Looking to convert from using debit card to using credit card

[JoeP]

Hi! Looking for advice on moving more toward CC.

We manage expenses as follows:

• Debit: Paying recurring bills (utilities, life ins, prop taxes), groceries, most in-person retail, vehicle reg, low cost vehicle repairs, restaurants (we don't go out to eat a lot)
• Paper check: Some medical bills, charity, services that have horrible e-pay options
• Credit: Amazon prime and all online retail purchases, big ticket such as appliances, airfare, hotels, expensive vehicle repairs
• Cash: Yes we go to the ATM to withdraw cash to use at the pump, incidentals, occasional lunch

For debit, I manually reconcile our checking account every month, to the penny. We sometimes have issues because one of us forgets to put a paper receipt in the checkbook register, or subtract wrong, and that means manual correction during reconcile. I'm thinking we should use a CC for almost everything, and then write a single Big Check to the CC once a month (or a couple mid-cycle as we can).

(Cue the "We use a CC for everything" people in 3...2...)

So I'm looking for a way to simplify. We currently have a "Marcus" card which is the new holder for what used to be the "GM Card" once held by Capital One. I've been using the GM card since 1993 I believe, but never once considered using the points for a GM vehicle (partly because we never buy new vehicles). We don't travel a lot, and hate terms and conditions that impact how we want to use the points. So it sounds like some sort of Cash Back option would work best. If it helps, we use Amazon and Walmart a lot.

Any ideas on an efficient "cash back" CC, or one that offers decent benefits for the ways we spend? Thank you!

[disneysteve]

Both Amazon and Walmart have credit cards. Sounds like either of those would be good options for you to check out. You always want to choose a reward card that pays rewards useful to you.

[Petunia 100]

I'm a fan of Citi Double Cash MC, which pays 2% on everything. I believe that Wells Fargo has just started a new Visa paying 2% on everything as well.

[riverwed070707]

Before I switched to primarily using my Marriott Bonvoy card (I'm a bit of a travel status junkie and am on the road frequently for work) I used the Chase Freedom cash back card. I earned an average of $300-500 every year and just applied toward my statement. $0 annual fee.

[disneysteve]

Before I switched to primarily using my Marriott Bonvoy card (I'm a bit of a travel status junkie and am on the road frequently for work) I used the Chase Freedom cash back card. I earned an average of $300-500 every year and just applied toward my statement. $0 annual fee.

We have both Marriott Bonvoy and Chase Freedom. We also have Discover. We use Chase and Discover for whatever the 5% bonus categories are each quarter and use the Marriott card for everything else. Of course, between COVID and my wife's illness, we haven't done nearly as much traveling as usual the past 3+ years so we've racked up over 800,000 Marriott points. Hopefully we'll get to start using them soon.

[ua_guy]

(Cue the "We use a CC for everything" people in 3...2...)

Any ideas on an efficient "cash back" CC, or one that offers decent benefits for the ways we spend? Thank you!

Waves at you!

The Amex Blue Cash Preferred does 3% back on gas and 6% back on groceries. We eat at home a lot and those savings at the grocery store add up.

Literally everything in your Debit list I'd transition to paying with CC. Why wouldn't you if you could get at least 1% back on all those purchases and/or payments?

But...I've found a good site for comparing popular offers of cash back and other perks: Creditcards.com

I would advise applying directly through the cardholder's site for any offer you see on there just for purposes of information security.

[JoeP]

Thanks! We're taking a closer look at these suggestions. Right now, the Amazon option looks like a good fit, taking into account our spending habits.

[bjl584]

I have a Citi card double cash back. 2% back on everything. Easy.

[Drake3287]

These credit card rewards questions are almost a daily post on these financial forums and there isn't one card that's right for everyone. You really need to do your homework as to which fits your needs the best. Me, I use the BofA Travel Reward Visa card and my cash back rewards are based on my tier status with the bank. Basically how much money I have deposited in my combined accounts.

Like many of us here, I use a credit card for paying for EVERYTHING (and I mean everything) and simply pay it off in full each month. Haven't paid a cent in finances charges in many years. My typical yearly cash reward is around $2,500. to $3,000. Basically free money. Great deal if you can discipline yourself to paying it off each month.

[LivingAlmostLarge]

I agree you have to do a lot of research on your spending habits and what you think is the most beneficial to you guys.

We have 2 alaska CC for the companion fares. We have amex platinum with extra cardholder for the bennies, but we mostly use the chase freedom card which we pair with the chase sapphire preferred for $95 and chase ink business for $95. So we do spend quite a bit on CC fees but all the fee cards we have, we have for a purpose.

Chase Sapphire preferred has $50 hotel credit which we use so the fee is $45/year. Not terrible. The Ink i got because it seemed like the easiest card for my business expenses to keep in one place and it helps me, but I don't think I get $95 benefits so i might go to the free ink card.

The alaska CC is self explanatory that we fly a lot on alaska and the companion fares work great for us for $95/year we get a companion ticket which pays for itself plus free luggage

The amex platinum well that one is harder to justify but I track and we use it

$179 clear benefit
$200 hotel benefit
$200 airline benefit
$100 saks
$200 uber
$155 Walmart + - buy for paramount plus membership
$240 digital credit - audible, disney+, Hulu, Peacock, NYT, Sirius, - we use Sirius, NYT and peacock

because the fee is $695+175 = $870 a year, so be cautious about some of these really expensive

[AllyStreelman]

There are a lot of great cash back cards that line up with your spending - I'd go with one that is offering a good cash-back bonus for new cardholders and either offers 2% back on every purchase, such as the Capital One Venture, or more back on gas and groceries, like the Blue Cash Preferred® Card from American Express, which gives you 6% on groceries and 3% on gas, plus other perks. You can compare some of these options here.