Funny thing, I was just talking to a coworker about that today. I mentioned that I never believed in charging groceries. Yes, it's because in my not-so-long-ago-past, I carried a balance, and charging food was a sign of desperation. I did it once or twice, but I usually wrote a check for groceries. Now that I have most bills paid off I have a different philosophy. I have two cards which give me airlines miles. They bill about 2 weeks apart. So I use the one that gives me maximum time to pay, and I charge groceries, gas, everything. $2 worth of gas goes on the card (of course, the pay at the pump contributes to that as well). Both of these are paid in full each month. I charge about $3K per month on both cards, enough to get a free ticket every year. Considering it's spread on two cards, figure one ticket on each airline every two years. Annual fee is $50, so I can get a ticket to anywhere in the US for $100. Seems reasonable to me.
I charge nearly everything to get the miles. What is the difference between forking out cash or writing a check or using a debit card at time of sale and paying for it at the end of the month. It is just a means to get more for one's money. It pays off when using the miles to upgrade to first class to Hawaii, as an example, or to get a free ticket. I'm flying to Hawaii from the East coast for a coach ticket over $500 round trip. I'm using miles to upgrade to first class as that is more cost effective for that trip. People who grew up in the era in which one never charged for necessities for fear it might look as if one were in financial trouble do not understand the new era and getting the most for the money spent. As for the FICO issue, I'm 768 and have been told by the simulator that I will go over 800 if I reduce my percentage of revolving credit.
WHEN YOU GET MILES...YOU CHARGE 100% OF WHAT YOU BUY!!!!!!!! INCLUDING GAS AND FOOD!!!!!!!! You can always PAY IN FULL EVEN BEFORE THE BILL GETS TO YOUR HOUSE!!!! (IF YOU MUST) I pay some every week since I have ON-LINE PAY!!! When the bill comes to the house...IT IS ALMOST PAID...OR 100% PAID AND EVEN SOME OF THE NEXT MONTHS BILL IS PAID OFF!!!!!! I have charged MORE THAN $5,000 in one month...but NEVER get a statement that is over $1,000...
