Are credit cards rewards worth it?

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TheHouse7
Posts: 225
Joined: Fri Jan 13, 2017 2:40 am

Re: Are credit cards rewards worth it?

Post by TheHouse7 » Wed Oct 04, 2017 7:47 pm

Earl Lemongrab wrote:
Mon Oct 02, 2017 7:53 pm
TheHouse7 wrote:
Mon Oct 02, 2017 7:40 pm
I found giving up ~$200 in rewards per year was easy. I hate thinking about payments.
What's one or two more payments? You have to pay all of the other bills one way or another.
It's not only more mental accounting, but messes up my monthly budget in YNAB :annoyed

Simplify, Simplify, Simplify.

That's what I read most on this forum.
"PSX will always go up 20%, why invest in anything else?!" -Father-in-law early retired.

AlphaLess
Posts: 46
Joined: Fri Sep 29, 2017 11:38 pm

Re: Are credit cards rewards worth it?

Post by AlphaLess » Wed Oct 04, 2017 10:36 pm

TomatoTomahto wrote:
Wed Oct 04, 2017 5:43 am
AlphaLess wrote:
Tue Oct 03, 2017 10:39 pm
So, $165K spend on cash-back cards. That has got to yield at least:
- $400 on Amex PBlue
- $430 on Amazon
- $1,900 on Citi Double Cash
- $1,000 on Fido.

So that's $3,750 cashback. So roughly, 2.2%.
Probably similar on the Amex MR card.

Have you considered periodically opening new accounts to take advantage of one-time bonuses?
No, I haven't, but perhaps I should. I don't open mail (snail or electronic) that I haven't asked for, so I seldom even know about offers. I also have a credit freeze on (now), so I'd have to thaw and refreeze; do card offers tell you which agency they will use?
Instead of reacting to offers sent to me, I try to be proactive.

The usual bevy of travel bloggers always have the best deals available. So you pick and choose what you want.

As for freeze and which report: that is easy.

Step 1: Apply,
Likely, get "deferred" action.
Step 2: Call issuers credit department, talk to them.
Likely, they will tell you that your CR is locked / frozen. Ask them which
Step 3: Unlock that one, call back, tell them to make a credit decision on the spot.

This way, you don't have to unfreeze all 3, and you always have control.

User avatar
TomatoTomahto
Posts: 6932
Joined: Mon Apr 11, 2011 1:48 pm

Re: Are credit cards rewards worth it?

Post by TomatoTomahto » Thu Oct 05, 2017 5:06 am

Thanks AlphaLess, that’s helpful. I’ll look around and maybe try one.

BigMoneyNoWhammies
Posts: 12
Joined: Tue Jul 11, 2017 11:58 am

Re: Are credit cards rewards worth it?

Post by BigMoneyNoWhammies » Thu Oct 05, 2017 12:27 pm

RDHlooking4FIRE wrote:
Mon Oct 02, 2017 6:57 am
I charge everything on my credit card for the 2% cash back (citi double cash). I also like seeing how much I spent each month. I PAY MY BALANCE IN FULL EVERY MONTH. But I hate seeing that I owe.

Id rather use my debt card. Is the 2% cash back worth it. Do you use debt or credit and if credit what rewards card do you use?

Thanks
you're paying your balance in full every month, meaning you aren't paying any interest on what you spend. This makes your 2% cash back essentially a 2% discount on everything you buy. Think about how much you spend in a year on the card. 2% of that is likely a big difference in amount, especially added up over multiple years. Definitely worth it.

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