What’s Your Credit Card Strategy?

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Hello Sophisticated Spenders!

I have to admit, I cringe a little when someone says, “Oh, I don’t use credit cards!” or “I used to have credit cards but I cancelled em!”


I think credit cards are awesome!

Not using a credit card can actually be a bad thing because if you lose your bank card or someone steals it, your cash or bank account is compromised and tied up.  On the other hand, it’s super easy to cancel a credit card and get a new one sent to you.  Good luck with that same process for your bank card!

Cancelling your credit cards can be bad for your credit score because it reduces the total amount of credit available to you.  And just because you have the card doesn’t mean you have to use it (assuming it does not have an annual fee)!

I have 5 credit cards and 2 bank cards (and 5 store credit cards).

However, I typically only use 1 credit card (my American Express) for EVERYTHING.

I’ll use a store credit card only if they offer an extra percentage off when you use your store card (Gap normally does this).

I have all credit card payable bills (only ones that don’t charge a credit card fee) on autopay.

I also have a set amount that I can spend on said credit card and I use my “fun money” bank card when I overspend on my credit card.

I always pay off my credit card in full every month.

I earn cash rewards on every purchase.

Credit cards also offer lots of extra protections that bank cards do not have.  A few benefits include extra rental car coverage, travelers insurance, price guarantee, speedy refunds (I bought tickets for an event that was cancelled and my credit card company quickly issued my refund) and a few others.

Now I’d like to know your credit card strategy!

How many cards do you have? Which one do you typically use?  If you carry creditcard debt, what’s your payoff strategy?

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