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Do you think people charge more on their credit card in order to get more rewards?

 
Erica_Smerica

Asked by Erica_Smerica at 2:36 PM on Aug. 23, 2010 in Money & Work

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Answers (12)
  • If they do, it is not very wise.
    tasches

    Answer by tasches at 8:29 PM on Aug. 23, 2010

  • Unless you can and do pay the balance in full each month, the rewards aren't worth it. The credit card companies HOPE you will think the rewards are big enough to buy more and carry a balance- then they get more interest. Get it?
    getting_by_ok

    Answer by getting_by_ok at 2:40 PM on Aug. 23, 2010

  • Oh I thought you meant through the banks. Because we pay on credit sometimes but it's through the bank so it's not like we have to pay for it later.
    GinNTonic

    Answer by GinNTonic at 2:44 PM on Aug. 23, 2010

  • Yes, I know some do. A friend of mine used her charge cards to pay for a major (huge) expense so she could get the points to get some iPod w/docking station and a few other accessories. By the time you calculate the extra interest she had to pay because she couldn't pay her card off timely (let's just say that that major expense wasn't the only thing she was charging) plus how many points she had to use to get the iPod stuff, it costs nearly 15 times as much as it would have if she just would have purchased the darn thing outright.

    We pay off our one and only credit card monthly. When we do accumulate enough points, we use it to get cash back ... there is nothing on the cc reward sites that is worth buying that I can't find cheaper elsewhere.
    FootballMom85

    Answer by FootballMom85 at 4:05 PM on Aug. 23, 2010

  • We have Amex, which we have to pay off each month. So, we use it to get points and frequent flier miles. And we also use Visa debit cards to get the rewards. Since the money comes right out of our checking accounts and we have to pay off the balance on the AMEX we don;t rack up any unmanageable debt.
    LoriKeet

    Answer by LoriKeet at 2:39 PM on Aug. 23, 2010

  • DH does but he pays everything off every month, every time. I am a cash only kind of girl.

    His rewards program basically amounts to free starbucks for us but i can see it being a problem for some people.

    Like if the value of your reward doesn't equal the amount of interest you paid to get the reward, or for people who have bad spending habits in general.
    UpSheRises

    Answer by UpSheRises at 2:39 PM on Aug. 23, 2010

  • That's partly true, UpSheRises- but if you spend more just to get rewards you also lost money. Even if you didn't pay interest. Or if you pay more for an item than you normally would...


    I guess what I'm getting at is, statistically speaking people spend 12 to 18% more when they swipe rather than paying with cash. I'm wondering how much more people spend when there are also rewards involved.

    Erica_Smerica

    Comment by Erica_Smerica (original poster) at 3:03 PM on Aug. 23, 2010

  • I use credit cards for online shopping, we pay off the balance every month so there's never any interest. I use mine for airline miles, I just got a ticket to Cabo San Lucas for $200! (I saved $400) :)
    Scuba

    Answer by Scuba at 3:38 PM on Aug. 23, 2010

  • My brother in law does this, they buy everything with the credit card pay it off and get free stuff all the time and they really love it when i need them to charge me something....I live in a rural area and they live in the suburbs so if something I want is on sale at a store near them and not me, I have them pick it up for me, charge it then I give them cash when I go to their house and get my stuff. Also at Christmas time we will shop together and They put my stuff on their card and I give them cash.
    togo90210

    Answer by togo90210 at 4:07 PM on Aug. 23, 2010

  • Maybe some people do this. But I think most people charge more on their credit cards because they don't have the money available to pay cash.
    HotMama330

    Answer by HotMama330 at 5:13 PM on Aug. 23, 2010

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