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Old 12-31-2018, 11:40 AM
 
Location: Censorshipville...
2,679 posts, read 6,239,535 times
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I agree with ML. No one is advocating additional spending just to get rewards, just use normal spending and pay it off to qualify. I've never paid any interest on credit cards, but have earned international and domestic flights, and numerous hotel stays using reward points.

I don't feel guilty using these points as I'm just using the system they put in place. It's not my fault it's probably being paid for by those that don't use credit responsibly.
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Old 12-31-2018, 01:34 PM
 
1,033 posts, read 504,118 times
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Quote:
Originally Posted by Moonlady View Post
Well then we will just have to agree to disagree. We normally spend about $2000 a month on credit cards which includes groceries, gas, tolls, restaurants, and a few of our utilities. With all the cash and points rewards out there, it doesn't make sense not to. We get free airline trips, free purchases on Amazon and cash back from utilizing a variety of cards.

I'm always trying to figure out how to maximize our rewards without making it too complicated or having too many active lines of credit at once.

The original point of my post was to see if others used the same strategy getting cash back by opening a new card and if it was worth it. I've pretty much determined that it is for me.

On the most recent card offer that required a set spend to get the bonus, we happened to have an oral surgery bill and vet bill that more than covered that spend. Why take out of savings when you can get rewarded for putting it on the card? Again, doesn't make sense not to.
I put about 20k on my cards in the last 12 months and got 2k in sign up bonuses. Hard to get a 10% return with zero risk anywhere. And I didnít do any unnecessary spending or ďmanufacturedĒ spend. Just put everything that didnít have a fee (like property taxes) on the card.

Itís a good gig while it lasts.
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Old 12-31-2018, 01:52 PM
 
18,724 posts, read 13,501,465 times
Reputation: 14107
Quote:
Originally Posted by Cabound1 View Post
I put about 20k on my cards in the last 12 months and got 2k in sign up bonuses. Hard to get a 10% return with zero risk anywhere. And I didnít do any unnecessary spending or ďmanufacturedĒ spend. Just put everything that didnít have a fee (like property taxes) on the card.

Itís a good gig while it lasts.
I donít mind paying annual fees or processing fees where it makes sense. Iím paying fed taxes tomorrow at a 1.87% fee to meet sw airlines min spend/get the priority pass. The personal/business cards will cost me in fees, the points are worth 1.5-1.7 cents usually but the signup bonus is 100k points and I will get the companion pass which is a bit hard to value but worth the cost
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Old 12-31-2018, 02:19 PM
 
1,033 posts, read 504,118 times
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Originally Posted by Lowexpectations View Post
I donít mind paying annual fees or processing fees where it makes sense. Iím paying fed taxes tomorrow at a 1.87% fee to meet sw airlines min spend/get the priority pass. The personal/business cards will cost me in fees, the points are worth 1.5-1.7 cents usually but the signup bonus is 100k points and I will get the companion pass which is a bit hard to value but worth the cost
Good job.

I got that companion pass a year ago by getting 2 southwest cards and putting the “higher than normal” year end spend on it. It almost feels like cheating, doesn’t it?

I wish I could leverage my 9k property tax spend, but my county charges 3%, so it’s hard to find a deal worth doing. Maybe when I run out of easier money.
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Old 12-31-2018, 02:25 PM
 
18,724 posts, read 13,501,465 times
Reputation: 14107
Quote:
Originally Posted by Cabound1 View Post
Good job.

I got that companion pass a year ago by getting 2 southwest cards and putting the ďhigher than normalĒ year end spend on it. It almost feels like cheating, doesnít it?

I wish I could leverage my 9k property tax spend, but my county charges 3%, so itís hard to find a deal worth doing. Maybe when I run out of easier money.

Federal income tax is a 1.87% charge so with a chase freedom unlimited you get 1.5 points per dollar and you can move it to your chase sapphire reserved where the min value for travel spend is 1.5 cent making it 2.25% total. Itís plus money but not much
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Old 01-02-2019, 02:21 PM
 
3,913 posts, read 7,962,685 times
Reputation: 1890
Quote:
Originally Posted by Moonlady View Post
Well then we will just have to agree to disagree. We normally spend about $2000 a month on credit cards which includes groceries, gas, tolls, restaurants, and a few of our utilities. With all the cash and points rewards out there, it doesn't make sense not to. We get free airline trips, free purchases on Amazon and cash back from utilizing a variety of cards.

I'm always trying to figure out how to maximize our rewards without making it too complicated or having too many active lines of credit at once.

The original point of my post was to see if others used the same strategy getting cash back by opening a new card and if it was worth it. I've pretty much determined that it is for me.

On the most recent card offer that required a set spend to get the bonus, we happened to have an oral surgery bill and vet bill that more than covered that spend. Why take out of savings when you can get rewarded for putting it on the card? Again, doesn't make sense not to.



I'm not saying don't do it, or that it is a bad idea. If you plan on spending the money either way, and have no other credit cards that offer similar rewards, then it is well worth it. I was just pointing out some of the pitfalls.



It is not a free ride or else every financial expert under the sun would recommend doing it. The rewards are a product of your spending, so the more you spend the more rewards you get. As long as you are using it responsibly for your normal spending, or for a rare occasion such as a European vacation, then it makes sense.
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Old 01-02-2019, 02:31 PM
 
3,913 posts, read 7,962,685 times
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Originally Posted by Lowexpectations View Post
Thatís simply untrue. People can meet minimum spend requirements by covering expenses they would have either way. Your responses make it seem like you are a bit narrow minded on this topic

Fine. I agree. People should open up as many credit cards as possible. They should take 0% financing and avoid paying them off in full each month. They should spend as much money as possible to maximize rewards and then pay off all bills in one lump sum. LOL.
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Old 01-02-2019, 03:58 PM
 
9,381 posts, read 6,996,959 times
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The only caution I'd have on it.. At times, having so many cards can be overwhelming and the confusion about which card you've put things on or which one you should use can be too much.

You'd hate to have a situation where you put a small charge on a seldom used card, slips your mind, and then you get hit with a late fee or something like that.

If you feel you have the ability to keep track of everything without driving yourself batty.. You seem to be responsible with your spending, so.. I don't see an issue from that side of things.
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Old 01-02-2019, 04:08 PM
 
8,700 posts, read 5,062,944 times
Reputation: 9832
Quote:
Originally Posted by Moonlady View Post
We have more credit cards than we use or need as it is. 3 are rewards cards - airline, hotel and Amazon plus a Chase Freedom, AMEX and a random Citi card I use exclusively for online purchases. I usually shred the new offers that come in the mail, but recently we have been getting several offers with at least $200 cash back after a certain spend and 0% interest for at least a year.

I succumbed to one of them because getting $200 cash back for what is our normal spending just seemed too good to pass up. Plus, we had some unexpected expenses - dental and vet - that I chose to use the 0% to pay off over a few months. Then I got another one from B of A with a similar deal.

We pay our balances in full each month with the exception of those few times we take advantage of the 0%. Our credit scores are +800 so I'm not worried about taking a credit score hit by opening a new line of credit. Is there any reason I shouldn't take advantage of these offers? It just seems excessive to have so many CC's but the deals they are making right now are pretty hard to pass up.
You don't have to keep the CCs. After you earn and receive the reward, cancel the card if you don't want it.
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Old 01-02-2019, 04:18 PM
 
8,700 posts, read 5,062,944 times
Reputation: 9832
Quote:
Originally Posted by Nolefan34 View Post
Fine. I agree. People should open up as many credit cards as possible. They should take 0% financing and avoid paying them off in full each month. They should spend as much money as possible to maximize rewards and then pay off all bills in one lump sum. LOL.
FFS, no one has suggested anything of the kind. Just a few posts ago you agreed that it makes sense provided you were going to spend the money anyway, now suddenly you are railing against phantom claims. Let me guess, a DR devotee.
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