I keep getting credit card offers for cards that give 2% to 5% on my purchases and lump sum payments for up to $200.00 for spending various amounts over 3 months. Most of the cards pay various percents back depending on where I spend the money, with gas stations typically paying the most back and Walmart the least, even though the cards are not affiliated with gas stations or Walmart.

I currently have 2 credit cards and 2 debit cards. One of each gives me money back on purchases.

I have not paid a credit card company any interest for around 20 years. I pay the balances off every month.

2% to 5% back of the money i spend is a fair amount of money. Is there any disadvantages to getting one of the higher cash back cards? How much of a hit to my credit rating will I take?

I know the credit card companies want something from me, but it's hard to see how the higher cash back cards can hurt me if I continue to pay them off every month.

Keith

I need to find a new card as well, I put close to 25k a year on a card and the ole Cabelas card isn't cutting it when it comes to rewards.

It pays to Discover !

I am in the exact same boat. Looking for something different going into the new year. I would much rather have the cash back than the Cabelas bucks.

Very interested in the options.

It just seems strange to me that credit card companies want to give me back around $1500.00 a year. It seems like it would really hurt their profits. What do credit card companies charge the businesses that take their cards?

Keith

The thing with the 2 to 5 % on Visa is you must buy in the selected categories per quarter to get higher points.You will need to sign up for these every quarter.The standard is 1% back on everything you buy thru Visa.Companies like Cabela's are hosing people as you have to take your rewards in merchandise.

like 3% usually in fees for the business

I use a cash back card. Wait until the reward equals the payment then I get one month free. I don't look around for bargains when I use it. I just use it for everyday purchases and pay it off monthly. I can't see anything negative about it regardless what Dave Ramsey says about credit cards.

I have a gm card and an alaska air card. Both work well.

I have a Capital One card that pays 1.5% back on every purchase. No worthless points or airline miles. I have it set up to pay the credit to my account automatically whenever it reaches $100. I care not a bit what it does to my credit score, if anything. I own my house outright, paid cash for new cars this year, and don't expect to ever borrow another dime in my lifetime.

I use a Citicard that gives me 2% back on ANYTHING I purchase. It’s a no brainer unless you don’t pay off the balance monthly. I easily make $1200 for free every year by doing nothing but use that card for all my purchases.

First off, get the card that pays some percent back to you. Be sure to pay it off every month to avoid paying any interest. I have a rewards card that I use for everything. I like to keep a low balance so i pay on it about once a week. I few months ago my credit score was 844 and it recently dropped into the 830's. I'm now only going to pay off the charges when they send out the statement. Here is the reson why:

There is no recently reported activity on any of your non-mortgage credit accounts
Your credit report shows no open or recently reported credit accounts, except for possibly a mortgage. Your FICO score evaluates your mix of credit cards, installment loans, and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders.

Actions you can take: You might consider opening a credit card or some kind of non-mortgage installment loan. However, be aware that the credit inquiry associated with applying for a new card or loan may lower your FICO score in the short term.

There are no recent balances on your revolving credit accounts.
Your credit report shows no recent balances on your revolving accounts. Your FICO score was hurt because you are not currently demonstrating active revolving credit management.

Actions you can take: You might consider moderate and responsible use of your credit cards (such as charging low balances and repaying them on time).

The world would be a better place without credit cards. They cost everyone more money for marginal benefits.

Keith,same as you....i never pay interest in 20 plus yrs.....i have 7 of the highest paying and limit cards. I use them solely for purchases. Some I get triple warranties with. Every month we get free dinners at outback or red lobster or whatever i prefer. I also get free insurance if i rent a car. They get theirs no matter whether u pay them interest or not. Chase just sent me a notice im pre approved for new car and i just bought one last yr.(shucks). Go for it.

What card pays you back 5% on purchases? I would gladly throw all my other cards away for one that did that.

X2

There is an ad running on television right now that says 5% cash back on certain purchases. Might be travel or dining or something like that. Don’t remember what card or any of the details. Sorry.

Walmart is the only card that I know of that gives 5% back but only on Walmart purchases.

Capital One® Walmart Rewards® Card
Earn 5% cash back on Walmart.com
including pickup & delivery
$0 annual fee*

Several cards have offered 5% back. Chase Freedom Unlimited is the most recent one. 5% applies to some purchases, but not all. It excludes purchases from Walmart.

Keith

These are awesome perks for the consumer but the merchants - who pay for it - jack their prices to offset the %.
I find most people think the CC company is the nice folk here.
Nah, they ding the % back on the merchant as additional "merchant fees."

Thus, those who make stuff and sell stuff, increase prices by the discount averages coming at 'em.


Really just a catchy shell game. You get 2% discount. Vendor had already raised prices 2-5%.
You win!
Ah, no.
You just spent more.

1958 must have been so much simpler.