“I might 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 may need to give Qube Cash a strive, even if you happen to’re a accountable bank card person.
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As at all times, 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 answer that mixes the ability 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 should open prior to creating a purchase order together with your card, you develop intentionality together 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 if you happen to 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.
Nonetheless, even if you’re accountable together with your playing cards, analysis reveals you possible spend considerably extra when making purchases with a bank card than a debit card or money.
One usually cited research 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 exhibiting folks keen 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 together with your spending, you may 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 in terms of safety as a result of nearly all bank cards carry 0% legal responsibility safety for theft.
Nonetheless, Qube doesn’t work like most debit playing cards.
As a result of your Qube card carries zero stability 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 really 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 have got a brand new card and card quantity in hand. Thus, Qube is as protected as a bank card in terms of 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 & Fee Safety?
Some bank cards do provide fee safety together with prolonged return intervals, 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 could make sense to buy together with your bank card. Simply be intentional about how a lot you’re keen to spend in these moments, so that you don’t fall prey to overspending.
4 – Which Offers You Extra Management?
You may responsibly and successfully handle your cash with Qube or by spending and budgeting with bank cards. It’s good to contemplate for your self which technique most closely fits your persona and offers you essentially the most management over your cash.
Cash is a instrument to create the lives we love. The extra intentional we may be about the place our cash goes, the extra we will put in the direction of the issues that matter most to us.
Personally, I used to be keen to surrender bank card rewards to scale back our general spending, put my husband and me on the identical web page with our finances, and get to make decisions round how we spend our further financial savings as an alternative of making an attempt to optimize essentially the most environment friendly strategy to spend bank card rewards.
Run Your Personal Spending Check 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 making an attempt it for 30 days. On the finish of 30 days, evaluate your spending in your month utilizing Qube to prior months utilizing your bank card.
I’m guessing you received’t need to quit all the additional financial savings for a number of rewards factors.
Obtain the Qube Cash app in the present day and use the code MONEYMAMA to get 2 free months of Premium!
The publish Credit score Card Rewards vs. Qube Cash: Which Is Extra Financially Savvy? appeared first on Good Cash Mamas.
