Comments on: Finally! My credit card rewards pay off

By: Nick

Nick — Wed, 28 Jun 2006 15:46:35 +0000

Airline cards can pay off for those who travel regularly, charge thousands of $ a year and pay off their cards in full. If not, a cash back card is a better deal. There are also people that are only interested in the sign up bonuses and apply multiple times for the same card. I recommend http://www.freefrequentflyermiles.com to see all the ways to get miles for free/cheap. The generally accepted value of a mile is 1-2 cents (a measly 1-2% cash back per dollar) but astute travelers can get 5-10 cents of value out of a mile by using them for premium class travel or upgrades.

By: Elizabeth

Elizabeth — Thu, 22 Jun 2006 19:27:28 +0000

For no annual fee, through Chase Visa, I get 5% cash back on gas/pharmacy/grocery and 1% back on everything else. In the last year I have already gotten $200 back. (I got my car repaired at what registered as a “gas station” which ended up saving me nearly $50!) Though the rate is high after the introductory period, it doesn’t matter since I pay my card off every month.

By: reid

reid — Wed, 21 Jun 2006 14:31:08 +0000

my wife and I have gone back and forth on this. My argument is consumers win with rewards card ONLY when they fit into a very narrow category: they have their spending under control and they pay it off every month without fail. most people don’t fall into that category. And one mistake – a late payment, spending more than they can pay off or a postal service that takes 45 days to deliver a payment, can eliminate any benefit. this isn’t to say that I’m 100% against the cards. They have their uses. I use REI’s to get a free bike every couple of years. People need to have a realistic understanding of how they work and why credit card companies offer them before signing up.

By: debt-free

debt-free — Wed, 21 Jun 2006 08:46:11 +0000

“when my god damned credit card”

sounds like something I really want in my wallet. Any other “god damned” products that people should carry around?

Oh! and don’t forget to factor in overspending into your break-even analysis. McDonalds found that customers spend 12-18% more when using plastic. I know! I know! You would totally never do that….

By: Eric

Eric — Wed, 21 Jun 2006 08:42:02 +0000

So which credit card do you have?

By: Anonymous

Anonymous — Wed, 21 Jun 2006 08:40:46 +0000

Airline miles cards are awful. Get the Citi Platinum Dividends Select or whatever – it gives 5% cashback on purchases as supermarkets, gas stations, and something else (restaurants?). It’s better than anything you could have.

By: Maria loves pictures

Maria loves pictures — Wed, 21 Jun 2006 08:40:17 +0000

Using this type of credit cards is a great tip.
I guess the rewards must be huge if you spend a lot.

By: Adam

Adam — Wed, 21 Jun 2006 08:38:49 +0000

Which card is it?

By: Avila

Avila — Wed, 21 Jun 2006 08:37:43 +0000

I’ve been looking for a new rewards card, specifically to get flier miles. I looked at Citi’s AAdvantage because a friend’s mom uses it and recommended it. But I saw an offer for Capitol 1 that had no annual fee, could be used for 100 airlines with no blackout dates, and had 1 mile per dollar or 2 miles/$ for some purchases. I ordered one but haven’t used it yet.

What does everyone else use and what have you had success/bad experiences with? I’d appreciate the advice, if you have any. Thanks.

By: Michael

Michael — Wed, 21 Jun 2006 08:37:15 +0000

Dunn and Bradstreet performed a study. Turns out, people spend an average of 12-18% more when they use a credit card than when they use cash. They associate this with the ‘emotional value of cash.’ In other words it is a lot more ‘painful’ to slap down 10-$10 bills, than swiping your card. I tried it and it has proven true.

Additionally, the study showed that in certain markets, the difference is extreme. Have you noticed how the fast-food chains now accept cards? I think people spend 50% more in fast food. And in vending machines, people spend 100% more!!!
Is it annoying to use cash? Sometimes. But to me, it is worth it…

So those credit card rewards may not be free at all!