Let’s get a list going. Like with a Target debit card you can get $40 cash back and it takes 1 to 2 days to be withdraw from your checking.

  • GiddyGap@lemm.ee
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    1 year ago

    I know credit cards can be a slippery slope for some, so learn how to practice financial discipline before getting one.

    That said, if you’re not paying with a credit card, you’re paying at least 2 percent too much for everything you buy except the things that can’t easily be paid for with a credit card.

    That adds up big over the years.

    • 0ops@lemm.ee
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      1 year ago

      Plus if you’re young it builds a credit score. Get a credit card, pretend that it’s your debit card. Set up automatic payments.

    • RaoulDook@lemmy.world
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      1 year ago

      Credit cards should be avoided at all times, unless you have the money to pay them off each month. Or if you’re getting zero-interest financing and you are able to stick to the plan of paying it off before interest gets added.

      Getting into credit card debt is one of the most common and worst poverty traps. Getting behind on credit card bills can ruin your credit and take years to repair, which impacts your financial stability when it comes time to make a purchase with Real Credit such as a home or car.

      My best poverty tip is to not buy expensive things that are unnecessary. Also cook your own food at home, and learn to repair anything that you value. I’ve saved thousands of dollars over the years by doing my own car repairs, and driving old cars long past having them paid off.

      • Kruggles88@lemmy.world
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        1 year ago

        A credit card is a spending tool, not a debt tool. If you buy things with a CC that you can’t pay for right away you are doing it wrong.

        Get a cashback $0 fee card and use it for everything you need and nothing you want.

        • lightnsfw@reddthat.com
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          1 year ago

          When I started out my limit was less than I made in a month and I paid for everything with it. That was hard to fuck up and helped me build good spending habits. Currently I have one that is about 2x my monthly salary that I use for larger purchases but still the concept remains similar.

      • GiddyGap@lemm.ee
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        1 year ago

        I know credit cards can be a slippery slope for some, so learn how to practice financial discipline before getting one.

      • TheSlad@sh.itjust.works
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        1 year ago

        My neighbors living in a slumlord’s two bedroom apartment Rent to Own everything. The got a TV from Rent to Own so big it had to be delivered cause it didnt fit in their car … i got the cheapest roku pos tv at walmart for $50.

        Their daughter when she comes over to play with my kids has told me about so many frivolous things from Rent to Own they probably pay more to Rent to Own per month than in actual rent for their appartment.

      • jonkenator@lemmy.world
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        1 year ago

        This is the way. December is always my spendiest month and cash back from the previous year nearly always makes up for the difference.

    • ryathal@sh.itjust.works
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      1 year ago

      On average people spend around 5% more with credit cards. That 2% cash back is a partial refund of increased spending.

      • GiddyGap@lemm.ee
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        1 year ago

        Yeah, don’t spend more. Use it as a debit card.

        And, again, make sure to be financially responsible and literate before you get a credit card.

        • SeabassDan@lemmy.world
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          1 year ago

          Any place to get a proper gist of what financially literate means in this context? I know maybe a few basics but always wondered about the best way to utilize credit to a long term benefit.

          • GiddyGap@lemm.ee
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            1 year ago

            Basically use any credit card as you would any debit card. That means never spend any money you don’t already have in your account. And always pay the full statement balance every month on time to avoid paying interest.

            That way you will get all the rewards and none of the drawbacks.

            • SeabassDan@lemmy.world
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              1 year ago

              And what happens when a big purchase comes along that I really need, like my car breaking down or just a new mattress? I always figure that’s where the utilization starts going up and there’s only so much that can be paid off before the next billing cycle.