Re:Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
by SeoxyS on Friday May 20, 2016 @03:51PM
(#11740910)
The key is using the right card with the right processor. There are certain cards that earn multiples with certain processors. Personally, I use a card that gives me 3 points per dollar and pay 2.5% in fees… so I'm "purchasing" points for 0.8c per point. Those points are worth 1.5c+ per point, at the very least.
In fact, I just used 75k of them for a first class ticket to Asia. At a "purchase cost" of $600—so I'd call that a sweet deal.
Re:Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
by chinathrow on Friday May 20, 2016 @03:06PM
(#11740552)
Wouldn't you (or any other reader here) prefer a system/world/setup where merchants wouldn't charge an extra 2-3% and not have those rewards?
I have been thinking a lot lately on how the credit card rewards/payback and fee split works - I dislike it.
Like Amex SPG costs $157 for 5000 points. If I pay my $1500 rent via my Amex but with an additional $50 premium, after 3 months, I have 4500 points for $150, versus being able to purchase 5k points for $157. If I spend $525, I can get 20k points. So it's better for this particular card to put aside the extra fees paid in rent then purchase the points in bulk at discount than earning the points directly.
Ideally, there's a landlord that doesn't assess an extra 2-3%, then it would totally be worth charging rent on a card.