Using a Credit Card

Mr. Wanderlust and I have a credit card. It offers cash back. I, honestly, don’t remember the standard cash back amount; but throughout the year the offer various 5% cash back promotions that you have to remember to sign up for. No big deal there. We currently have a balance on the card that we are paying off before the end of the year. (Our balance is $469, so not hard to pay off at all). I am fairly certain that it is 1% on everyday purchases, but don’t quote me on that.

So for the 2015 year the 5% cash back categories were;

January to March: Gas and Ground Transportation up to $1,500

April to June: Restaurants and Movies up to $1,500

July to September: Home Improvement Stores, Department Stores, and up to $1,500

October to December:, Department Stores, and Clothing Stores up to $1,500

They also offer Cardholder Deals, where you ear x% cashback if you shop at a certain retailer.

Now here is the thing. I never take advantage of any of this. I never enroll in the 5% cashback. There is no way I would come close to the $1,500 in three months for any of those categories. I also realize that the cashback really isn’t that great of a deal. But here is the thing. I am spending money on groceries, gas, gifts, and whatever else. Why not put it on the credit card and then pay it off at the end of the week? Earn a little cashback that can then be used at Christmas. My credit card company allows you to use your cash back on, which is where we end up ordering gifts from nine times out of ten.

Mr. Wanderlust and I will have to talk about this. He isn’t a big credit card person and honestly I’m not either. We keep this card because it doesn’t hurt to have it. We tend not to carry a balance and when we ‘have’ to we pay it off as quickly as possible.

Doing some quick math, just with guaranteed monthly expenses that can be paid via credit card (not including student loans, car payment, or our cell bill) it would bring in a whole $100 bucks over a year at 1% cash back. Which that isn’t horrible as long as we don’t carry a balance on the card.

What do you think of this? Is it stupid?


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