Results 1 to 3 of 3

Thread: Making money on your credit cards

  1. #1
    God/dess Deogol's Avatar
    Joined
    Dec 2003
    Posts
    5,493
    Thanks
    120
    Thanked 50 Times in 35 Posts

    Default Making money on your credit cards

    There are cards out there where one can get "money back" or reward points that can be translated into cash/gift cards.

    (I actually do the AMEX -> Gift Card route.)

    Anyhow, if you PAY OFF EACH MONTH one can actually look at it as a percentage off the price of your purchases.

    Or, if your like Melonie, you can view the money back as a refund on various taxes.

    But the key to all this is PAY OFF YOUR BALANCE EVERY MONTH. Otherwise, you lose all those "savings" (usually minimal but hey ever penny helps these days) lost in the interest due on the card.

    I use my AMEX charge card for nearly everything - phone, insurance, etc. I would be spending this money anyhow simply to function in society (a topic of another post!)

    (A charge card is required to be paid off each month as it is not a credit card.)

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: Making money on your credit cards

    ^^^ indeed 'cash buyers' at US retail outlets are paying a 'stealth subsidy' towards credit card users by the simple fact that retail prices have been marked up to cover the ~4% net additional cost to the retailer of credit card processing ( which is the stealth source of credit card 'rewards' money / gifts / miles ). However, family members still living in New York now tell me that some retailers - particularly gas stations - are now posting discounted prices for those who pay in cash.

    Personally I still have a comparatively low interest rate small business credit card from a major Wall St. bank that I still use when making a major purchase ( for the 'rewards' as well as for ease of tax accounting LOL ). But as you point out Deo, it's absolutely mandatory that one pay the balance down to zero every month or all of the 'rewards' benefits will be wiped out by interest charges.

  3. #3
    Featured Member Vamp's Avatar
    Joined
    Jul 2004
    Location
    Missouri
    Posts
    1,111
    Thanks
    271
    Thanked 757 Times in 289 Posts

    Default Re: Making money on your credit cards

    With the changes in the credit card regulations alot of these reward programs are changing. Most reward cards have annual fees to off set the expense of the program. Cards are no longer allowed to have annual fees. Therefore the rewards are decreasing on alot of cards unless you charge alot of money over the course of the year on the card. Even if you do not pay interest on these cards the banks make money from exchange income with visa or mastercard.

    If you havent heard about any changes on your card call them and double check.
    Nature knows no indecencies; man invents them. ~ Mark Twain


Similar Threads

  1. Replies: 39
    Last Post: 03-16-2009, 08:59 AM
  2. Replies: 6
    Last Post: 01-28-2009, 04:10 AM
  3. Next credit implosion - credit cards
    By Deogol in forum Dollar Den
    Replies: 6
    Last Post: 08-22-2008, 06:05 AM
  4. Replies: 16
    Last Post: 04-10-2008, 01:09 PM
  5. credit cards?
    By beautifulxxdisaster in forum Dollar Den
    Replies: 14
    Last Post: 07-10-2007, 03:03 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •