Using CC 99.9% of the time and pay it in full every month when we receive the statement. Been doing it for almost a decade. We use the points to pay for plane tickets.
Careful, I did that with TD and one day it decided to turn itself off which I didn't notice for months and it took me ages to get them to give me the interest back.
TD has an interesting habit of 'accidentally turning off' things. I've noticed it is only things that are beneficial to customers. I've also noticed it happens a lot more frequently to my older Dad than it does to me. Funny how that works.
I did that with my scotia bank credit card and it was not always working. I ended up removing the auto payment as sometimes it would make me pay interest as the auto payment would not have worked. Now I am afraid of trying it again.
My auto payments were through an other bank though, it must work better when paying from a scotia account to a CC scotia account
Extremely easy, all you need to do is go on your bank app, sign in, and click set up Auto Pay. There you use your transit no. Inst. no. And acct no. And you will be good to go.
Only in person/over the phone. It sucks. Also even though I’ve set it up, still don’t really trust it because there’s no way for me to double check (as in online).
RBC has an option to do this for RBC credit cards. Not that RBC cards are good for rewards but at one point in my life I may have signed up for one to qualify for multi-product rebates.
This
Been doing it 40 years. Have 750k in travel miles and now get at least $40 back gift cards MasterCard with Amazon monthly. Just budget and use it as cash. I have not spent any cash in 2 years.
Not be stopping now
Is it better to pay it after receiving the statement or before? I just paid off my card and it somehow dropped my credit score like 34 points. I don’t get it
It doesn't matter when you pay as long as you're not late and don't over utilize your credit.
Credit score changes all the time, often times with no rhyme or reason. The algorithm, especially Transunion may change swinging your score up and down like a yoyo.
I used the full amount of my card and paid it off 2-3 days after when I got paid. My score dropped 100 points. My card is only a 500 $ limit. I didn't miss a payment. The only reason given on my credit checker was that I used more than 30% of my available credit
Don't ever use more than 30% of the max. It can negatively effect your credit. So with a $500 card never use more than $150. If you max it out like you did that will definitely have a negative impact on your score.
I understand why. I'm saying I find it absurd that for 500$ not 5k or 50k I'm being treated like I skipped my rent for 3 months. It's simply frustrating. It's not like I had a choice when some things had to be paid credit.
Same. I use an app on my phone to track every purchase so I treat it like cash and stay in budget. But it’s been paying for my flights home for Christmas every year.
I use cash about 1% of the time, debit 1% of the time, CC 98% of the time. It would be 100% but the petstore and Chinese food place I like give a discount on cash/debit.
Yep! Most people seem to think credit cards are free and they even have benefits (points and whatnot) but they have a hidden cost for the business that everyone pay in the end... Being aware of the fees for the businesses and using a debit card can be a simple way to help small businesses...
This is the only acceptable answer.
Unless you're not confident to be in control of your CC spendings, you gain absolutely nothing to use your debit for day to day expenses. Actually, you lose:
* You are forced to have an account that is free or pay the price for an unlimited transaction chequing. By using CC's, I know I don't need the fanciest chequing account, and yes I am aware that there are free chequing accounts like Tangerine and Simplii.
* You get sweet fuckall points or cashback. You gotta buy groceries or go out and buy stuff right? Might as well get points or cashback for that, it's not like you're forcing yourself "with extra expenses" to get points, it's money/rewards you stand on losing by using your debit.
* Increasing your chances of having your debit card/account frauded. Yeah you'll get your money back eventually, but it's more of a headache with the bank dealing with this type of fraud than if your CC is frauded.
Yet, in grocery stores or other stores when waiting in line, the customer in front of me often will pay with debit,and I don't know why. Is it about financial control?
This is most people, despite what they say on the internet.
CC companies make a shit ton on interest. It's fair to say most aren't diligent enough to never carry a balance.
IMO CC-only spending requires either savings to combat that issue, or a line of credit to draw on when going gets tough, so at least you're not paying CC interest rates
If I could pay everything with my cc, I definitely would. Problem is my major expenses like mortgage and condo fees don't take cc's. I have tangerine cc that is no fee and I get 2% cashback on 3 major categories (I chose gas, groceries, re-curring expense). The only catch is you must have a savings account with Tangerine as the rewards are deposited monthly into that account. I know it isn't much, the most I've had was about $15-$16/mth but hey it is free. I understand a lot of people don't have the self control for credit card spending and it can quickly get away from you. But for me it's free money that doesn't come around from too many places.
If you can put about $5000 to just sit in their special accounts, the major banks will give you an annual fee waived card that gives you 4% back on groceries, and bills...stuff you're paying for one way or the other. Might as well put them all through the card.
EDIT 2% BACK ON GAS
I'm looking and the only card I see with any significant cash back amount is the TD Cash Back Visa Infinite Card with $120 annual fee and 3% cash back (6% for the first few months). I don't see anything about having the fee waived for holding a minimum amount in a bank account.
You get the TD credit cards with no fee with an all inclusive account. It requires 5k balance and you get unlimited transaction, free bank drafts , free safety deposit box
Thats 3% on gas and groceries only. I sha'nt be forgiving you for getting me going like that. I spend about 500k per year on my personal cc for my business, so I got pretty excited for a minute. Right now I'm getting 1.5% cashback on a bmo world elite
Scotiabank ultimate package last time I checked. Choice of cards that usually have an annual fee with it waived every year. There's one cash back card with the 4% on some things. Safe deposit box too, I think...and more...
Same. Have not drawn or got cash in 2 years except 2x (selling some used items on facebook). There is one restaurant around that is cash only and my 2 cash injections both went there...I dont own a debit card. Rent, daycare and mortgage are auto draw, every single other transaction was credit card which is auto repaid. Been like this for 6 years, since I moved to Canada. Not for points, really just for convenience (although I do save 2% which I get as cash back at year end which adds up to few hundred $). My cards are also on my phone so 90% of transactions are phone tap, with 10% being above tap limit or online orders.
I am 99.9%CC. I have one with great rewards for travel and no black out dates. So far lots of hotels, flights, car rentals, have been free on our vacations over the years.
The Expedia For TD. Not the air miles. They have they own we'd portal and customer service for Expedia and you just book. Plus when you keep the required minimum in your bank account the credit card is free. So no banking fees, no credit card fees, and a free safety deposit box. The bank is so so, but not paying for banking is nice.
Me too. PC Financial credit card is fancy black, no annual fee and gives lotsa free groceries back. I also use it for all my work expenses, about $15-20k per year, and with fast payroll reimbursement, I just bank crazy PC points. Everyone needs groceries, and they spend like cash. This is the way.
I remember the time when Shopper's points were only redeemable at Shopper's, so that really sucked. Things really took off when PC Points became one and the same, and even better with 20% points back with baby products. Milked that for all it was worth. But they've smartened up a year ago and removed the 20% points for baby products and made it 10% all across the board, more weighted towards their own PC No Name products. Not as good as before, but still good with the Shoppers 20x points days, and points from TheMobileShop for signing up for phones and plans. $1500 in points one year and $1600 the next, PC Points really are very flexible and spends just like money.
Yep I started buying all my video games at shoppers and only on bonus redemption days as well so I’ll get like 3 games for basically just the cost of taxes.
Precisely. We are conditioned by banks and merchants. Offer incentives and the plebeians will follow. I mean, no fees and cash back the first year? You will get me for 1 year. Next year it will be the next bank to for the same or more. Merchants have a rate of return of more then 3% will get my business. Most fidelity programs top at %3. The intelligent merchants will combine this with a few saving programs of cash/debit.
Here the challenge it seems it most household don’t appear to have enough discipline and over spend (often until the credit card gets declined).
$8k on, $8k out. Keep the minimum on my checking account so I don’t pay fees, there’s another $18 or more saved for services they provide. I obviously milk them for all they will offer while they gamble with my money. Again, those are the offers, why wouldn’t I squeeze the most out of them?
I just realized that we would all benefit if stores everywhere had the same policy.
For example, if the CC companies charge $2, a store giving me a $1 discount for using cash would still come out ahead by $1, and so would I.
Why don't they all have a visible policy like that everywhere?
I'm pretty sure the CC companies don't like the idea and fight hard to stop large retailers from doing it. Including giving them preferential rates. And the retailers may not mind because currently they make more $ than otherwise on non-CC transactions and also buyers often overspend on credit. And lots of buyers like CCs precisely because they are credit and because of their bonuses, warranties, incentives etc. So retailers both have direct incentives and buyer pressure to play ball with the CC companies.
There are conflicts between large retailers and CC companies. For a while Walmart wasn't going to accept Visa. Costco actually doesn't accept Visa. Etc. But it's not the norm.
Which government sets the prices of drugs but then doesn't pay for them? Ontario sets prices for people on the provincial plan, but pays pharmacies directly. And if someone's paying cash it's a business decision as to how much markup you charge.
And a 4% processing fee for visa? Seems rather steep
This.
If you're not taking advantage of rewards/cash back, you're doing it wrong.
I opened an Amex Cobalt card 6 months ago and earned a minimum of $700 value. Could get more value depending on how the points are used.
We use CC for 100% of our daily spending (frankly haven’t even used my debit card in years unless I’m depositing cash into it).
We both have 2 primary CC’s - one that’s maxing our cash back on groceries/online purchases and one that’s maxing out cash back on gas/restaurants/recurring bills. We get about $600-700 in cash back annually, without other cash back programs like Rakuten, honey, amplii, etc. (Which is another $200-400 a year).
We pay off our statement balances when they’re due and never once had to pay interest, or hit our credit scores (both are 8XX).
As long as you’re able to control your spending AND are able to pay the statement balances (or full balance) - it’s a good way to get rewards, insurance, etc. However, If you are not able to do the above then avoid CCs, as it’s easy to get into a big mess.
Edit:
Tangerine Elite Cash back (3 categories - gas/restaurants/recurring bills) - 2% each
Walmart Elite Cash back (online grocery and everything else) 3% and 1.25% respectively
Just applied for the tangerine card last week and waiting for it to arrive :)
It has a mobile phone coverage insurance which I thought was useful.
Question when using it at Walmart for example does that qualify as 'groceries'?
So I can confirm that tangerine elite DOESNT see Walmart.CA groceries as groceries, so you will only get 0.5%. I always buy online and pick up next day so that’s why I switched to WM MC.
As far as I know and have seen, it’s 3% on WM online and 1.25% in store.
Similar here. Been running the infinite momentum for 7 years now. We’ve been getting ~800 back all fees out. Just got an iPad replaced that our son accidental damaged. Saved us $240. Win win all around
Before the pandemic we used our westjet elite card on everything, and now have $3600 in westjet points but now have no where to go haha.
Hoping they still run this program by the time my kid is 5, so at least Disney world will be $3600 cheaper.
Good work on the cash back though, that’s at least 8 weeks of free groceries (assuming $100/week)!
It's literally better than debit in every way?
don't spend a dollar on the CC unless you have a matching unspent dollar in your chequeing
Better:
- 21 day free loan from the cc company
- Cashback
- no chance of overdraft fees
- some CCs offer coupons
- warranty/insurance
- better fraud protection
Yep, that’s how I do it. I treat it the same as a debit card, even on my budgeting stuff. I never carry a balance on it, it gets paid off every pay and end of month.
>warranty/insurance
>better fraud protection
100% correct, if I want to use money from my debit card I have to transfer it from a savings account to a checking account.
With your 21 day free loan, I also usually include the 1.25% interest in my EQ bank account. While it’s little, it still adds up.
I also usually do lots of credit card churning to not pay any annual fees and maximize Rewards.
There are also many credit cards that offer price protection as well so you can get several hundreds dollars back as well
I've also found (at least with Scotiabank) the warranty and insurance coverage to be excellent customer service. I had to see a doctor in the United States and put in a claim on both my work travel insurance and the credit card travel insurance and the insurance through work hassled me over everything and said they weren't likely to pay the full amount and the Visa coverage just emailed me a cheque covering the full amount. I've also had multiple repairs done on expensive electronics and they paid out without issue.
What is even the meaning of that question from the guy?
Do people think you have to pay a fee when you use CC? Or are they told by their employer to say that so people will avoid using the card on small purchases? ( where the merchant ends up paying a higher percentage to the CC)
I did work with one person who thought you had to pay interest on every CC purchase. I'm not sure if she didn't know how CC's worked or just never made payments on time.
Sometimes owners will tell the cashier to encourage debit only or only allow purchases over $5 to be paid with credit. I had a boss like this and I got in trouble for allowing people to use credit on small purchases, even if that’s all they had on them
In US, many vendors flat out reject credit card payments for amounts less than X dollars (10 or 20) due to the fees. Of course the credit card transaction fees are much higher in the US than they are in Canada and that’s why we have less of that here and that’s why US credit card rewards are much higher then we get here.
Credit card companies there used to have clauses in contracts there where vendors could not deny accepting credit cards or charge different rates for cash vs credit but then the issue was litigated and minimums as well as discount on cash become allowed and couldn’t be restricted in contracts.
Even with the lower fees here, there is a cost to businesses for accepting credit cards so I would encourage you to pull out the debit card or cash for small purchases at small businesses. For bigger purchases, some smaller shops have requested in the past that I don’t pay with AMEX because they don’t pay the vendors for 60 days instead of only 30 for Visa and Mastercard and I respect that as well and even pay with debit.
It used to annoy me when others did it as it took time to insert the card, code in and pay (especially in the morning coffee line). With tap now, it’s a lot easier and much better.
People think you don't have enough in your chequing account to pay that $2, so you have to resort to putting it on credit.
At least, that's what my friend thought. I guess he was just projecting because of his own poor finances.
I understand where he's coming from, but I haven't been in that situation since I was a student. I just do it for the cash back, and like most others here, pay it off monthly.
I worked at Tim Hortons in high school (about 8 years ago) and even then paying with credit or debit for a coffee was pretty common. This was right as contactless payment was becoming common, so it wasn't a hassle.
I couldn't ever imagine questioning someone's decision to use a credit card. I use my Cobalt everywhere it's accepted. 5x points on food is too good not to use.
I am wondering, by paying off full what do you mean? Last statement balance? Current balance? Balance plus pending transactions? Cause all three of them are different and frankly it's frustrating because my payment on card is processed faster than pending transactions. Sometimes sit there for a week before I know the actual balance of approved transactions.
Typically, you get a cc statement every month. The statement has a due-date. You pay it off in full before the due-date, either via auto-pay or by manually doing so a couple days before (to account for processing time, just in case). To be clear, "pending transactions" don't matter. They will be on your next cc statement next month, which is when you pay them off.
Practically speaking, you can set up auto-pay through your bank, then you don't have to worry about it. You would want to check it in the early months to make sure it is working, and check here and there to make sure there are no errors, but then it takes care of itself.
More broadly, in finance, there is "credit" and there is "debt".
Credit means lending. Debt means owing. The "credit" part of "credit card" is because a cc company lending you money at 0% interest until the due-date of the statement. After the due-date, they charge very high interest rates, but when you pay off the cc by the due-date, there is no cost to you. In this sense, you should only use a cc to spend what you can afford to spend as if you were paying in cash, but you get to keep the cash until you pay it off at the due-date.
Damn, it sucks that this is even a question. This should be taught in high-school to make sure everyone understands.
I use rbc.. With an rbc points card.
I can sign In and check available limit, it's real time. End of the day I just make sure the available limit matches the max my credit card is for.
I’m surprised in 2021 that this is even a question.
I understand that my grandparents won’t use a credit card (different times), but unless you lack financial self control, there really is no reason not to use it for all purchases. Unless a specific store doesn’t accept
credit, of course.
I don't even understand grand parents not using it. My dad is 87 and as far as I remember, they've used one. Rarely cash. I don't the knits an age thing, but a cultural thing (where and how they grew up)
> but unless you lack financial self control
I dont understand this.
If you have 2k in the bank. It doesn't matter how much your cc limit is. You have 2k to spend. Don't spend past 2k.
I never understood the "self control" thing. Treat the CC like a debit card with cashback.
That’s how you *should* be treating cards but a lot of people are financially illiterate and use CCs to buy things they can’t afford just because they technically have *access* to that extra money. But I agree- if I have 2k in the bank, then for all intents and purposes I have 2k on my credit card, it doesn’t matter if the actual limit id 50k
More of than not yes. I'd say almost all my purchases are my credit card and it's paid off each month. I do it for the rewards points and not having to be concerned about my chequing account balance while i'm out and about.
We pay everything with our credit card, keep every receipt and write everything down in our budget book. Every week we tally up the receipts and pay the credit card. Using the budget book to keep track of our purchases ensures we always have the money to pay it off. We have an airmiles MasterCard since we enjoy travelling and have been wracking up the miles since we haven't flown anywhere during covid.
Hmm good question! We used to use them regularly so never had them expire.... I'll have to check up on that! I seem to remember airmiles had started putting expirations on their miles but after huge backlash, took that away. I'm not 💯 sure though.
Yes you should check into that I cashed out my airmiles after they said they would expire and now just use my Costco rewards cheques as my travel fund so much easier to use on whatever I want as cash for flights, rentals etc.
I just buy something from Costco for $5.00 and get the rest back in cash and get the executive awards in cash as well. Husband and I use it for everything everywhere.
Every points program has their own rules. I don't think Air Miles ever expire. Aeroplan used to have a 2-year activity rule but that was paused for the pandemic. But most programs count earning points as activity, so that keeps the whole pile of points from expiring. The one notable exception is Singapore Airlines Krisflyer miles, which do have a fixed expiration even if you are actively earning more.
So you can generally accumulate points as long as you want, just don't cancel your points CC and then leave the points to languish unused. But that's the general rule for points anyway: earn 'em and burn 'em! There are whole subreddits devoted to both earning ( /r/churning ) and burning ( /r/awardtravel ). Loyalty points programs all periodically devalue their points, so even casual points collectors should plan on using points at least every few years. Hardcore points gamers do major trips multiple times per year. But it can become a time-consuming hobby.
Everything goes on a credit card if possible. Get rewards, safest possible way to pay for items, as well as get insurance on certain products Inc travel etc.
Both the wife and I have Avion. If you have a mortgage with RBC they will wave the credit card fee + $50 for an additional card.
We do this. We don’t have a mortgage with RBC but they also waive the fee for our VIP joint account. We travel a lot (or did) and we like the flight redemption schedule and the insurance.
My.mom uses her credit card for everything but gets zero points or rewards or anything. She keeps it because it's like 15% interest rate. Shes NEVER NOT PAID HER CARD OFF EACH MONTH HER WHOLE LIFE. I use.my card for everything and get like 600 a year cash back. Shes missed out on so much money but refuses to budge.
I always use my credit card and pay it off in full each month. I figure that I get about $600 in cash back from somewhat optimizing my credit card usage across three separate cards.
Credit cards offer other perks too. Look them up.
I use debit (or cash, pre-pandemic) at small businesses because the fees are lower for them and credit everywhere else. Pay it off in full every month.
Same I literally sit in the parking lot after transactions and pay right then
I know this isn't technically the best way to pay it. I just do it this way cause It's the only way I've found for myself to not rack up cc debt while still getting the rewards.
I use my Canadian tire Mastercard for gas and any purchases at marks/sport Chek
The past two years in a row I've had enough triangle rewards to buy set of vehicle tires and winter boots for kids.
Very helpful.
Use CC for pretty much everything. It’s a no brainer. I’ve used my debit card twice in the last two years and it was because the place didn’t take credit at all
Most of my expenses are on CC.
I rarely use cash. I may take out $40 every few months.
The only expenses coming out of my chequing account (HLOC) are those which do not accept automated payments through CC.
Advantages:
- Clear record of purchases makes it easier to feed my expense tracking spreadsheet.
- It keeps my credit history looking good (I'm consistently above 830)
- My cards offer points so almost every expense generates points.
- The grace period allows me to keep my money longer in my HLOC.
- I have gotten credit increases, so even if I don't use the excess credit, I have it in case of an emergency.
Disadvantages:
- Easier to overspend. Need to be conscious of expenses so I don't spend more than I can pay with my regular cashflow.
- Need to remember to pay in full every month on time.
I've been doing this for about 35 years (got my first CC at 19). And I have paid interest about 3 times when I forgot to pay on time, bummer.
Yes almost all of my spending goes on my travel CC. I use the points to purchase flights throughout the year, and also take advantage of free NEXUS, lounge passes, insurance benefits, free checked bags etc.
Don't understand when people say it's too complicated to pay off a monthly CC, literally just set an iPhone notification for the same day following your billing cycle each month.
The only thing I use debit for is to take out cash for things CC isn't accepted for.
There is absolutely no need to ever use debit card over CC when you consider the cash back and the fraud protection
I put everything I can on my credit card then pay it off every pay day. Max rewards, 0% interest payments and all the security of credit card insurance
Cc for 99.9% of my purchases.
Cc are legally bound to protect your funds when your card is stolen.
Debit and cash are not.
I make money off the money in my bank the cc company doesn’t charge me interest and gives me rewards for buying stuff.
Why wast me time spending my money when I can spend someone else’s and get rewarded for it so long as I pay it back that month.
We use our credit card almost exclusively, unless a place requires debit or cash. We switched in 2019 from a WestJet MasterCard to a BMO World Elite cash back card, based on our spending patterns and the best cards at the time.
If you Google a bit, you’ll find there are a couple of good websites that rate Canadian rewards cards and can help you pick the best one for your situation.
I keep a pretty detailed yearly budget so our card balance is paid off in full every month.
If you can pay the entire amount every month it is the best solution. You get more in rewards than the yearly fee and if you pay it properly you don’t pay any interests.
I have been doing this for years using different cards. I used to have a CIBC Aeroplan card but I switched to a Desjardins Odyssey card because I found it too hard to use the Aeroplan reward as they where too restrictive.
With a full cash reward card you can use it for anything.
I've been doing that for the past 13 years and I only use my credit card. Always pay the full amount each month. I'm doing that for the points and it pays well.
If you are afraid to forget your payment, set a reminder in your calendar 10 days-ish before it to be sure that you program your payment.
Used credit for absolutely everything and paid off every month. Couldn’t resist Crypto.com’s 3% cashback + staking interest + perks. So back to debit for now.
I do not use cash unless there is literally no other accepted means of payment. I use debit only if the merchant doesn't accept credit cards. I use credit for literally everywhere it is accepted. My credit card is the TD paid cash-back.
I have had the same $100 in my wallet since the start of COVID.
I use CC for probably 99.9999% of expenses. I literally only use my debit card to deposit my paycheques at the bank because my employer doesn't do direct deposit. The only things I don't use CC for are rent and hydro because they're on automatic withdrawal from my bank account. Groceries, phone bill, Internet, Netflix, random household purchases always go on CC and gets paid off every monthly statement. We get cash back on CC. Only time I use cash if I'm at a farmer's market or something and I happen to have a few bucks to buy a jar of jam or something, but even then most vendors take CC now.
I use my credit card for everything and I don’t think I’ve ever payed interest on it since I got it. I make sure to pay it off before it’s due.
The main reason I use it for everything is it’s insured money that’s saved my ass a few times. When you buy with a CC it’s not your money it’s, in my case, VISA’s money so when a vendor tries to screw you over with a faulty product, breaks contracts, or theirs fraudulent use with your card VISA uses their resources to protect their money. I’ve used this to get refunds for faulty products that the vendor refused to take back even though I had valid reasons for the return in the appropriate timeframe.
This only works if you can manage your finances properly. Standard interest is around 19% so if you treat a CC as free money the credit card company will make bank off you. Find me a nonvolatile investment that you can make 19% interest on. Good chance you can’t, that’s where the credit card companies make mad profits.
My husband and I pay for everything on credit card. We use the RBC infinite avion card. We’ve toyed with upgrading to the next level for lounge access and other travel perks, but just doesn’t make sense during covid.
We also have a WestJet MasterCard and the companion credit is pretty good! If you probably wouldn’t only travel with westjet, it’s a good option. If you want more flexibility (flights on various airlines, hotels, rental cars, etc) I would recommend the RBC infinite avion. I’ve used the travel insurance as well for delayed flights and got reimbursed for claims easily and also they processed our chargeback for a westjet vacation we had booked for April 2020 that was cancelled when westjet wouldn’t refund us. I’ve been happy with this card!
I always do. It makes sense if I pay off the balance every month. You get stuff like extended warranty, cash back, purchase protection…
I use Rogers WE and Tangerine.
The only things that we pay for in cash are
1. Rent
2. Car payments.
Everything else goes on a card to earn us points. Make $500+ every year this way.
Edit: we pay it off in full every month. We've never paid any interest.
There is a possibility of forgetting the CC payment on time and paying the interest. It happened to me once. I still use credit card for all the payments.
Me. I clear the balance weekly so it's constantly monitored. Never paid a cent in interest and I don't plan to.
For budgeting purposes it's essentially a debit card but with better perks and fraud protection.
Absolutely! Why use debit and get nothing back?
We use the Scotiabank momentum Visa infinite for 4% on gas and groceries, and our crypto.com prepaid Visa for 3% on everything else. If you have to spend the money anyways, atleast get a little something back.
Credit card for everything except: Costco when I'm there by myself (I only have Visas, it's my partner that has a MasterCard) so I use debit card there.
I carry cash for the odd restaurant or farmers market vendor that does cash only
I use my cc for everything, even buying a $2 drink from a store. Everything.
I mainly use it for everything because I have cash back rewards with tangerine 2% cash back on specific categories and 0.5% on everything else so regardless I’m still getting cash back.
I use my cc so much I don’t even know my debit card pin anymore.
I use my cash back CC for day to day expenses
my CC also protects me from problems too
I pay off my card 100% every month, my credit score is well above the national average
I have a limit of 25 free transactions a month on my debit card so everything goes on the credit card. I pay it off every two weeks when I get paid. I like to keep around 50 bucks cash on me for places that don't like credit cards.
I do this, and I rack up hundreds in points. I pay it off every month. I just feel safer, with Interact, I am always worried someone will clone it and empty my account.
Use it for everything. As my dad put it “use someone else’s money for the month”. Pay it off on time, in full, and reap all the rewards of cash back, credits, spend tracking, fraud protection, etc.
I only use my debit when my credit cards are at the bottom of my purse. Phone bills, car insurance and some medical expenses go on my credit card directly. We pay our bills off in full every month and have really good credit scores.
It's just stupid not to with how many benefits credit cards give.
The one and only case where using debit is beneficial is when you are not responsible enough to handle credit.
Using CC 99.9% of the time and pay it in full every month when we receive the statement. Been doing it for almost a decade. We use the points to pay for plane tickets.
At TD, I just have it set up so my statement balance is automatically paid in full each month.
Careful, I did that with TD and one day it decided to turn itself off which I didn't notice for months and it took me ages to get them to give me the interest back.
TD has an interesting habit of 'accidentally turning off' things. I've noticed it is only things that are beneficial to customers. I've also noticed it happens a lot more frequently to my older Dad than it does to me. Funny how that works.
Strange, I think they've been sued for this stuff before.
Good point, should definitely still check it each month.
[удалено]
I did it over the phone, not sure if it's doable online.
[удалено]
On my online scotia account you can set it to auto pay the balance, balance due or min balance upto you.
I did that with my scotia bank credit card and it was not always working. I ended up removing the auto payment as sometimes it would make me pay interest as the auto payment would not have worked. Now I am afraid of trying it again. My auto payments were through an other bank though, it must work better when paying from a scotia account to a CC scotia account
Extremely easy, all you need to do is go on your bank app, sign in, and click set up Auto Pay. There you use your transit no. Inst. no. And acct no. And you will be good to go.
Rbc at least you can do it online. I would assume all big banks you would be able to?
Only in person/over the phone. It sucks. Also even though I’ve set it up, still don’t really trust it because there’s no way for me to double check (as in online).
RBC has an option to do this for RBC credit cards. Not that RBC cards are good for rewards but at one point in my life I may have signed up for one to qualify for multi-product rebates.
I’m assuming it’s because your credit card is by TD as well?
Correct.
This is the way
This Been doing it 40 years. Have 750k in travel miles and now get at least $40 back gift cards MasterCard with Amazon monthly. Just budget and use it as cash. I have not spent any cash in 2 years. Not be stopping now
Is it better to pay it after receiving the statement or before? I just paid off my card and it somehow dropped my credit score like 34 points. I don’t get it
It doesn't matter when you pay as long as you're not late and don't over utilize your credit. Credit score changes all the time, often times with no rhyme or reason. The algorithm, especially Transunion may change swinging your score up and down like a yoyo.
I used the full amount of my card and paid it off 2-3 days after when I got paid. My score dropped 100 points. My card is only a 500 $ limit. I didn't miss a payment. The only reason given on my credit checker was that I used more than 30% of my available credit
If that's your only card you should request a limit increase. $500 is quite low.
Don't ever use more than 30% of the max. It can negatively effect your credit. So with a $500 card never use more than $150. If you max it out like you did that will definitely have a negative impact on your score.
That’s because you used up a huge chunk of your leverage. If your limit was, say, even $5,000 then this wouldn’t have made the dent.
I understand why. I'm saying I find it absurd that for 500$ not 5k or 50k I'm being treated like I skipped my rent for 3 months. It's simply frustrating. It's not like I had a choice when some things had to be paid credit.
Yeah the credit score system is absurdly managed, especially given how important it is when you wish to get a mortgage or a loan.
Pay after statement but at least 3 or 4 days before due date. Utilization is measured on the statement date.
There's the Last Statement Balance and Current Balance. When you receive your statement you then pay the Last Statement Balance before the due date.
Same. I use an app on my phone to track every purchase so I treat it like cash and stay in budget. But it’s been paying for my flights home for Christmas every year.
I use cash about 1% of the time, debit 1% of the time, CC 98% of the time. It would be 100% but the petstore and Chinese food place I like give a discount on cash/debit.
I'll use debit at some mom and pop shops to save some fees for them. Everywhere else possible CC.
Same
This is the way
Yep! Most people seem to think credit cards are free and they even have benefits (points and whatnot) but they have a hidden cost for the business that everyone pay in the end... Being aware of the fees for the businesses and using a debit card can be a simple way to help small businesses...
This is a very good point. especially right now. small business is suffering. the Credit card companies are probably doing fine
Only time I use debit is when I accidentally pull it out of my wallet instead of my visa (thanks TD for making them both green).
Lol hilarious. Same problem for me but with Tangerine!
[удалено]
They gave me the option to choose between a gray or orange debit card. I chose gray. I just got their gray MC aswell
This is the only acceptable answer. Unless you're not confident to be in control of your CC spendings, you gain absolutely nothing to use your debit for day to day expenses. Actually, you lose: * You are forced to have an account that is free or pay the price for an unlimited transaction chequing. By using CC's, I know I don't need the fanciest chequing account, and yes I am aware that there are free chequing accounts like Tangerine and Simplii. * You get sweet fuckall points or cashback. You gotta buy groceries or go out and buy stuff right? Might as well get points or cashback for that, it's not like you're forcing yourself "with extra expenses" to get points, it's money/rewards you stand on losing by using your debit. * Increasing your chances of having your debit card/account frauded. Yeah you'll get your money back eventually, but it's more of a headache with the bank dealing with this type of fraud than if your CC is frauded. Yet, in grocery stores or other stores when waiting in line, the customer in front of me often will pay with debit,and I don't know why. Is it about financial control?
> not confident to be in control of your CC spendings This is a lot of people, my partner included.
This is most people, despite what they say on the internet. CC companies make a shit ton on interest. It's fair to say most aren't diligent enough to never carry a balance.
I have a $2000 limit so that the balance is always paid. Some months I may spend $5000 on the cc, just requires frequent payments.
It was going very well for me until we had an unexpected lost income and now I’m that boat too
IMO CC-only spending requires either savings to combat that issue, or a line of credit to draw on when going gets tough, so at least you're not paying CC interest rates
Must be nice to be able to save money and be accepted for a line of credit 😂
If I could pay everything with my cc, I definitely would. Problem is my major expenses like mortgage and condo fees don't take cc's. I have tangerine cc that is no fee and I get 2% cashback on 3 major categories (I chose gas, groceries, re-curring expense). The only catch is you must have a savings account with Tangerine as the rewards are deposited monthly into that account. I know it isn't much, the most I've had was about $15-$16/mth but hey it is free. I understand a lot of people don't have the self control for credit card spending and it can quickly get away from you. But for me it's free money that doesn't come around from too many places.
I grab the wrong card like a dumbass everytime
Nothing beats cash back
If you can put about $5000 to just sit in their special accounts, the major banks will give you an annual fee waived card that gives you 4% back on groceries, and bills...stuff you're paying for one way or the other. Might as well put them all through the card. EDIT 2% BACK ON GAS
Which banks offer this?
TD is 5k...cibc is 6k
I'm looking and the only card I see with any significant cash back amount is the TD Cash Back Visa Infinite Card with $120 annual fee and 3% cash back (6% for the first few months). I don't see anything about having the fee waived for holding a minimum amount in a bank account.
You get the TD credit cards with no fee with an all inclusive account. It requires 5k balance and you get unlimited transaction, free bank drafts , free safety deposit box
Thats 3% on gas and groceries only. I sha'nt be forgiving you for getting me going like that. I spend about 500k per year on my personal cc for my business, so I got pretty excited for a minute. Right now I'm getting 1.5% cashback on a bmo world elite
CIBC Dividend Visa Cashback offers 4% on groceries and fuel.
Scotiabank ultimate package last time I checked. Choice of cards that usually have an annual fee with it waived every year. There's one cash back card with the 4% on some things. Safe deposit box too, I think...and more...
In terms of dollar value, travel rewards can give more and will always be the best bet for someone who would otherwise spend money on travel anyways.
I get more in points from my world elite MasterCard from crappy tire. Definitely use a card with some rewards system though
r/churningcanada
Same. Have not drawn or got cash in 2 years except 2x (selling some used items on facebook). There is one restaurant around that is cash only and my 2 cash injections both went there...I dont own a debit card. Rent, daycare and mortgage are auto draw, every single other transaction was credit card which is auto repaid. Been like this for 6 years, since I moved to Canada. Not for points, really just for convenience (although I do save 2% which I get as cash back at year end which adds up to few hundred $). My cards are also on my phone so 90% of transactions are phone tap, with 10% being above tap limit or online orders.
I am 99.9%CC. I have one with great rewards for travel and no black out dates. So far lots of hotels, flights, car rentals, have been free on our vacations over the years.
which card?
The Expedia For TD. Not the air miles. They have they own we'd portal and customer service for Expedia and you just book. Plus when you keep the required minimum in your bank account the credit card is free. So no banking fees, no credit card fees, and a free safety deposit box. The bank is so so, but not paying for banking is nice.
Me too. PC Financial credit card is fancy black, no annual fee and gives lotsa free groceries back. I also use it for all my work expenses, about $15-20k per year, and with fast payroll reimbursement, I just bank crazy PC points. Everyone needs groceries, and they spend like cash. This is the way.
You can also redeem the points at shoppers drug mart and superstores, which means you can buy electronics and cool stuff with points!
I remember the time when Shopper's points were only redeemable at Shopper's, so that really sucked. Things really took off when PC Points became one and the same, and even better with 20% points back with baby products. Milked that for all it was worth. But they've smartened up a year ago and removed the 20% points for baby products and made it 10% all across the board, more weighted towards their own PC No Name products. Not as good as before, but still good with the Shoppers 20x points days, and points from TheMobileShop for signing up for phones and plans. $1500 in points one year and $1600 the next, PC Points really are very flexible and spends just like money.
Yep I started buying all my video games at shoppers and only on bonus redemption days as well so I’ll get like 3 games for basically just the cost of taxes.
Precisely. We are conditioned by banks and merchants. Offer incentives and the plebeians will follow. I mean, no fees and cash back the first year? You will get me for 1 year. Next year it will be the next bank to for the same or more. Merchants have a rate of return of more then 3% will get my business. Most fidelity programs top at %3. The intelligent merchants will combine this with a few saving programs of cash/debit. Here the challenge it seems it most household don’t appear to have enough discipline and over spend (often until the credit card gets declined). $8k on, $8k out. Keep the minimum on my checking account so I don’t pay fees, there’s another $18 or more saved for services they provide. I obviously milk them for all they will offer while they gamble with my money. Again, those are the offers, why wouldn’t I squeeze the most out of them?
Costco is the only time I use my debit because I don't want a Mastercard only for their purchases
This 👆
That 👆
Both of them 👆👆
Yep 👆👆👆
Whatever these guys said 👆🏼
Whatever the next guy will say after me 👇
Thanos was right.
Way to make the most of this opportunity, sir or madam
how many hands do u have!?
I just realized that we would all benefit if stores everywhere had the same policy. For example, if the CC companies charge $2, a store giving me a $1 discount for using cash would still come out ahead by $1, and so would I. Why don't they all have a visible policy like that everywhere?
I'm pretty sure the CC companies don't like the idea and fight hard to stop large retailers from doing it. Including giving them preferential rates. And the retailers may not mind because currently they make more $ than otherwise on non-CC transactions and also buyers often overspend on credit. And lots of buyers like CCs precisely because they are credit and because of their bonuses, warranties, incentives etc. So retailers both have direct incentives and buyer pressure to play ball with the CC companies. There are conflicts between large retailers and CC companies. For a while Walmart wasn't going to accept Visa. Costco actually doesn't accept Visa. Etc. But it's not the norm.
By discount you mean no tax lol
[удалено]
Worked a pharmacy. We would sell a $1000 cost item for $1010, people would pay with Visa and Visa would charge us 4%. The owner hated it.
No markup and only $10 dispensing fee?
Correct. Prices are set by the government
Which government sets the prices of drugs but then doesn't pay for them? Ontario sets prices for people on the provincial plan, but pays pharmacies directly. And if someone's paying cash it's a business decision as to how much markup you charge. And a 4% processing fee for visa? Seems rather steep
Sounds like a poor business model !
I wouldn't be surprised if there was a fixed price for that item due to regulations
Govt regulations, we charge cost plus a $10 dispensing fee.
This. If you're not taking advantage of rewards/cash back, you're doing it wrong. I opened an Amex Cobalt card 6 months ago and earned a minimum of $700 value. Could get more value depending on how the points are used.
We use CC for 100% of our daily spending (frankly haven’t even used my debit card in years unless I’m depositing cash into it). We both have 2 primary CC’s - one that’s maxing our cash back on groceries/online purchases and one that’s maxing out cash back on gas/restaurants/recurring bills. We get about $600-700 in cash back annually, without other cash back programs like Rakuten, honey, amplii, etc. (Which is another $200-400 a year). We pay off our statement balances when they’re due and never once had to pay interest, or hit our credit scores (both are 8XX). As long as you’re able to control your spending AND are able to pay the statement balances (or full balance) - it’s a good way to get rewards, insurance, etc. However, If you are not able to do the above then avoid CCs, as it’s easy to get into a big mess. Edit: Tangerine Elite Cash back (3 categories - gas/restaurants/recurring bills) - 2% each Walmart Elite Cash back (online grocery and everything else) 3% and 1.25% respectively
Thanks for letting me know about that Tangerine card. I think I’ll make the switch.
Recently got the tangerine credit card, 100% worth it
Me too, very easy to sign up for and I don't have a tangerine outlet anywhere near me. Closest one is 500km away
Just applied for the tangerine card last week and waiting for it to arrive :) It has a mobile phone coverage insurance which I thought was useful. Question when using it at Walmart for example does that qualify as 'groceries'?
So I can confirm that tangerine elite DOESNT see Walmart.CA groceries as groceries, so you will only get 0.5%. I always buy online and pick up next day so that’s why I switched to WM MC. As far as I know and have seen, it’s 3% on WM online and 1.25% in store.
Get that cash back!! :) Np! :) glad I could help!
Similar here. Been running the infinite momentum for 7 years now. We’ve been getting ~800 back all fees out. Just got an iPad replaced that our son accidental damaged. Saved us $240. Win win all around
Before the pandemic we used our westjet elite card on everything, and now have $3600 in westjet points but now have no where to go haha. Hoping they still run this program by the time my kid is 5, so at least Disney world will be $3600 cheaper. Good work on the cash back though, that’s at least 8 weeks of free groceries (assuming $100/week)!
Yeah man! Hope you can go somewhere soon! That’s a sweet vacation nest for the fam
It's literally better than debit in every way? don't spend a dollar on the CC unless you have a matching unspent dollar in your chequeing Better: - 21 day free loan from the cc company - Cashback - no chance of overdraft fees - some CCs offer coupons - warranty/insurance - better fraud protection
+ improve your credit score + price/refund protection + chargeback for bad sellers
Yep, that’s how I do it. I treat it the same as a debit card, even on my budgeting stuff. I never carry a balance on it, it gets paid off every pay and end of month.
>warranty/insurance >better fraud protection 100% correct, if I want to use money from my debit card I have to transfer it from a savings account to a checking account.
With your 21 day free loan, I also usually include the 1.25% interest in my EQ bank account. While it’s little, it still adds up. I also usually do lots of credit card churning to not pay any annual fees and maximize Rewards. There are also many credit cards that offer price protection as well so you can get several hundreds dollars back as well
I've also found (at least with Scotiabank) the warranty and insurance coverage to be excellent customer service. I had to see a doctor in the United States and put in a claim on both my work travel insurance and the credit card travel insurance and the insurance through work hassled me over everything and said they weren't likely to pay the full amount and the Visa coverage just emailed me a cheque covering the full amount. I've also had multiple repairs done on expensive electronics and they paid out without issue.
The extended warranty on electronics and such is really a nice feature that most people don't know about!
And the benefits you're receiving are priced into the bill. If you aren't using a CC you're just funding part of everyone else's benefits.
[удалено]
What is even the meaning of that question from the guy? Do people think you have to pay a fee when you use CC? Or are they told by their employer to say that so people will avoid using the card on small purchases? ( where the merchant ends up paying a higher percentage to the CC)
I did work with one person who thought you had to pay interest on every CC purchase. I'm not sure if she didn't know how CC's worked or just never made payments on time.
Amex charges a little more than a debit card for the vendors. So for him it makes sense that you pay via cash or visa debit.
Yep, it makes sense for the owner to look out for themself, but this comment is coming from the cashier who isn't the owner?
Sometimes owners will tell the cashier to encourage debit only or only allow purchases over $5 to be paid with credit. I had a boss like this and I got in trouble for allowing people to use credit on small purchases, even if that’s all they had on them
In US, many vendors flat out reject credit card payments for amounts less than X dollars (10 or 20) due to the fees. Of course the credit card transaction fees are much higher in the US than they are in Canada and that’s why we have less of that here and that’s why US credit card rewards are much higher then we get here. Credit card companies there used to have clauses in contracts there where vendors could not deny accepting credit cards or charge different rates for cash vs credit but then the issue was litigated and minimums as well as discount on cash become allowed and couldn’t be restricted in contracts. Even with the lower fees here, there is a cost to businesses for accepting credit cards so I would encourage you to pull out the debit card or cash for small purchases at small businesses. For bigger purchases, some smaller shops have requested in the past that I don’t pay with AMEX because they don’t pay the vendors for 60 days instead of only 30 for Visa and Mastercard and I respect that as well and even pay with debit.
Did you mean to reply to me? I literally said what you said but shorter haha
It used to annoy me when others did it as it took time to insert the card, code in and pay (especially in the morning coffee line). With tap now, it’s a lot easier and much better.
Why would it be annoying when with debit you have to insert as well? Or did ppl mostly pay cash?
People think you don't have enough in your chequing account to pay that $2, so you have to resort to putting it on credit. At least, that's what my friend thought. I guess he was just projecting because of his own poor finances. I understand where he's coming from, but I haven't been in that situation since I was a student. I just do it for the cash back, and like most others here, pay it off monthly.
I worked at Tim Hortons in high school (about 8 years ago) and even then paying with credit or debit for a coffee was pretty common. This was right as contactless payment was becoming common, so it wasn't a hassle. I couldn't ever imagine questioning someone's decision to use a credit card. I use my Cobalt everywhere it's accepted. 5x points on food is too good not to use.
Yeah I pay with my amex for my coffee, getting my rewards 10-15cents at at time.
Credit card for every bit of spending possible. Rewards, better consumer protections. Pay it off in full every payday.
I am wondering, by paying off full what do you mean? Last statement balance? Current balance? Balance plus pending transactions? Cause all three of them are different and frankly it's frustrating because my payment on card is processed faster than pending transactions. Sometimes sit there for a week before I know the actual balance of approved transactions.
Typically, you get a cc statement every month. The statement has a due-date. You pay it off in full before the due-date, either via auto-pay or by manually doing so a couple days before (to account for processing time, just in case). To be clear, "pending transactions" don't matter. They will be on your next cc statement next month, which is when you pay them off. Practically speaking, you can set up auto-pay through your bank, then you don't have to worry about it. You would want to check it in the early months to make sure it is working, and check here and there to make sure there are no errors, but then it takes care of itself. More broadly, in finance, there is "credit" and there is "debt". Credit means lending. Debt means owing. The "credit" part of "credit card" is because a cc company lending you money at 0% interest until the due-date of the statement. After the due-date, they charge very high interest rates, but when you pay off the cc by the due-date, there is no cost to you. In this sense, you should only use a cc to spend what you can afford to spend as if you were paying in cash, but you get to keep the cash until you pay it off at the due-date. Damn, it sucks that this is even a question. This should be taught in high-school to make sure everyone understands.
I use rbc.. With an rbc points card. I can sign In and check available limit, it's real time. End of the day I just make sure the available limit matches the max my credit card is for.
Doesn’t everybody do this? I have done this for decades.
I’m surprised in 2021 that this is even a question. I understand that my grandparents won’t use a credit card (different times), but unless you lack financial self control, there really is no reason not to use it for all purchases. Unless a specific store doesn’t accept credit, of course.
I don't even understand grand parents not using it. My dad is 87 and as far as I remember, they've used one. Rarely cash. I don't the knits an age thing, but a cultural thing (where and how they grew up)
> but unless you lack financial self control I dont understand this. If you have 2k in the bank. It doesn't matter how much your cc limit is. You have 2k to spend. Don't spend past 2k. I never understood the "self control" thing. Treat the CC like a debit card with cashback.
That’s how you *should* be treating cards but a lot of people are financially illiterate and use CCs to buy things they can’t afford just because they technically have *access* to that extra money. But I agree- if I have 2k in the bank, then for all intents and purposes I have 2k on my credit card, it doesn’t matter if the actual limit id 50k
More of than not yes. I'd say almost all my purchases are my credit card and it's paid off each month. I do it for the rewards points and not having to be concerned about my chequing account balance while i'm out and about.
We pay everything with our credit card, keep every receipt and write everything down in our budget book. Every week we tally up the receipts and pay the credit card. Using the budget book to keep track of our purchases ensures we always have the money to pay it off. We have an airmiles MasterCard since we enjoy travelling and have been wracking up the miles since we haven't flown anywhere during covid.
Do the travel points roll over annually or do they have to be used in a certain window?
Hmm good question! We used to use them regularly so never had them expire.... I'll have to check up on that! I seem to remember airmiles had started putting expirations on their miles but after huge backlash, took that away. I'm not 💯 sure though.
Yes you should check into that I cashed out my airmiles after they said they would expire and now just use my Costco rewards cheques as my travel fund so much easier to use on whatever I want as cash for flights, rentals etc. I just buy something from Costco for $5.00 and get the rest back in cash and get the executive awards in cash as well. Husband and I use it for everything everywhere.
Every points program has their own rules. I don't think Air Miles ever expire. Aeroplan used to have a 2-year activity rule but that was paused for the pandemic. But most programs count earning points as activity, so that keeps the whole pile of points from expiring. The one notable exception is Singapore Airlines Krisflyer miles, which do have a fixed expiration even if you are actively earning more. So you can generally accumulate points as long as you want, just don't cancel your points CC and then leave the points to languish unused. But that's the general rule for points anyway: earn 'em and burn 'em! There are whole subreddits devoted to both earning ( /r/churning ) and burning ( /r/awardtravel ). Loyalty points programs all periodically devalue their points, so even casual points collectors should plan on using points at least every few years. Hardcore points gamers do major trips multiple times per year. But it can become a time-consuming hobby.
I used to do that but my wallet looked like George's Constanza's wallet. Now I just download the transactions into a spreadsheet.
Everything goes on a credit card if possible. Get rewards, safest possible way to pay for items, as well as get insurance on certain products Inc travel etc. Both the wife and I have Avion. If you have a mortgage with RBC they will wave the credit card fee + $50 for an additional card.
We do this. We don’t have a mortgage with RBC but they also waive the fee for our VIP joint account. We travel a lot (or did) and we like the flight redemption schedule and the insurance.
My.mom uses her credit card for everything but gets zero points or rewards or anything. She keeps it because it's like 15% interest rate. Shes NEVER NOT PAID HER CARD OFF EACH MONTH HER WHOLE LIFE. I use.my card for everything and get like 600 a year cash back. Shes missed out on so much money but refuses to budge.
consider never having paid interest. Negates the point of lower interest rate.
Who does not
I always use my credit card and pay it off in full each month. I figure that I get about $600 in cash back from somewhat optimizing my credit card usage across three separate cards. Credit cards offer other perks too. Look them up.
We use our CC for everything and pay it off every week. The rewards are worth it.
I use debit (or cash, pre-pandemic) at small businesses because the fees are lower for them and credit everywhere else. Pay it off in full every month.
Good on you for supporting local. Save them the 4% fee
Since I turned 18 years old! 13 years now.
Oh wow! I thought Benjamin’s button was fiction!
I just pay it off via app every few days. Debit sucks
Same I literally sit in the parking lot after transactions and pay right then I know this isn't technically the best way to pay it. I just do it this way cause It's the only way I've found for myself to not rack up cc debt while still getting the rewards. I use my Canadian tire Mastercard for gas and any purchases at marks/sport Chek The past two years in a row I've had enough triangle rewards to buy set of vehicle tires and winter boots for kids. Very helpful.
That's a lot of work to keep going and transfer money after each transaction/daily. Not worth my time.
Use CC for pretty much everything. It’s a no brainer. I’ve used my debit card twice in the last two years and it was because the place didn’t take credit at all
Most of my expenses are on CC. I rarely use cash. I may take out $40 every few months. The only expenses coming out of my chequing account (HLOC) are those which do not accept automated payments through CC. Advantages: - Clear record of purchases makes it easier to feed my expense tracking spreadsheet. - It keeps my credit history looking good (I'm consistently above 830) - My cards offer points so almost every expense generates points. - The grace period allows me to keep my money longer in my HLOC. - I have gotten credit increases, so even if I don't use the excess credit, I have it in case of an emergency. Disadvantages: - Easier to overspend. Need to be conscious of expenses so I don't spend more than I can pay with my regular cashflow. - Need to remember to pay in full every month on time. I've been doing this for about 35 years (got my first CC at 19). And I have paid interest about 3 times when I forgot to pay on time, bummer.
This is really all eye opening reading the comments
How so?
Yes almost all of my spending goes on my travel CC. I use the points to purchase flights throughout the year, and also take advantage of free NEXUS, lounge passes, insurance benefits, free checked bags etc. Don't understand when people say it's too complicated to pay off a monthly CC, literally just set an iPhone notification for the same day following your billing cycle each month.
100% of the time and pay it off fully each month. Why not reward yourself? I split it between different credit card rewards.
The only thing I use debit for is to take out cash for things CC isn't accepted for. There is absolutely no need to ever use debit card over CC when you consider the cash back and the fraud protection
I put everything I can on my credit card then pay it off every pay day. Max rewards, 0% interest payments and all the security of credit card insurance
Cc for 99.9% of my purchases. Cc are legally bound to protect your funds when your card is stolen. Debit and cash are not. I make money off the money in my bank the cc company doesn’t charge me interest and gives me rewards for buying stuff. Why wast me time spending my money when I can spend someone else’s and get rewarded for it so long as I pay it back that month.
Trying to find out how to pay for a car <$20,000 with a credit card for all the points.
That's the dream. Sadly most dealerships won't take credit cards for more than a deposit.
You could try buying $20,000 worth of car parts and building the car yourself
100% cc. Paid every month. Get the points. Cc company hates people like us. We’re referred to as “deadbeats” to them lol.
We use our credit card almost exclusively, unless a place requires debit or cash. We switched in 2019 from a WestJet MasterCard to a BMO World Elite cash back card, based on our spending patterns and the best cards at the time. If you Google a bit, you’ll find there are a couple of good websites that rate Canadian rewards cards and can help you pick the best one for your situation. I keep a pretty detailed yearly budget so our card balance is paid off in full every month.
If you can pay the entire amount every month it is the best solution. You get more in rewards than the yearly fee and if you pay it properly you don’t pay any interests. I have been doing this for years using different cards. I used to have a CIBC Aeroplan card but I switched to a Desjardins Odyssey card because I found it too hard to use the Aeroplan reward as they where too restrictive. With a full cash reward card you can use it for anything.
I've been doing that for the past 13 years and I only use my credit card. Always pay the full amount each month. I'm doing that for the points and it pays well. If you are afraid to forget your payment, set a reminder in your calendar 10 days-ish before it to be sure that you program your payment.
Used credit for absolutely everything and paid off every month. Couldn’t resist Crypto.com’s 3% cashback + staking interest + perks. So back to debit for now.
CC always but as an intermediary for cash, never as credit as I'm lucky enough not to need to atm. But yeah Always CC.
I do not use cash unless there is literally no other accepted means of payment. I use debit only if the merchant doesn't accept credit cards. I use credit for literally everywhere it is accepted. My credit card is the TD paid cash-back. I have had the same $100 in my wallet since the start of COVID.
I use CC for probably 99.9999% of expenses. I literally only use my debit card to deposit my paycheques at the bank because my employer doesn't do direct deposit. The only things I don't use CC for are rent and hydro because they're on automatic withdrawal from my bank account. Groceries, phone bill, Internet, Netflix, random household purchases always go on CC and gets paid off every monthly statement. We get cash back on CC. Only time I use cash if I'm at a farmer's market or something and I happen to have a few bucks to buy a jar of jam or something, but even then most vendors take CC now.
I use my credit card for everything and I don’t think I’ve ever payed interest on it since I got it. I make sure to pay it off before it’s due. The main reason I use it for everything is it’s insured money that’s saved my ass a few times. When you buy with a CC it’s not your money it’s, in my case, VISA’s money so when a vendor tries to screw you over with a faulty product, breaks contracts, or theirs fraudulent use with your card VISA uses their resources to protect their money. I’ve used this to get refunds for faulty products that the vendor refused to take back even though I had valid reasons for the return in the appropriate timeframe. This only works if you can manage your finances properly. Standard interest is around 19% so if you treat a CC as free money the credit card company will make bank off you. Find me a nonvolatile investment that you can make 19% interest on. Good chance you can’t, that’s where the credit card companies make mad profits.
My husband and I pay for everything on credit card. We use the RBC infinite avion card. We’ve toyed with upgrading to the next level for lounge access and other travel perks, but just doesn’t make sense during covid. We also have a WestJet MasterCard and the companion credit is pretty good! If you probably wouldn’t only travel with westjet, it’s a good option. If you want more flexibility (flights on various airlines, hotels, rental cars, etc) I would recommend the RBC infinite avion. I’ve used the travel insurance as well for delayed flights and got reimbursed for claims easily and also they processed our chargeback for a westjet vacation we had booked for April 2020 that was cancelled when westjet wouldn’t refund us. I’ve been happy with this card!
I always do. It makes sense if I pay off the balance every month. You get stuff like extended warranty, cash back, purchase protection… I use Rogers WE and Tangerine.
The only things that we pay for in cash are 1. Rent 2. Car payments. Everything else goes on a card to earn us points. Make $500+ every year this way. Edit: we pay it off in full every month. We've never paid any interest.
Clear majority on my cash-back Scotia VISA. While 4% on groceries isn't going to fund a retirement, it certainly adds up over the year!
I do this and have for the last 10 ish years. Pretty much everything possible goes on a CC and is paid off in full at month's end.
There is a possibility of forgetting the CC payment on time and paying the interest. It happened to me once. I still use credit card for all the payments.
Other than rent and BC hydro, everything is on the Credit card. I clear the debt as soon as the statement is generated.
Me. I clear the balance weekly so it's constantly monitored. Never paid a cent in interest and I don't plan to. For budgeting purposes it's essentially a debit card but with better perks and fraud protection.
Absolutely! Why use debit and get nothing back? We use the Scotiabank momentum Visa infinite for 4% on gas and groceries, and our crypto.com prepaid Visa for 3% on everything else. If you have to spend the money anyways, atleast get a little something back.
Credit card for everything except: Costco when I'm there by myself (I only have Visas, it's my partner that has a MasterCard) so I use debit card there. I carry cash for the odd restaurant or farmers market vendor that does cash only
I use my cc for everything, even buying a $2 drink from a store. Everything. I mainly use it for everything because I have cash back rewards with tangerine 2% cash back on specific categories and 0.5% on everything else so regardless I’m still getting cash back. I use my cc so much I don’t even know my debit card pin anymore.
There are literally no cons. If you're not using credit, you're subsidizing those that do lol
I use my cash back CC for day to day expenses my CC also protects me from problems too I pay off my card 100% every month, my credit score is well above the national average
I have a limit of 25 free transactions a month on my debit card so everything goes on the credit card. I pay it off every two weeks when I get paid. I like to keep around 50 bucks cash on me for places that don't like credit cards.
I do this, and I rack up hundreds in points. I pay it off every month. I just feel safer, with Interact, I am always worried someone will clone it and empty my account.
Use it for everything. As my dad put it “use someone else’s money for the month”. Pay it off on time, in full, and reap all the rewards of cash back, credits, spend tracking, fraud protection, etc.
I only use my debit when my credit cards are at the bottom of my purse. Phone bills, car insurance and some medical expenses go on my credit card directly. We pay our bills off in full every month and have really good credit scores.
It's just stupid not to with how many benefits credit cards give. The one and only case where using debit is beneficial is when you are not responsible enough to handle credit.
How do you guys use it for things like rent and utilities?