Credit card cash back programs.

[k1xv]

I get DR position, especially with those that can't discipline themselves, thats is target audience.

But he claims to have not credit cards, only cash and debit.

Can you book flights and hotels with out a credit card ? He never goes into the protections you have to reverse charges with a vendor if there is a problem.

We use a costco card for most purchases, we get a decent check back each year.

We carry no balance on it , its paid every 2 weeks.

I got my first credit card at age 30 when I found out I could not reserve a rental car without one. Prior to that, I was in graduate school, and there was no "internet". So all my transactions were pretty much pay cash or check at point of purchase.

 

[CKN]

No, he is for the masses. There is always the exception to the rule. That in itself changes nothing. Because for the most part the bulk of this nation is in very poor shape when it comes to handling money and debt.

Dave points out the obvious, because most of the time he's right on the money with the majority of his audience. Just listen to some of the calls he takes. It's downright scary when you realize the majority of the people are like this. And not you guys who are all so busy splitting the atom at the gas pumps everytime you pull into Costco.

The larger percentage of this country is in far greater financial danger than most would admit to. These are simple facts. Look at how many people are underwater with their car loans.

Then look at foreclosures. Or the amount of people who are behind on paying their mortgages. Look at the people who have little to nothing saved... And for the most part, never will have. And don't try to tell me, "it was always like this". Because it wasn't.

These people are spending every dime they make, while at the same time are running their personal debt off the chart. All of this, "creative credit", "cash back", "free miles", "extra points", all makes it that much easier for these people to have what they all think is a valid reason to commit what is nothing more than financial suicide. And that hurts everyone, because it weakens our overall economy.

Money used to be tough to get. I can remember a time, when if you didn't have 20% to put down on a house, the banks wouldn't even talk to you about getting a mortgage. And they wouldn't even consider what the wife made.

And the result was a much stronger overall economy, because it had actual money in it...... Not a bunch of paper and credit that has put our present economy on this financial Kamikaze course. And the government is as much or more to blame than we are.

And again, yeah I get it, you are all way above that. But it doesn't change the dangerous effect this put on our entire financial structure. You are either a spender or a saver. Look at most of what people buy on Amazon. It's mostly cheap crap they don't need.

But it's the easiest way yet to separate people from the money they don't even have. And money should be harder to spend for these people, not easier. All it takes is a few clicks of the mouse, and it comes right to your door.... And right on to your credit card.

So yeah, you may be so wonderful with money, that you feel guys like Dave are way beneath you. But the fact is there aren't enough of you to matter.... In the least.

What matters are things like what I've listed below. And believe it or not, in the long run we're ALL going to pay the price on this. Because it simply cannot continue indefinitely. We're traveling 100 MPH down a dead end road. And that scares me into NOT spending anymore than I have to.

My mother always said to me, the more you spend now, the more you'll wish you had it later... Was she ever right.... Rant off.

https://finance.yahoo.com/news/nearly-half-less-500-savings-170050488.html

https://www.empower.com/the-currency/money/over-1-in-5-americans-have-no-emergency-savings-research

https://www.cbsnews.com/news/help-paying-mortgage-rent-homeowners-renters/

https://www.foxbusiness.com/economy...de-down-on-auto-loans-as-used-car-values-fall

https://www.reuters.com/markets/us/...023-seen-rising-again-2024-report-2024-01-03/

All your posts indicate you are a "Senior" like many of us on here. So when you pass will have a load of money in the bank to pass on to your heirs. Congrats-I guess. Personally-I'm trying to spend mine.......

 

[redbone3]

I put all of these "cash back" credit card programs into much the same category as all of this "FICO Score" credit rating nonsense. All of it is great if you love to spend money and stay in debt. Because that's what ALL of it is designed around.

100% of this type of stuff can be encapsulated into the oldest financial saying in the book. "There is no such thing as a, "free lunch"...... EVER.

You get the cash back, even if you pay the card off each month (as I do). No downside to the consumer.

 

[ARCOgraphite]

All your posts indicate you are a "Senior" like many of us on here. So when you pass will have a load of money in the bank to pass on to your heirs. Congrats-I guess. Personally-I'm trying to spend mine.......

LOL. So True.

I have been somewhat too frugal myself and conservative (expenditure wise), now I am a senior, and not particularly energetic as I was in my youthful days. In fact, this aged 'handicap' came on fast without much warning.

So, now I sit on a gigantic pile of $$$ in the "bank" but no Toys**around, no joy but the simple things - and no heirs to inherit it either!

As long as you can put food on the table and have a place to hang your hat - game the system and live it up (a little)
_____________________________________________________

** I despise that snotty, yuppie(?) term

 

[dishdude]

I got my first credit card at age 30 when I found out I could not reserve a rental car without one. Prior to that, I was in graduate school, and there was no "internet". So all my transactions were pretty much pay cash or check at point of purchase.

Got mine a week after turning 18. A Citicard with a $300 limit.

Helped me build a credit history quickly.

 

[dishdude]

You get the cash back, even if you pay the card off each month (as I do). No downside to the consumer.

It's all upside to the smart and responsible consumer. The "no credit card" crowd can't seem to differentiate between carrying a balance and using a credit card to reconcile monthly purchases, earn cash back and enjoy the protections a credit card provides.

 

[John105]

LOL. So True.

I have been somewhat too frugal myself and conservative (expenditure wise), now I am a senior, and not particularly energetic as I was in my youthful days. In fact, this aged 'handicap' came on fast without much warning.

So, now I sit on a gigantic pile of $$$ in the "bank" but no Toys**around, no joy but the simple things - and no heirs to inherit it either!

As long as you can put food on the table and have a place to hang your hat - game the system and live it up (a little)
_____________________________________________________

** I despise that snotty, yuppie(?) term

Hey my 84 yo neighbor, husband passed away 2019. She said she hasn’t touched anything he left apparently able to get by on SS. He told me when alive he had inherited 200k and 400k. Sure her kids are lucky and grandkids too.

 

[John105]

It's all upside to the smart and responsible consumer. The "no credit card" crowd can't seem to differentiate between carrying a balance and using a credit card to reconcile monthly purchases, earn cash back and enjoy the protections a credit card provides.

Yep, debit card has no protection although in practice banks make good on fraud. Credit is by law.

 

[dishdude]

Yep, debit card has no protection although in practice banks make good on fraud. Credit is by law.

Exactly. Bank of America (and I assume most other large banks) won't issue an ATM only card, it has to be a debit card. Luckily I was able to login to my account and set the debit card purchase limit to $1. I never use it, don't even carry it with me. Can't even tell you the last time I withdrew money from an ATM.

 

[CKN]

It's all upside to the smart and responsible consumer. The "no credit card" crowd can't seem to differentiate between carrying a balance and using a credit card to reconcile monthly purchases, earn cash back and enjoy the protections a credit card provides.

THIS^^^^^^^^^^^^^^^

 

[billt460]

All your posts indicate you are a "Senior" like many of us on here. So when you pass will have a load of money in the bank to pass on to your heirs. Congrats-I guess. Personally-I'm trying to spend mine.......

That's a good plan only if you can time it right.

 

[Cropduster172]

I spent all of about 120 seconds applying for and getting approved for the Wells Fargo Active card this AM. Been using the Capital One Quicksilver card for the last 2 years...but its 1.5% vs 2% of the Wells Fargo Active and that .5 adds up when you use the card for most purchases, subscriptions, cell phone service, cable, streaming, gas, groceries, etc...
I'm going to start to switch ongoing monthly charges to it once it comes.

 

[alarmguy]

This card is the lowest paying cash back card we carry @ 2%, it's a back up for all the stuff that doesnt qualify for 3 and 5% on our other 6 cards. I like this card a lot. I just let the cash back accumulate for something I want to feel I dont need yet being its free that its ok to buy *LOL*
I NEVER USE DEBIT CARDS FOR PURCHASES, only need for them is a few times a year I might want to take out some cash.

Anyway there is $658.67 in cash back waiting to be spent on something. I dont know what to buy when I do, I tend to use the cash back on the 5% cards first, since they rotate categories.

Maybe I'll use it to buy a generator/inverter that I posted a question about in the Off Topic forums. I'll most likely never need it, so I feel like I maybe wasting my money, however, it would be "free" money on this card combined with some others, assuming I spend $1000 on the generator, window AC and tuck it away in the garage for the power failure that might come along in a decade... or I will just let it ride for something better.
This isnt by any means the highest I ever had this card. Forgot the last time I used the cash back.

 

[John105]

This card is the lowest paying cash back card we carry @ 2%, it's a back up for all the stuff that doesnt qualify for 3 and 5% on our other 6 cards. I like this card a lot. I just let the cash back accumulate for something I want to feel I dont need yet being its free that its ok to buy *LOL*
I NEVER USE DEBIT CARDS FOR PURCHASES, only need for them is a few times a year I might want to take out some cash.

Anyway there is $658.67 in cash back waiting to be spent on something. I dont know what to buy when I do, I tend to use the cash back on the 5% cards first, since they rotate categories.

Maybe I'll use it to buy a generator/inverter that I posted a question about in the Off Topic forums. I'll most likely never need it, so I feel like I maybe wasting my money, however, it would be "free" money on this card combined with some others, assuming I spend $1000 on the generator, window AC and tuck it away in the garage for the power failure that might come along in a decade... or I will just let it ride for something better.
This isnt by any means the highest I ever had this card. Forgot the last time I used the cash back.

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We totally think alike!

That’s what we use when no 5% or no 3%.

Never apply it to a statement since 1% is when you spend and 1% is when you pay. That’s annoying with the Costco Citi annual certificate and executive membership reward. They have some stipulation you can’t get a cash redemption (but you can buy something for $6.79 or whatever and get cash as the difference. In principle that’s bogus but from a practical standpoint we buy Hawaiian bread and miss out on 2% or 14 cents, we’ll be ok not worth getting upset.

Those of you who are good with money, how do I time it, and get a cashiers check from an online bank? It’s over $9/day in interest I hate to just accept that $50-$60 is lost in waiting for the check. It’s to buy a car. Better yet, how does the money get to the car dealer and earn interest as long as possible…online bank doesn’t do certified checks….

 

[ripcord]

Something I tell my wife regularly is, "The house always wins."