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Old 01-15-2015, 07:22 AM
 
Location: southwestern PA
20,419 posts, read 37,458,000 times
Reputation: 39034

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Quote:
Originally Posted by MadManofBethesda View Post
That's fine and dandy, but we weren't discussing you; we were discussing your statement that paying a fee is a losing proposition in general.
I KNOW we are not discussing ME.
But you still have it wrong. I was telling the OP he should not pay a fee. I did NOT say it is a " losing proposition in general",

Post #3
Quote:
Originally Posted by Pitt Chick View Post
I would never use a card with an annual fee.
You are losing money right there....
Directed to the OP.... not the world.

Post #16, clarifying your misconception the first time
Quote:
Originally Posted by Pitt Chick View Post
I was talking to the OP who was just starting out.
I believe that HE is losing money by paying an annual fee.
Again, talking about the OP.
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Old 01-15-2015, 08:30 AM
 
2,303 posts, read 2,247,524 times
Reputation: 3832
Quote:
Originally Posted by Pitt Chick View Post
I KNOW we are not discussing ME.
But you still have it wrong. I was telling the OP he should not pay a fee. I did NOT say it is a " losing proposition in general",

Post #3
Quote:
Originally Posted by Pitt Chick

I would never use a card with an annual fee.
You are losing money right there...
Directed to the OP.... not the world.

Post #16, clarifying your misconception the first time
Again, talking about the OP.
This message board regularly makes me realize the limitations of the English language... "You" directed at an individual vs "You" as a replacement for the word "One" causes the majority of miscommunications around here.

If everyone else was in the habit of saying. "One loses money right there" then the use of "You" would have been clearly directed towards the OP. Without that, it's anyone's guess which "You" is being used.
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Old 01-15-2015, 09:08 AM
 
8,125 posts, read 11,847,337 times
Reputation: 17636
Quote:
Originally Posted by Pitt Chick View Post
I KNOW we are not discussing ME.
But you still have it wrong. I was telling the OP he should not pay a fee. I did NOT say it is a " losing proposition in general",

Post #3
Directed to the OP.... not the world.

Post #16, clarifying your misconception the first time
Again, talking about the OP.
Yes, yes, and yes. I know that you were talking to the OP when you wrote "You are losing money right there." I did not misconstrue what you were saying. Ironically, it is you who has misinterpreted my statement.

Once again, when I wrote that you stated that paying a credit card fee was a losing proposition in general, I was referring to your statement to the OP that in paying an annual fee for any credit card in general, he would be losing money. It was that statement that I was refuting by providing the example of the Marriott Visa. If the OP paid a fee to acquire the Marriott Visa, he would not be losing money because the free night in a Marriott Hotel alone would more than offset the cost of the fee.

I hope that is clearer. You made a statement to the OP that he was losing money by paying an annual fee for a rewards card and I was merely trying to say that you can't necessarily say that without knowing what benefits come with that annual fee.
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Old 01-15-2015, 09:11 AM
 
2,303 posts, read 2,247,524 times
Reputation: 3832
Quote:
Originally Posted by MadManofBethesda View Post
Yes, yes, and yes. I know that you were talking to the OP when you wrote "You are losing money right there." I did not misconstrue what you were saying. Ironically, it is you who has misinterpreted my statement.

Once again, when I wrote that you stated that paying a credit card fee was a losing proposition in general, I was referring to your statement to the OP that in paying an annual fee for any credit card in general, he would be losing money. It was that statement that I was refuting by providing the example of the Marriott Visa. If the OP paid a fee to acquire the Marriott Visa, he would not be losing money because the free night in a Marriott Hotel alone would more than offset the cost of the fee.

Is that any clearer now?
That's only true if the OP was already booking hotel rooms in cities with Marriotts. Otherwise, the OP is spending money that wouldn't have normally been spent.
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Old 01-15-2015, 09:16 AM
 
8,125 posts, read 11,847,337 times
Reputation: 17636
Quote:
Originally Posted by Jeo123 View Post
That's only true if the OP was already booking hotel rooms in cities with Marriotts. Otherwise, the OP is spending money that wouldn't have normally been spent.
True, it would have to do with what benefits come with his particular card. In fact, I had already begun to edit my post to reflect that while you were composing your reply.
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Old 01-15-2015, 11:36 AM
 
Location: DFW
6,793 posts, read 11,716,243 times
Reputation: 5143
Quote:
Originally Posted by clutchcargo777 View Post
There are plenty of ways to turn those "peanuts" into big fish. Look up "manufactured spend".

There's a whole lot of people making substantial amounts of money using these techniques. Much more then the signup bonus'.
I personally don't recommend manufactured spending unless you're desperate.

Yes, I know it's perfectly legal. But it's also completely legal for companies to drop customers who stand out as someone taking advantage of their system, and that's what's gonna happen if you engage in this practice.

And it's quite tedious keeping track of multiple accounts and emptying your local store of its gift cards to manufacture spending with.

I'd only engage in this in the following circumstances:

1) You are only a few thousand points short of being able to afford a plane ticket or cash in your points for a particular reward, so you rely on manufactured spending for the last push.

2) You are unemployed and cannot find a job and live off of the profits of manufactured spending to keep a roof over your head and food on the table.
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Old 01-15-2015, 12:34 PM
 
1,618 posts, read 1,906,755 times
Reputation: 1747
Quote:
Originally Posted by ragnarkar View Post
I personally don't recommend manufactured spending unless you're desperate.

Yes, I know it's perfectly legal. But it's also completely legal for companies to drop customers who stand out as someone taking advantage of their system, and that's what's gonna happen if you engage in this practice.

And it's quite tedious keeping track of multiple accounts and emptying your local store of its gift cards to manufacture spending with.

I'd only engage in this in the following circumstances:

1) You are only a few thousand points short of being able to afford a plane ticket or cash in your points for a particular reward, so you rely on manufactured spending for the last push.

2) You are unemployed and cannot find a job and live off of the profits of manufactured spending to keep a roof over your head and food on the table.
3) You want to make some tax free money.

4) You take delight in cutting into the big banks obscene profits.

The banks can close your accounts at any time for any reason anyway. I know people who have been doing it since rewards cards first became available. Just don't go overboard and have some fun with it.
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Old 01-15-2015, 12:50 PM
 
Location: HoCo, MD
4,300 posts, read 7,948,510 times
Reputation: 4718
Quote:
Originally Posted by jillabean View Post
I have no doubt that the CC companies are raking it in off people who don't pay off their balances. And that's key, you HAVE to pay off the balance each month or else the reward is "canceled out" in interest charges.

My worry is always that they may cancel my card because I never carry a balance. I almost never get CC offers either... guess I am not on the list of preferred users because of my habits. Although I think they also make money when I charge (since they charge the merchants a fee as well).
I've never heard of anyone have their accounts cancelled because they don't carry a balance (not saying it never happens). In the end, they have three major revenue streams - interest/penalty fees, annual fees, and Interchange fees.

So as long as you use the card, they are making money every time you swipe that card. So no reason to take that revenue away.

As for paying in full, that's not an option when talking CC rewards. That is a must. The only exception would be if you are taking advantage of a 0% promotion. But that's never going to be a permanent rate.

The best way to achieve returns is to combine cards. The question is if all that effort is worth your return.
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Old 01-15-2015, 01:12 PM
 
240 posts, read 247,048 times
Reputation: 496
Quote:
Originally Posted by clutchcargo777 View Post
3) You want to make some tax free money.

4) You take delight in cutting into the big banks obscene profits.

The banks can close your accounts at any time for any reason anyway. I know people who have been doing it since rewards cards first became available. Just don't go overboard and have some fun with it.
Exactly. I have fun doing it and I have fun on the vacations I go on. I'm taking a family of 5 to Hawaii for 10 days this summer, with airfare and hotel paid for by miles.
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