Making money with credit card

[3Ts]

I received a tempting offer for a CC recently. 6% cash back with the condition that it can only apply to one of 4 categories which can be changed every month. Really was interesting and I thought about changing over to it, but the small print was that interest would be charged from the date of purchase not on a CC due date.

 

[RSKY]

We use Samsclub Master Card for gas, 5% back, and restaurants, 3% back. For everything else we use a Fidelity Visa which puts 2% into my IRA with each use. The Discover Card is used for online purchases. Occasionally a company will give back on a different type of purchase and we will change for a few months. We also use store cards such as Lowes, 5% back at the register, and my wife uses Kohl's and Dillard's cards to get the cash back when she purchases at those stores. My wife also shops Kroger coupons online and when we go to store it will save us as much as 30% on total.

The balances are paid off each moth without fail. We never carry a balance. I pay all bills online and have since I transposed numbers on a check about fifteen years ago and ended up paying interest and a $30+ finance fee on a balance less than $10.

When you retire and have time to sit down and think about saving money credit cards can work for you. BUT you must NEVER CARRY A BALANCE. If you have to carry a balance you don't need to make the purchase.

Carrying a balance on a credit card is about the stupidest financial thing you can do.

RSKY

 

[CobyRupert]

I think I’ve figured out a way to make some real money from your credit card. I’ve never read the credit card’s fine print (who has?), but get a $1,000,000 personal loan from a bank at (say) 10% interest and use it to overpay a credit card that charges “20% interest on all outstanding balances”. 20% interest on (negative) $1 million balance is (negative) $200,000 that I owe (which means I’d get (positive) $200,000 every year.)
Genius! You can thank me later.

 

[5030]

Carrying a balance on a credit card is about the stupidest financial thing you can do.

How CC providers make money, that and portal fees.

 

[macdoesit]

I have never been charged to use my CC and no annual fees.

 

[CADplans]

Wow, you must spend a LOT of money to generate that much cashback!! I'm lucky to generate $70-80/year.

If you are only generating $80, that is only $4,000 per year,,
Most people charge (or could charge ) more than that per month,,

We had our kids work over our budget,, EVERYTHING goes across that card now,,
we are pretty much cash-less, and check-less,, now,,

That card gets more than $4,000 a month,, and we carry no balance.

THEN,, there is Sams Club, they give us something like 2% on purchases,, and we charge the purchases on that card, so the Sams Club purchases get 4% money back.

We buy more than enough at Sams to get double our membership back,,
and all the stuff that comes free shipping beyond the money back,,

The only cash I have used in the last 6 months has been to pay our grandchildren to do chores,,.

 

[Jstpssng]

I've started using my CC more, in part for the rewards; it's also handy for paying at the pump when I fill my tank. Some places do charge extra for using it, especially for the above mentioned fuel purchase. Others have a minimum purchase with a card; I've seen sotre owners give a cup of coffee away because it's cheaper for them than putting it on a card.
I used to argue that plastic cost the vendor more than cash as the CC company charges for each purchase (which pays for whatever reward you choose). However, some argue the exact opposite in the belief they have to pay an extra person to run the register, and there are places which no longer accept cash. To some degree it probably depends on the product sold, and the profit margin.

One thing I will not use is a debit card. Despite that, I checked my account one morning last year and discovered that Amazon had made a query to see how much money I had available. Luckily nothing was taken; yet there's no way they should have had that card number. I called my CU as soon as they opened and had the card shut off; when they sent me a new one I didn't even activate it.

 

[caver]

I made $100 off amazon using their card. I got the card which applied that $100 discount to a purchase well over $100. I never actually used the card since it was only good at amazon so threw it in the safe and canceled it about 3-4 months later.

 

[Kira]

I use my credit card to pay for everything. It is very convenient. As I had bad credit, the Indigo Platinum Mastercard was the best option for me. According to the indigo card customer service, If your FICO scores are below 600 and you're having trouble getting approved for other cards, this card may be one way for you to build credit.
And thanks for sharing your experience, I've found out a lot of useful info here.

 

[fruitcakesa]

Before we retired and sold our business, we would put most if not all expenses on the CC which was between $30k and $40k per year and averaged around $650 cash back.