Comments on: Credit card rewards can be good (or really bad)

By: John Hunter

John Hunter — Sat, 19 Jan 2008 22:44:32 +0000

It is nice to read sensible advice on using credit cards. I also have found cash back cards to be useful. But after my bad experience with Discover Card (where they refused to pay the cash back earned over several years) I would be reluctant to trust such a company. I certainly will not deal with them again.

By: Tracy

Tracy — Sat, 19 Jan 2008 18:04:51 +0000

I love my “cash back” rewards. I put everything that I can on that card: daycare, utilities, gas, & groceries, any other large purchases.

Then I cash out at the end of the year and use it for my Christmas budget.

**But for this to work, you have to pay off entire balance each month, because as noted in other comments, the fees & interest will wipe out any reward**

By: E.C.

E.C. — Fri, 18 Jan 2008 20:05:48 +0000

I have a rewards credit card. I use it for convenience and for security when buying things online, and I pay it off every month. They pay the cash back in January, and I got just over $6 for the past year. I’ve started paying some of my utility bills using the credit card instead of check to increase the rewards I’ll earn this year. Odds are, I’m not going to feel compelled to,say, run up my water bill to get cash back.

By: lori

lori — Fri, 18 Jan 2008 12:46:39 +0000

PS You inspired me to publish a post I wrote a while back on this very subject: http://lorisupermom.blogspot.com/2008/01/using-credit-cards-to-your-advantage.html

By: lori

lori — Fri, 18 Jan 2008 12:41:20 +0000

Let’s just say I haven’t paid for airfare in about 4 years thanks to my Southwest Credit Card…So, YES I LOVE LOVE LOVE Credit Card incentive programs.

By: The Bad Penny

The Bad Penny — Fri, 18 Jan 2008 04:14:53 +0000

We used a credit card for all our budgeted purchases for a long time. We’d pay it off at the end of the month. It was well worth it - we’ve probably made well over $1000 in the past couple years.

I did notice, though, that the first year there was no limit to how much you could get and I think we managed to get about $600 back. The second year there was a limit of $500, and the third $300. The card was competitive, so we got 5% back at gas stations, grocery stores, and sit-down restaurants, and 1% elsewhere. We met our limit each year. I found out recently that the program had changed again, and now it’s a straight 1% back, no matter where you buy something, and the limit is low. So check your program frequently! They might change the terms without notifying you! But for those that can do it responsibly, it’s well worth it! :)

By: A

Fri, 18 Jan 2008 03:19:44 +0000

I have a Shell MC that has no annual fee (with 5 uses at a Shell Station) and saves me 5% off of each gas purchase. I use this card a lot and the rewards add up quickly.

My FF MC will get the axe as soon as I have to pay a yearly fee. (had it waived the last two years by attempting to cancel) When I will have to pay that fee, it’s cheaper for me to buy the plane ticket with as little plane travel as I do on my own dime.

Carrying any balance on these cards would negate any ‘perks’ as would having to pay the annual fee. Because of that, I’m extra careful pay the balance off as each transaction posts.

By: bilal

bilal — Fri, 18 Jan 2008 02:41:48 +0000

one of my credit card i use a accident budget … such as if i don’t have a cash and that time a come to Emergency Room.
so i never get a reward from my credit card

By: Angie

Angie — Fri, 18 Jan 2008 01:42:09 +0000

My one credit card with rewards is used to purchase things online for a friend of ours. He pays me at the time i order and immediatly put the $ on the card so i do not forget. So far he has bought two lap tops, a fridge for the semi, and parts for the semi. These have all been big ticket items so i have received some nice rewards. We have paid off our other rewards card before Christmas, but i put part of Christmas on their and am planning on having it paid of by the end of February.
I think that you have to be really disciplined to use a credit card in any situation.

By: Mrs. Micah

Mrs. Micah — Thu, 17 Jan 2008 23:53:53 +0000

I’ve never yet had a rewards card (or any credit cards) so I’m not sure how I’d deal with it. If I do get one, it’ll definitely be a rewards one, though. It’d more worthwhile.