I am getting too much free money

[sze5003]

I only use them if I need to carry a balance every month. In other words emergency crap. Then if that happens they are 0% anyway. I don't need a credit card otherwise. I wouldn't buy anything I could not pay for with my debit card.

 

[xanis]

I only use them if I need to carry a balance every month. In other words emergency crap. Then if that happens they are 0% anyway. I don't need a credit card otherwise. I wouldn't buy anything I could not pay for with my debit card.

Just out of curiosity... why not?

 

[Tweak155]

Just out of curiosity... why not?

So as to not buy things you can't really afford?

 

[purbeast0]

I think part of his failed assumption is we landed our first job at $100k/yr. Pretty sure most of us had to work our way through college or even during high school.

I started off at $5.25/hr and learned how to manage money very fast. Now I make a very comfortable living and have good spending habits to go along with it. More income means more disposable income too... not necessarily bad habits.

No point in saving every single penny.

yeah my first "real" job was bagging groceries so i could buy an N64 when i was just starting 10th grade. worked there all the way until i graduated college, while working 2 jobs multiple times during the summers in college (worked at best buy one summer, and an internship the other summer, all while working at the grocery store as well).

made $5.25/hr + tips back then at the grocery store. i've come a long way since then.

 

[zinfamous]

Also, I'm allergic to MSG...

No you're not

http://www.mayoclinic.org/healthy-l...ert-answers/monosodium-glutamate/faq-20058196
http://www.newscientist.com/article...-all-in-your-head.html?full=true#.U2kz-_bajFd




...unless you're in the 2%:
http://www.healthline.com/health/allergies/msg

In which case, you would then have to be in the ~0.08% for such symptoms to actually be problematic

 

[sze5003]

Just out of curiosity... why not?

Well if they aren't giving me 0% or no payments for x amount of time then I don't really need it. I only have one rewards card besides my Amazon visa and I've had a bed on that card that I just finished paying off so now I'll use it for cash back purchases. But that bed was on there because of the 0% interest for 15 months or so. Finished paying it off in 4 months or so.

If I'm renting a car or buying a plane ticket I'll use my American express blue card. But if it's <= $200 I'll usually pay with my debit card as long as all my other bills are accounted for.

 

[Svnla]

Ok folks, let get this straight.

I am NOT saying let go out and spend and spend for things that you don't want or need or can't afford just to get cash back. NOT AT ALL.

What I am saying is why not get cash back for things that you will pay for anyway.

For example, I spend about $100K for myself and my business (can be more or less each year). I could:

A) pay the whole thing by check, debit card, cash and get nothing in return. Nothing is wrong with this if you don't think you can handle credit cards.

B) pay the whole thing with my reward credit cards, as long as I follow the rules (see post 49 above) and get some cash back, at least 1% and up to 5%. You do the math.

Which one would you rather have? Nothing or 1 to 5 percent cash back.....oh did I mention it is tax free? I prefer option B.

 

[sze5003]

Ok folks, let get this straight.

I am NOT saying let go out and spend and spend for things that you don't want or need or can't afford just to get cash back. NOT AT ALL.

What I am saying is why not get cash back for things that you will pay for anyway.

For example, I spend about $100K for myself and my business (can be more or less each year). I could:

A) pay the whole thing by check, debit card, cash and get nothing in return. Nothing is wrong with this if you don't think you can handle credit cards.

B) pay the whole thing with my reward credit cards, as long as I follow the rules (see post 49 above) and get some cash back, at least 1% and up to 5%. You do the math.

Which one would you rather have? Nothing or 1 to 5 percent cash back.....oh did I mention it is tax free? I prefer option B.

Makes perfect sense to me if you spend big. In your case might as well since you have to spend that much anyway.

Many cases people start spending big and then an emergency happens and when the bill comes they can't pay it off so they end up paying the minimum.

I should reconfigure my mint account to let me know how much I'm spending. That way I could actually see where I could use a card or two. Because for now I only use them for medical or emergency issues.

 

[Svnla]

Makes perfect sense to me if you spend big. In your case might as well since you have to spend that much anyway.

Many cases people start spending big and then an emergency happens and when the bill comes they can't pay it off so they end up paying the minimum.

I should reconfigure my mint account to let me know how much I'm spending. That way I could actually see where I could use a card or two. Because for now I only use them for medical or emergency issues.

That's why you MUST have an emergency account for "just in case SHTF" situation. Six months of living expense at least IMO.

Even if you only spend $10K a year or $5K or $1K, get some cash back is still much better than zero cash back, as long as you follow the rules and know how to handle credit cards properly.

LOL @ the ad banner on top of this thread. American Express Platinum Card for 40K MR points.

 

[RockinZ28]

Makes perfect sense to me if you spend big. In your case might as well since you have to spend that much anyway.

Many cases people start spending big and then an emergency happens and when the bill comes they can't pay it off so they end up paying the minimum.

I should reconfigure my mint account to let me know how much I'm spending. That way I could actually see where I could use a card or two. Because for now I only use them for medical or emergency issues.

This works big or small. Obviously the rewards will be lower when your expenses are less, but free money is free money. I buy everything on cc that allows it without a fee.

Have enough cash to cover emergencies, living expenses for a decent time period and medical max out of pocket. Shouldn't get into trouble unless everything goes wrong at once. Suppose thats what bankruptcy is meant for, not people racking up debt on things they had no business buying.

 

[DrPizza]

I only use them if I need to carry a balance every month. In other words emergency crap. Then if that happens they are 0% anyway. I don't need a credit card otherwise. I wouldn't buy anything I could not pay for with my debit card.

EXACTLY! But, what you need to do is use your credit card, instead of automatically reaching for the debit card. Then, when the bill comes, use the debit card to pay the credit card off. Credit cards often have better protection for the consumer, sometimes extend warranties, etc.


I recently had an ethical dilemma - the class I advise had to purchase a bunch of things for prom. I was told to just put it on my own card, and be reimbursed. I brought it up at a faculty meeting - and some people thought it was ridiculous that teachers would have to pay out of their pocket for such things up front, then get reimbursed later. My dilemma was - I'm going to have a catering bill from a restaurant... Hello 5% cash back on restaurants this month!

 

[HendrixFan]

Eh still seems like a lot of effort for at best a few grand a year.

I spend five minutes applying for the card, two minutes activating the card, then five minutes to cancel the card at some later date. Including time spent deciding which cards are worth my time I probably pull well over $100/hr for my time. If your time is more valuable than that then you are much luckier than me.

 

[Mai72]

 

[Triumph]

Eh still seems like a lot of effort for at best a few grand a year.

Where do you work that you get paid a grand for a few hours of work? Cause I would like to apply.

Good luck trying to get a future home loan!!

Does not know how to read. I already own a home.

I recently had an ethical dilemma - the class I advise had to purchase a bunch of things for prom. I was told to just put it on my own card, and be reimbursed. I brought it up at a faculty meeting - and some people thought it was ridiculous that teachers would have to pay out of their pocket for such things up front, then get reimbursed later. My dilemma was - I'm going to have a catering bill from a restaurant... Hello 5% cash back on restaurants this month!

Yes, this is why I love traveling for work and using my own credit card. I am guaranteed to be reimbursed for my travel, if I use my card and get cash back, it is like I'm loaning money to my employer with interest (the interest simply isn't paid by my employer but the effect on me is the same).

 

[sze5003]

Where do you work that you get paid a grand for a few hours of work? Cause I would like to apply.

Dentist??

 

[slayer202]

Of interest: reddit.com/r/churning

The offers can be more lucrative if you focus on travel instead of cashback, but if you don't like to travel, then it's kinda pointless. Also, absolutely don't do it if you're within 12-18 months of a major purchase (house, car, etc).

My wife and I are slowly going through this process so we can take a free trip to Europe. We're not people that do 5 cards each every 3 months, but I've had 6 in the past 10 months and she's had 3 in the past 5 months. We'll each have 2-3 more by the end of the year, at which point we'll be booking our trip.

In a little less than a year, we've cashed in ~$1000 for statement credits or direct deposits (only from programs that are purely "cash back") and have roughly $3500 worth banked in various airline/hotel programs. If we redeem for travel like we're planning, that $3500 will be worth closer to $12-15k (business class flights to Europe, 10-12 free hotel nights in 5* hotels, etc).

OP, for some of the larger offers (mostly travel related), check out the Chase Sapphire Preferred ($400 after $3k, worth $800+ when transferred to a partner and redeemed for travel), Chase United MileagePlus Explorer (use Flyertalk thread to get 50k miles after $2k spending instead of 30k miles after $1k, worth 1.8-2.0 cents per mile for most flights), and Barclays Arrival World Mastercard ($400 after $3k, must be redeemed for travel expenses, get 10% "points rebate" after redemption).

I like the hotel cards that give free nights on your anniversary after paying the fee -- the IHG Mastercard has a $49 AF but you get a free night at ANY of their properties, including intercontinentals. The Club Carlson visa gives you 40k points each year for a $75 annual fee. The Chase Hyatt card gives you a free night at category 1-4 hotels each year for a $75 annual fee. Those cards each also have pretty good signup bonuses available -- 80k points after $1k spend for IHG here, 85k points after $2.5k spending for the Club Carlson (and you get the last night free on points redemptions of 2 or more nights, essentially 2-for-1 if used properly), and 2 free nights after $1k spend on the Hyatt (at any property, no category restrictions).

As for the credit score, if you don't let a balance report (as in, charge $0 to it, or if you do charge, don't let it hit the statement) on more than 3-4 cards, you'll only see a small short term negative effect from the inquiry and average age of accounts but a long term positive effect from available credit and your utilization ratio. And obviously, if you carry any sort of a balance that isn't paid off in full before the due date, this isn't for you.



Autopay + email alerts to watch for spending on your dormant cards.

Excel spreadsheet to update your points balances periodically.

Takes hardly no time at all, any charges you make go on whatever card you're currently chasing the bonus for. There's no card juggling =)

ahh, terrific post, thanks! :thumbsup:

you've motivated me to take a more serious look at this. I booked a trip recently and I noticed how helpful and manipulable points can be, so maybe that's the best route. Thanks again

 

[alkemyst]

I definitely do not think its worth opening 7+ cards because they offer you some chump change amount, especially if you are going to close them due to a yearly fee anyway. I opened one card for a $500 bonus after 3k and also have a costco amex with good cashback... but thats it. 2 cards... I may pick up a 3rd.

9 cards? Are you crazy or is this a joke thread?

Hardly CHUMP change for most people. More cards are actually better once you get over the initial ding from opening them. The game though is they are hoping to own you when you run up a balance.

I had uber high credit scores with something like 20+ tradelines and a total revolving credit limit over $100k with an average rate that was at 8% non weighted. My two main cards accounting for nearly half that limit were fixed at 5 and 6%.

They were cheaper than school loans when I decided to go back to college a second time for a Comp Sci Bachelors.

 

[alkemyst]

ahh, terrific post, thanks! :thumbsup:

you've motivated me to take a more serious look at this. I booked a trip recently and I noticed how helpful and manipulable points can be, so maybe that's the best route. Thanks again

One of the best ways to use points on travel is when hotels up their normal rates due to a special event in the area. Usually the 'points' to buy those rooms don't change except for the season.

Hotel advertizes a normal rate of $100 or so, yet due to the special event it's asking $300-500 for that night....use points to book the room for $100 or so.

Profit!

 

[1prophet]

Ain't nothing free, someone is paying for that so called free money/stuff you guys are all excited about but as long as it isn't you it's all O.K.

http://money.cnn.com/2011/07/14/smallbusiness/rewards_credit_cards/

NEW YORK (CNNMoney) -- Consumers love the free flights, gadgets and cash back they get when they pay with their rewards credit cards. But mom and pop stores cringe when they do.

It costs a merchant more each time a consumer pays with -- or "swipes" -- a rewards card than when a consumer pays with a basic credit card.


Forty percent to 70% of credit card transactions are made with rewards cards, said Phil Hinke, founder and president of MerchantFeeSavers, a company that helps small business owners understand processing fees.
Most consumers don't know that merchants are footing the bill for those free airline tickets and other perks. "Very few consumers realize that these interchange fees are what fund these cards," said Curtis Arnold, the founder of CardRatings.Com, a credit card ratings website.
Business owners baffled by financial statements

But small business owners sure wish they did.
Small retailers are less able to afford these higher charges. And they may actually be getting a worse rate than larger companies.
Small business owners ''don't have the bargaining power," said Arnold. The "small business owner is paying more -- not only to use a rewards card -- but just to use plastic in general."


Can't live with them, can't live without them: Thanks to a settlement between Visa and MasterCard and the Department of Justice, merchants can dissuade consumers from using rewards cards.
Retailers are free to steer customers to other forms of payment, said Denise Dunckel, spokeswoman for Visa.


And some, like the store with the sign pictured above, do try to persuade consumers to put their rewards cards back in their wallets.
But others don't think they can afford to do that.
Rewards cards holders are a valuable group of spenders.


"There has been very few -- if any -- merchants that have taken advantage" of the ability to direct their customers away from certain cards, said Trish Wexler, spokeswoman for the Electronic Payment Coalition, a Washington D.C.-based group that represents financial institutions including Visa and MasterCard. "When rewards cards customers shop at that merchant's store, they spend more money."


And trying to figure out if a credit card is a rewards card can be a challenge for business owners.

 

[slayer202]

what a crap article. doesn't mention how much more it costs them, and the "picture" of the sign says check or debit card, no CC at all, rewards or not.

 

[Tweak155]

Ain't nothing free, someone is paying for that so called free money/stuff you guys are all excited about but as long as it isn't you it's all O.K.

http://money.cnn.com/2011/07/14/smallbusiness/rewards_credit_cards/

I was a merchant for a few years, this is simply not true - or if it is, it is baked into the rates you already pay. There was nothing in my rates that indicated Visa cards are X rate and Visa w/Rewards is Y rate. It was just Visa, MasterCard, etc.