Comments on: Can i set up a way to earn rewards on a credit card by paying all my bills and expenses with it? http://www.icreditcardsource.com/credit-card-rewards/can-i-set-up-a-way-to-earn-rewards-on-a-credit-card-by-paying-all-my-bills-and-expenses-with-it Your Source for the Best Credit Card Deals Wed, 21 Jan 2009 01:04:59 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Dimples_in_NJ http://www.icreditcardsource.com/credit-card-rewards/can-i-set-up-a-way-to-earn-rewards-on-a-credit-card-by-paying-all-my-bills-and-expenses-with-it/comment-page-1#comment-555 Dimples_in_NJ Wed, 31 Dec 2008 18:49:59 +0000 http://www.icreditcardsource.com/credit-card-rewards/can-i-set-up-a-way-to-earn-rewards-on-a-credit-card-by-paying-all-my-bills-and-expenses-with-it#comment-555 I personally use your scenerio in my current lifestyle. I consolidate everything to one credit card on an automatic payment schedule and pay the balances down each and every month. The key is paying down the charges in the 30 day grace period so you dont incur any interest charges and your rewards come free of charge. You must consider the amount of the monthly charges and may have to add an additional card because you want to make sure that all your monthly charges remain under 30% of the credit limit. Otherwise, your charges to the one card will throw off your debt ratio and lower your FICO score. In my situation I have a 25K card which I use for my monthly bills and emergency fund. It also has rewards which I let accumulate until christmas time. Yes, the credit cards allow this afterall, they are not loosing money. The credit card companies make a majority of their money off the retailers themselve as they pay a fee on each transaction. Credit card companies make anywhere from 1.5-4% on each transaction depending on the company each service. They don't mind at all if you pay everything with plastic.<br><b>References : </b><br> I personally use your scenerio in my current lifestyle. I consolidate everything to one credit card on an automatic payment schedule and pay the balances down each and every month.

The key is paying down the charges in the 30 day grace period so you dont incur any interest charges and your rewards come free of charge.

You must consider the amount of the monthly charges and may have to add an additional card because you want to make sure that all your monthly charges remain under 30% of the credit limit. Otherwise, your charges to the one card will throw off your debt ratio and lower your FICO score.

In my situation I have a 25K card which I use for my monthly bills and emergency fund. It also has rewards which I let accumulate until christmas time.

Yes, the credit cards allow this afterall, they are not loosing money. The credit card companies make a majority of their money off the retailers themselve as they pay a fee on each transaction. Credit card companies make anywhere from 1.5-4% on each transaction depending on the company each service. They don't mind at all if you pay everything with plastic.
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]]> By: consumer http://www.icreditcardsource.com/credit-card-rewards/can-i-set-up-a-way-to-earn-rewards-on-a-credit-card-by-paying-all-my-bills-and-expenses-with-it/comment-page-1#comment-554 consumer Wed, 31 Dec 2008 18:04:59 +0000 http://www.icreditcardsource.com/credit-card-rewards/can-i-set-up-a-way-to-earn-rewards-on-a-credit-card-by-paying-all-my-bills-and-expenses-with-it#comment-554 You sure are overlooking something. First of all, you are asking for real trouble by allowing anyone to have access to your personal checking account. That's what you do when you have "auto pay". One mistake from any vendor and you are screwed for life. (consult "check 21 laws). The second mistake you are making is that in the fact the more "rewards" you earn the more you owe them. Check the fine print. The APR will always be a hell of a lot higher than what you will get in return. The third error is that paying off your bills on a monthly basis is NOT CREDIT. It is only considered "credit" if you take a minimum of 6 months to pay something off. Lastly, if you do consolidate all your bills, it will show up as one line of credit only and will not build your credit history as fast. Don't mean to be so negative but you asked. Lots of luck.<br><b>References : </b><br> You sure are overlooking something. First of all, you are asking for real trouble by allowing anyone to have access to your personal checking account. That's what you do when you have "auto pay". One mistake from any vendor and you are screwed for life. (consult "check 21 laws). The second mistake you are making is that in the fact the more "rewards" you earn the more you owe them. Check the fine print. The APR will always be a hell of a lot higher than what you will get in return. The third error is that paying off your bills on a monthly basis is NOT CREDIT. It is only considered "credit" if you take a minimum of 6 months to pay something off. Lastly, if you do consolidate all your bills, it will show up as one line of credit only and will not build your credit history as fast. Don't mean to be so negative but you asked. Lots of luck.
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