“I may by no means use Qube Cash as a result of I like getting bank card factors for my spending!”
That is the primary response I hear from bank card customers contemplating budgeting with Qube Cash. And I get it, all of us like “free” stuff. However does it make sense?
Let’s break down why you would possibly need to give Qube Cash a strive, even in the event you’re a accountable bank card consumer.
This submit is sponsored by Qube Cash, a budgeting and banking resolution rooted in constant intentional spending. Enroll at the moment with code MONEYMAMA for 2 months of Premium totally free!
As all the time, my opinions and experiences are my very own and we by no means advocate merchandise we don’t love. For extra info, see our full disclosures.
What’s Qube Cash?
Qube Cash is an app and banking resolution that mixes the facility of digital banking with the intentionality of money envelope budgeting (with out all of the monitoring or pesky money.)
By creating “Qubes” (envelopes) in your Qube Cash account that you want to open prior to creating a purchase order along with your card, you develop intentionality along with your cash and preserve a real-time image of your spending plan.
Wish to know extra? See our full Qube Cash app walkthrough and evaluation right here.
Qube Cash vs. Credit score Playing cards
1 – Are Credit score Card Factors Value Not Switching to Qube?
Most individuals perceive that bank card factors aren’t price it in the event you can’t use bank cards responsibly. (i.e. paying off your invoice in full every month.) The price of bank card curiosity isn’t going to stack as much as the worth of any rewards you earn.
Nevertheless, even if you’re accountable along with your playing cards, analysis exhibits you possible spend considerably extra when making purchases with a bank card than a debit card or money.
One usually cited examine by Dun & Bradstreet discovered that folks spend 12% to 18% extra per transaction when utilizing a bank card. And that is the bottom estimate we’ve seen in analysis, with some research displaying individuals prepared to spend over double when utilizing a bank card as an alternative of money or a debit.
With bank card rewards paying at most 5% again, by switching to Qube Cash and being extra intentional along with your spending, you would possibly lose out on the rewards – however you’ll have much more of your individual cash to place in the direction of the issues that matter most to you!
2 – What About Safety?
Bank cards usually win out versus debit playing cards and money relating to safety as a result of virtually all bank cards carry 0% legal responsibility safety for theft.
Nevertheless, Qube doesn’t work like most debit playing cards.
As a result of your Qube card carries zero steadiness till you open a Qube to spend, even when somebody stole your card quantity, they wouldn’t be capable to run any transactions! Any transaction can be denied, and also you’d truly get a notification out of your Qube app of the place the denied transaction was coming from.
Your cash would keep safely in your account till you’ve gotten a brand new card and card quantity in hand. Thus, Qube is as protected as a bank card relating to theft.
Plus, you don’t have to fret about disputing fees that aren’t your individual – they merely don’t undergo within the first place.
3 – What About Insurance coverage & Cost Safety?
Some bank cards do provide cost safety together with prolonged return durations, rental auto insurance coverage, journey insurance coverage and extra. Qube Cash – or any debit card – isn’t going to supply these protections.
So, for big bills like journey or home equipment, it might make sense to buy along with your bank card. Simply be intentional about how a lot you’re prepared to spend in these moments, so that you don’t fall prey to overspending.
4 – Which Offers You Extra Management?
You’ll be able to responsibly and successfully handle your cash with Qube or by spending and budgeting with bank cards. You could take into account for your self which technique most closely fits your persona and offers you probably the most management over your cash.
Cash is a instrument to create the lives we love. The extra intentional we will be about the place our cash goes, the extra we are able to put in the direction of the issues that matter most to us.
Personally, I used to be prepared to surrender bank card rewards to scale back our general spending, put my husband and me on the identical web page with our price range, and get to make selections round how we spend our further financial savings as an alternative of attempting to optimize probably the most environment friendly strategy to spend bank card rewards.
Run Your Personal Spending Take a look at with Qube Cash!
In case you’re involved about shedding out on bank card rewards by switching to Qube Cash, I like to recommend downloading the app and attempting it for 30 days. On the finish of 30 days, examine your spending in your month utilizing Qube to prior months utilizing your bank card.
I’m guessing you gained’t need to hand over all the additional financial savings for a couple of rewards factors.
Obtain the Qube Cash app at the moment and use the code MONEYMAMA to get 2 free months of Premium!
The submit Credit score Card Rewards vs. Qube Cash: Which Is Extra Financially Savvy? appeared first on Good Cash Mamas.