Stupid checks, credit cards are for smart people
On occasion I try to provide valuable experience or advice I can give to help people improve their credit, choose the right credit card or whatever. As the owner of this website it is my prerogative to publish or not to publish whatever we choose. All of my friends know that I am an efficient person and that I tend to be very methodical and deliberate in just about everything I do. I have become a creature of habit where some might even consider my tendency’s to be OCD-like, but without any of the rituals. As a result, I have many pet peeves and one I wish to address.
I think the “Life Takes Visa” commercials are a great example of how much less each of us would have to wait in line, if people just used a debit or credit card. Unfortunately, how smooth and efficient payment goes in these commercials until someone uses another form of payment doesn’t always work that way. I always find it entertaining to watch people as they pay for gas as if it’s their first time. Often it appears to me that this gas pump must clearly be very different from the last one the person used. I’ve pumped gas into my vehicle hundreds of times, haven’t you? Don’t you know that paying at this gas pump is the same procedure you used the last time you filled up? It’s no different; they didn’t change the machines, the payment types they accept, your card or anything else. Why is it taking so long for you to pay?
This past weekend, I think I almost reached my boiling-over point. I was at our local Costco, where I have observed this occurring often, and was behind a woman who was paying with a check. Not only was she writing a check, but she seemed to be waiting for the total before even beginning to write out the check; as if she needed permission from the cashier. “Go ahead ma’am and fill out your check now - I give you permission.” Now many may think this is not a big deal, but when I observe it or end up behind that infamous check writer who makes myself and others wait in line longer - I become infuriated! Not only did this lady take several minutes to write out the check, but it ripped when she was removing it from her checkbook! AARRGGHH! The cashier had to call over another employee so he could run around frantically searching for some tape. After waiting several minutes, this employee who seemed to understand the importance of getting this lady and the rest of us through the line, finally found some tape so the check could be taped back together. Can’t you just use a debit or credit card? Please?
Check writing is such an antiquated form of payment and only necessary in very few circumstances. Before the implementation of Check 21 legislation, you could realistically “float” a check for up to three days or more. Now, the Federal Reserve doesn’t even have to send the original check through the banking system. They just make an electronic copy which is sent to the issuing bank and the money is generally deducted the next business day after the check is deposited. If you’re looking for a grace period to delay payment for a couple of days, use a credit card. Credit cards can have grace periods as long as 30 days.
I personally never carry cash because I like to know where I’ve spent my money and be able to account for all of it. Your check book probably has one of those convenient little registers that you can write in while I’m standing behind you in line. Go ahead, write in the amount of the check you just wrote, subtract it from the previous total so you know just how much remains in your account. Don’t worry, I like standing in line behind you because there is no other place I’d rather be! If you’re worried about keeping track of your money, credit cards come with a statement every month that shows where and how much each of your purchases was. Many credit card issuers even provide year-end statements that categorize your money so you can better account for it. Plus, making a return or exchange can be a lot easier if you lost your original sales receipt because your purchase can be looked up via a credit card and not a check.
Using a credit card means I’m going into debt, isn’t it? No! Credit cards are a form of payment. Yes, they can incur more debt, but first and foremost it is a form of payment. If you’re worried that you would spend more than you actually have cash for with a credit card, then get a card with a low available credit line. I would assume most people could more than cover their monthly expenses like food, gas, utilities, etc. with a credit limit of $2,000 or less. I’ve never heard of an issuer denying a cardholder’s request to lower their available balance.
When I started PlasticRewards.com, I did so with the intent of providing people with a destination to compare several different credit card offers all at once rather than visiting each credit card issuer’s website. Our focus is really on reward credit cards to maximize the benefit so users can earn rewards on every day purchases by using the credit card as a form of payment. For example, that woman in front of me who paid with a check, she probably spent at least $100 and could have used a cash back credit card or other reward credit card to earn a little extra and saved all of us some time in the process. She didn’t have to go into debt and she could have easily gone home and paid her credit card bill online if she wanted to properly account for and manage her existing funds.
If you are or know someone who still is a check writer - please stop! Credit cards are a more efficient and beneficial way to make payments just about anywhere. While I may not say anything to you while you’re writing that check, you now know what I and the many others behind you will be thinking.
