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Revolvers increasing your spending?

Valued Contributor

Re: Revolvers increasing your spending?

Mine did.

Then i read money drunk....found out how deep the rabbit hole really is.

I would suggest everyone read it..
5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+
Super Contributor

Re: Revolvers increasing your spending?


longtimelurker wrote:But when it is something more unusual, say theme parks, THIS MIGHT BE YOUR LAST CHANCE TO GET 5 UR per $ for theme parks!!!! (even if it isn't).  Are people a little more inclined to go (and possibly NOT regard it as extra spending)?

It certainly has an effect on me, since I may not see the category again.  I know the marketing department is doing, but it still works on me.  Also, when I have new card, I tend to spend more on it during the spend requirement period.  For instance, I'll say, let's just dine out, since I've got to spend $3K the next 3 months. 

 

*Edited*  PS - For the 5%, I'll just load more $$ on the my starbucks rewards card.

Senior Contributor

Re: Revolvers increasing your spending?


notfancy wrote:
I remember reading a study or something somewhere that if people go into a store with cash they're likely to spend less than if they go in with a debit / credit card. 

I spend more with a credit card than cash but any amount of cash that I carry vaporizes and I have no accounting of what I've spent, none of the credit card protections, none of the credit card benefits and none of the credit card rewards.  If my spend was affected by rotating 5% categories I'd stick with cash but credit serves me better overall.

 


longtime_lurker wrote:

I, for one, have been going to Starbuck's much more often as opposed to a coffee shop run by the school and cheaper, for the 5%.


I am a caffeine addict and if I liked Starbucks that might get me into trouble.  Luckily we have excellent independent coffee shops here and I have a fairly new machine at home that has been getting a lot of usage to justify its purchase.

Frequent Contributor

Re: Revolvers increasing your spending?

I'd like to max out the gas category by buying gas gift cards at Amoco or others, but the problem is that Sam's Club is always priced lower than the competitors, not that that's a bad thing.

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Super Contributor

Re: Revolvers increasing your spending?


370Z wrote:

I'd like to max out the gas category by buying gas gift cards at Amoco or others, but the problem is that Sam's Club is always priced lower than the competitors, not that that's a bad thing.


Right, or when gas is lower at a Costco station, or some where the cash discount is greater than the 5% rewards.  

Regular Contributor

Re: Revolvers increasing your spending?

I've definitely had the lizard-brain part of myself try to tell me to spend more because of various reasons (increased ease and access to funds, points/reward chasing, etc).

 

They key point in helping to curb that irrational behavior is to set a strict budget for myself and stick to it like glue.

 

i.e. based on past habits and future estimates, i set a $350/mo budget for gas.

So i know to only spend as much as that on the card i will use that particular quarter (i.e. freedom).

That prevents myself thinking, "5% CB on gas?! PUMP AWAYYY"

 

I refuse to let CB categories affect my behavior;

I don't purposefully buy gift cards to "max out" CB categories, or anything like that.

I spend what I'd normally spend whether I had quarters nickles dollars, or plastic.

 

So, having revolvers or otherwise, having a strict but workable budget is the key. I highly recommend it.

Regular Contributor

Re: Revolvers increasing your spending?


longtime_lurker wrote:

longtimelurker wrote:

So a lot of people here apparently don't feel that their spending increases.   I also wonder if it depends any on the category.    So while gas for example is useful and something that many people would buy anyway, the expectation is that that cateogory will appear time and again, twice a year on many of the cards.   But when it is something more unusual, say theme parks, THIS MIGHT BE YOUR LAST CHANCE TO GET 5 UR per $ for theme parks!!!! (even if it isn't).  Are people a little more inclined to go (and possibly NOT regard it as extra spending)?


I would have to say that it does impact people's spending. The psychological aspects of plastic vs. cash have been well established, and people often talk themselves into "needing" things.. I, for one, have been going to Starbuck's much more often as opposed to a coffee shop run by the school and cheaper, for the 5%.


I can't help but wonder if some of the people around here might be worse with cash than credit since we think about credit so much and things like maximizing bonus categories Smiley LOL

 

 



Starting Score: 676 CK 5/13. Current: 717 EX 6/15 -- Last App: 6/2014
Established Contributor

Re: Revolvers increasing your spending?

Another pt worth mentioning is that how many people here would,, under the guise of MR or UR redemption, would shop an airline website and overlook deals on priceline and other deep discount deals? 

 

Mileage rewards for example are meaningless if they don't allow redemption at the lowest possible prices. 

 

Do we overlook places that can save us 20-40% more simply because of the limited places that accept  MR or UR? 

 

 

 

 

 

 

Discover IT $19,000 == 12/2013
AMEX 12/2013 ---BCP $12,000 === BC $23,000 ----- 04/2014
CHASE SLATE $5,700 === 12/2013
BoA 123 $6000 === 12/2013
Barclay Rewards $1500 == 12/2013
Super Contributor

Re: Revolvers increasing your spending?


Fico2Go wrote:

Do we overlook places that can save us 20-40% more simply because of the limited places that accept  MR or UR? 


The way use MR or UR points isn't to *buy* a ticket, but to transfer them to a specific Airlines FF program when a ticket at the desired price becomes available.  

 

For instance, let's take two scenarios:

 

1)  Round trip from SF - NY on Priceline for $900.

2)  Transfer UR points to UA and redeem with 60,000 points.

 

In this case, points redemption would be cheaper.  However, if you found a special for the same ticket on Hotwire for $499, then purchase the ticket with a CC of choice.  One should rarely use points to actually purchase a ticket, but transfer them to an Airline's FF when the best pricing and cabin class becomes available.

 

Another example, say, during peak season:

 

1)  Round trip SF - Chicago for $1,600 - no lower price to be had anywhere, given the demand.

2)  UA can redeem (for coach) at around 30,000 miles (30K UR points).

 

There are times when mile transfers yields better results, and others when it's best to pay for the ticket outright.  During offpeak when I find fares at really cheap prices, I'll buy them rather than using up Miles at a low redemption value.

Established Contributor

Re: Revolvers increasing your spending?

Open123, thanks for clarifying.  I have been a cash/debt card user for the past ten years and have been out of touch.  

 

Two questions:

 

1)  Some people claim you can use mileage to pay for part of the airfare.  How does that work?  

2)  Do airlines clearly mark how many mileages are needed for all flights?

 

 

 

 

Discover IT $19,000 == 12/2013
AMEX 12/2013 ---BCP $12,000 === BC $23,000 ----- 04/2014
CHASE SLATE $5,700 === 12/2013
BoA 123 $6000 === 12/2013
Barclay Rewards $1500 == 12/2013