Credit card usage and rewards

[disneysteve]

I finally got around to reviewing our credit card annual reports for 2012.

Our total charges for the year were just over $40,500. With a minimum reward of 1%, that's over $400 back. In reality, we earned a lot more than that. We only use our Discover cards to take advantage of the 5% cash back bonuses. We primarily use our Chase Freedom card for their 5% bonuses. We use our Marriott card for everything else. That one gives us 5% on Marriott charges (which we had a few of), 2% on dining (which we do quite a bit of), and 1% on everything else. So all together, our actual rewards earned were closer to $1,000, and that doesn't count the additional value of the Marriott Reward points that we earned along the way.

[bjl584]

Good Job.

But,
Dave Ramsey would be very disappointed in you.....

[disneysteve]

But,
Dave Ramsey would be very disappointed in you.....

Yep. And I'm okay with that.
I listen to Dave. I think his plan works. I've recommended it here numerous times. But it isn't for everyone. Many people - most people in fact - can't use credit cards responsibly. My wife and I can.

One example of where I disagree with Dave.
We got our auto insurance bill last week. I logged on to my account and paid the bill with my CC effectively getting a 1% discount in the process. I'll pay the bill in full when it comes so no debt, no interest charge. Why wouldn't I do that? Where's the downside?

If you use your CC to make purchases that you are going to make anyway, and you pay your CC bill in full every month, it makes no sense not to do so.

[BMEPhDinCO]

Great job! I don't come anywhere near that in spending each year - but I do try to maximize rewards within reason (I'm not getting extra cards right now, just using what I have). Those 5% things do add up though!