Rewards..Why don't I care?

[2fast]

I was just reading a post by George where he mentioned that he feels that Discover "punishes you for shopping at Wal Mart".

After reading that post it occured to me that I used my discover at Wal Mart and hadn't even thought of using the 1.25% credit union card I have or my 2% HSBC (which just gave me a decent CLI compared to most).

I realized that while the masses seem to really use the card where the rewards are the greatest, I tend to use the card I feel like using at the moment, and am more likely to use a card based on the cut date than the rewards.

 

I can't imagine spending enough at Wal Mart that the difference between 1.25% and .25% would really make any difference to me financially. I think our family spent around $500 at Wal Mart last month and about half went on the no rewards Wal Mart card and the rest was between the Discover and the CU card. When I decided which, I don't remember even thinking about the rewards.

 

Am I missing the boat or just not micromanaging? Seems to me people really grow a lot of extra gray hair in order to get that extra $5 a month.

[hegemony]

some of us earn a lot of cashback every year in the aggregate. I guess I'd rather have $1200 a year in rewards instead of $120.

 

that said, a better reward would be to shop somewhere else

[shaft]

$500 a month at Wal-mart with 1.25% rewards= $75 a year in rewards

$500 " " """"""""""""""""""""""""" .25% rewards = $15 a year in rewards

$500"""""""""""""""""""""""""""" with no rewards= $0 a year in rewards

[hegemony]

my current 2010 rewards total stands at ~$882

[2fast]

I know the math, it's just that $75 a year isn't enough to make me change which card I feel like using. I guess I typically use my Discover and CU card as they're my bigger limits.

 

I could do a lot of other things with even less thought process to make or save $75 in a year. I guess I did use my Discover for a couple hotels we paid for because of the 5% rewards, but when I go to the grocery store I don't seem to care whether its .25%, 1.25%, or 2%. I rarely use my 2% hsbc, even though it's probably my best overall reward card (as far as %).

[VK]

my current 2010 rewards total stands at ~$882

 

Is this correct, the new year, 2010 rewards....on the CCs....$882?

 

Sounds a bit high.....But, to the OP, I average about $1-1.2K a year in rewards - so why not use the correct card?

 

VK

[shaft]

my current 2010 rewards total stands at ~$882

 

Is this correct, the new year, 2010 rewards....on the CCs....$882?

 

Sounds a bit high.....But, to the OP, I average about $1-1.2K a year in rewards - so why not use the correct card?

 

VK

 

It's possible depending on spending habits and reward structures.

[2fast]

my current 2010 rewards total stands at ~$882

I suppose I could go figure it out, I'm sure I'm doing well on rewards but compared to the amounts I spend it's such a small amount.

[hegemony]

my current 2010 rewards total stands at ~$882

 

Is this correct, the new year, 2010 rewards....on the CCs....$882?

 

Sounds a bit high.....But, to the OP, I average about $1-1.2K a year in rewards - so why not use the correct card?

 

VK

 

This year I've already bought >$10,000 in airfare on a card that pays 3% cashback for such purchases.

 

I just got a $100 check from my chase amzn card.

 

the total I gave above is for my household, not just me.

 

spouse just had $150 from FIA deposited into her IRA.

 

etc.

[shaft]

I know the math, it's just that $75 a year isn't enough to make me change which card I feel like using. I guess I typically use my Discover and CU card as they're my bigger limits.

I could do a lot of other things with even less thought process to make or save $75 in a year. I guess I did use my Discover for a couple hotels we paid for because of the 5% rewards, but when I go to the grocery store I don't seem to care whether its .25%, 1.25%, or 2%. I rarely use my 2% hsbc, even though it's probably my best overall reward card (as far as %).

 

To each its own, but the thought process is not that difficult for me.

[smart1n]

I have 5 credit cards total 4 of them are rewards cards , the other is a Capital One Card at 8.99%

 

Starwood Amex

Fidelity 529

Discover More

Credit Union Credit card

 

My credit union credit card gives me 3% cash back on gas up to 20.00 a month and .5% on everything else. It is essentially my gas card. Since its also my lowest card at 7.99%, it serves as a place to put something that I won't be able pay off in a month (like an expensive car repair).

 

My Starwood Amex is used to accumulate awards for vacations, hotels, etc.. I am using this right now for occasional charges that I can pay off before the monthly cycle.

 

My Fidelity 529 is my main card for the moment, I am using the cash back to help fund my yearly IRA contribution. Once I have that completely funded, The rewards will go to help fund my son's college fund.

 

My Discover More is 5% cash back. I use it maybe 6 months out the year as they cycle various offerings throught the year. For instance next month it will be 5% cash back on groceries and restaurants. Since I have to eat anyway, I will use the card and get cash back. This also will go to fund my Roth.

 

None of my purchases are for "extra" things, these are purchases I would have made anyway. If you have monthly bills that you have to pay and you can pay them in full every month, plus you have other expenditures in which you have the cash on hand to pay for them, why not?

 

My only regret at this point is that I cannot put every single monthly expense (like my rent) on it.

[2fast]

my current 2010 rewards total stands at ~$882

 

Is this correct, the new year, 2010 rewards....on the CCs....$882?

 

Sounds a bit high.....But, to the OP, I average about $1-1.2K a year in rewards - so why not use the correct card?

 

VK

I guess maybe it's just my nature to not sweat the small stuff. I don't purposely use non rewards cards. It's more that I just don't try to optimize to the level most do I guess.

MAybe it has to do with spending habits, maybe it has to do with the fact that I could easily save $10,000 a year by switching from Michelin to Bridgestone on my race bikes. I can't even give you a good reason why I don't. I run just as fast on the Bridgestones. MAybe it's because I like my tire guy... Seems wierd that I'll spend $10,000 a year because I like my tire guy and don't feel like changing. Maybe that why it's hard to worry about $75 a year in rewards.

[2fast]

I have 5 credit cards total 4 of them are rewards cards , the other is a Capital One Card at 8.99%

 

Starwood Amex

Fidelity 529

Discover More

Credit Union Credit card

 

My credit union credit card gives me 3% cash back on gas up to 20.00 a month and .5% on everything else. It is essentially my gas card. Since its also my lowest card at 7.99%, it serves as a place to put something that I won't be able pay off in a month (like an expensive car repair).

 

My Starwood Amex is used to accumulate awards for vacations, hotels, etc.. I am using this right now for occasional charges that I can pay off before the monthly cycle.

 

My Fidelity 529 is my main card for the moment, I am using the cash back to help fund my yearly IRA contribution. Once I have that completely funded, The rewards will go to help fund my son's college fund.

 

My Discover More is 5% cash back. I use it maybe 6 months out the year as they cycle various offerings throught the year. For instance next month it will be 5% cash back on groceries and restaurants. Since I have to eat anyway, I will use the card and get cash back. This also will go to fund my Roth.

 

None of my purchases are for "extra" things, these are purchases I would have made anyway. If you have monthly bills that you have to pay and you can pay them in full every month, plus you have other expenditures in which you have the cash on hand to pay for them, why not?

 

My only regret at this point is that I cannot put every single monthly expense (like my rent) on it.

I have the DIscover More as well, I don't consider it a 5% card though, I guess I'll probably use it on the next promo for groceries and restaurant. I guess I'll chase 5% a bit but not 1.25%.

[hegemony]

my current 2010 rewards total stands at ~$882

 

Is this correct, the new year, 2010 rewards....on the CCs....$882?

 

Sounds a bit high.....But, to the OP, I average about $1-1.2K a year in rewards - so why not use the correct card?

 

VK

I guess maybe it's just my nature to not sweat the small stuff. I don't purposely use non rewards cards. It's more that I just don't try to optimize to the level most do I guess.

MAybe it has to do with spending habits, maybe it has to do with the fact that I could easily save $10,000 a year by switching from Michelin to Bridgestone on my race bikes. I can't even give you a good reason why I don't. I run just as fast on the Bridgestones. MAybe it's because I like my tire guy... Seems wierd that I'll spend $10,000 a year because I like my tire guy and don't feel like changing. Maybe that why it's hard to worry about $75 a year in rewards.

perhaps?

http://en.wikipedia.org/wiki/Framing_effect_%28psychology%29

 

 

 

 

a lot of what I spend on travel is reimbursed so using a rewards card is just another way to get a benefit from my employer.

[VK]

my current 2010 rewards total stands at ~$882

 

Is this correct, the new year, 2010 rewards....on the CCs....$882?

 

Sounds a bit high.....But, to the OP, I average about $1-1.2K a year in rewards - so why not use the correct card?

 

VK

I guess maybe it's just my nature to not sweat the small stuff. I don't purposely use non rewards cards. It's more that I just don't try to optimize to the level most do I guess.

MAybe it has to do with spending habits, maybe it has to do with the fact that I could easily save $10,000 a year by switching from Michelin to Bridgestone on my race bikes. I can't even give you a good reason why I don't. I run just as fast on the Bridgestones. MAybe it's because I like my tire guy... Seems wierd that I'll spend $10,000 a year because I like my tire guy and don't feel like changing. Maybe that why it's hard to worry about $75 a year in rewards.

 

OP.....I don't understand the point of the topic, then

 

No, you are not missing the boat...so don't sweat it.

 

like shaft said, to each its own

[TrevorHere]

I am a heavy credit card user, therefore I am a rewards whore

 

I'm careful to use the card that will grant me the highest rewards for each purchase.

[2fast]

my current 2010 rewards total stands at ~$882

 

Is this correct, the new year, 2010 rewards....on the CCs....$882?

 

Sounds a bit high.....But, to the OP, I average about $1-1.2K a year in rewards - so why not use the correct card?

 

VK

I guess maybe it's just my nature to not sweat the small stuff. I don't purposely use non rewards cards. It's more that I just don't try to optimize to the level most do I guess.

MAybe it has to do with spending habits, maybe it has to do with the fact that I could easily save $10,000 a year by switching from Michelin to Bridgestone on my race bikes. I can't even give you a good reason why I don't. I run just as fast on the Bridgestones. MAybe it's because I like my tire guy... Seems wierd that I'll spend $10,000 a year because I like my tire guy and don't feel like changing. Maybe that why it's hard to worry about $75 a year in rewards.

 

OP.....I don't understand the point of the topic, then

 

No, you are not missing the boat...so don't sweat it.

 

like shaft said, to each its own

I guess I was just looking for input towards the anger some feel when a rewards category changes or they loose rewards for some reason. I'm just wondering if people really budget in the rewards as part of their usable money? (Bob Wang excluded).

 

MAybe I should start thinking more rewards based, if I did decide to funnel as much spending as I could through rewards cards I'm sure it'd be a substantial amount.

I guess we'll see what my CU does at the 90day mark with their card, it's supposed to be going to 10k so I'll be about to exercise it more then.

[hegemony]

I guess I was just looking for input towards the anger some feel when a rewards category changes or they loose rewards for some reason. I'm just wondering if people really budget in the rewards as part of their usable money? (Bob Wang excluded).

 

MAybe I should start thinking more rewards based, if I did decide to funnel as much spending as I could through rewards cards I'm sure it'd be a substantial amount.

I guess we'll see what my CU does at the 90day mark with their card, it's supposed to be going to 10k so I'll be about to exercise it more then.

who gets angry?

[shaft]

my current 2010 rewards total stands at ~$882

 

Is this correct, the new year, 2010 rewards....on the CCs....$882?

 

Sounds a bit high.....But, to the OP, I average about $1-1.2K a year in rewards - so why not use the correct card?

 

VK

I guess maybe it's just my nature to not sweat the small stuff. I don't purposely use non rewards cards. It's more that I just don't try to optimize to the level most do I guess.

MAybe it has to do with spending habits, maybe it has to do with the fact that I could easily save $10,000 a year by switching from Michelin to Bridgestone on my race bikes. I can't even give you a good reason why I don't. I run just as fast on the Bridgestones. MAybe it's because I like my tire guy... Seems wierd that I'll spend $10,000 a year because I like my tire guy and don't feel like changing. Maybe that why it's hard to worry about $75 a year in rewards.

 

OP.....I don't understand the point of the topic, then

 

No, you are not missing the boat...so don't sweat it.

 

like shaft said, to each its own

I guess I was just looking for input towards the anger some feel when a rewards category changes or they loose rewards for some reason. I'm just wondering if people really budget in the rewards as part of their usable money? (Bob Wang excluded).

 

MAybe I should start thinking more rewards based, if I did decide to funnel as much spending as I could through rewards cards I'm sure it'd be a substantial amount.

I guess we'll see what my CU does at the 90day mark with their card, it's supposed to be going to 10k so I'll be about to exercise it more then.

 

Nope, I use it as rewards, period. A trip, a gift card, free hotel nights, cash back, etc. I use them to reward myself, and in many ways save money by doing so.

 

I might get an urge to shop and look and see that I have $200 in Discover cash sitting there that I can convert to $250 in gift cards. Banana Republic here I come!

[TrevorHere]

I view the rewards as a discount...

[cocomad]

I am a heavy credit card user, therefore I am a rewards whore

 

I'm careful to use the card that will grant me the highest rewards for each purchase.

"Nough said!! I could not agree more, I have definitely been a rewards whore for sometime too!!!

[shaft]

I view the rewards as a discount...

 

Yeah, I do that with my monthly credit accounts like Penfed.

[GEORGE]

WHEN CASH GIVES REWARDS (MILES/POINTS/CASH BACK)...I'll use cash then...until that happens...I'LL USE CREDIT CARDS

[GEORGE]

I view the rewards as a discount...

THE IRS VIEWS IT THAT WAY TOO

 

That is why our rewards are tax free

[shaft]

I view the rewards as a discount...

THE IRS VIEWS IT THAT WAY TOO

 

That is why our rewards are tax free

 

good point