I want to live off my credit card and throw all my income back onto it, I can put all my bills on it.?

Question

Is this a good idea? I don't want to spend over what I bring in and pay the balance off every month without incuring interest. It seems like a great idea to me but why doesn't everyone else do this? Do they just not get it? It seems like I could get my score way up there and always have money on the card if I need it plus savings in the bank. I will just get the limit up to where I don't go over thirty percent of my income. Isn't this how you do it?

Answer 1

Sounds like a good idea till you actually start to do it. It requires a great deal of patience to be able to limit yourself to the amount that you can pay off each month. It is easy to start shooting for the credit card limit and then you are in trouble. Also, companies are now looking at daily use purchases such as groceries with a skeptical eye and increasing the interest rates on these card-holders as they feel they are more likely to default.

Answer 2

Many people use that system.

I like paying my bills and getting paid to pay them.

I use my rewards cards to pay my household bills, groceries, gas.... well, just about everything.

It takes a good budget and a strong will to stay on budget or things could snowball.

Keep a spreedsheat or a ledger and stick to it. It only takes a few minutes a day if you have made any purchases or paid any bills.

When I pay my household bills, mortgage, electric, vehicle insurance, etc., I immediately turn around and pay the credit cards off with the household bill money. I like paying the larger amounts before the statement cuts. That way the large balances are not being reported, which keeps my utilization down, and I still reap in the rewards from my cards.

When I go shopping, I stick to my budget. I may immediately pay the credit cards off or I may wait to let one or two of the statements cut, if I want to show a bit of usage on my reports, and then pay them off in full.  

(I do have alot of cards. I let some sit idle for about 4-6 months and then rotate them with the cards that I have been using. I also like to only have a very small few actually report a 'low' balance on my reports at any given time)



Be careful to read the fine print on the billpay for your household bills as some companies charge a fee if you pay by credit card. (my phone bill is the only bill I pay by check since they charge a fee)

Never, ever fudge on paying the credit cards off.

For example, you make your payments by credit card and you have the bill money in your bank.... so you think to yourself, "well, I need to treat myself and go out to eat and see a movie, I'll make up the money to pay the electric charge on my credit card soon" ... NO, once you start doing that you are creating bad habits, stick with the plan.

Unless you are already used to living on a budget, you might start slow and pay the household bills that you know  are the same amount every month and you already have those amounts in your budget.

Then make a budget for your groceries, gas, etc. and see how well you do keeping to that budget. Once you start staying within your budget over a period of time, then you might start using your cards instead of cash.

It takes some effort but eventually it will become second nature to you. Plus, if you are using cards that give you rewards, which you should, the rewards will add up rather quickly and be a nice bonus.

Answer 3

It is approximately what I have done for years.  Use your card as responsibly as you would use cash.  Most people do not have the will power to control their spending.  You can live on 30 percent of your income?  I do not think you would have any trouble using credit, checks or cash.  If you use a card that has a 1% ot more rewards you can actually have a nice bonus about once a year.  I think putting 100% of your expenses on a credit card will be difficult but you should be able to do 70% or even a little more.  I think you will need some walking around cash and still need a checking account (to pay your credit card bill and maybe a few other things) most recurring bills can be arranged so as to be automatically billed to your credit card.  Good luck.

Answer 4

credit cards have never done anyone nothin' good....