5% Rewards.....

[TheFate]

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@Open123 wrote:

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@TheFate wrote:

I suppose once your credit is already established and in good standing one can see your way, but I'm rebuilding so every CLI is vital in growth. 

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Agree that until adequate CLs are finally attained, they take on more importance during the building or rebuilding stage.  From my perspective, if CCs got rid of rewards, aside from air & hotel reservations, I'd never use them and would opt for cash to curry favor with merchants.

For me, it's *all* about the bottom line.

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Couldn't agree more

[s_haliz]

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@longtimelurker wrote:

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@Open123 wrote:

They're banking that you will use the card for non-gas purchases for a much lower rewards tier.  It's a loss leader, much like how Fidelity Amex offers 2%; they can lose money on CCs, if they make it back on AUM fees.

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Right, the card I REALLY don't get is the Penfed Plat Cash Rewards, which offers 5% off gas and no other rewards.  Are there really people who use this for everything?  Maybe!

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I am sure there are going to be somne who would use this everywhere else........Just like sale in any supermarket for one or two off items.....How many are going to just buy that one or two items? Naturally we would buy other items too...That may actually cost more and wipe out all the gains we may have received for that one or two off items!!! 

[bigblue7722]

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@noobody wrote:

Chase already took drug store, dept store, hotel, airline out of rotation. and lowe's starbucks can hardly be called categories.

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I dont mind lowes they sell a ton of gift cards and you can probably make full use of the 1500. Now if you spend 1500 at starbucks in a quater you have problems. 

[juggalo9er]

good question and point, i have a card swiper for my cell that charges 1.4% of swipe, its profitable even with capone

[bigblue7722]

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@noobody wrote:

why do u need CLI on cards wth cap on bonus any way? spend on something other than 5% category? 

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some people like to have visa sig cards. For others its peace of mind knowing they have a higher limit. Overall ultiz might be a factor as well. 

[takeshi74]

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@TheFate wrote:

And these are the people who more than likely get CLI vs the guy who only uses for the 5% cash back

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I've certainly received CLI's while only making purchases in the 5% categories.

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@noobody wrote:

why do u need CLI on cards wth cap on bonus any way?

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Lower utilization is generally beneficial.