Yesterday the Honeybee and I got another dividend rewards check from our credit card company – this time for $247.10. I love it when those checks come in, as we use the money to treat ourselves to a nice dinner, night on the town, or other fun activity.
Over the past several years we have earned over $1500 for nothing more than using our credit card!
We get these checks because we have a credit card that pays us a one percent dividend on all of our purchases – and we use that credit card for every purchase we can, from large purchases like new furniture to smaller stuff like our groceries and gasoline.
Of course, such a program only makes sense if you’re like us and absolutely refuse to carry a balance on your credit cards; we only use the card if we know we can pay it off in full before the grace period expires.
As for those of you who lack such fiscal discipline, I strongly recommend you stay away from these dividend rewards cards. Instead, you would be much better served financially by learning to control your urge for instant gratification and eliminating the revolving debt on your existing credit cards.
After all, I hate paying interest to anybody – for anything. You should too.
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I have the same strategy as you when it comes to credit card rewards. I know that some people are big proponents of airline credit cards but my personal favorite has always been the cash back credit card. I use 2 different cards that each get a minimum of 1% and up to 3% cash back depending upon the purchase.
I’m with you, Joel. Frankly, I think cash is the only way to go, and it is also the only sure way to get reliable feedback regarding exactly just how much rewards I am actually getting. For example, with airline miles it is tough to correlate my rewards on a dollar-spent to dollar-earned ratio. That is not the case with cash back.
The best card I have found for this is the American Express Blue Cash card. I charge everything that can be charged on this. Stops at small stores, coffee, anything that takes credit I use it and do not carry a balance. Also, I have any bill that can be chared to a credit card (cable, netflix, car insurance etc) added to this card I have reaped more than 2500 dollars in rewards over the past three years. Free money!!! There is no way a miles card can match the cash card.
I back that up with Discover Cash back then a hotel reward visa because not every retailer takes Amex.
I agree, TDH. It is free money. And it is so darn easy. The only caveat is that you need to pay off your balances in full each month, otherwise you really are playing into the credit card company’s hands and are most likely losing money.
That’s awesome! Not only are you collecting rewards, but your purchases are also more secure than they would be it purchased with a debit card (especially the big ticket items). I’m not a fan of debt, but I am a fan of wise credit card usage.
Well said, Ashley! I’m with you.
Len, I just got the October 529 statement. This account is funded strictly with the cash rebate directly put from the credit card (a Fidelity deal). $6815. Yes, it was higher before the crash, so my other posts may reference as high at $8500 balance.
This is just one of the rebate account I’ve had over the years. Too many to count. A lot of perks.
I’ll take free money any day.
That is absolutely fantastic, Joe! I’d be curious to know how many years is too many to count – however many it is, it’s a great perk! That is not chump change by any means.
Len,
If you don’t mind me asking, which card do you use?
Thank you,
Samantha