Paying everything on credit cards and then paying the credit card bill each month. (bank, payment)

[Lowexpectations]

Originally Posted by jbgusa

My wife and I earn $2000-$3000 a year in cash rebates that way.

1. My Costco card pays 4% on gas, 3% on hotels and restaurants, 2% at Costco and 1% on everything else;
2. My Amex Open card pays 5% at office supply stores;
3. My Case Ink card pays 5% on Internet, cable and telephone services, and at office supply stores;
4. My Chase Freedom VISA pays 5% on rotating categories, gasoline and streaming services this quarter, restaurants last quarter;
5. My Discover Card pays 5% on rotating categories, gasoline last quarter, restaurants this quarter; and for everything else
6. My Freedom Unlimited pays 1.5% on all charges, including, crucially, my ACA payments of about $28,000 a year, or $420 alone.

I unfailingly pay the bills in full each month.

I have the sapphire reserved where I move points from my freedom unlimited and ink cards. That puts a floor on my cfu points value at 2.25% and 7.5% for my qualifying ink card purchases. I have the Amex plat but not for earning purposes and a couple of other in rotation

[CorporateCowboy]

Originally Posted by jbgusa

My wife and I earn $2000-$3000 a year in cash rebates that way.

1. My Costco card pays 4% on gas, 3% on hotels and restaurants, 2% at Costco and 1% on everything else;
2. My Amex Open card pays 5% at office supply stores;
3. My Case Ink card pays 5% on Internet, cable and telephone services, and at office supply stores;
4. My Chase Freedom VISA pays 5% on rotating categories, gasoline and streaming services this quarter, restaurants last quarter;
5. My Discover Card pays 5% on rotating categories, gasoline last quarter, restaurants this quarter; and for everything else
6. My Freedom Unlimited pays 1.5% on all charges, including, crucially, my ACA payments of about $28,000 a year, or $420 alone.

I unfailingly pay the bills in full each month.

Do you really keep track of each card and juggle their individual rewards - and use them accordingly? I have two cards - one for business and one for personal use. I use rewards for travel, gift cards, and donations to charity.

[jbgusa]

Originally Posted by CorporateCowboy

Do you really keep track of each card and juggle their individual rewards - and use them accordingly? I have two cards - one for business and one for personal use. I use rewards for travel, gift cards, and donations to charity.

Yes I do. It's more of a sport than anything. And it's also really not too much of a challenge; a quarterly chart of the variable rewards, Chase Freedom and Discover. Otherwise restaurants and gas default to Costco, the automatic monthly payments of phone, cable and Internet to Chase Ink and everything else to Chase Freedom Unlimited. I'll admit I've pulled out the prior quarter's card once or twice at gas stations and eateries.

[ChessieMom]

Originally Posted by SOON2BNSURPRISE

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The idea sounds intriguing. Anyone else using a credit card to pay the bills and then paying it off each month and not using a debit card?

Of course. Kind of a no-brainer.

[Thatsright19]

I’m not sure why people find it so taxing to have to think about 4 or 5 categories of basically major spending. I thought it was just Samuel Jackson.


For those who say the data shows you’ll spend more on cards, sure. If you lack the discipline to understand what credit is. But yes, I’m getting 2 to 10 percent cash back on every non cash expense for years on end. I guess I am spending more.

Lastly, I'm shocked by the amount of people that listen to and follow Dave Ramsey’s advice. Almost every thread gets a mention of him. As much as I think his financial advice is suboptimal and only good for people who are generally financial basket cases , I’ll give him credit as an extra ordinary entertainer. He’s everywhere.

[NewbieHere]

I won’t mention what I think of Dam Ramsey, he is the same category as Susie Orman. I don’t spend more on credit cards. But even if I do, I’m at the stage of blowing my dough. I might as well get something back.

[sparkypeanut]

Originally Posted by jbgusa

My wife and I earn $2000-$3000 a year in cash rebates that way.

1. My Costco card pays 4% on gas, 3% on hotels and restaurants, 2% at Costco and 1% on everything else;
2. My Amex Open card pays 5% at office supply stores;
3. My Case Ink card pays 5% on Internet, cable and telephone services, and at office supply stores;
4. My Chase Freedom VISA pays 5% on rotating categories, gasoline and streaming services this quarter, restaurants last quarter;
5. My Discover Card pays 5% on rotating categories, gasoline last quarter, restaurants this quarter; and for everything else
6. My Freedom Unlimited pays 1.5% on all charges, including, crucially, my ACA payments of about $28,000 a year, or $420 alone.

I unfailingly pay the bills in full each month.

So you charge about $100,000 of expenses per year on credit cards to get $2K-$3K back?

It's good that you are so organized.

[jbgusa]

Originally Posted by sparkypeanut

So you charge about $100,000 of expenses per year on credit cards to get $2K-$3K back?

It's good that you are so organized.

I charge about $50,000 a year. 1.5% would be about $750, but a lot of that is at 4% or 5% amounts. I probably overestimated but I do make around $2000 or so a year. The cable and internet alone amount to about $4500 per year so 5% of that would be $225. My Obamacare premiums are about $28,000 a year so 1.5% of that equals $420. Rebates on gasoline come to about $80. Rebates on heating oil are probably about $70. Supermarkets are typically in the 5% category for about two quarters of the year. The numbers do add up. I would love to pay property taxes that way, but they charge a "convenience fee" that wipes out the earnings.

[sparkypeanut]

Originally Posted by jbgusa

I charge about $50,000 a year. 1.5% would be about $750, but a lot of that is at 4% or 5% amounts. I probably overestimated but I do make around $2000 or so a year. The cable and internet alone amount to about $4500 per year so 5% of that would be $225. My Obamacare premiums are about $28,000 a year so 1.5% of that equals $420. Rebates on gasoline come to about $80. Rebates on heating oil are probably about $70. Supermarkets are typically in the 5% category for about two quarters of the year. The numbers do add up. I would love to pay property taxes that way, but they charge a "convenience fee" that wipes out the earnings.

Yes, it sure adds up.
I guess most folks with HHI of around $200K probably spend at least $100K a year (and therefore could be putting $100K on credit card to gain points). It seems like so much but unless a typical $200K household is saving more than 50% of their income which is unlikely then they are spending $100K+ per year.
This would be for a relatively HCOL.
I realize now that I didn't account for taxes (because I am outside of US and we don't have income tax).

[jbgusa]

Originally Posted by sparkypeanut

I realize now that I didn't account for taxes (because I am outside of US and we don't have income tax).

Taxes are a big item. Also there are entities, ranging from the pizzeria down the block to my municipal taxing authority that charge a 3% "convenience fee" for paying by plastic. Only a moron would incur a 3% charge to earn a 1.5% rebate. My IQ is 79, so slightly above moron level.