[CS-FSLUG] Cash Back Credit Card?

[Robert Wohlfarth]

On Thu, Feb 19, 2009 at 5:25 PM, Timothy Butler <tbutler at ofb.biz> wrote:

> The question is: will receiving money back from the credit card
>> company cause you to spend more?
>>
>
>        Probably, not. I'm not fond of carrying balances, so I might spend
> the same (and get more) but not carry more. The idea is to take regular
> monthly services I pay for, along with big ticket purchases, and try to get
> something back from them.
>
>        Interest rates are too high to spend _more_.
>
>
>> Have you considered something like the "donor" cards - e.g. here's one
>> for Linux (and other free / open source projects) -
>> http://www.linuxfund.org/cards/
>>
>
>        That would be better than nothing, I suppose, but I'll be the greedy
> guy and say I'd rather take the money myself. :-P (Actually, the goal is to
> essentially reduce the cost of the things I need to buy via the cash back
> rebates.)
>

Studies show that people typically spend 12% to 18% more with plastic than
cash. Plus interest on those times when you carry a balance anyway. With
those kind of rates, the credit card company comes out on the winning end.

I once wrote a short article on the topic:
http://rbwohlfarth-cc.blogspot.com/2008/11/cash-back-from-your-credit-card.html.
YOU save more money by following a budget.

For those vendors who absolutely require a card, use the cards like Tim
Young mentioned. The ones that pull directly from your bank account. You get
all of the protection of a "credit" card, and much less of the risk.

-- 
Robert Wohlfarth
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