- May 20, 2011
I like my credit card as it is so easy to pay for everything on it and then once a month make a payment. It’s all very easy with internet banking and bpay. I also have it set up in PayPal so most of the things I buy online I just PayPal.I've just started the serious part of the transition to retirement with about 7 years to go and like many people here we should be in a good position. My question would be why bother with the run around from the banks all for the points which they can and do revalue at any time. Over a year ago I cancelled all our credits cards* and happily just settle any bills upon receipt. This means that the overhead of bills is not sitting on the fridge and then if paid by credit cards I felt I was paying it again on the monthly c'card statement. The non-business household financing on the cards was only about $2k revolving. So for a $4k investment I paid out the cards and keep on top of the bills.
Even these signon bonus don't look like they are free. There is a personal cost to all of the angst and why bother upsetting your retirement cash flows just for the bankers privilege which they outsources to Manila anyway.
Retirement air travel I'll do in Y with nicer hotels each end of the journeys and stopovers.
*Actually I did have to apply for a no fee, low interest card which we use for hotel and car rental deposits.
In retirement there are actually very few bills - private health is an automatic monthly deduction. So monthly is really phone bills and cleaner (not cc) and quarterly rates and energy. Annually rego and insurance. I hardly ever get a bill apart from those.
Most of the rest is buying things and travel and a cc is very convenient for that.
I can’t be bothered with churning cards - we make enough points from using our CC and flying and we only use them for domestic travel and pay for overseas, so we don’t need that many. We are fortunate to be able to afford to pay for pointy end travel, so that colours our decision.
For some people though the churning is necessary- everyone is different and it’s annoying that the banks are so ignorant of retirees!