So Terri of Chasing Dreams left a relatively simple comment the other day.
And congrats on paying off that credit card. My suggestion – unless it’s the only one you have, I would say to now cut it up!
So I began to think about why I’ve been using the cards so much. Well through one of the store I frequent I get an additional % off if I use my card. In some cases that can be as much as 20%. In addition I get an extra % off thanks for my employee discount. So suddenly that $1000 has dropped to $600 instead of $750. Aside from my extra payment debacle that’s a decent chunk of savings. Though you are right, I did spend a little more than I might have with just cash / a debit card.
The other part is my Chase Rewards card. That has been my go-to for almost every single purchase for the last 8 months or so. So let’s look at the numbers:
$316.73 in bonuses for using my card. Sounds pretty good right? That could be a nice flight somewhere or about 18 full tanks of gas at current prices. I don’t have how much I actually had to spend to get that back, but an argument could be made that is was more than I might have with cash / debit. Currently I get about 5% back on grocery store purchases with card and 1% back on everything else. When I buy gas at costco I also get the cheapest gas in the area and a few % back.
It’s not “free” money because the merchants have to pay an additional percentage which in turn drives up what consumers pay, but I still like getting a kickback for something I would have purchased anyway.
Credit cards also have served as a buffer for when my cash reserves were low at various times.That’s not the way it should be, but it sort of is the current reality. Until next month at least. 🙂 Thoughts?