More Free Money

[oldbuddy]

I decided to start this as a new topic, because so many posts I see about credit cards vs. debit cards or cash don't seem to get it.

Are there any here who don't realize that Discover pays rebates on all purchases made (which is like free money) and as long as you pay your bill every month your cost is NOTHING?

Why would anyone use a debit card (or cash) that pays you nothing?

All it takes is a little (very little) discipline and you can make money from spending what you are going to spend anyway. If nothing else, charge your purchase and take the cash you were going to use and put it in a jar at home to pay your credit card bill with at the end of the month.

We have over $500 coming this year and Christmas season is just starting, so it will go up.

No I don't work for Discover and there are other cashback cards around you can use, but if you are here clicking and posting on Fusioncash, it's obvious you know the value of getting a little free money to help out. These credit card companies can be beat at their own game.

[lvstephanie]

Hehe... I've even commented something like this to my friend once when we were watching Extreme Couponers... I wondered how many of those couponers charged their entire purchase and got a few additional percentage points off their purchase. Not only cashback cards, but there are also many cards that save on specific purchases with their bonuses; when I was growing up, I remember my dad switching between cards that gave bonus frequent flyer miles as well as a GMC card that reduced the cost of car purchases. Sometimes those "prizes" give even better rates than straight cash as the other company is collaborating with the credit card company using the "prize" as a marketing technique, much like manufacturers offer their own coupons.

You did hit the key element with using this technique... The card companies offer these bonuses to cause their customers to charge more on their cards; the companies know that not everyone will be disciplined enough to pay off the card on time, so those purchases end up racking more in interest charges than the amount they are giving back. Similar with why companies offer rebates; they know that most people won't be disciplined enough to fill out the rebate and send them in on time. But if you are disciplined, like you said, you can beat the card companies at their own game.

[haimsterette]

As someone who doesn't have a debit or credit card at the moment, and is looking into it in the new year, this is helpful information. I don't even have a bank account right now! I just work with cash and checks. I'm 23, but I've gotten a late start, haha. Anyway, thanks for the tip. I think I'm one of those people that CAN be disciplined enough to reap the rewards of this kind of program.

[jkhanson]

I also get cashback from multiple cash back sites and from my credit cards by purchasing Gift Cards to use to go shopping online.

Goes something like this:

Log onto CashBack site (examples: GivingAssistant/Ebates/TopCashBack/Dubli --free to join these)
>type in gyft> go to gyft (earn %cashback from the Cashback site; % varies between the cashback sites)
>purchase a gift card using my Paypal debit/credit card for the store I plan to shop at ...Target/Amazon/BestBuy, etc
  (Earn 2% in points from Gyft which accumulate and I use to purchase more gift cards; I earn 1% in Paypal because I
   used my Paypal card)

Now it is time to go shopping:
Log into cashback site>
>type in store name (Target/BestBuy etc)>go to the store FROM the cashback site (Earn cashback from Cashback site)
>Shop>
>pay for purchase using the Gift card I purchased in the first steps above


Example:  I want to buy wedding gift from Target registry.  I buy a Target gift card to use for this purchase:
GivingAssistant>Gyft>Target gift card
  Earn2%          + 2%     +1% from Paypal  = 5% cashback just to buy the gift card

go shopping:
ebates>Target (pay for item with my Target gift card I just purchased)
earn2%

Total cash back earned for buying a wedding gift I was going to buy anyway = 7% cashback

[bleyd]

Good point Old Buddy.  That's just one of the perks of using credit cards.  I use credit cards for several reason (and I dont use debit cards).
1)  rewards - cash back, points that can be redeemed for merchandise or travel or cash back
2)  added protection of not having funds taken directly out of your checking account if case of theft
3)  stricter protection against fraud (ie. Regulation Z) that doesn't apply to debit cards.
4)  using a credit card wisely can build your credit report and score.

[oldbuddy]

I also get cashback from multiple cash back sites and from my credit cards by purchasing Gift Cards to use to go shopping online.

You have certainly maxed the system, but most people are not going to be willing to do that much. The point I am trying to make is, apply for a Discover (or other cashback) card and use it to buy everything, including paying for utilities and other bills. No extra strain or pain, more protection included free and kickbacks at the end of the year. Easy, peasy!

[betlynjua]

I currently have 2 personal credit cards and one business card. All 3 offer cash back rewards.  I enjoy logging into my account and requesting my cash back reward.  It's almost as fun as logging into Fusion Cash every day.    Well maybe not, but it is cool.   

Free money is free money.  All donations gladly accepted.

[gaylasue]

Great advice, Old Buddy.  I use my Discover card as well as my Kroger Visa a lot and then pay off the balance as soon as it posts to my account.  I do another site that is to encourage your savings so I get extra bonus points each time I pay off those two credit cards!  I'm saving my cashback bonus on my Discover card to splurge on in Hawaii next year.

[renee10]

That's interesting info! I've got a credit card but with no rewards and I pay off whatever I use monthly. Might be time to check out Discover.

[oldbuddy]

That's interesting info! I've got a credit card but with no rewards and I pay off whatever I use monthly. Might be time to check out Discover.

We have had Discover for many years and gladly accepted thousands of dollars in kickbacks from them, but never paid any interest on purchases.

[sak4kat]

Discipline is the key word. When 15 years ago my ex-husband and I were making great $$$ our cost of living was low.  I looked at credit card offers and Discover was my choice for my first credit line. The cashback rewards had me hooked.  Unfortunately we went from living smart and comfortably to living way over our budget and needless to say ended in a bad place financially.  I'm now remarried and my husband is equally interested (if not *bleep*) in building our credit.  This being said he's found the best cash back credit card system and we're utilizing it pay our bills which in the end pays us back a little something too.  Now I work with a young gal.  18.  She has 2 part time jobs. co-manager for mcdonalds and deli clerk in Kroger.  She asked me to do a cake for her...and said she wants to pay for it in advance so she would have to go to the bank.  I was confused by why she was telling me this so I told her she can just use her debit card.  Her response was, "my parents took it away from me; because I overspend." Tssk Tssk and unfortunate that this young adult isn't ready for adulthood and the discipline that comes with spending.

[appy9104]

I use my credit card for everything.  The savings (cash back/rewards), extra protection and convenience.  I also use my credit card thru my PayPal account a lot, another level of protection and I don't even have to "get" the card, I can remember the Paypal info!

[countrygirl12]

Hehe... I've even commented something like this to my friend once when we were watching Extreme Couponers... I wondered how many of those couponers charged their entire purchase and got a few additional percentage points off their purchase. Not only cashback cards, but there are also many cards that save on specific purchases with their bonuses; when I was growing up, I remember my dad switching between cards that gave bonus frequent flyer miles as well as a GMC card that reduced the cost of car purchases. Sometimes those "prizes" give even better rates than straight cash as the other company is collaborating with the credit card company using the "prize" as a marketing technique, much like manufacturers offer their own coupons.

You did hit the key element with using this technique... The card companies offer these bonuses to cause their customers to charge more on their cards; the companies know that not everyone will be disciplined enough to pay off the card on time, so those purchases end up racking more in interest charges than the amount they are giving back. Similar with why companies offer rebates; they know that most people won't be disciplined enough to fill out the rebate and send them in on time. But if you are disciplined, like you said, you can beat the card companies at their own game.

Considering the extreme couponers are supposedly getting it for free or $1000 worth of stuff for less than a dollar they aren't going to get too many points for charging that $1 on a card.

Personally, I don't like Discover and could care less how much they claim they give me.  And most any card has perks are rewards.  Not just Discover.  Some people would rather pay with cash and not have a trail tracking what they have purchased.  Even if a card offers perks or cash back it's still somewhat of a hassle. 

[reiddb]

That is a very reasonable idea!! More than reasonable!

[southernhorizons]

I'm not very disciplined, and I think for me a credit card would be a bad idea. I did apply for an Amazon credit card, because they have cash back on Amazon purchases (which I do a lot!) plus a $70 bonus for signing up, but they didn't accept me because I have no credit already. So I wonder if it would be the same thing for any credit card I try to get. How do they expect me to get credit if they won't approve me for a credit card?