Wednesday, August 10, 2016

When Cash Back Is Cash Back

“Spend $1,000 for the first three months and you will get $100 cash back.”

This is just one of credit card promos that I get almost everyday. It usually ends up in the shredder. I am not about to put myself into debt just to get $100 cash back. A small cash back is not enough to convince me to go on a shopping spree. 

It is stupid.

That was my rhetoric until our favorite warehouse company decided to drop our current credit provider and contracted another one. We had no choice but to go along with the changes to keep the cash back that we have accumulated with the previous card.

Problem is, we really like doing business with our old credit company. When someone stole our card information and used it to pay for bills, they stopped it right away and gave our money back without a hassle. When we call, they do not put us on hold for a long time. That is a big deal for us.

To be able to continue doing business with them is to open a new credit card that we do not need. 

Then an idea came when we received a bill for our car insurance, then my health insurance, then the utility bills, then…

I did not wait for another second. I filled out application for the new credit card. Because we were old customer, the application was approved right away. When I received the card, I put all the bills that were due for that month.

I got the $100 cash back without adding any expenses. We pay all those bills regularly anyway, why not get cash back from it, right?

The secret is to pay all the credit card balance on or before the due date to get the cash back. If you don’t, it will just go to the interest payment.