Applying credit card for cash back reward

to all
I'm done with this. Bottom line is you pay cash or you owe somebody for borrowing their money. Don't care if it's one day or one year. Pay now or pay the interest on borrowing. Cash back is just a discount on what you borrow. We are all in the same boat. You need something that you can't afford but you have credit. Don't care if it's car repairs or a new air conditioner unit. Need it now....but don't have the money now.
Walk or take a bus. Open the windows when it gets hot. Get a kerosene heater for the family room in the winter when it gets cold..........................................or use your credit card. We all do. Borrow money.........pay for it. Pretty simple.
CASH BACK....................................think about it. Cash back on money you already spent or borrowed.........................?????
If I had the cash I would call the contractor and tell him that I need this or that done. Pay him up front with cash or a check.
Guaranteed discount.
Pay with a card.........well the price might go up a little but then I pay. Cash back may apply at this point but I don;t know yet.
Pay off my card at the end of the month.
Following month the charge shows, (mind you, that you didn't pay cash so the charge was a little higher to begin with).
Then you find out that cash back doesn't apply, so you dispute.
In the mean time your credit card balance collects interest on money due.

As I said I am done with this. Don't bother discussing the details of my comments.
Visa is rich because we borrow money from them.....period!
Cash back just makes it feel better.
just my opinion
rbtvgo










GUARANTEED discount.
Oh I have insurance, I have a deductable, etc, etc,etc
 

efg090754 said:
”Churners”. That’s the term used for those that continually get credit cards for sign up bonuses and cash back. Guilty as charged. BUT, we never pay interest!
We tend to reap around $1000.00 in sign up bonuses and cash back rewards every year.
It can be a a bit daunting to keep things organized but I consider it my only “job” in retirement.
And quite frankly, it’s a fun game.
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I never heard the term churners before. I've opened credit cards for the bonuses about 4 times in as many years; a couple of times with trepidation but they worked out well. Nobody should be so busy that they don't take care of their finances. Let's face it efg...it takes time to manage money wisely, something many don't realize or they let laziness prevent them from doing so. I like how you look at it as your "only job". :)
 
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i don’t churn at all . but if a deal is so lucrative that it is nuts to pass up then i will do it.

it usually has to offer in the thousands like the deals on chase sapphire reserve and chase sapphire preferred
 
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Roadwarrior said:
I was spending myself into oblivion. Buying 'stuff' just to make the reward thresholds.
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I hear you.
Fortunately, I can pay my utility bills with a credit card and there is no additional charge. My bills run about $150 a month on average. So I can meet 1/2 of a $3000 spending requirement by prepaying those bills.

I just have to remember to start paying them again during the 11th month!! Sometimes I forget and get a nasty notice. :eek: Thankfully, there has never been a late charge.
 
Sippican said:
Love credit cards....
I will never pay cash if they take credit cards.
I've gotten thousands of thousands of dollars from buying with a credit card.
Never pay 1 cent of interest.
The down side, at some point the government will tax points....but not today!
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You're method and results mirrors mine exactly! I sure hope you are wrong about taxing cash back rewards someday. If so, they may set an amount like other extra income where there must be at least $600 for the "income" to be taxable. I do include my cash backs when calculating my obligatory charity payments though.
 
OneEyedDiva said:
You're method and results mirrors mine exactly! I sure hope you are wrong about taxing cash back rewards someday. If so, they may set an amount like other extra income where there must be at least $600 for the "income" to be taxable. I do include my cash backs when calculating my obligatory charity payments though.
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There is a guy on TikTok that talks all about credit cards points/rewards and how to maximize the rewards. Mostly, he says the real value is from the sign on bonus points. I also see the value in cash back credit cards. On our Maui trip I use Marriott points for the hotel, Hawaiian Airline sign on points for the round trip tickets, and Freedom Cash Back to pay for the rental car.
I would always apply for the sign on bonuses at a time I was making a large purchase to comply with the dollars spent in the first 3 months. Marriott and IHG credit cards also give you an annual free stay. This makes up for the annual membership of 99$. The 99$ is still cheaper than most room stays so you get the membership fee back in a free stay.
Got to be careful in looking at sign on points. You have to balance out the number of points vs. how much it is to redeem them for a free stay. Giving you 100,000 points isn't a good deal if a one night rom stay is 90,000 point. But if you could get 3-4 nights out of a sign on bonus, then it would be worth it. Plus the airline cards usually give you a free checked bag credit and priority boarding.
There was some talk about taxing points because they do have a monetary value and they are used in place of cash, but that hasn't come up in a while.
 
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mathjak107 said:
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i don’t churn at all . but if a deal is so lucrative that it is nuts to pass up then i will do it.

it usually has to offer in the thousands like the deals on chase sapphire reserve and chase sapphire preferred
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Who said there's no such thing as a free lunch quote?
One of the most famous Milton Friedman quotes states, “there is no such thing as a free lunch,” an ironic response to the tremendous demand for “free stuff.”
 
StarSong said:
Many said it before Mr. Friedman, but it's very true.
Freebies always cost somewhere down the line.
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Funny, I get that its a 'saying' but no, there is not cost down the line for the recipient.
The vendors that take the credit cards pay a fee. Typically between 2-3% and in some cases (American Express) up to 6%. The vendors know that in order to stay competitive, they need to accept credit cards and secondly, they need to have competitive pricing.
Credit card companies rake in millions from folks that carry balances, so that is where they off-set what we are called 'deadbeats'. People that pay full balance every month.

The actual hotel points are many times purchased in bulk by the owners of the hotels. Take Marriott for instance, many are franchised hotels using the Marriott name recognization to attract business. The franchisees could be venture capital companies. They are interested in returns not running a hotel. Some Marriotts are actually run by Marriott, typically the flagship brands, others like CourtYard are franchised. Sometimes they contract out to 3rd party management companies to run the hotel, sometimes they as Marriott to run them (for a hefty fee).
Either way, the purchased points that are bought in bulk are figured into the overall operating costs of the hotel and may be reduced due to empty rooms over a certain period of time.
This is just one way companies manage their points coming in, and going out.
 
horseless carriage said:
Who said there's no such thing as a free lunch quote?
One of the most famous Milton Friedman quotes states, “there is no such thing as a free lunch,” an ironic response to the tremendous demand for “free stuff.”
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the free lunch with credit card points is others are paying for your lunch who don’t take advantage of the rebates
 
We churn. Sign up bonuses are definitely free money. We have many credit cards with various cash back % per dollar spent. A challenge at times to remember what cards are the best ones to use based on what we are buying. Sam’s Club for 5% cash back on fuel and club purchases serve us well. A Citi card that we get 5% on for groceries is a good one. Various other ones that we rotate around based on what they may offer at any given time.
It all takes a bit of work to do it properly but well worth the effort.
 
efg090754 said:
We churn. Sign up bonuses are definitely free money. We have many credit cards with various cash back % per dollar spent. A challenge at times to remember what cards are the best ones to use based on what we are buying. Sam’s Club for 5% cash back on fuel and club purchases serve us well. A Citi card that we get 5% on for groceries is a good one. Various other ones that we rotate around based on what they may offer at any given time.
It all takes a bit of work to do it properly but well worth the effort.
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I keep track of what card is giving what % cash back each quarter by making a list in my phone's notepad app. That makes it a lot easier to keep track of which card to use. I start by listing the 5% CBs first, then 4%, etc. and in which category those percentages are for. (eg: APRIL TO JUNE ... 5% Discover: Restaurants (there was probably another category that I don't use), 4% Amazon Prime: Gas stations & Restaurants, etc. I've learned that I think I'm going to remember it all...but I won't. :LOL:
 
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Sippican said:
Funny, I get that its a 'saying' but no, there is not cost down the line for the recipient.
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mathjak107 said:
the free lunch with credit card points is others are paying for your lunch who don’t take advantage of the rebates
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Exactly, Mathjak. Someone pays for it. Same as "free" shipping. UPS, FedEx, etc. pay for fuel, labor and other expenses.
 
StarSong said:
Also, vendors increase their prices to cover their bank's CC surcharges. The rebates we get have been paid by us at the checkout stand. I had a retail store and know whereof I speak.
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Yes, someone pays for it or, the vendor reduces price to stay competitive.
An example: I went to a name brand shoe store. Saw a pair I was looking for. At the store it was priced at 87.00 (outlet store).
I then went on Amazon and bought the same exact pair for 56.00.
Now did someone pay for all the costs to get the product to me? Or was one vendor more efficient in their product handling?
Either way, I still got the product at a discounted rate or the 'brick and mortar' store was overcharging? Both using a credit card.
The value of the product is only are much as someone is willing to pay. Thats how capital driven societies work.
 
Sippican said:
Yes, someone pays for it or, the vendor reduces price to stay competitive.
An example: I went to a name brand shoe store. Saw a pair I was looking for. At the store it was priced at 87.00 (outlet store).
I then went on Amazon and bought the same exact pair for 56.00.
Now did someone pay for all the costs to get the product to me? Or was one vendor more efficient in their product handling?
Either way, I still got the product at a discounted rate or the 'brick and mortar' store was overcharging? Both using a credit card.
The value of the product is only are much as someone is willing to pay. Thats how capital driven societies work.
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No argument. I was merely pointing out the truth of "no free lunch."

As for brick and mortar stores stores over Amazon and other online merchants, running retail outlets is much more expensive than churning products through highly efficient, highly automated warehouses. Because of higher overhead, it's almost impossible for brick-and-mortar retailers to compete with Amazon on price.

When I had a retail outlet as soon as we set up with scanners I changed the upc codes on our products to my own (closed) system so people couldn't come in, try on our garments, waste my employees' time, then openly scan the tags in hopes of buying it for (literally) a couple of dollars less at Amazon. Some even tried to return/exchange online purchases (in the wrong size) from other retailers to us. No lie.

There's nothing wrong with buying from Amazon or other online retailers or even of comparison shopping. It's the deliberate action of taking advantage of local retailers, their stock, or their employees' time and expertise that I find unethical.

Many years ago our pastor was on a month's sabbatical and we had visiting pastors preaching on Sundays. One was a rabbi and I will never forget the Talmudic lesson he taught that Sunday. I looked it up today and found this explanation, which I've cut down a bit for brevity and relevance:

Question:​

Here’s the scenario. I walk into an electronics store and ask the sales staff for advice on which digital camera is best for my needs. The guy spends half an hour explaining the pros and cons of all the different models. I say thanks and walk out of the store, then go online and order the exact camera he recommended, but at a much cheaper price. Am I being dishonest?

Answer:​

“Thou shalt not steal” does not only apply to outright thievery. The Torah warns against “stealing people’s minds,” which means misleading them through words or actions in order to gain some personal benefit.

The Talmud prohibits asking a shopkeeper the price of an item that you have no intention of buying. You are stealing his mind, by making him think he has a customer. It would seem that the same applies to your camera-shopping expedition. The salesguy invested half an hour in you, thinking he had a buyer. If you never intended to purchase the camera in that store, you stole his mind, as he gave you his time for nothing.

Now, you could argue that your case is different from the Talmudic one. The guy who served you doesn’t own the store; he is just in sales. It makes no difference to him if he made the sale or not; his job is to answer customers’ questions. Okay, but perhaps he gets a commission on each sale, so he wouldn’t have bothered wasting his time on you if he knew there was no chance of sealing the deal. And even if not, are you not stealing from the shop owner, who pays his sales team to serve genuine customers?

https://www.chabad.org/library/arti...tore-and-Then-Purchase-for-Cheaper-Online.htm
 
StarSong said:
No argument. I was merely pointing out the truth of "no free lunch."

As for brick and mortar stores stores over Amazon and other online merchants, running retail outlets is much more expensive than churning products through highly efficient, highly automated warehouses. Because of higher overhead, it's almost impossible for brick-and-mortar retailers to compete with Amazon on price.

When I had a retail outlet as soon as we set up with scanners I changed the upc codes on our products to my own (closed) system so people couldn't come in, try on our garments, waste my employees' time, then openly scan the tags in hopes of buying it for (literally) a couple of dollars less at Amazon. Some even tried to return/exchange online purchases (in the wrong size) from other retailers to us. No lie.

There's nothing wrong with buying from Amazon or other online retailers or even of comparison shopping. It's the deliberate action of taking advantage of local retailers, their stock, or their employees' time and expertise that I find unethical.

Many years ago our pastor was on a month's sabbatical and we had visiting pastors preaching on Sundays. One was a rabbi and I will never forget the Talmudic lesson he taught that Sunday. I looked it up today and found this explanation, which I've cut down a bit for brevity and relevance:

Question:​

Here’s the scenario. I walk into an electronics store and ask the sales staff for advice on which digital camera is best for my needs. The guy spends half an hour explaining the pros and cons of all the different models. I say thanks and walk out of the store, then go online and order the exact camera he recommended, but at a much cheaper price. Am I being dishonest?

Answer:​

“Thou shalt not steal” does not only apply to outright thievery. The Torah warns against “stealing people’s minds,” which means misleading them through words or actions in order to gain some personal benefit.

The Talmud prohibits asking a shopkeeper the price of an item that you have no intention of buying. You are stealing his mind, by making him think he has a customer. It would seem that the same applies to your camera-shopping expedition. The salesguy invested half an hour in you, thinking he had a buyer. If you never intended to purchase the camera in that store, you stole his mind, as he gave you his time for nothing.

Now, you could argue that your case is different from the Talmudic one. The guy who served you doesn’t own the store; he is just in sales. It makes no difference to him if he made the sale or not; his job is to answer customers’ questions. Okay, but perhaps he gets a commission on each sale, so he wouldn’t have bothered wasting his time on you if he knew there was no chance of sealing the deal. And even if not, are you not stealing from the shop owner, who pays his sales team to serve genuine customers?

https://www.chabad.org/library/arti...tore-and-Then-Purchase-for-Cheaper-Online.htm
Click to expand...
Given your scenario, here is what I would do.
If the information he gave me was valuable and insightful, AND the difference in price was equal to that knowledge (or close to it) I would buy from the brick and motor store. Because that knowledge has value and I do believe in supporting local businesses.
Now, if the price difference was hundreds of dollars and the knowledge sharing was nothing more than I could get from the specifications description, then I would go to Amazon.
 


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