Why I use a credit card for everything
For as long as I can remember, I’ve always used a credit card to pay for all my purchases. When I was younger, I didn’t always pay off the balance every month (which is part of how I got into over $20,000 in debt!), but nowadays I pay off the balance every week.
Of course the #1 reason why I use credit cards all the time is for their rewards programs, but I also love quick tap & go payments, how easy it is to have a summary of all my purchases online (makes entering in numbers on my spreadsheet a breeze!), and I absolutely hate carrying cash on me.
Even though I love credit cards, I’m not one to chase bonus sign-ups (only to cancel the cards later), nor do I hold a fist full of cards in my name. To be honest, that’s just way too much effort and managing my expenses is already a lot of work! Anyway, I like to think that I’m super strategic, and currently only hold two cards. Actually, I only had one credit card up until this past fall, when I added another card to my roster. :)
Here are the two cards that I currently hold:
Capital One Aspire Travel World MasterCard (grandfathered)
This card has a $120 annual fee, but I receive 10,000 bonus reward miles every year ($100 value) that helps to offset the cost, plus 2 reward miles for every $1 spent – with no annual limit!
What’s great about this card is the flexibility on how I can redeem my reward miles. There used to be an annoying tiered system where you weren’t really getting to redeem the full value of your reward miles. But back in October 2015, they switched it over so that you can just redeeming on any travel purchase with no tiered threshold.
This card was discontinued a while ago, but luckily I got grandfathered in with the old plan (so grateful for that). And I was able to add RD on as a user to my account so that we can start earning more rewards to put towards our travel expenses.
Related: Do you have a store credit card?
In 2016 with just my spending alone, I earned a total of $629.89 on this rewards card ($749.89 – $120 fee) which definitely took a huge chunk out of our travel budget. :)
The only down side to this card is that it is extremely difficult to get a credit limit increase. I’ve asked a few times for them to raise my limit, but it hasn’t budged from the $5,000 that I initially qualified for. It has been fine up until this past year, where there were a few instances I needed to charge more than $5,000 at a time and had to ask RD if I could use his card. So I decided I finally needed to get a second card…
Tangerine Money Back Credit Card
It was a pretty easy decision when it came to figuring out what my secondary card was going to be. I’m already a Tangerine customer, and the rewards program was the best I’ve seen for a no-fee credit card. I was offered a $15,000 credit limit and took $10,000.
Basically you get to choose two categories to earn 2% cash back (and 1% cash back on everything else). If you get your rewards deposited into a Tangerine savings account, you get to choose a third category.
What credit cards are you using?
Author: Krystal Yee
I’m a personal finance blogger and marketing professional based in Vancouver. I’m a former Toronto Star (Moneyville) columnist, author of The Beginner’s Guide to Saving and Investing, and co-founder of the Canadian Personal Finance Conference. When I’m not working, you can usually find me running, climbing, playing field hockey, or plotting my next adventure.