Fun with Credit Cards

For those of us who know how to use them properly, credit cards can actually be quite fun and lucrative. To those who do not know how to use them properly, I would say that you should stop reading this column right about now, or at least I would advise you not to try any of this stuff at home. What I'm about to describe is not one of those illegal credit card schemes. Instead, I'm talking about taking full advantage of the benefits and offers that credit card companies and store chains offer their customers all the time.

I get several credit card offers each month, but I only accept those that come with no annual fee and pay me at least one percent cash back or credit on my purchases. I don't care about the interest rate. It could be some exorbitant rate like 50% for all I care, since I never carry a balance and always pay off what I owe at the end of each month. Right now, I probably have about 15 different cards, but I only regularly use three of them.

I have one card that gives me an instant five percent credit on my gasoline purchases. Therefore, I buy all of my gasoline with this card and never use cash to buy it. I have another card that gives me five percent cash back on any purchase I make at a drug store or grocery store. Needless to say, I try to use that card exclusively at those establishments. The third card I regularly use gives me a one percent instant credit on all purchases. I use it for just about everything except purchases of gasoline or purchases at drug stores or grocery stores. The more I use my cards the more credits and cash back I get. The credit card companies are, in effect, paying me to use their cards and I am more than happy to oblige.

Some credit card companies will take things one step further and even pay you to take their cards. These payments will take the form of gift certificates, bonus cash back, and/or bonus credits. There is one minor catch in that most companies will generally require that you use the cards at least once each to get those benefits. That's never a problem for me as I will use them once to get the benefits and then toss them into my "inactive" drawer.

Having lots of credit cards means I get lots of offers in the mail (and sometimes by phone) from the credit card companies in which I am asked to try out some kind of worthless subscription for 30 days. Most of the time, I just throw these offers in the trash can. However, there are some that I will try because they will "bribe" me adequately to do so. However, they must offer me at least $10 and the offer must have a free trial period. I will then cash their check, put the money in my pocket, and cancel before the free trial period ends. However, I have found that I need to be careful with these offers. Sometimes they'll offer me $10 to try something that costs $10 (or more) per month, with no free trial period. I avoid those like the plague, since the best I can do is break even.

Speaking of worthless subscription offers, most credit card companies will push some kind of credit card insurance. The way it works that you pay about half of one percent of your monthly purchase totals so that this insurance will make your minimum monthly payment in case your are disabled, laid off, have a death in the family, or suffer some other kind of qualifying malady. This insurance may be a good idea for those who run a monthly balance and only make the minimum payment, but it's worthless to those of us who pay off our balances each month. However, the credit card companies will never acknowledge this fact and will pay you to try it and will usually give you a free trial period.

I take these subscriptions only for cards that I don't use, so it never costs me anything. What's better is that when I try to cancel it, they bribe me again to keep the subscription active! The bribe is usually in the form of rebate tickets of $10 to $25 per month for about six months. When I make a purchase that equals or exceeds the face value of the ticket, I send in the receipt along with the ticket and get a cash rebate about eight weeks later for the face value of the ticket. Then, when the tickets run out and I attempt to cancel my subscription again, they offer me even more tickets to stay subscribed. Sometimes, I have tried to cancel before the six months ran out and got even more tickets for the same card in overlapping months! If you have several cards you don't use, each with one of these subscriptions, the rebates could really add up!

In addition to the cards issued to me by the credit card companies, I have several cards issued by store chains like Sears, JC Penney, Hecht's, etc. Most of the store chains that issue credit cards will offer discounts of 10, 15, 20, or even 25 percent at various times for simply using those cards to make purchases at their stores. Some will even offer a bonus discount for just signing up (and being approved, of course) to take one of their cards! They can afford to do this because they know that most people will not pay off their balance each month, but will instead make the minimum payment along with paying an ungodly amount of interest. The stores will more than make up for those discounts right there. Meanwhile, those of us who don't run monthly balances reap the benefits of discounts that other people are paying for!

What I have just described is not illegal, immoral, or unethical. Credit card companies and store chains are in the business to make money and sometimes they'll offer things that don't seem to make sense in order to maintain and/or expand their customer base. Contrary to popular belief, credit card companies do indeed make money off people like me, who never pay a dime in interest or annual fees and take full advantage of all of their offers. The money comes from the businesses that accept those cards by way of the fees they pay each I time I use one of my cards. Those businesses, in turn, are willing to pay these fees in order to attract as many customers as they can. Therefore, everyone in the credit card cycle benefits. Those who use credit cards the way I do are just making sure they are getting their piece of the pie.

Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.

---

Credit Cards

Credit cards are a form of unsecured credit. The issuer is extending you a line of credit, usually tacking on all sorts of little surprises in the... Read More

Credit Counseling: Is it Really Necessary?

Not everyone has a positive experience with credit counseling. Potential creditors often frown upon consumers who are going through credit counseling, denying them credit or sticking them... Read More

Balance Transfers Introduction

Credit card balance transfer involves using a credit card to pay off the amount outstanding on one or more credit/store cards. The total debt then... Read More

10 Signs You May Need Credit Counseling

Debt management programs can be of real help for people that discover they cannot face their debts. At first, they will attempt to solve the situation all... Read More

How To Get Out Of Credit Card Debt

If you're like the average person, let me warn you ahead of time about what I'm going to reveal in the next few paragraphs. You may be... Read More

Easing Your Financial Burdens With Credit Counseling

It is a well-publicized fact that more of us are getting ourselves into greater debt, and this may be true for you. The embarrassment of your financial... Read More

Secured Credit Cards- Consumer Tips

Whether you have no credit or damaged credit, secured credit cards are a good tool for building a good credit history.Several months ago Tom, a member of... Read More

Credit Traps Snag Consumers

Nearly 20 years ago I worked for a small consumer advocacy organization in Washington, DC. Each week we received sacks full of mail from consumers across the... Read More

Credit Card Balance Transfers Can Help You Stop Putting Money Down The Drain

As you probably know, interest rates are at all time low right now and if you aren't getting the best deal from your credit card company then... Read More

Credit Help For Renters And Others On The Horizon

Sue is a homeowner and pays her mortgage and other bills on time like a good credit consumer. Sue's on-time mortgage payments are reflected in her credit... Read More

Free Credit Reports: From The 3 Major Credit Bureaus!

Get your credit report online for FREE. Many financial advisors suggest that you periodically review your credit report for inaccuracies or omissions.This could be especially important if... Read More

Your Credit Rating and How To Check It

There is a lot of confusion surrounding UK credit ratings, credit scores, credit blacklists, credit reports, and credit files. This guide to your credit rating aims to... Read More

The Right Way To Credit Repair

If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have... Read More

Credit Damage: Getting Compensated for Your Loss

Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up... Read More

Comprehending a Credit Report

Obtaining a credit report is an excellent way to begin taking control of your financial future. It's recommended that you review your credit report once a year,... Read More

Credit Repair Services vs. Do-It-Yourself Credit Repair

Millions of Americans suffer because of bad credit these days, and almost all of these people turn to the Internet for help. In the past 5 years... Read More

Rewards Cards - Are They Right For You?

Rewards cards have become the latest rage in the credit card industry. In the past, consumers shopped for credit cards that offered the lowest interest rate. Next... Read More

Making Sense of Credit Card Fees

In addition to the APR (annual percentage rate) and the finance charges, most credit cards have a number of 'fees' associated with their use. Some fees are... Read More

Five Credit Card Billing Problems and How to Fix Them

It goes without saying that your first and best defense against paying fraudulent or unfair charges on your credit card is knowing what your bill says! When... Read More

Useful Tips on Using Credit Cards

Here are some useful tips on using credit cards. Whether you shop online, by telephone or by mail, a credit card can make buying many things much... Read More

Building Good Business Credit After Bad Credit

Can you establish good business credit if you have bad personal credit? The answer is yes...but with a few caveats.Business credit reports and personal credit reports are... Read More

Simplifying Your Search For a New Credit Card

Today, selecting the proper credit card can be a bit confusing to say the least. There are literally hundreds of offers from the major institutions eagerly competing... Read More

Five Reasons to Repair Your Credit Score - You Can Do It Yourself

There are multiple reasons that tell us why we should have a 700+ Credit Score, but these five facts will definitely give you the big picture and... Read More

Myths and Truth about Credit Scoring

Credit score is the key factor determining approval of almost any type of credit. It is based on the information contained in your credit report files. The... Read More

Good Credit Is a Necessity for Everyday Living

Most of us want a good credit report to obtain vehicle financing, credit cards for emergencies and luxuries, and to finance a home mortgage. However, beyond these... Read More

Identity Theft : They Got Him

His hard earned money? Gone. Creditors on his back everyday. Police knocking on his door. His family strained to the breaking point. He didn't do anything wrong... Read More