profitting from credit card use
@saigonwarrior (1331)
United States
May 23, 2007 8:42am CST
I was wondering if anyone else used this practice? I used to pay my bills by check or cash. Groceries, gasoline, etc.
I now pay everything with my credit card that offers 1% back on all purchases. It doesn't seem like a lot, but it adds up if you think on how much you spend per month on groceries, gasoline, necessary small items that you run to the store for. I even use mine for the restaurant now when we go out to eat.
The only thing that you absolutely MUST do is pay that credit card balance off every single month. Just take what you would spend the cash on and put it on that credit card. I average around $150-$300 a year on my cash back rewards. I usually just add that to my credit card payment for one month. Does anyone else use this practice?
Oh, and if you pay off the balance every month, there is no finance charge. That is why I say it is an absolute, must.
1 person likes this
2 responses
@lordwarwizard (35747)
• Singapore
10 Jun 07
I think what you do is right. I use card too where possible. Cashback is always welcome, otherwise you can also go for those that offer reward programs.
They are not as good as the cashback one you are using of course since they may not have things you might want. :P
1 person likes this
@saigonwarrior (1331)
• United States
10 Jun 07
Yes, I agree. I would rather have the cash back.
I normally let it grow for about a year and just use the reward for one credit card payment. It is not much, but it does help.
@ycswid (279)
• Canada
10 Jun 07
This is something that I have been doing for a few years now. The card that I use gives $ for a particular store and I save it and have painted the house, put in my gardens, purchased Christmas gifts and printer cartridges without budgeting for extra cash. I have also just received another card that will give you $ for another store that I shop at occasionally for groceries. I'll probably start to split purchases now to get some free groceries. I always pay the accounts in full so this is entire free money and I agree it is an absolute must! But you have to have the discipline to use it correctly and I know that can be an issue for some.
@saigonwarrior (1331)
• United States
10 Jun 07
Yes, isn't it a great way to make a little extra?
And yes, you DO have to pay off the full balance every single month or it defeats the purpose of the reward. It does take discipline, I have to agree with that. It isn't a problem for me, I am so used to managing money this way that it just comes natural.
