just curious since i came across this on another forum recently. i suspect we’ve had a thread like this in the past but would be interesting to rehash it since we’re adultier now…
most of us probably have rewards cards and collect points and apparently most people have multiple cards but that never made sense to me to pay more than one annual fee. moreover, if you’re not using a decent rewards card you’re probably leaving several hundred or perhaps even over a thousand $$$ worth of reward equivalents on the table each year depending on your spend.
Amex Cash Preferred for anything that will let me swipe, Wells Fargo Visa for places that don’t take Amex. My cell and cable bills even auto-debit to the Amex. If National Grid and National Fuel would get with the times and allow credit card auto-payment I’d be charging those too. I try and use cash for local small businesses when making <$10 purchases.
Cash back of 6% on groceries (capped at $6k for the year, then it’s 1% after that), 3% gas, 3% certain department stores, 1% everything else. Visa is 1% cash back toward my mortgage on any purchase.
There’s a $75/yr membership fee on the Amex.
Since I got the card in Sept 2012 I’ve taken $2600 in cash back and paid $0 in interest since I pay the card in full each month. $1300 a year for just switching all the spending my wife and I were going to do anyway from debit/cash to credit. But yeah, “they’re the devil”.
If you aren’t living paycheck to paycheck and have the self control with your spending to make sure you pay the balance in full each month you’re just giving away money not using a good rewards card.
that is a well laid out strategy. I have thought i should switch to amex but i suspect that card is not available up here…and certainly not for $100 a year. i pay $400 a year for my visa but got $3200 cashback last year ($100 annual fee on that one, upgraded to an aeroplan one this year with 2 cards)
i should have our bills auto debit the visa… good idea.
Hmm I may have to look into Amex for the perks @JayS mentioned. I have been using Discover for the past 5 years now, always pay it off in full every month. I have an Amazon visa for the rare occasions that Discover isn’t accepted. Pretty much charge everything under the sun.
I’m focusing on getting out of debt so I don’t use mine, one is paid off and the other has like less than $500 on it. Maybe one day I’ll get one of those cash back type of rewards cards.
my wife had a few of those store CC’s just to get the 10-15% off of a big purchase like a couch or something… i havent followed up to see if she cut them up or not afterwards
I have a personal Delta AmEx and my corporate AmEx. My corporate card just racks up points that I use on Amazon. Nothing crazy but I definitely get back more than I paid to be a member. And I’m flying to Hawaii for free next week from the miles collected on the Delta AmEx. So +1 for being responsible with a good rewards program.
The wife has copies of the same Amex and Visa cards. Only store card we have is Kohls because the discounts and Kohls cash you earn get pretty significant.
It just surprises me how many people don’t take advantage of these cards. A good friend of mine doesn’t do it. We had the exact same snowmobiles until I sold mine to upgrade to a newer one with much better suspension. He wants to upgrade his too but says he can’t afford it right now. The cash back I’ve earned on my card has more than paid for upgrade on my sled.
It’s not free, it’s subsidized by the merchants we use. I have no remorse.
The price of rewards programs is built into CC fees on both sides which are in turn built into the retail prices of anything properly priced. You are paying for the rewards whether you use them or not.
I have 24 credit cards open at the moment and still have an >800 FICO score. It’s all about hitting the sign-up bonuses hard when they do promos. I am currently in Miami and got my flight with Southwest miles, my chick’s flight free with my SW companion pass, and my $400 a night suite in South Beach free with IHG points. All from credit card sign ups. MY day to day card is the Barclays Arrival with 2.2% cash back on any purchase, with my PenFed card just for gas as it gives 5% back on all gas purchases, in cash, deducted from every statement.
but got $3200 cashback last year ($100 annual fee on that one, upgraded to an aeroplan one this year with 2 cards)