With cash rebate (or gift card rebate programs and the like), no annual fee credit cards it is prudent to use credit cards to make purchases, IF one has the self-discipline to pay off the balance every month -and- to not spend more simply because one CAN.
Not only do you get the benefit of the cash or gift card rebate, but you also get:
1) Free use of the banks funds during the grace period.
2) The additional buyers protection of using a credit card.
(And many cc's offer extended warranty programs, etc.)
3) The ease, convenience and security of not having to carry cash, especially for large purchases.
4) The ease of online payment, which now saves the cost of postage to mail a check, and is quicker than USPS.
And
5) Almost all major retailers and some manufacturers, etc. also offer affinity credit cards.
(If you spend more than a few $100/year at a store, find out if they offer a no annual fee credit card. Often, a promo of 5 or 10% off the first purchase makes it more than worth getting the card, even if you throw it in a sock drawer immediately afterward. And it instantly makes you a "preferred customer" with incentives and deals offered on a regular basis.)
Most cash rebate or gift card rebate programs take a few or more thousand dollars of annual spending to make it to the 1% tier, but some promo offers can greatly magnify that. Lots currently offer a very nice 5% cash back at supermarkets, drugstores and gas stations.
Offers vary, use credit wisely, never pay interest, etc., etc., etc. But if a merchant accepts credit cards and you pay cash instead... ...you are paying too much.
Applying for credit will impact your credit score. But if someone does not have an imminent large finance, such as home or car (or possibly insurance renewal which may check credit), it might be well worth a person's time to explore the credit card reward possibilities currently available. Personally, I do not pimp out my FICO for less than $100 in cash, merchandise or gift cards.
In short, the current crop of credit cards ain't your daddies Oldsmobile... ...errrr, staid credit card. <g>
S
PS. Nope, don't work for a bank. Just felt that it had to be said. No reason to use cash unless absolutely necessary. |
