Applying credit card for cash back reward

I stirred a hornets nest. Interesting.

U.S. credit card debt jumps 18.5% and hits a record $930.6 billion​

Total credit card debt reached a record $930.6 billion in the fourth quarter of 2022, according to the latest credit report from TransUnion.
As balance rise, so have delinquencies, which is “something to watch,” says TransUnion’s Michele Raneri.

“Whether it’s shopping for a new car or buying eggs in the grocery store, consumers continue to be impacted in ways big and small by both high inflation and the interest rate hikes implemented by the Federal Reserve,” said Michele Raneri, vice president of U.S. research and consulting at TransUnion.

CNBC 4/24/23

"Overall, an additional 202 million new credit accounts were opened in the fourth quarter, led by originations among Generation Z, or adults ages 18 to 25, and the tally of total credit cards hit a record 518.4 million."




Like I have been saying, Visa, Mastercard, American Express are not getting rich because we pay off our credit cards every month. If you do, Great!

This whole thread was based on a questioned about cash back rewards. Maybe I just missed the point but I don't find that cash back in anyway helps us when we overspend. I think I made that clear in previous post. We all do. Just don't think that your overspending is justified because of cash back. They would like you to think that because that's how they make they're money.

Bottom line................................. just think about your spending. Forgoe where you can, cut back where you can. Check the impulse " that I deserve it" and do the best you can.

rbtvgo
 

rbtvgo said:
In general "cash back" is wonderful for the credit card companies. Very few are beneficial to the consumer.
They don't promote these things because they are losing money. Other wise "cash back" wouldn't be on the radar anymore.
Controlling your spending will give you more cash back then any program being offered. Just my opinion.
rbtvgo
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thank you
 
mathjak107 said:
less then half of all credit card users carry a balance so saying most is not correct
Click to expand...
Based on......?
Like I said, you are the exception.
Statistics are what ever you want them to be. Put out a questionnaire, don't like the responses.............change the questions.
The numbers make more sense, but not obvious. Please don't take offense, just don't try and defend everyone else. Your doing good. Just don't believe everyone around you
rbtvgo
 

rbtvgo said:
I stirred a hornets nest. Interesting.

U.S. credit card debt jumps 18.5% and hits a record $930.6 billion​

Total credit card debt reached a record $930.6 billion in the fourth quarter of 2022, according to the latest credit report from TransUnion.
As balance rise, so have delinquencies, which is “something to watch,” says TransUnion’s Michele Raneri.

“Whether it’s shopping for a new car or buying eggs in the grocery store, consumers continue to be impacted in ways big and small by both high inflation and the interest rate hikes implemented by the Federal Reserve,” said Michele Raneri, vice president of U.S. research and consulting at TransUnion.

CNBC 4/24/23

"Overall, an additional 202 million new credit accounts were opened in the fourth quarter, led by originations among Generation Z, or adults ages 18 to 25, and the tally of total credit cards hit a record 518.4 million."




Like I have been saying, Visa, Mastercard, American Express are not getting rich because we pay off our credit cards every month. If you do, Great!

This whole thread was based on a questioned about cash back rewards. Maybe I just missed the point but I don't find that cash back in anyway helps us when we overspend. I think I made that clear in previous post. We all do. Just don't think that your overspending is justified because of cash back. They would like you to think that because that's how they make they're money.

Bottom line................................. just think about your spending. Forgoe where you can, cut back where you can. Check the impulse " that I deserve it" and do the best you can.

rbtvgo
Click to expand...
accounts carrying balances jumped from 39% to 46% ..
that is still not most people making your statement incorrect.

even if it was half it still means half the credit card users carry no balance and are using their cards responsibly

  • As daily expenses stay high due to inflation, more Americans are relying on credit cards to make ends meet and fewer are able to pay their bills in full at the end of the month.
  • Now, 46% of credit cardholders carry debt from month to month, up from 39% last year, according to a new report by Bankrate.

https://www.cnbc.com/2023/01/10/americans-lean-heavily-on-credit-cards-amid-inflation.html
 
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mathjak107 said:
it think my Chase sapphire does 3% with instacart , plus a free 99 dollar membership plus a 15 dollar a month statement credit .

i had to renew my tsa precheck and they paid for that
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mathjak107 said:
accounts carrying balances jumped from 39% to 46% ..
that is still not most people making your statement incorrect.

even if it was half it still means half the credit card users carry no balance and are using their cards responsibly

  • As daily expenses stay high due to inflation, more Americans are relying on credit cards to make ends meet and fewer are able to pay their bills in full at the end of the month.
  • Now, 46% of credit cardholders carry debt from month to month, up from 39% last year, according to a new report by Bankrate.

https://www.cnbc.com/2023/01/10/americans-lean-heavily-on-credit-cards-amid-inflation.html
Click to expand...
if you believe the statistics.............I don't.

https://www.trustpilot.com/review/bankrate.com?page=5
 
rbtvgo said:
This whole thread was based on a questioned about cash back rewards. Maybe I just missed the point but I don't find that cash back in anyway helps us when we overspend. I think I made that clear in previous post. We all do. Just don't think that your overspending is justified because of cash back. They would like you to think that because that's how they make they're money.

Bottom line................................. just think about your spending. Forgoe where you can, cut back where you can. Check the impulse " that I deserve it" and do the best you can.

rbtvgo
Click to expand...
Lumping everyone into "overspending"
Quote
" I think I made that clear in previous post. We all do." just isn't right.

If you read back thru the posts that don't agree with some of your assertions you would see how wrong you are. Cash back works for responsible people that don't amass debt by overspending. Those that pay the balance every month do gain from the incentive to earn cash back.
 
rbtvgo said:
if you believe the statistics.............I don't.

https://www.trustpilot.com/review/bankrate.com?page=5
Click to expand...
You said you don't believe statistics yet you quote some yourself. :unsure: I think we all know that credit card debt is out of control. According to these statistics, updated April 21, 2023, support your stance that most people carry a balance, 44% of active card users paid their bills in full each month and 56% did not. This highlights the point that different sources may have different statistics. No matter...even if these statistics are correct, that is still a lot of people who pay their bills in full. This article has other interesting credit card statistics. https://www.lendingtree.com/credit-cards/credit-card-debt-statistics/
 
rbtvgo said:
This whole thread was based on a questioned about cash back rewards. Maybe I just missed the point but I don't find that cash back in anyway helps us when we overspend. I think I made that clear in previous post. We all do. Just don't think that your overspending is justified because of cash back. They would like you to think that because that's how they make they're money.

Bottom line................................. just think about your spending. Forgoe where you can, cut back where you can. Check the impulse " that I deserve it" and do the best you can.
Click to expand...
I think you are making assumptions about everyone based on your own personal issues. I will concede without any actual knowledge, that credit card companies may think, even know through research, that if they offer cash back it will cause some people to overspend, thereby accumulating more debt at absurdly high interest. But they are targeting a niche group, albeit a large one who think of credit cards as bank loans, and who are compulsively impulsive in their shopping habits.

But painting everyone this way requires a very broad brush. Credit card companies know they cannot ensnare all of their users into high interest rates, and that cash back may even represent a small revenue loss among some spenders, but prudent spenders are not the target of this business strategy. The targets are consumers who are poor money managers and merchants who are forced to accept credit cards simply because that is the way business is done in a modern world.
 
those here trying to tell others successful at something that it’s bad is an exercise in futility .

many of us have been successful investors as well for decades but you will still have those anti investing telling us how they don’t do it because you can lose all your money .

that is how they justify not taking part in things many others are successful at

usually if they failed at it , it is because of their own bad behavior , not markets and not credit cards
 
”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.
 
OneEyedDiva said:
I got a solicitation in my email from Bank of America to open another credit card with similar cash backs as one of my Chase cards (1.5%) and 0% interest for the first 18 months. The latter doesn't matter much since I pay my cards in full each month. But the temptation I could not resist is the $200 bonus cash back reward after spending $1,000 in three months. We can easily reach that figure in a month between my son's expenses and mine (he pays me back by the dates the payments are due). I've gotten other credit card solicitations in the past year and ironically my original BOA card was the only one I applied for (last summer).

I just had to go to each credit monitoring agency and unfreeze my credit for 24 hours since the email said the application would be approved within 30 seconds, which it was. Do you take advantage of these types of offers? If so, when was the last time and what was the deal?
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Keep going for the bonuses.
 
rbtvgo said:
In general "cash back" is wonderful for the credit card companies. Very few are beneficial to the consumer.
They don't promote these things because they are losing money. Other wise "cash back" wouldn't be on the radar anymore.
Controlling your spending will give you more cash back then any program being offered. Just my opinion.
rbtvg
Click to expand...
 
again that is an assumption that those using them responsibly are not controlling their spending .…

that is hog wash and many of us here are living proof. talking in terms of straw people is silly .


guaranteed those with uncontrolled spending have a lot of other issues going on as well and it isn’t the credit cards causing the uncontrolled spending .there are likely financial issues all over the place with them that are ungood.

as suzi ormann says , usually it’s a case of I THINK LESS THEN , SO I SPEND MORE THEN .

people who are unhappy with themselves tend to be the uncontrolled spenders
 
Liberty said:
Does anyone know of a card (not amazon) that offers 5% off on groceries all year and has no annual fee?
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Take a look at the Citi Custom Cash card. 5% on your highest monthly categroy expenses capped at $500.00 per month. Example, we spend approximately 400 to 500 dollars a month on groceries. So we look at 20 to 25 dollars in cash back each month. This equates to a free month of groceries at the end of the year. We both opened one at the same time and both received a $200.00 dollar sign up bonus.
 
seadoug said:
I don't accept these offers because I still really on my trusty Chase Freedom card for discounts and cash back. However, I have a friend that does this frequently and I think she has almost made more money than she has spent! You just need to be really adept at this.
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It does take a bit of work to make it work. In my experience, it is well worth it.
 
efg090754 said:
Take a look at the Citi Custom Cash card. 5% on your highest monthly categroy expenses capped at $500.00 per month. Example, we spend approximately 400 to 500 dollars a month on groceries. So we look at 20 to 25 dollars in cash back each month. This equates to a free month of groceries at the end of the year. We both opened one at the same time and both received a $200.00 dollar sign up bonus.
Click to expand...
When we did it we got 300 each for the citi cash card
 
JustDave said:
I will concede without any actual knowledge, that credit card companies may think, even know through research, that if they offer cash back it will cause some people to overspend, thereby accumulating more debt at absurdly high interest. But they are targeting a niche group, albeit a large one who think of credit cards as bank loans, and who are compulsively impulsive in their shopping habits.

But painting everyone this way requires a very broad brush. Credit card companies know they cannot ensnare all of their users into high interest rates, and that cash back may even represent a small revenue loss among some spenders, but prudent spenders are not the target of this business strategy. The targets are consumers who are poor money managers and merchants who are forced to accept credit cards simply because that is the way business is done in a modern world.
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Agree with your post.

A lot of people find themselves in CC trouble at one time or another. Some learn after the first brush, but many, many do not.

Compulsive/impulsive shoppers and those who have difficulty managing money should avoid CCs the way recovering alcoholics avoid liquor stores. Very little good comes from tempting one's known weaknesses.
 
mathjak107 said:
as suzi ormann says , usually it’s a case of I THINK LESS THEN , SO I SPEND MORE THEN .

people who are unhappy with themselves tend to be the uncontrolled spenders
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I didn't understand what you were getting at here so I looked it up. From Suzy's column in Oprah Magazine:
https://www.oprah.com/omagazine/money-lessons-from-suze-orman


3. Self-worth builds net worth

I realized that until I started acting honestly, I would be broke and unhappy. It was my own aha moment: I realized we spend more than when we feel less than. I felt less than because I could not afford what all those rich people could. But look where that got me—in debt and miserable. It was right then that I started to use money as my guide. I began watching how I was using money and how I was feeling when I made money choices. When I learned to give myself—and my money—the love and respect we both deserved, I felt as if a huge weight had been lifted. I was no longer racing to keep up; I was so happy being right where I was. Being me. I stopped spending money I didn't have and started living within my means. I had found my power. I was clear on who I was, what I wanted, and what I thought. No more letting the external world define me—I defined me. And it was only when that happened that I was able to dig out of debt and build the lasting net worth I now have.

If you have credit card debt and no savings, and you feel miserable, don't attribute your woes to not having enough money; instead see the lessons your money is trying to teach you. Is it possible you have yet to find your self-worth?
 
mathjak107 said:
again that is an assumption that those using them responsibly are not controlling their spending .…

that is hog wash and many of us here are living proof. talking in terms of straw people is silly .


guaranteed those with uncontrolled spending have a lot of other issues going on as well and it isn’t the credit cards causing the uncontrolled spending .there are likely financial issues all over the place with them that are ungood.

as suzi ormann says , usually it’s a case of I THINK LESS THEN , SO I SPEND MORE THEN .

people who are unhappy with themselves tend to be the uncontrolled spenders
Click to expand...
Overspending can definitely be a sign of other emotional issues. It's like stress eating; there is stress spending. There is also spending to try to keep up with Joneses. I could go on and one. Suze Orman also says when it comes to finances "Stand in your truth". People who aren't honest with themselves about overspending will not be successful in conquering the problem.
 
JustDave said:
I think you are making assumptions about everyone based on your own personal issues. I will concede without any actual knowledge, that credit card companies may think, even know through research, that if they offer cash back it will cause some people to overspend, thereby accumulating more debt at absurdly high interest. But they are targeting a niche group, albeit a large one who think of credit cards as bank loans, and who are compulsively impulsive in their shopping habits.

But painting everyone this way requires a very broad brush. Credit card companies know they cannot ensnare all of their users into high interest rates, and that cash back may even represent a small revenue loss among some spenders, but prudent spenders are not the target of this business strategy. The targets are consumers who are poor money managers and merchants who are forced to accept credit cards simply because that is the way business is done in a modern world.
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You hit the nail on the head Dave.
 
mathjak107 said:
so who here is of the opinion getting your own money back as a rebate with rewards is like welfare ?

welfare is others grtting a benefit you didn’t pay for , a rebate is you keeping more of the money you earned by them handing you back some of what you spent .

let’s see what others think
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The term welfare in this case doesn’t even make sense. Baffled at the comparison.
 
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