Hi!

If I put this in the wrong section, my apologies. I'm still getting used to this site. I also tried to search for the answer to this question and couldnt find anything so..

do any of you guys have a credit card just for shops? I'm starting to see how difficult it can be to complete a shop that requires a purchase when you are tight on money, especially when you aren't reimbursed for it until the next month or longer. Is this a good idea?

I use only credit cards unless I absolutely need to pay with cash or if there are additional fee to use credit cards.

I rotate my 10 credit card depending on what returned the highest rewards.

For example, I will be using my Chase Freedom for all movie theater and grocery assignments since I'll return 5% for those. Otherwise, I'll just use my AMEX Blue or Chase United to accrue points back at 1%-3%.

I am fairly addicted to credit cards for the rewards offered by many cards. But my standard advice with regards to credit cards is to completely stay away unless you can afford to pay off the balance in full every month. The reason credit cards offer such lucrative rewards is they make it all back through folks who pay interest and fees.

Don't sign up for credit card debt. It's not worth paying interest and fees for the privilege of earning a small MS fee. There are plenty of shops out there offering payment for little to no purchase requirements.

If you can afford to pay it off in full every month there is no reason to use them. People who use credit cards spend significantly more when using the credit card instead of cash. When McDonald's started taking cards their average check increased 56%. Sure that's a highly uncommon example but what good does it do to get 5% cash back when you're spending 10% more?

There are a lot of great reasons for using credit cards for shop purchases. A not so great reason is being tight on cash. If you can't afford to pay the balance on your card before accruing interest for the required purchase you will basically be reducing your payment and reimbursement by the amount of the interest. An alternative is to focus on shops requiring either no purchase or a minimal purchase of an item you would be buying anyway.

bgriffin Wrote:
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> If you can afford to pay it off in full every
> month there is no reason to use them. People who
> use credit cards spend significantly more when
> using the credit card instead of cash. When
> McDonald's started taking cards their average
> check increased 56%. Sure that's a highly
> uncommon example but what good does it do to get
> 5% cash back when you're spending 10% more?


I'll have to respectfully disagree.

I have kept my philosophy of using purely credit unless I absolutely need to use cash or debit. I have remained disciplined and stayed within my budget at all times. If I spent money on something significant, it would have been no different if I were paying in just cash.

I also feel more secure having credit in my pocket instead of debit and cash. If my wallet ever happens to be lost or stolen, I don't have to worry about issues with my checking account or losing cash.



Edited 1 time(s). Last edit at 01/04/2015 07:04PM by Tarantado.

I vote Yes. I think it is a very good idea. I opened an credit card account just for my shopping expenses. After the first three months when the money started coming in regularly it works great. The hard part us being disciplined enough to ONLY use it for shops.

Tarantado Wrote:
-------------------------------------------------------
> I'll have to respectfully disagree.
>
> I have kept my philosophy of using purely credit
> unless I absolutely need to use cash or debit. I
> have remained disciplined and stayed within my
> budget at all times. If I spent money on something
> significant, it would have been no different if I
> were paying in just cash.
>
> I also feel more secure having credit in my pocket
> instead of debit and cash. If my wallet ever
> happens to be lost or stolen, I don't have to
> worry about issues with my checking account or
> losing cash.

Many people feel more secure with credit cards than debit cards or cash, and while I understand for me personally spending the extra money isn't worth the added security.

I'm very glad you can use credit cards and stay within your budget, but that doesn't mean you are not spending more using them.

bgriffin Wrote:
-------------------------------------------------------
> Tarantado Wrote:
> --------------------------------------------------
> -----
> > I'll have to respectfully disagree.
> >
> > I have kept my philosophy of using purely
> credit
> > unless I absolutely need to use cash or debit.
> I
> > have remained disciplined and stayed within my
> > budget at all times. If I spent money on
> something
> > significant, it would have been no different if
> I
> > were paying in just cash.
> >
> > I also feel more secure having credit in my
> pocket
> > instead of debit and cash. If my wallet ever
> > happens to be lost or stolen, I don't have to
> > worry about issues with my checking account or
> > losing cash.
>
> Many people feel more secure with credit cards
> than debit cards or cash, and while I understand
> for me personally spending the extra money isn't
> worth the added security.
>
> I'm very glad you can use credit cards and stay
> within your budget, but that doesn't mean you are
> not spending more using them.


I understand your point, as the trend is obviously apparent to the majority of credit card holders. This is basically falls Dave Ramsey's view of credit, which is one of the few things I strongly disagree with him. This does not and should not apply to all credit card users.

Well, Ashnicb, I think you have your answer. It's a personal decision and what works for some may not work for others. If you are disciplined in its use and pay off the balance each month, it may be an option for you. Otherwise, it could cause more problems than it's worth.

As for me, I use a combination of payment methods for shops - whatever works best for that particular shop. Judicious use of my credit cards is what allowed me to obtain an excellent credit score which is necessary for some high-paying financial shops. However, one slip, and it could go the other way easily.

Tarantado Wrote:
-------------------------------------------------------
> I understand your point, as the trend is obviously
> apparent to the majority of credit card holders.
> This is basically falls Dave Ramsey's view of
> credit, which is one of the few things I strongly
> disagree with him. This does not and should not
> apply to all credit card users.

I used to say the same thing. That *I* use my CC for business and never spend more and pay it off each month blah blah blah. Then I realized that everyone thinks they're not that person when in fact every one of us is to some degree.

Now I pay cash for everything (including the car I'm buying in the next few months). I don't make anymore than I used to (and some years I've made significantly more than I do now), but I have more money. Funny how that works.

This might be slightly hijacking the thread but here goes...

The bank I use for my accounts I got through mystery shopping. I was so impressed with their service that I decided to use them for my needs. I have a debit/credit card with them. When I'm going to do a route of gas station shops where you have to buy $5-6 of gas at each location using a credit or gift card, I let a teller know in my branch, she calls the main office, and they put a note on my account not to deactivate the card because of numerous small gas purchases. That's one of the ways hackers will use stolen card numbers.

Now that I have my personal, as well as business, accounts with the bank, I've got a second card on my business account. It stays locked in a safe deposit box [free with account] at the bank. It is in their system as being ok for numerous $5-8 purchases in one day. I go by the bank the day before my route, get the card out of my box, and put it back in the day after the route is finished. That was I don't have to worry about losing it.

As a Dave Ramsey certified counselor I feel compelled to tell you that credit cards are the devil. No good can come of owning one. However, don't tell Dave Ramsey but I have several and use them exclusively for mystery shopping. The rewards are great but I make sure I can pay them off in full each month.

If money is not available to front for jobs to be done, I suggest doing jobs that don't require money up front until a shopping kitty can be accumulated. Borrowing money and paying interest on it at the exorbitant rates on cards so you can shop is not a good idea. Money spent to shop has to be controlled within a budget just like any other money. Don't kid yourself that because you're borrowing it "for work" that you're not spending money you don't have.

My bank shops have made me aware that interest rates up to 29% are charged depending on credit rating. OMG. You can't afford to pay that kind of interest rate on money borrowed to shop or for any other purpose. If you don't have the money for a shop, consider doing a different type shop. None of us can really afford to spend (borrow) money we don't have for non-essentials.

Credit cards are great for you when they're used for the record keeping feature and for the rewards accumulated provided you never rack up interest. Otherwise, they're great for the credit card company. Wonder why there's a bank on every corner? It's a really lucrative business and if you borrow money they're running on what should have been YOUR money.

If you find using a credit card less painful than counting out cash, you're doing it wrong.

I wish someone had told me this when I was young. Lucky for me I learned it along the way, but it was a hard lesson.



Edited 1 time(s). Last edit at 01/04/2015 09:17PM by MDavisnowell.

Thank you to everyone that replied to my post. I understand both sides of the argument. I have a credit card already for personal use and I know how much of a pain it is..but my pain came from being young and dumb at the time. I maxed it out, THEN decided to pay it off. WHAT AN IDIOT I WAS! I have a lot to think about! But thank you all for your thoughts! I have been looking for phone shops for the past two days and have yet to find any but I will keep looking!

bgriffin Wrote:
-----------------------------------------------
> I'm very glad you can use credit cards and stay
> within your budget, but that doesn't mean you are
> not spending more using them.


Definitely a good thing to err on the side of caution when it comes to credit cards, but if used wisely they can definitely be a net benefit and are profitable for me.

As to the original question, I once signed had a business card for MS purposes but eventually cancelled as my shopping decreased to more of a hobby level than real business and I didn't feel the need to keep that card.

They're all gone. Why?

B/c my spouse has prob's with spending.

i have my own acct now b/c I cannot trust
him.

I have the chase sapphire card that I use just for shops and my upcoming wedding. I use it for the rewards and since most shops I do are food related I get double rewards. I pay it off every month with my marketforce check. Then all the other money that comes in from MS is mine to keep.

Credit cards are the "devil" because so many of us allow them to get out of control. Myself included, many years back. Now, I have only two cards: one is designated for personal purchases (which rarely gets used) and the other is a rewards card, which I use strictly for MSing. As someone who tracks a budget to the penny, I do not spend more or less whether I pay cash or credit. BUT, I also pay off all balances every Friday, not every month.

My partner works with someone who moved here from Germany a few years back, who cannot believe the amount of credit we Americans use. He criticizes anyone who doesn't pay all cash for a vehicle and never uses credit (this is a guy whose household income is well over $600K so take that with a grain of salt . But it's wise to remember that credit wasn't invented to make the user rich, it was invented to make the creditor rich.

I pay for everything, including most all my bills, with credit cards. I do this for the cash back. The exception is that I use my debit card a certain amount of times each month because it is required to get 2.5% interest on my checking account. I have found that using credit cards can be very profitable if you are able to pay the balance in full each month. Some people obviously are unable or unwilling to manage their credit cards wisely and that can lead to overspending and debt.

I would not recommend getting a credit card to pay for shop expenses if you are tight on money. If you don't have the money to pay for the shop fees up front, what is going to happen when your credit card bill is due before you are paid for the shop?

I have a lone credit card but I seldom use it and it has zero balance. I use cash or Interac unless the shop specifies a credit card. Then I use my only credit card and pay it off even before I am reimbursed.

My policy is never to spend anything unless I have the cash for it. At times, some high-end shops require credit card, and so I use the card, but immediately pay it back. I want to avoid getting into the habit of thinking that the limit I have in the card is my own, to do as I please. JMHO.

When I receive payment from any shop, I know it is my own. Come tax time, it is another story, but I am at peace that the credit card company has zero share in it.

If you do certain types of shops having a credit card can be very helpful such as the gas station pay at pump shops. Only other options for those are debit (which my bank charges a fee on every purchase) or gift card and I don't want to have to pay $20 up front for those. I also greatly appreciated having plastic this weekend when I was doing a gas station audit in a creepy area of town. When I was making my $2 in store purchase I made sure to announce loud enough for all to hear that I needed to use credit because I had zero cash on me. At least if your card is stolen you can call right away and have it discontinued.