Quote:
Originally Posted by SaintessHeart
1. He pays his bills on time to avoid accumulating borrowing costs
2. He only takes a few cards out everytime he leaves home.
3. He uses to cards to get points, then applying them for discount, thus reducing his cost of living and increase his credit worthiness as his monthly pay are kept at an above-sustainable rate to pay his monthly credit card bills.
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I am not sure if this is applicable outside the USA. Because typically shops have to compensate the credit card company whenever a credit card is used as means of payment (e.g. Amex being one of the more expensive cards here in Germany).
Points for discount is bullshit, at some point you paid already for that "discount". If you go to a normal shop the prices will be high enough to compensate for additional costs like credit-card e-cash. This is why credit cards are accepted only in some shops here in Germany (i.e. some gas stations will take credit cards, others not... the cheaper one's are typically not taking credit cards).
So, at least where I live you'ld either pay more for your stuff on a daily basis and can use the credit card extensively or you buy cheaper and cannot use the credit card so often. In the end you have to calculate this very thouroughly to decide which way is the most economic alternative. And for someone who does not plan to incur debts, the answer could very well be to use no credit card at all. Because at the end of the day, the credit card is a service that someone has to pay for (and its not the credit card company).