rewards credit cards

[libertytyranny]

If you use them to pay for purchases/bills you pay off each month anyway..is it a good way to earn rewards/manage cash flow?


Thoughts?

 

[vraiblonde]

I think it is. I've said several times on here that I use my cc for everything, then pay it off at the end of the month. It does take some discipline to not charge a bunch of crap and run up your bill. But if you can keep a handle on it and not go nutty living outside your means, you get free stuff when your points rack up.

It's the interest on credit cards that kills you and makes them dangerous, and should be avoided.

 

[vraiblonde]

Also just because you have a bunch of money in your checking account, doesn't mean you can spend it. That money needs to go toward paying off the credit card bill. I think people get in trouble there, too. They have a tidy balance in their checking account because they've paid bills with their credit card. So they spend the money in checking, then are screwed when the cc bill comes due.

 

[libertytyranny]

I am extremely disciplined with my household budgeting/bills. I have to take care of SO's bills as well, and they are all seperate accounts. It's a big untertaking to keep them all arranged and current. Esp now when I am paying thousands $$$ of doc bills for having this darn baby.

My cash flow is very specific and managed, and thus far I have avoided a credit card. I do not need it for credit, as I don't have anything I need to charge...but rather use it to get some rewards points and be able to more effectively manage my cash flow. It would be used soley for bills I pay in cash every month anyway. and because it is with my bank, I can tranfer cash from my account directly into the CC account at any time. So, theoretically I could make multiple payments before the due date, is there generally a charge for doing so? I saw nothing in the paperwork to that affect...


also, it is a variable rate card. I am actually not too concerned with that because I do not intend to not pay it off each month..but if anyone has them..how often does it change? The range they give me accounts for the "margin" they tack on, I believe...

I am going to call and drive them crazy asking questions..they are gonna wish they never "preapproved" me for anything..

 

[Pete]

I am extremely disciplined with my household budgeting/bills. I have to take care of SO's bills as well, and they are all seperate accounts. It's a big untertaking to keep them all arranged and current. Esp now when I am paying thousands $$$ of doc bills for having this darn baby.

My cash flow is very specific and managed, and thus far I have avoided a credit card. I do not need it for credit, as I don't have anything I need to charge...but rather use it to get some rewards points and be able to more effectively manage my cash flow. It would be used soley for bills I pay in cash every month anyway. and because it is with my bank, I can tranfer cash from my account directly into the CC account at any time. So, theoretically I could make multiple payments before the due date, is there generally a charge for doing so? I saw nothing in the paperwork to that affect...


also, it is a variable rate card. I am actually not too concerned with that because I do not intend to not pay it off each month..but if anyone has them..how often does it change? The range they give me accounts for the "margin" they tack on, I believe...

I am going to call and drive them crazy asking questions..they are gonna wish they never "preapproved" me for anything..

It is convenient for making online payments, and since you are funneling money through it makes sense to "get something back".

I pay peretty much everything through mine except car and house. The points you accumulate are fne but it takes a while to accumulate enough to amount to much. I manage to get $500 about twice a year but I charge a lot.

 

[ProfMoneyWise]

I've never had a millionaire tell me the key was rewards points or the cash-back feature of their credit cards.

 

[Pete]

I've never had a millionaire tell me the key was rewards points or the cash-back feature of their credit cards.

I've never had a millionaire tell me anything.

 

[libertytyranny]

I've never had a millionaire tell me anything.

:sad: me neither. But I have had people tell me they got their airfaire to a vacation for free because they paid their reg bills with one.

But they just pay all of their bills on time, save for their kid's college and take an occasional fun vacation...I wouldn't want to be like them, what do they know? they aren't millionaires.

 

[Pete]

:sad: me neither. But I have had people tell me they got their airfaire to a vacation for free because they paid their reg bills with one.

But they just pay all of their bills on time, save for their kid's college and take an occasional fun vacation...I wouldn't want to be like them, what do they know? they aren't millionaires.

I have 2 low interest rate cards. Don't ask me the rate because I can't remember but they were low when I got them. One is paid off every month and is the one I use the auto pay for phone, cable, internet, electric and all that stuff. The other is one I use everyday and I "typically" pay it off. I rarely have finance fees because they charge interest on the oldest part of the balance first. I do not pay the bill when it comes, I pay them on each payday so no charge ever goes over 14 days.

Some of the "air miles" cards have restrictions and I don't plan on traveling much I opt for the cash type rewards. If I want to travel I can always use the cash for tickets, OR I can apply it directly to my balance, get a gift card, or whatever. It can take a while for the points to build up and some also have rules that points that go XX months without being redeemed "expire".

Since you said you are disciplined, and you intend to pay it off every month, I don't see how it would be a problem. Of course if you typically earn $500 a year in points, and you start carrying a balance that accumulates $1000 a year in interest....well you know.

 

[puggymom]

I think it is. I've said several times on here that I use my cc for everything, then pay it off at the end of the month. It does take some discipline to not charge a bunch of crap and run up your bill. But if you can keep a handle on it and not go nutty living outside your means, you get free stuff when your points rack up.

It's the interest on credit cards that kills you and makes them dangerous, and should be avoided.

We charge everything as well and pay it off every month. I use the points towards Amazon GC's for my Kindle books

 

[Chasey_Lane]

If you have the discipline to pay the balance every month, American Express has really good perks.

My CPFCU MC pays me cash back... a few percentage points of what I spend each year.

 

[Pete]

If you have the discipline to pay the balance every month, American Express has really good perks.

My CPFCU MC pays me cash back... a few percentage points of what I spend each year.

What about your Coach Visa? You still getting 2 free Coach bags a month?

 

[Chasey_Lane]

What about your Coach Visa? You still getting 2 free Coach bags a month?

I wish!! I got some mail for a Disney card yesterday. The perks seemed pretty good, but I don't like Disney enough to make it worthwhile. 0% interest for 6 months on Disney vacation packages, after that the interest rate was low. $200 gift card when you use the card the very first time. Discounts on merchandise and tickets. Overall, not a bad deal if you take a lot of Disney vacations, or purchase a lot of Disney things.

 

[desertrat]

If you use them to pay for purchases/bills you pay off each month anyway..is it a good way to earn rewards/manage cash flow?


Thoughts?

I keep saying I'm going to start doing it and never do. Once I booked a vacation house with my CPFCU one, paid it off when it came due and next thing I know I have a $9 credit on it.