Pretty much the same here. Everything goes on my apple card and I get daily apple cash on a separate card.
I've found that having at least one credit card is a necessary evil to maintain a credit score if you don't have any type of debt. I keep one that I pay off monthly for this specific purpose.
You can maintain a credit score without a credit card. In fact, you can have excellent credit rating without ever owning a credit card or once owning a credit card years ago prior to becoming debt free. wrbtrader
Even if I hate the system, it is very important to build a good/excellent credit score in the US, without which it's very difficult to obtain any kind of loans at competitive rates. A credit card is the easiest and perhaps the only way to build a credit history. As simple as that.
If you've ever owned a credit card in your life. It's safe to pay it off and never own another one again especially when you have existing ongoing bills that you pay via bill paying, debit/visa, debit/mastercard, payed off student loans, home ownership (no mortgage) and so on. You'll have excellent credit without ever needing a credit card again. Yet, if you have no credit history and need to build one...sure...getting a credit card is great and maybe one of the top easiest ways although there's other easy ways to build good credit. After you build excellent credit history...nobody will arrest you when you become debt free and you will not have any problems in securing personal loans or anything like that. Just continue paying your bills on time and you can do that without ever owning another credit card. Nobody will treat you any different than the other person with loads of debt. P.S. Being debt free does not stop all the junk mail credit card offers. wrbtrader
Wrbtrader, that is untrue. I had a 20 year credit history with a great score. Then I cut up my cards and a few years later when I needed that score, it was gone. Completely. I suppose you have a long-term loan you are paying on, that would give you a score, but if you don't have a loan of any kind, forget about it.
Another way of looking at it is simply to pay off your credit card every month... I use a cc for anything I don't have to use cash for, which is nearly everything. At the end of the month I get a detailed expense report and all kinds of travel points, cashbacks, travel and insurance coverage... Not a bad deal for a free card!
It's true that you can maintain a credit score without a credit card, but you have to have some type of revolving account. Most credit models require recent credit history to generate a score. Your FICO score will disappear if a creditor hasn't reported activity in your name to the credit bureaus in the past 6 months. Obviously this is an issue if you haven't had debt in years.
Everything I stated is true. I've clearly distinguished a few things... Credit Cards versus Debit/Visa and Debit/Mastercards. Then once you've established excellent credit and you've become debt free. You still have other bills that must be paid monthly...don't be late (e.g. cable bills, cellphone bills et cetera). I burned my credit cards in 1995 and debt free in year 1999. Yeah, I own a business and have had business loans / personal loans in the past. Not having a credit card does not prevent me from accessing anything someone else has with a credit card. Late last year I changed cable companies...they did a credit check and said "excellent". The month before, I co-sign on a relative 50k loan because her credit history wasn't strong enough to secure the loan. Her and I at the same bank although I live in a different country. Not a problem with the bank as soon as they saw my name as the co-signer...excellent credit and she secured the loan. Recently, checked my credit history...I see the credit checks in my history and credit still great. I have not had credit cards (payed off / closed account / burned the cards) since 1995. Yet, if someone has NO credit history and wants to build a good credit rating. Yeah, credit cards are a good way to do it but not the only way. I have a friend that landed a high paying job after college with a banking firm. Paid off his student loans within one year...never had a credit card...Excellent Credit Rating. He took out a small personal loan (2 year)...paid it off on time. Never a late payment. Took out a bigger loan the 4th year (2 year)...paid it off on time. He then purchased a nice home in a very expensive neighbourhood. Once again, never had a credit card. At 27 years old...a home owner although it took him a little longer to find a girlfriend to marry and live with him. Today, he's also debt free although his wife has credit cards. P.S. My father and him were the two people that taught me about the dangers of having debt. We're brainwashed into thinking we need to stay in debt...you do not need to stay in debt. It won't destroy your life to be debt free just as long as you continue paying your bills on time and having a great relationship with your bank...doesn't hurt too. wrbtrader
Paying bills won't do shit for your credit score unless you don't pay them - they won't keep a credit score active. You had loans and that's what kept yours alive. If you have no action on your account for 10 years, it's all wiped. https://www.equifax.com/personal/ed...-long-does-information-stay-on-credit-report/