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I'm looking at credit card offers after not having one for many years. It seems like nowadays they are all about rewards, points, and cash back. It seems like rewards programs at retail establishments usually end up costing your more or are just not worth the trouble. Is it the same with credit cards? Do you really get enough cash back to make it worth the annual fee and other costs? Do you take this into consideration when getting a card? Thanks.
I'm looking at credit card offers after not having one for many years. It seems like nowadays they are all about rewards, points, and cash back. It seems like rewards programs at retail establishments usually end up costing your more or are just not worth the trouble. Is it the same with credit cards? Do you really get enough cash back to make it worth the annual fee and other costs? Do you take this into consideration when getting a card? Thanks.
The card offers should tell you exactly what percentage of "cash back" you'll be getting, AND should tell you the annual fee if there is one. So if there's an annual fee of, say, $20 (I have no idea what they are these days), and you get 1% cash back, you'd need to charge $2,000 a year to "break even" in terms of the annual fee. HOWEVER, if you carry a balance, this equation goes out the window as you'll be paying interest.
I have 2 cash-back cards and neither one has an annual fee, so they don't cost me anything. I use one of those cards for basically everything I can charge (including groceries, heating oil delivery, etc.), usually ranging from a few hundred to a couple thousand per month, BUT I pay it off in full every single month, no exceptions. I HATE paying interest.
I run every expense that I can through a credit card. In my experience, it's best to have multiple cards so you're picking the right one to use for each transaction. I make anywhere from 1% to 5% cash back on all transactions. It's a few thousand in money back each year. I haven't had to pay any entry or yearly fees. I haven't paid them any interest.
Just be sure that when signing up for any incentive program, whether it be a cash-back credit card or shopper's reward card for your local grocery, you understand that you are being paid for being a data point. If you're okay with that, go right ahead and sign up.
I have 2 cash-back cards and neither one has an annual fee, so they don't cost me anything. I use one of those cards for basically everything I can charge (including groceries, heating oil delivery, etc.), usually ranging from a few hundred to a couple thousand per month, BUT I pay it off in full every single month, no exceptions. I HATE paying interest.
Same for me. No annual card fee, no bank account fee, pay for everything with the credit card, pay the account in full every month so never any interest charges. It's a few extra bucks in my checking account every month, which is nice.
I thought of using a cashback card to run big purchases that I usually paid for with a check or cash. But then I realized it would put me at a higher per cent of used to available credit and therefore ding my credit score, maybe at an inopportune time. So I just don't do it. But I have known people to put college costs etc. on their cards (you can still pay them off every month) just to get the cash back or rewards.
Theres bigger things to worry about than getting cash back on cc usage! First step in building wealth!
Says the person who gave this advice yesterday ...
Quote:
Originally Posted by GinaWeenie
open more credit cards and pay minimums................easy peasy!
As for this ...
Quote:
Originally Posted by GinaWeenie
Losers think cc cash back is a good use of brain power.
... besides being rude, what does that even MEAN? The cash that I get back from my card (with no cost at all to me) doesn't use ANY brain power; it's an inanimate object.
Perhaps you could actually answer the OP's question?
Says the person who gave this advice yesterday ...
As for this ...
... besides being rude, what does that even MEAN? The cash that I get back from my card (with no cost at all to me) doesn't use ANY brain power; it's an inanimate object.
Perhaps you could actually answer the OP's question?
It sort of really depends on how much money you spend a year through a CC. If you spend $10,000 and you get back $100 then I would say that is kind of a waster of time. I really think 1% is a waste IMO. I have to spend 100K to get back 1K...yeah not worth my time.
Honestly I dont really like these big banks that issue these cards to anyone. I really don't want to support them for 1% cash back.
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