I got a Discover card recently and it has cashback rewards. Up to 1% everyday and then 5% on certain things?
that change every two months (next month starts 5% back on gas, WOOHOO!). I pay my balance off every month if I use it and they have never made any money off of me in finance charges yet I have money coming to me from these cashback deals. I just wonder how it's benefiting them to have me as a customer.
Do they just hope I let my balance sit at some point? My aunt also has them and does the same thing I do and I imagine a lot of people do. It's actually costing them money to have us as customers…
At some point they'll get me tho because I plan to use the card for home improvements when I buy a house.
I'll have to check into that Citi card. But my aunt uses hers for all her monthly bills that can be paid with a card and racks up her cashback that way. I mean, boat payments, insurance, food, utilities, etc., she's probably getting 1% by February.
When you use your credit card, the place you buy at has to pay Discover a fee (usually small like 1-3%). This is why some places have a minimum purchase amount when using a credit card, because they end up losing money paying fees.
Don't worry those bloodsuckers get their money
I use discover card too, but only on the 5% categories. They only give 0.25% cashback on your first $1,000 in purchases in a calendar year, 0.5% up to $2,500 and only then do you start earning 1%. It stinks because I don' t use mine enough to hit the 1% until July or August. Read the fine print, you may have the same deal…. I switched to Citi with "thank you rewards" and they give me 5% on everything.
January 10th, 2009 at 11:33 pm
Their merchants pay several percentage points on everything you charge.
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January 11th, 2009 at 12:13 am
Hey, consumers are always better off if they pay off their bills every month and enjoy the rewards. So take full advantage of this.
If you plan to use your card for home improvements, then you should consider a new card with a good 0% balance transfer deals.
References :
http://www.askmrcreditcard.com/discoverplatinumcard.html
January 11th, 2009 at 12:18 am
When you use your credit card, the place you buy at has to pay Discover a fee (usually small like 1-3%). This is why some places have a minimum purchase amount when using a credit card, because they end up losing money paying fees.
Don't worry those bloodsuckers get their money
I use discover card too, but only on the 5% categories. They only give 0.25% cashback on your first $1,000 in purchases in a calendar year, 0.5% up to $2,500 and only then do you start earning 1%. It stinks because I don' t use mine enough to hit the 1% until July or August. Read the fine print, you may have the same deal…. I switched to Citi with "thank you rewards" and they give me 5% on everything.
References :
January 11th, 2009 at 12:52 am
You have to watch that "up to" language.
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