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Comment by rpdillon | Hacker News Reader

I completely get where you're coming from, but credit cards are a tool, and you can came out way ahead using them properly. For starters, they are key to having a good credit rating, which opens a lot of doors - maintain 3 open cards, pay off the full balance every month, and keep those accounts open for 10+ years. Big lift.

Second, never use a card with an annual fee.

Third, which I already said, but bears repeating: pay off the full balance every month.

Fourth, look out for one good rewards card and funnel expenses through it, so you can get the rewards.

My parents taught me all of this 40 years ago, and it was exceptional advice, and has served me (and my family) very well.

Credit cards are not about carrying debt. They are the worst tool for that.

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> way ahead

This is overselling it. You can come out 2% ahead or so. 4-5% if you are an extremely high spender who enjoys mentally managing 5 or 6 credit cards to max out category bonuses and other benefits and all that.

You come out marginally ahead at the expense of mental overhead. Good tradeoff for some, not for others.

I use a credit card, I dropped from 3-4 different cards trying to max out those 4-5% spending categories and just have a straight 2% cashback on everything card now. Plus one backup on a different payment network in case one goes down. It got to be exhausting trying to remember to manage so many cards plus remember to use the points, make sure to use the right card for the right thing, and all the other BS.

For some of my friends it's a hobby which is great for you if you enjoy such things! For me, it's just adding another chore to my life. Not worth the 1-2% or so marginal gain against my spending.

The super easy stuff is long gone these days too. You get far larger discounts paying via ACH for utility bills/cell phone bills/etc. vs. what credit card rewards give you so all the "autopilot" stuff is largely gone.

I do remember the days where we paid our Equinix bill via the company Amex. That was pretty fun while the party lasted!

I don't play the credit card points game. I have an Amazon Visa, and I get 5% back, which has been thousands of dollars over the life of the card. When I say that you're coming out way ahead, I'm referring to two things. One is the value you get from the points, but the other is the way credit agencies view credit accounts that are open for a decade or more and are consistently paid off. This is a strong signal to the industry that you are a person that can be relied upon to pay your debts, and this is reflected accordingly in your credit score.

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