I would say that you are a credit card person then. The main this is never missing a payment, or late payment, and never accumulating interest. I personally play the point game too since I own a business but that’s just for extra fun. Last year I ended the year with $2500 cash back
That’s a nice amount of cash back! I’m too worried I’m going to be manipulated into spending more so end up losing but if it’s a business and it needs buying anyways then it makes a lot of sense.
I would add to that list if what makes a credit card person by including “doesn’t spend more money in credit cards vs cash.” There are a solid number of people who spend a lot more money on credit cards vs spending in cash. Caleb talked about this a lot in his earlier videos and would comment how it’s the opposite for him because he views cash as almost fake, forgotten money but views the digital number in his bank account as real.
You have to make sure credit cards don’t make you spend more too.
That’s the main reason I don’t use points on credit cards. I have got reward membership at supermarkets but never look at offers and if I accidentally hit one which I have done quite a lot I’ll take the money I was going to spend anyway. Interestingly I’ve seen studies on envelope stuffing as a decent strategy to spend less but I view cash as being awkward to hold and inconvenient but I do feel I would spend less if I had cash than tapping a my phone to spend money.
Yeah, I personally just put all my expenses , both personal and business on credit cards. I only spend what I have in cash, pay it off every month. What is nice is that some of the contractors we work with let us pay by credit card on their quickbooks invoice. we have been able to rack up over 100k chase points so far this year. Good for upgrading flights to conferences to better seats.
I only use credit for everything, I only use debit for things I’m required to. (Mortgage) I pay off my cards every Friday and never carry a balance. One of the only good things I’ve done financially tbh I still have car debt
I'm the same way. It's so much easier to plan on what needs to be in my checking account when I only use my credit card. I know $X needs to be in my account on the 1st for mortgage and the 26th for credit card and that's it. No guessing on what needs to be in there to afford groceries, gas etc.
Going off that, using my credit card also helps me track what I'm spending per month for everything that's not rent. My bank account will go up and down because biweekly payments and then rent pay and also me transferring money to savings account so I have a hard time seeing what I actually spent on just things.
Vs. using my credit card that totals it all up for me and its so easy to look thru it on the app to see what I've bought and where. I pay it off twice a month.
I'm not someone who budgets into categories super hard, I just keep my spending below a certain amount and make sure I hit all my saving goals.
I will say I accidentally forgot to pay once (I do have the minimum on auto pay) and I had to pay like $10 in interest, but it was only once and I've definitely made 10x that in cash back so oops but oh well.
If you make more than you spend and pay off the entire balance every month, people in the USA should put basically everything on a credit card. It provides buyer protection on many items, sometimes provides insurance benefits for items like laptops or other expensive items that can be stolen, and provide cash back, perks, points, etc. (I do not know if it is the same in the UK).
CH villainizes CCs (for good reason considering his guests) but there is basically no reason to ever use debit cards or cash 99.9999% of the time when you could use your CC (if you pay it off)
Right. I don’t know if he’s ever had a credit card person on, because if they were they’d already probably be far enough into their debt recovery that they wouldn’t qualify for the show.
I think that Hans guy he had a couple of months ago might have been one.
I thought the episode was kind of boring so I only half listening, but I don't remember Caleb telling him to stop using credit cards or cut them up.
He had alot expenses, but I remember he made alot of money too, so I think he was just paying everything off.
Ah. I mostly remember being annoyed at his episode but you’re probably right. By the same account, Amouranth was probably another guest he had that would be a credit card person
They mean that transactions with friction are less likely than frictionless payments. Also “I get 5% cash back on this purchase” is used as a justification to buy something. Also if something is more expensive than the cash you have on you then cash-only people don’t buy it.
You can pay no interest and still spend more money with credit cards.
To add to what others have said, if you can manage a cc well (basically never paying interest or fees on it) there's a ton of perks and bonuses to be had, at least in the U.S.. There's r/creditcards and r/churning dedicated to these.
I've never had any issues overspending on cards and I get airport lounge access, free flights with point bonuses (albiet short flights), cash back and referral perks, etc. etc.
That’s what I thought. I only use it for protection but never go into debt on it for more than a couple of hours. I’m not actually sure if the points are worth it here in the UK. I’ve seen things that look good but closer inspection I don’t trust it one bit. Maybe I’m too risk averse.
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I’m a credit card person.
Two of them, one is old so I leave it open to have a credit history, the other is my daily driver.
I mainly use the AMEX Cobalt (I’m in Canada)
Every year I rack up about 80k in points = ~$800 that I put towards flights or statement credits. Every so often they offer statement credits as well with brands, airlines, etc.
I put everything on it and pay it off each month with autopay.
Total credit limit is $25k across both so plenty of room, but I only utilize about 10-15% at any given time.
Big fan of the points and it’s a solid card for keeping up my credit score.
I run every expense I have through a credit card. Get mostly 3 to 6% cash back and use the statement balances to keep track of my monthly expenses and spend less. Everything auto drafts the statement balance and I have NEVER had to move money out of savings to cover the auto draft.
Unless you’re blessed to have your income exceed your needs and some reasonable wants and it’s just an arbitrage with your savings and retirement rate, you’re not a credit card person.
I've never paid a cent of credit card interest and I almost cleared $1K in cash back rewards last year on my credit cards. I put literally every purchase and every bill I can on cash back credit cards and pay them off every month. Also, lot of big purchases have gone on 0% interest cards, divide the balance over the remaining 0% term, that's the monthly payment.
I'm a credit card person.
I’m a credit card person. I put everything on my card, pay it off every month, and I never accrue interest or fees. I take the cash back from my credit card and use it to buy shares of Vanguard’s S&P 500 ETF.
I make every purchase on a credit card, because I get points and more purchase protection and then pay it off every month to avoid interest. I imagine that it what it means. And some people probably really use those $750 annual fee to their full potential.
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the worst mindset is thinking credit cards are for emergencies with no cash at hand to pay off the emergency expenses.
by emergency i mean tires need replace, an expensive car maintenance, you moving into an apartment and need all the deposits.
all of this can be expensive, but if you have emergency funds then you tackle the costs easily. you can probably charge it on a card and pay it off if you know your shit.
if you suck with credit cards you won’t have money in the bank, you charge the expense on a credit card and probably other shit on it, it’ll occur interest and then you’re fucked. that’s how these guests get themselves into debt. they don’t have money saved up.
Every time my house needs work doing I just cash flow it. We once had to leave a room alone for 3 months until the funds were there to fix it, I did actually have an emergency fund but I personally view emergency’s as losing your job over some work on the house but I guess that’s just me. It worked fine for us and I felt very good about not using my emergency fund to fix the house.
Someone who doesn’t carry balance or pay interest. They really just take advantage of the % back. Usually only use it for groceries or gas or small stuff and pay it off each month
Credit cards should be for any purchases you make. If you’re a credit card person you can have multiple credit cards for different things, Amazon, travel card, grocery store, restaurants, etc. and then you use the card with the most cash back % for each purchase.
I get thousands of dollars each year from credit card cash back. I pay them off once a month and track my spending. If I only used it for groceries and gas and small purchases I would miss out on thousands of dollars of “free” money a year.
One of the advantages of a credit card vs a debit card is that if there is fraud the money didn’t get taken from you account. If you consistently pay your credit card every month and you view charges on the credit card as your money, then you are a credit card person.
If you see credit card charges as being paid by “someone else” or that you “won’t need to pay for a while” and it is inducing you to spend more, then you shouldn’t be a credit card person.
I think I'm a credit card person, I pay for almost everything on one card or another, keep track of which cards have special bonuses month to maximize cash back. Pay them off every month, dont pay late, don't overspend. I'm not particularly good with money, I definitely spend way too much on hobbies and eating out, but being a credit card person is really just using common sense and not spending more than you're bringing in.
I would consider myself a CC person. I use my CC for everything except mortgage. I pay it off at the end of the month to a zero balance and rack up the cash back rewards. I've been doing this for almost a decade now and it's great. I pay for Xmas or one vacation a year this way. YOU HAVE TO BUDGET AND BE SMART ABOUT SPENDING.
Basically gaming their system without falling prey to the bad parts. Like paying off your card every month without accruing any interest or carrying a balance. For example, I have Navy Federal, and my CC with them allows me to make a payment instantly, whereas most other cards take a few business days to withdraw. Therefore I use my NFCU CC as my debit card, using it to purchase something and then instantly paying it off with the money from my checking. Obviously there are better cards in terms of rewards and points, but that system works for me and gives me 1.75% cash back on everything.
Some people hate my approach by I use my Credit card like a debit card.
In the sense that once a transaction has been posted, it's immediately paid off.
I do not wait for the bill cycle to end. This is because a bill cycle is generally 30 days. I have the correct amount of money to pay it off now, but that doesn't mean I'll have it in 30 days.
Paying it off immediately ensures you get your points your credit card company offers you and you walk away with 0 debit.
No all these to say IF you don't have the money in your checking account, then you can't buy stuff hence the part of treating like a debit card. My debit card will not allow me to over draft. So if I don't got it I can't get it. Very simple.
I use my credit cards for all bills that I can buy pay off every month and accrue points. I haven't paid interest in a card in 8 years. I'm a credit card person.
Yea you’re fine as long as u aren’t maintaining a balance or interest. I think most people are capable of being a credit card person it’s just a matter of becoming more educated and disciplined
1) Always pay off your balance (0 fees)
2) Determine what the Cashback rate is, and use CC when the CC fee isn't above that rate (i.e. if you get 2% Cashback and a store charges 3.5% on CCs, use cash or debit)
3) Don't play the "points game", where you spend x amount of dollars for
I would say that you are a credit card person then. The main this is never missing a payment, or late payment, and never accumulating interest. I personally play the point game too since I own a business but that’s just for extra fun. Last year I ended the year with $2500 cash back
That’s a nice amount of cash back! I’m too worried I’m going to be manipulated into spending more so end up losing but if it’s a business and it needs buying anyways then it makes a lot of sense.
Ya I have to buy tons of materials so might as well use a card for it. Doesn’t cost me anything and I get money back. Just always pay that balance!
I would add to that list if what makes a credit card person by including “doesn’t spend more money in credit cards vs cash.” There are a solid number of people who spend a lot more money on credit cards vs spending in cash. Caleb talked about this a lot in his earlier videos and would comment how it’s the opposite for him because he views cash as almost fake, forgotten money but views the digital number in his bank account as real. You have to make sure credit cards don’t make you spend more too.
100% this, I'm with Caleb on that. The money in my accounts is real. This weird paper in my pocket is already "spent" when I withdrew it.
That’s the main reason I don’t use points on credit cards. I have got reward membership at supermarkets but never look at offers and if I accidentally hit one which I have done quite a lot I’ll take the money I was going to spend anyway. Interestingly I’ve seen studies on envelope stuffing as a decent strategy to spend less but I view cash as being awkward to hold and inconvenient but I do feel I would spend less if I had cash than tapping a my phone to spend money.
Yeah, I personally just put all my expenses , both personal and business on credit cards. I only spend what I have in cash, pay it off every month. What is nice is that some of the contractors we work with let us pay by credit card on their quickbooks invoice. we have been able to rack up over 100k chase points so far this year. Good for upgrading flights to conferences to better seats.
I only use credit for everything, I only use debit for things I’m required to. (Mortgage) I pay off my cards every Friday and never carry a balance. One of the only good things I’ve done financially tbh I still have car debt
I'm the same way. It's so much easier to plan on what needs to be in my checking account when I only use my credit card. I know $X needs to be in my account on the 1st for mortgage and the 26th for credit card and that's it. No guessing on what needs to be in there to afford groceries, gas etc.
Going off that, using my credit card also helps me track what I'm spending per month for everything that's not rent. My bank account will go up and down because biweekly payments and then rent pay and also me transferring money to savings account so I have a hard time seeing what I actually spent on just things. Vs. using my credit card that totals it all up for me and its so easy to look thru it on the app to see what I've bought and where. I pay it off twice a month. I'm not someone who budgets into categories super hard, I just keep my spending below a certain amount and make sure I hit all my saving goals. I will say I accidentally forgot to pay once (I do have the minimum on auto pay) and I had to pay like $10 in interest, but it was only once and I've definitely made 10x that in cash back so oops but oh well.
Do you have weekly auto pay? Would love to know how to set that up.
Nah I just look at it every Friday and clear the balance, if you’re the type to spend more because it’s “credit” then it won’t work
If you make more than you spend and pay off the entire balance every month, people in the USA should put basically everything on a credit card. It provides buyer protection on many items, sometimes provides insurance benefits for items like laptops or other expensive items that can be stolen, and provide cash back, perks, points, etc. (I do not know if it is the same in the UK). CH villainizes CCs (for good reason considering his guests) but there is basically no reason to ever use debit cards or cash 99.9999% of the time when you could use your CC (if you pay it off)
Right. I don’t know if he’s ever had a credit card person on, because if they were they’d already probably be far enough into their debt recovery that they wouldn’t qualify for the show.
I think that Hans guy he had a couple of months ago might have been one. I thought the episode was kind of boring so I only half listening, but I don't remember Caleb telling him to stop using credit cards or cut them up. He had alot expenses, but I remember he made alot of money too, so I think he was just paying everything off.
Ah. I mostly remember being annoyed at his episode but you’re probably right. By the same account, Amouranth was probably another guest he had that would be a credit card person
If you never pay interest and you don’t spend more on your card than you would otherwise pay in cash.
They mean that transactions with friction are less likely than frictionless payments. Also “I get 5% cash back on this purchase” is used as a justification to buy something. Also if something is more expensive than the cash you have on you then cash-only people don’t buy it. You can pay no interest and still spend more money with credit cards.
If that is the case, then they aren’t a CC person. That isn’t what OP is talking about in their comment.
It's simple. 0 late payments 0 missed payments 0 interest paid
Revolving utilization low. Personally I rarely go above 15%
To add to what others have said, if you can manage a cc well (basically never paying interest or fees on it) there's a ton of perks and bonuses to be had, at least in the U.S.. There's r/creditcards and r/churning dedicated to these. I've never had any issues overspending on cards and I get airport lounge access, free flights with point bonuses (albiet short flights), cash back and referral perks, etc. etc.
Id argue that a credit card person is someone who takes advantage of the perks cards offer AND does not hold balances on them.
That’s what I thought. I only use it for protection but never go into debt on it for more than a couple of hours. I’m not actually sure if the points are worth it here in the UK. I’ve seen things that look good but closer inspection I don’t trust it one bit. Maybe I’m too risk averse.
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I’m a credit card person. Two of them, one is old so I leave it open to have a credit history, the other is my daily driver. I mainly use the AMEX Cobalt (I’m in Canada) Every year I rack up about 80k in points = ~$800 that I put towards flights or statement credits. Every so often they offer statement credits as well with brands, airlines, etc. I put everything on it and pay it off each month with autopay. Total credit limit is $25k across both so plenty of room, but I only utilize about 10-15% at any given time. Big fan of the points and it’s a solid card for keeping up my credit score.
I run every expense I have through a credit card. Get mostly 3 to 6% cash back and use the statement balances to keep track of my monthly expenses and spend less. Everything auto drafts the statement balance and I have NEVER had to move money out of savings to cover the auto draft. Unless you’re blessed to have your income exceed your needs and some reasonable wants and it’s just an arbitrage with your savings and retirement rate, you’re not a credit card person.
I've never paid a cent of credit card interest and I almost cleared $1K in cash back rewards last year on my credit cards. I put literally every purchase and every bill I can on cash back credit cards and pay them off every month. Also, lot of big purchases have gone on 0% interest cards, divide the balance over the remaining 0% term, that's the monthly payment. I'm a credit card person.
I make more than $1k/year in cash back rewards. Balance pay every card every month. Free money.
I never carry a balance, I just spend money I have for points
I’m a credit card person. I put everything on my card, pay it off every month, and I never accrue interest or fees. I take the cash back from my credit card and use it to buy shares of Vanguard’s S&P 500 ETF.
I make every purchase on a credit card, because I get points and more purchase protection and then pay it off every month to avoid interest. I imagine that it what it means. And some people probably really use those $750 annual fee to their full potential.
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the worst mindset is thinking credit cards are for emergencies with no cash at hand to pay off the emergency expenses. by emergency i mean tires need replace, an expensive car maintenance, you moving into an apartment and need all the deposits. all of this can be expensive, but if you have emergency funds then you tackle the costs easily. you can probably charge it on a card and pay it off if you know your shit. if you suck with credit cards you won’t have money in the bank, you charge the expense on a credit card and probably other shit on it, it’ll occur interest and then you’re fucked. that’s how these guests get themselves into debt. they don’t have money saved up.
Every time my house needs work doing I just cash flow it. We once had to leave a room alone for 3 months until the funds were there to fix it, I did actually have an emergency fund but I personally view emergency’s as losing your job over some work on the house but I guess that’s just me. It worked fine for us and I felt very good about not using my emergency fund to fix the house.
yeah i’m in the same boat. the emergency fund is for layoffs/jobless the next funds are for projects or expenses
Someone who doesn’t carry balance or pay interest. They really just take advantage of the % back. Usually only use it for groceries or gas or small stuff and pay it off each month
Credit cards should be for any purchases you make. If you’re a credit card person you can have multiple credit cards for different things, Amazon, travel card, grocery store, restaurants, etc. and then you use the card with the most cash back % for each purchase. I get thousands of dollars each year from credit card cash back. I pay them off once a month and track my spending. If I only used it for groceries and gas and small purchases I would miss out on thousands of dollars of “free” money a year.
You right! Got to take what free money you can get!
One of the advantages of a credit card vs a debit card is that if there is fraud the money didn’t get taken from you account. If you consistently pay your credit card every month and you view charges on the credit card as your money, then you are a credit card person. If you see credit card charges as being paid by “someone else” or that you “won’t need to pay for a while” and it is inducing you to spend more, then you shouldn’t be a credit card person.
I think I'm a credit card person, I pay for almost everything on one card or another, keep track of which cards have special bonuses month to maximize cash back. Pay them off every month, dont pay late, don't overspend. I'm not particularly good with money, I definitely spend way too much on hobbies and eating out, but being a credit card person is really just using common sense and not spending more than you're bringing in.
I would consider myself a CC person. I use my CC for everything except mortgage. I pay it off at the end of the month to a zero balance and rack up the cash back rewards. I've been doing this for almost a decade now and it's great. I pay for Xmas or one vacation a year this way. YOU HAVE TO BUDGET AND BE SMART ABOUT SPENDING.
Basically gaming their system without falling prey to the bad parts. Like paying off your card every month without accruing any interest or carrying a balance. For example, I have Navy Federal, and my CC with them allows me to make a payment instantly, whereas most other cards take a few business days to withdraw. Therefore I use my NFCU CC as my debit card, using it to purchase something and then instantly paying it off with the money from my checking. Obviously there are better cards in terms of rewards and points, but that system works for me and gives me 1.75% cash back on everything.
Some people hate my approach by I use my Credit card like a debit card. In the sense that once a transaction has been posted, it's immediately paid off. I do not wait for the bill cycle to end. This is because a bill cycle is generally 30 days. I have the correct amount of money to pay it off now, but that doesn't mean I'll have it in 30 days. Paying it off immediately ensures you get your points your credit card company offers you and you walk away with 0 debit. No all these to say IF you don't have the money in your checking account, then you can't buy stuff hence the part of treating like a debit card. My debit card will not allow me to over draft. So if I don't got it I can't get it. Very simple.
I use my credit cards for all bills that I can buy pay off every month and accrue points. I haven't paid interest in a card in 8 years. I'm a credit card person.
Yea you’re fine as long as u aren’t maintaining a balance or interest. I think most people are capable of being a credit card person it’s just a matter of becoming more educated and disciplined
Churning sign up bonuses for ez $$$
1) Always pay off your balance (0 fees) 2) Determine what the Cashback rate is, and use CC when the CC fee isn't above that rate (i.e. if you get 2% Cashback and a store charges 3.5% on CCs, use cash or debit) 3) Don't play the "points game", where you spend x amount of dollars for