So I was doing my budget, paying bills and such tonight when I discovered that it was exactly three years ago today that I last used my debit card for a purchase. Sure enough, when I pulled out the actual card from my wallet, there are very faint scratch marks likely made when inserting the card into the local branch ATM in order to either get cash (I think I withdrew some cash before going to Vegas in January) and depositing the Pinecone checks.
The last purchase was at 7-11 on December 10, 2013 for $11.60. According to what I can tell from my Microsoft Money records, I'd been diminishing the use of the debit card dramatically since that summer.
So what happened? Simple. Credit became king.
Back in the Koyo days, I had neither credit or checking so basically cash was king. A pitifully scarce king but a king nonetheless.
Once I got back on my feet in the mid to late aughties, I transitioned to checking and debit was king. And though I was struggling to repair my credit, I was still a long way from using credit cards exclusively.
But by mid 2013, I had shored up that credit score nicely and stuffed my wallet with several pieces of plastic. But I didn't shift from debit to credit just because I felt like it. It was the rewards, baby. The rewards.
By using my credit cards for more and more of my purchasing needs, I realized they could become yet another revenue source. It's literally making my money work for me. There are key factors to keep in mind though. First, I need to be sure all purchases can be paid off based on the statement balance total each month, otherwise the Frequent Flashers, the cards I use for everyday purchases, big and small, will accrue finance charges and that's a big no no. Second, I had to be more cautious of this back in '13 as opposed to now but I have to keep credit utilization low. And third, I know what card to use for what merchant. Publix and Winn-Dixie? Whip out AMEX Blue. Its whopping 3% back on groceries is boss!
Do the rewards really add up?
Well, I earn about $200 to $250 a year in statement credits. Not bad. Of course it's not really income per se since of course it's a percentage of what I spend, but it's definitely a big savings.
Oddly enough, my debit card actually does have a rewards program attached to it so I do get something when, and if, I ever use it. but here's the rub. It's total shit. The points can only be used to buy crap from their catalog full of way over priced junk and you only earn points by shopping at selected retailers that they pick...and I don't even think it's a 1% rate either. Totally worthless.
The last purchase was at 7-11 on December 10, 2013 for $11.60. According to what I can tell from my Microsoft Money records, I'd been diminishing the use of the debit card dramatically since that summer.
So what happened? Simple. Credit became king.
Back in the Koyo days, I had neither credit or checking so basically cash was king. A pitifully scarce king but a king nonetheless.
Once I got back on my feet in the mid to late aughties, I transitioned to checking and debit was king. And though I was struggling to repair my credit, I was still a long way from using credit cards exclusively.
But by mid 2013, I had shored up that credit score nicely and stuffed my wallet with several pieces of plastic. But I didn't shift from debit to credit just because I felt like it. It was the rewards, baby. The rewards.
By using my credit cards for more and more of my purchasing needs, I realized they could become yet another revenue source. It's literally making my money work for me. There are key factors to keep in mind though. First, I need to be sure all purchases can be paid off based on the statement balance total each month, otherwise the Frequent Flashers, the cards I use for everyday purchases, big and small, will accrue finance charges and that's a big no no. Second, I had to be more cautious of this back in '13 as opposed to now but I have to keep credit utilization low. And third, I know what card to use for what merchant. Publix and Winn-Dixie? Whip out AMEX Blue. Its whopping 3% back on groceries is boss!
Do the rewards really add up?
Well, I earn about $200 to $250 a year in statement credits. Not bad. Of course it's not really income per se since of course it's a percentage of what I spend, but it's definitely a big savings.
Oddly enough, my debit card actually does have a rewards program attached to it so I do get something when, and if, I ever use it. but here's the rub. It's total shit. The points can only be used to buy crap from their catalog full of way over priced junk and you only earn points by shopping at selected retailers that they pick...and I don't even think it's a 1% rate either. Totally worthless.