacations. He practically gets half off when he travels because of the points he gets. He saves money from our bonuses to pay it off. It was a huge game changer for me
I'm not rich but I put everything on my charge card including internet service, phone bill, and car insurance payments. I pay the entire balance every month. This helps me to control and know my expenditures and qualify for rewards.
No, people who want to better their lives do. They don't make excuses. I grew up poor and in foster care. I was poor as a young adult because of my stupid decisions but grew up and made better choices.
I agree with @sleazybtd - you don't have to be rich to do this, you just have to be capable of only using your credit card when you have the cash in the bank to cover the purchase. It's not that hard to figure out. I've been doing it ever since I got my first credit card. I don't treat it like "free money / golden ticket to buy anything I want", I treat it like a debit card and pay it off in full every month, usually paying for my purchases within a few days of making them.
I've been doing this ever since I had a credit card as a teen. Every adult told me I was doing it wrong but this just made sense to me. Glad to know I was right from another source I was right 👍
Actually, they do still make money on people who pay off the balance each month. They do so because the stores pay a transaction fee for each transaction.
I was always taught to pay your statement or whatever the payment is in fall, if not more every single month on time, or before the due date, if you can have like a direct debit set up, so the payments automatically done and that will continue to keep your score up. Don’t miss any bills like mobile phone car payments ect
I’ve been doing this since I got a credit card but I can’t say I’m “rich” now. 😢 The rewards and cash back tho as much better than paying in cash for sure!
Yup, that’s what I do! Payoff the credit cards every month and gain rewards, but to say I’m rich…well, that’s a stretch. Being able to payoff all your credit cards each month doesn’t mean one is rich, just that he/she spends within their means. So I gain the rewards and good credit score without being rich 😎
This is so true. A lot of my friends ask me if I’m scared to have an Amex platinum card because you have to pay that thing off every time but I say no because I would’ve paid my bills attached to it anyway along with gas and food etc and instead of having it all in different places it’s all in my Amex and I have one bill to pay . I get points galore and haven’t paid for a flight in over ten years. Then it dawned on me …. They couldn’t consistently pay their bills , and that’s why they are afraid of Amex . I’m not rich at all, just very financially stable.
This is exactly what we do. We use our points for free hotel rooms and car rentals. We don’t spend more because we put things on a card. We pay our card every week. It’s the best way to travel cheaply.
And this doesn’t only apply to rich people. You can use a credit card for all of your purchases but you just have to spend what you can afford and always pay in full.
Only people who can't manage their finances properly think credit cards are bad. They are only bad when you have poor discipline and spend beyond your means. The secret to getting the things you want is knowing how to take of advantage of leveraging debt and getting rid of it before interest eats you alive
Well, not quite. High credit card usage will ding your credit score. I pay off my credit cards every month in full, and I use my credit cards like debit cards. However, I get dinged on my credit score for using more than 10% of my credit limit. It's not a big ding, but it is a factor. I'm more inclined to take the slight hit to my credit score. Also, some credit cards have annual caps for their rewards, after which, your cash reward % is reduced until the card anniversary.
Well credit cards need to step up their game. I get 4% back in ethereum which earns interest unlike credit card reward which are an interest free loan to them. It also tends to appreciate over time.
Bought a house in 2015. The mortgage company asked me do I pay off my credit card every month? I said yes. Then the company said keep at least $20 on the card to raise my credit score. It worked. In 2015 I got a 3.5 % on my mortgage. But at that time I believe it was considered a low income loan. Don’t know if that matters.
I do this. But not everybody can afford to pay off a credit card each month 🙄 Be careful getting into this unless you can afford to pay the credit card off in full like she mentioned or pay alot more than the min payment. Its a risky game. But it works if you work it right.
