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| trixiezzz |
 Posted: Fri Feb 11, 2005 12:26 pm Post subject: Are Rewards credit cards worth the hassle? |
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Investing Manager
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| I've just opened a 5% and 1% credit card that seems to be good. Will I end up spending more in fees & over spending than it's worth? |
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| dman81 |
| Posted: Tue Feb 15, 2005 5:21 pm Post subject: |
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Investing Sr. Associate
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Yes, you need to consider the terms. For example, I have Citi Dividend. I have 5% cash back on Gas, SuperMarket, and Drug Store purchases. Then its just 1% cash back on everything else.
1% is very cheap! That would mean I would get $0.01 for every dollar I spend. So a $100 just for $1 cash back. Tricky way though to lure customer though. I say this because now I am trapped with debt.  |
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| hambirg |
| Posted: Sat Feb 19, 2005 9:46 am Post subject: |
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| I was wondering about that Citi card for our business. We need a card for gas. I'm sick of all the bookkeeping and would rather have all the gas charged and paid for monthly. That way I would only have to post one transaction for gas every month, yeah! I was wondering how getting the rewards from that card works? Since it will only be used for gas and paid off every month I think it has the best reward I have seen at 5pts/$ |
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| momm2four |
| Posted: Sat Feb 19, 2005 2:09 pm Post subject: |
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Investing Associate
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| They're worth it if you don't EVER carry a balance. |
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| Blueberry |
| Posted: Sat Feb 19, 2005 3:02 pm Post subject: |
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Investing Associate
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| I have never earned much of a reward from any credit card that we owned. I know many used to get good rewards from Discover, but it never worked out well for us. |
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| jelijo |
| Posted: Sat Feb 19, 2005 7:25 pm Post subject: |
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New Poster
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| We use our rewards credit cards on things we would purchase with or without a credit card -- our son's day care tuition, insurance, utilities bills, etc -- and we always pay the balance off every month. |
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| trixiezzz |
| Posted: Sun Feb 20, 2005 10:38 am Post subject: |
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Investing Manager
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Discover is the one we just switched away from. On theirs, you don't get a flat percent of 1%. You start out at like a fourth of a percent and then build up to 1%. Yuk.
I'm planning on using the Reward card to pay for big things ~ that I already have the money for ~ just as a convenience. For example, why not put that $700 dentist bill on the card and make $7 toward vacation. I have to pay it anyway, and will when the credit card bill comes in.
But yes, it takes discipline to not go out and use it to buy stuff you don't need. |
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| 1MegMeg |
| Posted: Sun Feb 20, 2005 3:23 pm Post subject: |
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Investing Associate
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| I think they can be worth it if you are disciplined enough to pay off the balance when the bill comes. The best way to really make the cards work for you is to charge *all* of your expenses (groceries, utility bills, dining, etc.), that way you accrue reward points quickly, but (and this is a big but!) you've got to be disciplined enough to know how much you can charge each month and to pay the bill off at the end of the month. |
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| fladoozle84 |
| Posted: Mon Feb 21, 2005 5:15 pm Post subject: |
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Investing Sr. Associate
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| I never felt it was worth it because I charge so little- is it? |
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| trixiezzz |
| Posted: Tue Feb 22, 2005 6:41 pm Post subject: |
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Investing Manager
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| I find it's free money when it comes to BIG things that you're planning to pay for anyway. Like when we travel and have to put hotels on a credit card. Or major car repairs. Or anything over several hundred dollars. Then that 1 - 5% ends up being an extra couple of dollars that add up at the end of the year. If you're going to spend the money anyway, you might as well make some money off of it?!? |
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| alicia gist |
| Posted: Wed Feb 23, 2005 5:54 am Post subject: |
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Investing Sr. Associate
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| We have an american express that we have earned a lot of rewards on, but it blows our mind how much money we spend each year. I now have a paypal debit card that earns cash back. You get cash back immediately to your paypal account anywhere that you don't have to use a pin. We use ours for gas, groceries, etc. You don't get cash back at the post office though!!! |
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| eagertolearn |
| Posted: Wed Feb 23, 2005 12:02 pm Post subject: |
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Investing Sr. Associate
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| Only if you are very disciplined about paying off your charges each month. Otherwise it's too tempting to spend, spend, spend in order to gain the "rewards" and then find you're unable to pay off the charges. |
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| paula0000 |
| Posted: Wed Feb 23, 2005 4:52 pm Post subject: |
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Investing Manager
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| I love my rewards card...but again, you must be very disciplined in paying it off each month. It can get too tempting to keep racking up "free" points on purchases- meanwhile it's actually costing a fortune in interest charges. |
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| trixiezzz |
| Posted: Sat Feb 26, 2005 6:36 pm Post subject: |
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Investing Manager
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| paula0000 wrote: | | I love my rewards card...but again, you must be very disciplined in paying it off each month. It can get too tempting to keep racking up "free" points on purchases- meanwhile it's actually costing a fortune in interest charges. |
That's what I was thinking, too. They have statistics that you actually spend around 16% to 20% MORE when you pay with a credit card than you would if you had to lay cash from your wallet out on the counter. That's true in my life: a $50 charge is "minimal", but bringing out 2 twenties and a ten is hard to part with. So, the drive for reward points could entice you even more to overspend. |
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| jons99 |
| Posted: Wed Mar 02, 2005 4:49 pm Post subject: |
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New Poster
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| We have the Disney card and I think its a great program, last time we went we have about $210 in Rewards for doing NOTHING.... I am sure there are better, but we are Disney freaks... |
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