My co-worker was on the phone with her husband the other day. Apparently he was at BJs and had a lot of stuff at the check out line. When he was ready to pay, his debit card was declined. Just imagine that feeling: a long line of people waiting behind you, you with your month’s worth of groceries on the conveyor belt and your card doesn’t go through. Eventually the cashier put his items aside, and my co-worker’s husband called the bank and resolved the issue.
This isn’t a problem that I foresee facing. I carry 4 credit cards and a debit card. If I were at BJs (even though I can’t stand going to wholesale stores because of the lines) and my debit card or credit card was declined, I would whip out another card. So here are the credit cards that I generally carry and why:
Sallie Mae Mastercard– I like cash back and I get 5% cash back at the supermarket and the gas station with this card (up to $250 spend each month). I generally go to the gas station and the supermarket multiple times a month so it makes sense to carry this card with me. Plus, if I’m going to spend money there, might as well earn some cash back.
Rotating 5% cash back card– this will either be the Discover It Card or the Chase Freedom card. The rotating categories usually include, among other categories, home improvement stores, restaurants, and supermarkets. I’ll carry the card depending on whether the category includes stores that I frequent.
Target Red Card– Yes, I’m a fan of Target and I work near a Target store so I often do my shopping there. The Target Red Card gives me 5% off (not cash back).
Bonus Card– I don’t travel hack like many other bloggers do, but I do like to take advantage of some great credit card bonuses sometimes. If there is a great offer, then I’ll carry that card to meet the spending requirement.
Bank Debit card– I don’t generally use debit cards because I don’t earn any cash back. However, if I go to Aldi’s then I’ll use a debit card as they don’t take credit cards. I also carry my debit card because it’s also my ATM card if I want to get cash.
I know some people don’t carry credit cards at all because they know that they’ll overspend if they use credit cards. That’s fine. To each their own. So what would you do if you only carry one debit card and it didn’t work?
And for those who use credit cards, how many do you carry with you? I’m not asking how many credit cards you have (I know many credit card churners have A LOT), I’m asking how many you carry with you on a day-to-day basis.
Awhile back, I posted a similar topic, How Much is in Your Wallet, where I asked how much cash you guys carry and learned that I was in the minority in that I carry a decent amount of cash with me. It seems like most people don’t carry much cash if any. I thought about that topic this past weekend. We went to an aquarium and parked in the parking lot. We left at closing time so, of course, there were a lot of people leaving at the same time and ONLY ONE cashier. It was a $10 flat fee which makes me wonder why they didn’t just make you pay in advance. Anyway, there were multiple lines formed to get out and a very slow cashier. One thing that slowed the cashier down even more was that many people were paying with credit cards! They needed the cashier to swipe the card, hand them the slip, sign the slip and then open the gate! I gave him a $10 bill and was on my way.
I have three credit cards and three debit cards. The debit cards include my Target RedCard, my personal debit card, and finally my business debit card. Probably don’t need this many cards but I figure why not? I also have an HSA debit card that I carry.
DC @ Young Adult Money recently posted…How to Overcome Your Fear of Side Hustling
Why did you choose a business debit card instead of a credit card? Just curious.
I always carry my debit card and a back up credit cards for instances just like the one you mentioned above. I can see where you wouldn’t want to carry a credit card if you didn’t have your spending and goals under control, but it certainly can leave you in a bind, especially if you don’t carry cash! Another thought-provoking question: thanks, Andrew!
Laurie @thefrugalfarmer recently posted…60 Home Organization Tips for a Happy Home
Yea, I understand some people not wanting to get tempted to use their credit cards, but I think credit cards are better for certain purchases since it offers more protection.
I carry two credit cards-both cash back-and one debit card. We have another credit card in our safe deposit box that we never use for reasons I won’t go into here, but it is our oldest credit card account and I’ve always heard that closing an old account hurts your credit score. Don’t know if that’s correct or not but it is doing no harm sitting in the vault.
Interesting…I won’t ask. I’ve also heard that keeping an old account is good. It shows that you have a longer credit history I believe.
I have two credit cards (one visa and one AMEX) and one debit card. I have thought about credit card churning, but I just don’t think I could keep up with it. l like keeping my wallet simple.
Shannon @ Financially Blonde recently posted…Investing Mistakes – EP 08
I don’t go crazy with credit card churning, but there are definitely big benefits. You don’t have to go crazy…I just get the ones with the biggest and best bonuses.
I keep 3 debit cards in my wallet, 1 individual, 1 joint, and 1 HSA. I am true to my word on not going back to credit card debt, unless you include the CC my wife got with her picture for Costco which we cancelled, I keep that in the wallet for the Costco Membership ID.
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Good for you. At least you have multiple cards so you’d avoid the problem my co-worker’s husband had.
Since reading so many positive reviews of credit cards and their benefits I have looked into how I can work the system too, but unfortunately we don’t have the same offers in Europe that you guys do in the States. No fair!!
Myles Money recently posted…The Case for Owning Gold
Sorry buddy! Some great benefits if you know how to work the system and if you’re disciplined!
I usually have three on me at any given time, but mostly I only focus on using one at a time, usually to churn for travel points. The other ones are there just as a backup.
Tonya@Budget and the Beach recently posted…Answering the Question: Why Am I Really Doing This?
Yea, I’m a little crazy…I like to use whichever card gives me the most points. I need an excel sheet!
We are in full on travel credit card churn mode again: banking the US Air and American Airline miles before they merge. We’ll have something like 200,000 miles when we’re done with those four cards, and an offseason roundtrip flight to Europe is only 40,000 miles. For what it’s worth, I always only have one in my wallet at time (to ensure all my spending goes on the right card).
I was going the cash back route for a long while, but did some back of the envelope math on the “cash value” of the flights we were getting vs. how much spend we were putting on each card, and the travel hacking won out. Of course, the really tough question to answer is: would we travel as much without these cards?
No, probably not. But that’s cool with us. 🙂
Cash (or cash back) is certainly the way to go for pure versatility though. In a lot of ways, cash is still king.
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Yea, I read people taking advantage of the card before the merger. Some great bonuses out there for travel. I wish I had gotten into it before the baby when I had more opportunities to travel.
I have two credit cards (Starwood AmEx and Amazon Visa), which I use to pay for everything since the rewards on both are excellent. I also have a debit card, which, like you, I only use at Aldi’s. I don’t really spend enough money to support more than two cards–I don’t want my rewards points spread out over too many different cards.
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I’m thinking about getting the Starwood too. You’re right about spreading out rewards over too many cards. I usually concentrate on a few unless there’s a bonus or something
Currently I have two credit cards, the Sallie Mae MasterCard, and a Capital One card that gives 1% cash back on all purchases. I want to upgrade that to the Quicksilver card to get 1.5% or maybe even the Fidelity card that gives 2% cash back. Every little bit helps. I only carry a single debit card from my bank right now though, don’t plan on changing that.
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Yes, the Sallie Mae card! It doesn’t seem like most people know about it, but 5% on gas, supermarket, and bookstores including some Amazon purchases is pretty awesome.
I currently carry four cards… We recently switched to the Double Cash credit card – pays 1% when you buy something and 1% when you pay it off. If at all possible, all purchases go here. Target Red Card for the discount. Debit card to our checking account though I haven’t used it since going to the CC exclusively. And the debit card to my ‘slush fund’ – the marriage saving account where we can’t comment on each other’s choices.
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Getting cash back for paying off is a good incentive. I think there’s a Bank of America Card that gives you a bonus for paying on time and making more than the minimum payments.
I have two credit cards. Two because I churn for credit points. I have also three debit cards. So many cards right? But it mainly functions as accessories to my wallet.
Jayson @ Monster Piggy Bank recently posted…We’ve almost sold our house
Yea, I need to get some cards out of my wallet too…it’s getting too thick.
We have a ton of credit cards but I only carry 2 or 3 at any given time. It can be a pain to pay that way but I’m not a huge fan of cash either =/
Holly@ClubThrifty recently posted…How The Internet Saved Me $780 In Five Minutes
Me neither…unless I get a cash discount!
None. If the Bible says that the debtor is slave to the lender, and if I believe being a slave sucks, then there’s no way I’m going to purposefully put myself in that position. Besides, even if you’re saving a few percent, Dun & Bradstreet found out that credit card purchasers at McDonald’s spend 12-18% more by buying on credit. So, you’re actually LOSING money. Check out this article by nerdwallet http://www.nerdwallet.com/blog/tips/credit-cards-make-you-spend-more/
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Yea, I guess that may be true for some people, and I’m sure I can be susceptible to that too at times. But I’m pretty disciplined in my opinion so I don’t think it applies to me. I’ve always paid my statement in full and whether or not I’m paying with cash or credit, I’m pretty good at questioning whether I really need to spend my money.
I have my primary bank debit card (VS), 1 credit card (MC) -0 balance YES, another bank debit card (MC). NO amex or discover not accepted everywhere, and not interested. I like your cash back game you play, I just don’t buy enough to justify rewards and tackle another mental task of managing another account. I have a lot on my plate and value simplicity at this moment, even if it means I’ll get 1 dollar off at target.
EL @ Moneywatch101 recently posted…How can Will Power affect your Finances?
I shop at Target quite often so the savings really add up. I also, unfortunately, commute a good distance so cash back on gas nets me about $150 per year. Not a lot but, it’s better than nothing for spending that I’d be doing anyway.
I only started using credit cards in the past year, so it used to be cash/debit or nothing. Note I’ve got 3 in the wallet.
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*now
Femme @ femmefrugality recently posted…Around the World in 80 Books: Sierra Leone and Jerusalem
Do you find that you spend more or tempted to spend more with credit like others have suggested?
I only like carrying one cc and my debit card (specifically for the just in case reason above). It’s easier to track just one, though I make sure that I check out all balances on other cc’s just in case fairly regularly!
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That simple solution sounds pretty good. Sometimes it’s annoying to have so many cards and to think about which card I should use to get the most cash back.
I never needed credit card,rather used to carry a debit card always with me. Luckily I have never been in a trouble.
So only one debit card?
I have debit cards, but I’ve never used them. As for credit cards, well, I have A LOT. I open them to get rewards and then close them before I get hit with an annual fee. But in the grand scheme, there are “just” 3 cards in my regular rotation — a Citi Thank You Rewards card, an AmEx Blue Cash Everyday card (my favorite — 5% back on groceries and gas!), and an REI card (1% cashback once a year).
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I have to check out the AmEx Blue Cash Everyday card…5% on groceries and gas is awesome. I have that with my Sallie Mae card but it’s capped at $250 spend.
I have two debit cards, two credit cards, and an American Express card. I have to admit carrying a few cards in my wallet does give me a sense of security when I go to the store, because if one card doesn’t work, I know I have other options. I am actually straying away from using the debit cards because CC points are rewards are pretty nice. Plus I’m trying to spend a certain amount of money on my AMEX gold card so I can receive membership points to use for travel so I will start using it more for groceries, gas, and just basically anything that I can charge to it.
Chonce recently posted…Better Late Than Never Goals
Yes, CC rewards are pretty nice. As long as you’re not spending more than you would have then I think credit cards are better than debit cards. They also provide more protection.
We each have three cards. Both of us have a debit card to our spending account, we each have a Frontier/Barclays card to our “Debt Free Guys” account and then we each have a United/Chase card for emergencies and big purchases. We keep our Debt Free Guys expenses separate from everything else for tax purposes. We use our United/Chase cards for big purchases to acquire miles for travel and so that we aren’t embarrassed in the check out line if our debt card is declined. Luckily that has happened for a long time (I just knocked on wood).
John Schneider recently posted…25 Gifts for Under $25 (No Gift Cards Included)
Oh man, that happened to you too!
We have 2 debit cards (one for our main checking and one for a second checking account we only use for the income and expenses related to our rentals) and one credit card. I don’t usually carry much cash, if any, and prefer to always used the credit card. I pay it off right away, so I never had to actually pay fees on it. I think the fact that I use and pay off the credit card a lot helped with my credit score, which is the main reason why I do that and why I periodically ask for credit increases.
Felix Money recently posted…January Financial Statement
I prefer using credit cards too for the rewards but always have some cash just in case.
I just have one credit card that I use for all my purchases. I used to carry about five but then started using the cards that paid me cash back/rewards. Now I’m down to just one and it works for me. Pay it off every month and earn 1%. I know it’s not much but it’s better than nothing.
DivHut recently posted…Rolling Down The Dividend Highway
Yea, I like to optimize my cash back and generally use the ones that give me the most cash back for the type of purchase I’m making. 1% is good but 5% is even better.
I have 4 debit catds, the children (18+20) all have trust funds and debit cards. When I was a recent grads I had money from my trust fund which I invested into stock and I saved some and I put some on debit cards (I invested into Apple+Microsoft stock and I have made about 30x what I paid for it back years ago)
Ahh to have invested in Apple and Microsoft early on! I prefer credit cards over debit cards for the added protection and cashback/travel rewards.