Saved my first $5k at 26 pls clap 🥹

[u/k1ranell]

I also have some $820 in acorns and <$1500 in a rollover IRA I have yet to move to a ROTH but putting it off for tax/wuss reasons. However, I have $772 in CC debt. But a win is a win, I can pay it off with time 😁

Gonna try to save $10k next year

[u/Skylon1]

I can’t speak for OP but I usually have around 500-1000$ on my card that I make payments on monthly to avoid interest. For me I just like having a clean number in my savings, so rather than use my $5000 as long as I’m not paying interest on the credit card amount I don’t dip into savings.

[u/ForzaShadow → u/Skylon1]

Yes, I am the same way, it’s literally beneficial to use your credit card for every purchase you make as long as those purchases are needs and not wants. If you pay it off in full each month there’s no harm done.

[u/Academic_Cabinet_994 → u/ForzaShadow]

If you pay it off in full each month there’s no harm done.

You also want your utilization below 30% typically, otherwise it can negatively affect your credit.

[u/GrandmaOatmeals → u/Academic_Cabinet_994]

This is sort of but not fully true, and the creditcards subreddit has a whole sticky over this myth.

Basically utilization has no memory. So if you have 99% utilization every month, and then you go down to 1% utilization in the month you apply for new credit, you'll have the exact same odds of acceptance as if you have 1% utilization all the time.

There's no tangible benefit to always keeping your utilization below a threshold, only on the months you need new credit.

This is different from payment history, where if you have a late payment, that is gonna hurt your score for 7 years to come.

[u/quiteCryptic → u/Academic_Cabinet_994]

Not important unless you're actively trying to get a house or car loan, credit score will recover quickly once utilization is lower again.

It doesn't hurt to keep it low though if you can, or get more credit available to you to automatically keep it low (as long as you won't be tempted to use that credit available to you...)

[u/Skylon1 → u/ForzaShadow]

Yeah the cash back does add up sometimes usually like 50-75$ every couple months or so. It doesn’t exactly help your credit to do this but it doesn’t really seem to hurt it much. I think I sit around 760-775 credit score. They are mad at me that I don’t use enough credit.

[u/Chrznble → u/ForzaShadow]

I always suggest using a cash back card. I get ~3% on everything I purchase. Between work trips, bills, everyday spending, and everything else, I make around $1,000+ $2,000 a year off my credit card. No interest as everything is paid off monthly.

[u/NarrowMonth8202 → u/Skylon1]

Make payments on monthly. Do you mean you pay off the statement balance each month in full otherwise how are you not paying interest (aside from a zero apr card).

If you have the cash to there is no reason not to pay off the full statement balance each month.

[u/Skylon1 → u/NarrowMonth8202]

Yes I pay the statement balance in full, and usually some stuff that’s not on that statement will be there that just goes over to the next pay period and so on that isn’t due yet.

[u/No_Veterinarian1010 → u/Skylon1]

That’s not carrying a balance then and it’s how you are “supposed” to use a credit card

[u/Skylon1 → u/No_Veterinarian1010]

When I say carry a balance I just meant the new stuff that’s not in the previous statement stays there. Sorry if my terminology isn’t accurate.

[u/NarrowMonth8202 → u/Skylon1]

No worries I just want to be clear for the OP.

[u/m00ndr0pp3d → u/Skylon1]

I do the same thing but in the post they said they can pay it off with time, indicating they would probably pay interest on it. I use my credit card for everything I buy, no reason not to really

[u/Eeor_is_High → u/Skylon1]

'a clean number in savings' is strange considering how variable the cost of life is.

[u/anusthingispossiblez → u/Skylon1]

This is what I do. Take advantage of credit card point but never pay interest