It's free money. Also, you can sometimes get a lot better than 1% based on what you're purchasing. Discover has 5% categories, ShopDiscover (additional cash back at some stores), and Discover Extras. Citi has a similar thing to ShopDiscover. Amex has an "Offers For You" which are a lot better than 1% (and you also get the 1%).
For me, i see it as free money for my own money that i was spending either way. So no matter how minimal the amount, i am atleast getting something back. Plus, depending on your cards and the way you use them, you can certainly get higher than 1% back on certain things.
@Gatortrout wrote:
FMC, I see where you are coming from and I agree to an extent. However I personally find it much easier to keep up with my spending using my CCs and if you have a variety of cards you should be able to get 2-6% cash back for everything. Its really kind of a hobby for me and I will take any and all rewards I get.
^
This.
The thing is, if you're looking to get enough rewards to buy a PS4 in one month, you're going to be disappointed. But if you're looking to help create a bit of revenue where you'd normally have none, you'll be pleased. I've racked up over $300 dollars in rewards this year through my normal spending. Kind of a big deal. That's $300 I wouldn't normally have back. If you're responsible, and have an eye for making money in the margins, it'll pay off.
In other words, Discover is helping to pay for Christmas this year. 
As Gatortrout said, it's totally a hobby.
If you know what your doing you can redeem for a much higher value than 1%. You may be able to get hotel suites or fly first/business class without having to pay the massive markups. Its not really worth the effort if you do not enjoy it though, since you need to constantly being monitoring changes in programs to maximize your return. Some people like it though and for those that do the work it yields a nice reward.
@DaylightSlaving wrote:
@Gatortrout wrote:
FMC, I see where you are coming from and I agree to an extent. However I personally find it much easier to keep up with my spending using my CCs and if you have a variety of cards you should be able to get 2-6% cash back for everything. Its really kind of a hobby for me and I will take any and all rewards I get.^
This.
The thing is, if you're looking to get enough rewards to buy a PS4 in one month, you're going to be disappointed. But if you're looking to help create a bit of revenue where you'd normally have none, you'll be pleased. I've racked up over $300 dollars in rewards this year through my normal spending. Kind of a big deal. That's $300 I wouldn't normally have back. If you're responsible, and have an eye for making money in the margins, it'll pay off.
In other words, Discover is helping to pay for Christmas this year.
As Gatortrout said, it's totally a hobby.
Well, with the right cards and aggressive risk-taking, using manufactured spend you can generate relatively large sums. I do it fairly small by pro standards, and on one card I'm a getting a (tax-free) profit of about $820 a month. Not life-changing, but useful.
These rewards have let me fly to Europe and stay in nice hotels around the world
80k delta miles
85k ihg points
80k UR points
50k hilton
Those points add up quite quickly and let me and my wife enjoy vacations for spending money we were going to spend either way. I won't be using points until after we buy our next home and it'll be a nice vacation after closing and dealing with all the paper work.
80k delta miles
85k ihg points
80k UR points
50k hilton
Those points add up quite quickly and let me and my wife enjoy vacations for spending money we were going to spend either way. I won't be using points until after we buy our next home and it'll be a nice vacation after closing and dealing with all the paper work.
