[Santofu]

How do you use your credit card that debit card cannot do?

For me, I use my debit card on everything(gas, grocery, clothes) and my credit card for online only.

What is your amount of limit you have on your credit card?

I heard if you use your credit card too much, would it hurt your credit score? Sorry for a n00b question but I'm just curious.

[Matlock]

Always pay on time. /thread

[Carl Johnson]

I use credit card on everything expect places that only accept cash. The trick is when you get your statement middle of the month, go to online banking right away and entry the payment as a postdated transaction because the due date is usually at the end of the month (beware of weekend). This way you will never miss a payment so your credit score should only improve.

[CorneringArtist]

I pay off my CC bill after a couple of days online.

[Edison_Chen]

I use my credit on most purchases: groceries, gas, electronics, everyday use. I use cash primarily at Chinese restaurants and other small items. I usually dont carry too much cash around.

[NLY]

Some credit cards give rewards for usage, I'm using the MBNA Smart Cash credit card at the moment. The card gives 5% cash back (up to $600 per month I believe) for the first 6 months on all purchases (except mortgages I believe) and 3% for gas and groceries after. Imagine paying for your insurance and other larger purchases, instant cash back. If I'm going to be spending the money I might as well get something back for it. Once you reach a certain amount of points, (cash backs) you will get a cheque in the mail from MBNA.

In my opinion, the important thing is to keep track of your purchases and don't use your credit card if you cannot afford to pay it off at the end of the month. I find online banking very useful because you can track all purchases and definitely budget easier. Another benefit of online banking is paying all your bills conveniently.

My debit card doesn't get much use anymore because of the MBNA card but I will occasionally use it because not all places take credit cards as payment.

In terms of your limit, I would say it depends how often you would be using the card as well as what you would be purchasing. I would rather have a lower limit because it would somewhat stop me from making large impulse purchases. I do not believe using your credit card will hurt your credit score, I think as long as you pay off your balance at the end of the month you should be in the clear.

All in all, a credit card takes a bit of discipline and self control.

[Honyoung]

is it true that you need to use your credit card (paying it off in time of course) in order to improve your credit? or by just having it and rarely using it will improve it also?

[Sky_High]

I heard if you use your credit card too much, would it hurt your credit score?

Sorry...but :fulloffuck:

[MindBomber]

is it true that you need to use your credit card (paying it off in time of course) in order to improve your credit? or by just having it and rarely using it will improve it also?

It needs to be used, the trick is not allowing yourself to carry a balance in excess 50% of the total limit or to pay it off completely monthly. That shows you're capable of managing credit, and that you are not reliant on it to get by, having the card just sitting there or using it once a month for gas doesn't show them anything.

It's also important to never close an account, cut up a card and let the account sit inactive, but do not close it as that does hurt your credit score.


I heard if you use your credit card too much, would it hurt your credit score? Sorry for a n00b question but I'm just curious.

That's not a ridiculous question, I can see how someone inexperienced with finance might get that idea, it's carrying a large percentage of your total limit as a balance and not paying on time that dings your credit score.

[TRDood]

My routine:
Debit card = fast food/coffee
I carry 1 debit card

Credit card = meals/shopping/everything else
I have 1 credit card for cash back, 1 for gas, and 1 for usd purchases

Cash = asian places that only take cash or buy/sell deals

I rarely use cheques and never used bank drafts and money orders. I don't see the point of travellers cheques other than going to a developing country.
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[Sky_High]

My routine:
Debit card = fast food/coffee
I carry 1 debit card

Credit card = meals/shopping/everything else
I have 1 credit card for cash back, 1 for gas, and 1 for usd purchases

Cash = asian places that only take cash or buy/sell deals

I rarely use cheques and never used bank drafts and money orders. I don't see the point of travellers cheques other than going to a developing country.
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Curious....does any of your three credit card offer the paypass technology?
I'm not sure which fast food / coffee you frequent, but a lot of them now a days allow you to pay with your paypass enable Credit Card....much more convenient than entering in all that pin for debit card. Might not be a huge amount, but it still gain you a tiny bit of cash back / points or whatever.

[XplicitLuder]

just got the scene visa. that's primarily my use for online

and debit/cash for everything else. Altho since now you guys mention that i should use the visa more cus the online is maybe 1-2 a month lol so i wouldnt really build a credit. So ill prob start using the visa more

[Jermyzy]

I use my credit cards whenever possible to collect points. I pay off the full balance every month.

[urban.boi]

I use my credit card always expect for cash only places to collect my miles. but pay it off before my billing cycle,

only time I use my debit is to withdraw from ATM.
And as to amount on credit card, depending on card. usually 4x the pay is what I get offer from them. ( HK cards, Canada card I lower to 2x the pay cheque )

[6insomnia9]

Cash is gold.
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[Oleophobic]

I use my RBC Visa for practically everything just because it's convenient and I get points.
I use my debit card at places that don't take Visa or if I don't have enough cash on hand.
I rarely use cash except at pho places and other asian stores.

I use online banking so I pay off my balance every month and have never been late because it's so easy to manage everything with online banking. The only thing that sort of sucks with RBC's credit cards is that there are no good cashback cards.

[xilley]

cash ftw

[SiRV]

I use credit cards for Everything possible.. otherwise cash.
The points I've collected over the past 4-5 years is pretty awesome. I have 3 round trip flights to hawaii basically free!

[XplicitLuder]

do they send me a notice home saying how much i have to pay off my visa card ? or do i have to go to my branch and be like i wanna pay this off ( before the end of the month ) ? im with scotia

[Jgresch]

Use credit card to book with TBC..... almost always use debit, rarely carry cash.

[RFlush]

I use credit cards for everything. I am an avid point collector having over 6 different credit cards depending on certain purchases if they are over or under a certain amount, food, grocery markets, overseas etc. In the short few months I have started to collect, I have amassed enough points for two round trip tickets ex HK to Japan or one long haul return ticket ex HKG - Van. Also certain cards give me airport lounge access or many other benefits such as purchase protection etc.

I think if you know how to use a CC wisely, you should ALWAYS use it for all purchases. Purchase protection is great as well as extended warranty. Just dont be an idiot and use it for credit. Make sure you pay off all bills right before the due date and use it as a method of payment.

[TouringTeg]

I use MBNA Smart Card MasterCard for everything. I get a $50 cheque nearly every month.

I actually go online and pay off my purchases every few days to keep my balance at zero. That way I know exactly how much cash I have in my bank account and the cc balance never gets very high.

[MelonBoy]

Everyones credit card limited may vary depending on how much the company gives you and how much you ask for. (Most starting CC's start you off with $500 limit)

As long as you can keep track of your money/spending using a credit card is no comparison to using cash/debit..

Credit cards = Rewards (cash back,travel or rewards points), balance protection, extended warrenty, price protection, insurance, builds credit rating (you'll need this if you ever plan to buy something such as a car or home), etc.. There are a lot of credit cards out there and the benefits may vary..

Debit = Theft protection? if someone mugs you you wont lose all your money cause generally even if they steal your money from your accounts the bank will reimburse you.. (They will conduct an investigation)

Cash = you lose it, its gone.. no actual benefits other then using it at some asian places that take cash only..


Also with all the new phone apps and online banking, keep track of your CC/bank balance is very easy and quick...

[LC21]

I want a credit card that gives me a good rewards for travelling... the BMO Student card suxss =(

[tiger_handheld]

credit card for everything. pay off balance as of every pay day. easy as motherhood and apple pie.

[lowside67]

It's also important to never close an account, cut up a card and let the account sit inactive, but do not close it as that does hurt your credit score.
I have never heard this before... a portion of any application for debt is available credit, having cut up cards that are still active would definitely hurt this, how do you figure that closing a card will harm your rating?

Mark

[Spoon]

^
think it's because you increase your debt/credit ratio.

example:
debt = $1000
available credit = $10,000
debt/credit ratio = 10%

Cancelling a credit card with a $5000 limit, your debt/credit ratio is 20%.

Not a financial expert here, just stuff I've read along the way.

[jasonturbo]

Credit card for everything, debit/cash don't give me cashback of minimum 1.5% on every purchase.

Never paid a cent of interest in my life, bank online and pay it off no less than bi-weekly.

[Firmware]

Cash is gold
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[JKam]

mbna for regular bills and after I max out the TD Visa ($500 limit)
td visa for everything I can ($1000 limit)
CIBC Visa for large purchases (never used)
debit not used
cash for bubble tea.

My limits are low on purpose so I don't spend my money. This way I make more than what I spend and pay everything off.

[LaidbacK]

I like to think of credit cards as small loans. You pay with a plastic card and have until the end of the month to pay. I keep my money in another bank account that gives me daily compounded interest until I have to pay the bill.

[604nguyen]

credit on everything ......

build up credit and points like a bauuwss


:fuckyea:

[mr_chin]

How do you use your credit card that debit card cannot do?

For me, I use my debit card on everything(gas, grocery, clothes) and my credit card for online only.

What is your amount of limit you have on your credit card?

I heard if you use your credit card too much, would it hurt your credit score? Sorry for a n00b question but I'm just curious.

If you are trying to save money, I suggest a chequing and savings account.

Some savings account won't allow you to make purchases or withdraw money.

Never ever have more than $100 in your chequing account. Only time you need over $100 is when your bills are to be paid by that account.

As for credit card, limit yourself to 2 cards, no more than 3. Spending too much on your credit card doesn't hurt your credit score but it is part that lenders look at when you borrow money. It's called debt to credit ratio. If you have $1000 credit limit, and on average $800 is used up, it doesn't look very good.

[mr_chin]

^
think it's because you increase your debt/credit ratio.

example:
debt = $1000
available credit = $10,000
debt/credit ratio = 10%

Cancelling a credit card with a $5000 limit, your debt/credit ratio is 20%.

Not a financial expert here, just stuff I've read along the way.

But if you pay $500 to that debt, you are back at 10%. Some cards you just have to cancel because of maintenance fee. Read your contract to make sure.

[MPTness]

.

[mb_]

MasterCard for just about everything (fast food, gas, fares, etc)
Debit for bills (phone, etc)
Visa for restaurants

Rarely use cash unless it's lose change

[NLY]

20k credit limit because that's more than enough instead of 60k I am eligible for

http://i.imgur.com/P0D1h.gif

[wyuzz]

Since were on the topic of plastic cards which credit cards do you guys recommend best for rewards (points) for a student?
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