cancel
Showing results for 
Search instead for 
Did you mean: 

How to use reward cards?

tag
livingfree
New Contributor

How to use reward cards?

I'm sorry if this is a stupid question but I will like to know how to use reward cards.  Do you pay everything with the card and not worry about utilization but PIF every month or do you use the card in being careful of utilization?  I hope that I am being clear in my question.  I just want to get the most rewards possible.  I have been approved for a Barclays Rewards Mastercard.  Thanks for your response.

5/13/13 EQ 636 (Myfico), TU 660 lender pull , EX 640 lender pull
Barclay Rewards MC $2300, Cap One $750, Walmart $800, Macys $2000, Lane Bryant $600.
Message 1 of 11
10 REPLIES 10
Anonymous
Not applicable

Re: How to use reward cards?


@chaleria wrote:

I'm sorry if this is a stupid question but I will like to know how to use reward cards.  Do you pay everything with the card and not worry about utilization but PIF every month or do you use the card in being careful of utilization?  I hope that I am being clear in my question.  I just want to get the most rewards possible.  I have been approved for a Barclays Rewards Mastercard.  Thanks for your response.


I  pay everything with the card and not worry about utilization but PIF every month to avoid interest.   

 

I only worry about utilization when I am planning to apply for credit, then I prepay everything for a month before applications time.

Message 2 of 11
Anonymous
Not applicable

Re: How to use reward cards?

I assume every cash back card has a policy against using one cashback card to pay for another.  Does anyone know if this is true?  In other words, use a discover card to get 1% back and then use a different card with 1% cash back.

Message 3 of 11
clocktick
Valued Contributor

Re: How to use reward cards?

Do you mean balance transfer the balance from cashback card to another?  Balance transfers do not usually count for any cash back to you.

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP $24.1K/Clear $8.5- Sallie Mae $27.5 -Cap One QS $7.5 - Chase Freedom $7.5/United $5k/CSP $20k/Ink- Citi DP $9.5/Dividend $13k/HHHx2 $15k/16.4/Reserve $4.5k Best Buy $1940 HD $1701- Discover IT $15k - Elan $8k GEMB Lowes $20k - Macy's $2k - Kohl's $800




Starting Score: 648
Current Score: 736
Goal Score: 765


Take the FICO Fitness Challenge

Message 4 of 11
mmduluth
Frequent Contributor

Re: How to use reward cards?


@Anonymous wrote:

I assume every cash back card has a policy against using one cashback card to pay for another.  Does anyone know if this is true?  In other words, use a discover card to get 1% back and then use a different card with 1% cash back.


You can't use a credit card to pay another credit card bill. You can do a balance transfer but that involves fees and you don't earn points/cash back on that. You also can't use a credit card to pay on any other loans in my experience. 

EQ FICO - 718 - 01/10/2012 EX FICO - 732 - 04/28/2012 (AMEX)

Cap1 Platinum (1000) Macy’s (2000) Chase Freedom (3000) Kohls (600) Best Buy (2700) Amex BCE (8200) Chase Sapphire (5000) CarCare1 (1600) Discover IT (4000)
Message 5 of 11
pipeguy
Senior Contributor

Re: How to use reward cards?


@chaleria wrote:

I'm sorry if this is a stupid question but I will like to know how to use reward cards.  Do you pay everything with the card and not worry about utilization but PIF every month or do you use the card in being careful of utilization?  I hope that I am being clear in my question.  I just want to get the most rewards possible.  I have been approved for a Barclays Rewards Mastercard.  Thanks for your response.


Some "rewards addicts" will pay everything from a 50 cents coffee refill at starbucks, to their mortgage on their "rewards card" and then pay in full before the next statement cuts. This game maximizes the amount of rewards, especially if you have the various cards that offer special bonus percentages for certain categories such as gas, movies, etc.

 

WAY too much work for me, I just charge what I would normally on a card (disclosure, most of my bank cards are rewards cards because that is what is currently issued). I do pay in full by the date due, even before any statement date, but only because that is the way I handle credit cards. I do NOT chase rewards, actually I pay no attention to them at all other than to automatically credit the amount back to my account as a payment when it hits a specific amount.

 

I'm sure some will say I'm wasting free money back but then again I won't drive 20 miles to save 10 cents a gallon on gas either (do the math at 15 MPH and a 25 gal fill up)

Message 6 of 11
Kendro
Contributor

Re: How to use reward cards?

I use the cards strictly as cash and always pay in full. If I cannot afford to buy something in one shot, I simply save until I can. I never think of a cash back card as a way to make money because at 2 to 3%, there isn't much money to be made. I use the card so I don't have to carry around cash and enjoy the extra protection like the extended warranty.
Message 7 of 11
pipeguy
Senior Contributor

Re: How to use reward cards?


@Kendro wrote:
I use the cards strictly as cash and always pay in full. If I cannot afford to buy something in one shot, I simply save until I can. I never think of a cash back card as a way to make money because at 2 to 3%, there isn't much money to be made. I use the card so I don't have to carry around cash and enjoy the extra protection like the extended warranty.

+1 exactly right !

Message 8 of 11
afbar1114
Valued Contributor

Re: How to use reward cards?

it depends on what i am buying. if i buy something for less a dollar or less ill use freedom because of 11.1% cash back because you get 10 points for just swping. i have 3 main cards each has a use and each gets its use daily. DD will go on Zync because of 2x points and DD pack. gas is either Chase or BoA when chase is not offering 5%. as well as grocery stores. 

AMEX PRG; AMEX EveryDay $14,800; Freedom $6k; Sapphire $7k; IHG Select $5k; Discover $2,400; BofA Better Balance $9,100; Bank Americard $5,900; Citi DC $2,700; Citi Diamond $2,500; BestBuy $20,000; Amazon Prime $5k, United Club $15,000; Home Depot $20,000; Barclays $7,500

Total Credit Limits: $122,650
Message 9 of 11
Lambo23
Frequent Contributor

Re: How to use reward cards?

I like to keep my life simple. I just use my zync for everything. I have a few packs that give 2x points (restaurant, family travel, eco). When I shop online I just use the amex website to earn 3x-10x points. This adds up to around 2% cash back with my current spending. Not bad and much easier to use only 1 card.

Message 10 of 11
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.