Why You Should Buy Everything With Credit Cards

CNBC
CNBC
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Published 2023-03-11
Having multiple credit cards and playing the rewards game can save you hundreds of dollars each year. It can land you some substantial sign-up bonuses like the Capital One Venture Rewards credit card’s 75,000 miles or Chase Ink Business Unlimited’s $900 cash back. Americans own four cards on average but not being able to pay off the balance in full every month can be damaging to your credit score and wallet. American credit card balances reached $986 billion in the last quarter of 2022, according to the Federal Reserve Bank of New York. Those contributing to that debt should not be using credit cards because the interest rates they’re paying outweigh the card rewards. However those who use credit cards responsibly and don’t have balances, typically save $300 to $400 each year. How much money you save using credit cards depends on your lifestyle and how you play the game.

Chapters:
0:00 — Introduction
0:55 — How credit cards work
04:01 — Rewards
07:51 — Using responsibly

Produced by: Emily Lorsch
Edited by: Jacob Harrell
Senior Managing Producer: Tala Hadavi
Graphics by: Jason Reginato; Alex Wood; Christina Locopo

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Why You Should Buy Everything With Credit Cards
All Comments (21)
  • @SamBass
    This video is brought to you by Visa, MasterCard, Discover, and American Express 😂
  • @jtgd
    “Brought to you by VISA”
  • @antoniowood8119
    I’m addicted to paying off my credit card 😂 I constantly check how much I owe and I want to pay off everything instantly
  • @kyleefaren3075
    I only use credit cards. But I treat them like debit cards so I don't spend money I don't have. Also use them to build credit.
  • @livi_bridge
    For me, growing up Mexican American I was taught to pay in full and not owe people money. Which I definitely think helped me in the long run because it helped me better manage my spending and not try to live beyond my means.
  • @xKindle
    only have one credit card and I use it once a week. Reject consumerism, embrace frugality and minimalism
  • @KingDavid-jj7tk
    America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun...
  • @timelessmusicfamilymusic9175
    1. Pay your regular on-going bills like phone, internet, utilities, insurance etc. with a credit card on Auto. 2. Pay the full amount, never pay interest. 3. May sure it doesn't charge an annual monthly fee. 4. Chose a credit card with reward points only. This way the credit card 💳 is paying you to use it instead of the other way around.
  • @Jasongy827
    I learned that a long time ago when I was 24 my credit score has been really high, I always say this, if you can’t pay for it in cash don’t use it on credit card
  • @FolarinSodiq
    I feel investors should focus on under-the-radar stocks, considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered. I don't know where to go here out of devastation.
  • @user-ny5xe2hx7t
    Most rich people stay rich by spending like the poor and investing without no stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them
  • @cancelled_user
    Keep in mind that cashback or other rewards encourage you to spend more, so you might actually overspend, buy stuff you otherwise wouldn't, etc.
  • @MPAzezal
    Just use it as a debit card. Don't spend money you don't already have. Don't spend more than you get in a paycheck. The cashback or rewards can be really nice and are a little discount to things. Definitely do not carry a balance month to month because that's when the interest will start accumulating
  • @BobSure_AKA_PotatoSmasher
    This smells like sponsored content. Weve been conditioned to accept credit cards as a necessity. You really can live wothout CCs.
  • @Arienrhod
    I buy everything with credit cards. Extended warranties, added protections, limited liability, and cash back. I pay the cards off in full every month. This year I got just shy of $3,000 in cash back rewards.
  • @RomeReactions
    As long as you’re paying it off before interest hits it can be worth it for the points and rewards. However, you do tend to spend more overall when using a credit card so it could balance out. Ultimately, i use my credit card mainly because i dont want my debit card getting hacked lol.
  • @Tsukei
    Credit Cards are great but not for everyone. If you don't have the self control to spend within your means and pay it off every month, then obviously this will just feed consumerism. Otherwise, it's free money/benefits for those who are responsible. Not to mention they're safer to carry around than a debit card/cash. You'll have a much tougher time getting your money back there than if a CC is lost/stolen.
  • @JoseFlores-xh5cj
    I pay my credit cards every week. Feeling the pain of money leaving my wallet helps me not go on a unnecessary shopping spree and gets me focused that food and bills come first before weekend fun nights.
  • @djm2189
    I'm 28, and earn $112k+. I was forced to get one when I couldn't rent a car even though I had 60k cash... I grew up poor and didn't know. I only used debit cards. Got the chase Sapphire Preferred a year ago and use it like a debit card. Actually pay it off weekly. I've earned $1.3k so far in rewards. Not bad. Really love the extended warranty and travel perks. Doubt I'll get another card cuz I'm simple and only want one.