Credit Card Question (Rewards Card/Point Cards) - E46Fanatics E46 BMW Social Directory E46 FAQ 3-Series Discussion Forums BMW Photo Gallery BMW 3-Series Technical Information E46 Fanatics - The Ultimate BMW Resource BMW Vendors General E46 Forum The Tire Rack's Tire Wheel Forum Forced Induction Forum The Off-Topic The E46 BMW Showroom For Sale, For Trade or Wanting to Buy

Go Back   E46Fanatics > Everything Else > The Off-Topic > Money Matters

Money Matters
Financial, Stock, Investment etc. posts here.

Reply
 
Thread Tools Search this Thread Rating: Thread Rating: 1 votes, 5.00 average. Display Modes
Old 03-03-2015, 09:04 AM   #1
RelaxIN
Registered User
 
Join Date: Apr 2014
Location: PA
Posts: 107
My Ride: BMW 330Ci
Credit Card Question (Rewards Card/Point Cards)

Hi...

I would like to get your input and professional advice on "Rewards" or Point cards. I'm trying to better understand the pros and cons and what cards would provide me a greater advantage... Or, maybe it's just a scheme and a waste of my time. That's what I'm trying to find out.... and see what you guys use

For starters, the only debt I have is a small mortgage, everything else (Credit cars, autos, loans, etc) is paid off in full. I currently have a credit score of 794 so I don't think that will be an issue. I currently have a few credit cards in play. An American heritage MC at 9% with no rewards/points, and a Bank of America rewards card at 15.99%, which frankly I think sucks considering I have over 90k in assets with them. I have personal & business assets in other banks as well (Wells Fargo, TD Bank and first Niagara) but I have not solicited any type of cards from the bank... I actually wanted to get everyone's input first.

Any thoughts or comments would be greatly appreciated... Thank you very much for your time, Rick
RelaxIN is offline   Reply With Quote
Old 03-03-2015, 04:35 PM   #2
GlockMan
Registered User
 
GlockMan's Avatar
 
Join Date: Jan 2005
Location: Florida
Posts: 2,145
My Ride: Suburban LT 4x4
This is going to sound stupid, but I don't care...

Capital One Quicksilver if you want cash (1.5% on everything PERIOD!) No Annual Fee, No Gimicks, No B.S. They have a Signature Visa if you want to feel a little better about the Capital One cloud.

If you spend over $3000 per month, that is $50 per month cash in your pocket with no fees.

Very few cards pay over 1% in real money. The Quicksilver allows you to cash in any time for any amount. click click and two days later you have a credit on your account.

IF you travel a lot the Capital One Venture Card is suppose to be one of the best out there for miles.

Of course there is Amex Gold Plus if you want to save $300 per year over the Amex Platinum.

JMO.

__________________
.
!!! ROLL TIDE ROLL !!!
National Champs: 1925, 1926, 1930, 1934, 1941, 1961, 1964, 1965, 1973, 1978, 1979, 1992, 2009, 2011, 2012, 2015,
2017? (WHO IS IN? AUBURN? NOPE! BAMA BABY!)




Ranting about plasmas, cameras, guns, diamonds, and HDMI since 2005.

16 Honda Accord Sedan V6 Touring (wife)
07 Chevy Suburban LT 4x4 with Nav/Bose/DVD
68 Ford Mustang with Polk/ADS (my first car)

07 Lexus GS350
00 BMW DINAN M5
01 BMW 330ci

Last edited by GlockMan; 03-04-2015 at 07:16 AM.
GlockMan is offline   Reply With Quote
Old 03-04-2015, 11:17 AM   #3
Wraisil
Registered User
 
Join Date: Apr 2004
Location: Acworth, GA
Posts: 219
My Ride: 2010 Infiniti G37
What rewards card is best depends on you. Travel but don't fly? Cards that give hotel points will give more back than ones that give you airline miles. Straight cash back? Depends on some other factors (like where you spend money, how much you want to control spending or just say screw it and go with blanket % cash back cards). Then how much are you going to get back in rewards? Does it justify paying an annual fee?

As for the interest rates, if you never carry a balance you never pay interest.
Wraisil is offline   Reply With Quote
Old 03-05-2015, 11:00 AM   #4
RelaxIN
Registered User
 
Join Date: Apr 2014
Location: PA
Posts: 107
My Ride: BMW 330Ci
Hey Guys...

Sorry about the delay getting back to you, I wrote up an extensive reply yesterday at work and for whatever reason it never posted.

Glockman... Thank you for the advice on the capital one card, and to answer your question, I do not spend $3000 a month usually..lol. Additionally my work covers any travel expenses including hotel accommodations so I would not be able to take advantage of that either. I pretty much would just use the card for gas, groceries, staple items around the house, tools, Amazon, that type of thing.. But nothing near $3000 a month.

Wraisil.. To answer your question, straight cash back would be most optimal for me I would think. To answer your other question, I generally just say screw it and spend what I want on what I think I needed that time. I'm not really reserved, but by the same token I'm not reckless either. I'm an IT guy so I have all the latest and greatest electronics, I have a Custom Cobra show car/street car that I enjoy working on, but that's also completed.. And I do real estate investment through a secondary company. Help me understand, what did you mean by "go with that blanket % cashback card"...? And to your point I'm also not a fan of paying for an annual fee unless the rewards are known to supersede the annual fee by 25%. And here's the kicker.. I purchase a lot on Amazon but I do not have an Amazon prime card cause I don't believe I can justify it...

So my responses not too long, I'm going to make a separate post under this thread that that are outlines my thought process of what I'm trying to accomplish... Maybe you guys can give me your feedback..
RelaxIN is offline   Reply With Quote
Old 03-05-2015, 11:50 AM   #5
RelaxIN
Registered User
 
Join Date: Apr 2014
Location: PA
Posts: 107
My Ride: BMW 330Ci
Okay... As a follow-up to my most recent post..

Here is my thought process of what I'm trying to accomplish to better maximize any purchase or transaction. I'd love to hear your input or additional thoughts..

1. Make the necessary transaction using a rewards card, points card, etc.. (my intent here is to get additional money back or rewards for using the card while continuing to establish a good credit history) I might as well get something for using someone's card

2. Payoff the rewards card immediately (using a HELOC card) without accruing any interest. (My HELOC Rate is at 3%... My intent here is to pay off the rewards card before the interest is applied. Paying it off with the HELOC will allow an additional 30 days before any funds are allocated out of pocket, thus expanding the my window to 60 days. It will also show on the credit reports good standing for credit debt as well as being a tax deduction). If I'm not able to pay the HELOC off immediately the interest rate is only 3%.

So in summary, my warped mind is thinking..

1. Two channels of credit history (the rewards card & HELOC) payments
2. The additional 60 days to pay off debt (30 days rewards card/30 Days HELOC Payment)
3. The tax deduction on the HELOC
4. The Rewards Cash or Points back for using the card

The only CON I see about this is... It would be a PITA to manage the payments before the interest is applied. But I do my bill pay automatically twice a month regardless.

Does this sound like a solid plan of attack... Or am I talking out my a$$ here... Thoughts...? And thank you again for your time and input...
RelaxIN is offline   Reply With Quote
Old 03-06-2015, 09:40 AM   #6
Wraisil
Registered User
 
Join Date: Apr 2004
Location: Acworth, GA
Posts: 219
My Ride: 2010 Infiniti G37
Quote:
Originally Posted by RelaxIN View Post
Okay... As a follow-up to my most recent post..

Here is my thought process of what I'm trying to accomplish to better maximize any purchase or transaction. I'd love to hear your input or additional thoughts..

1. Make the necessary transaction using a rewards card, points card, etc.. (my intent here is to get additional money back or rewards for using the card while continuing to establish a good credit history) I might as well get something for using someone's card

2. Payoff the rewards card immediately (using a HELOC card) without accruing any interest. (My HELOC Rate is at 3%... My intent here is to pay off the rewards card before the interest is applied. Paying it off with the HELOC will allow an additional 30 days before any funds are allocated out of pocket, thus expanding the my window to 60 days. It will also show on the credit reports good standing for credit debt as well as being a tax deduction). If I'm not able to pay the HELOC off immediately the interest rate is only 3%.

So in summary, my warped mind is thinking..

1. Two channels of credit history (the rewards card & HELOC) payments
2. The additional 60 days to pay off debt (30 days rewards card/30 Days HELOC Payment)
3. The tax deduction on the HELOC
4. The Rewards Cash or Points back for using the card

The only CON I see about this is... It would be a PITA to manage the payments before the interest is applied. But I do my bill pay automatically twice a month regardless.

Does this sound like a solid plan of attack... Or am I talking out my a$$ here... Thoughts...? And thank you again for your time and input...
The primary advantage to paying the credit card off with a HELOC would be if you could not afford to pay it in full each month. Otherwise, it's just an additional step that provides no benefits to you other than having a slightly longer "grace period" (the short term advantage and lower interest being the longer-term advantage) between the two (really, if you're charging money, you are best served by only doing so if you have the money to pay it off immediately).

The HELOC doesn't let you have a tax deduction on money spent using the HELOC, just a deduction on "interest paid" to the HELOC. That deduction will decrease your tax bill by less than the interest paid, thus meaning you keep less money if you wait to pay it off until you are eligible for a tax deduction on the interest.

If, for some reason, you HAVE to charge money for stuff you can't afford, moving that debt from a CC to the HELOC would be less costly though.

Last edited by Wraisil; 03-06-2015 at 09:42 AM.
Wraisil is offline   Reply With Quote
Old 03-20-2015, 11:15 AM   #7
rohde88
Registered User
 
rohde88's Avatar
 
Join Date: Jan 2004
Location: Dallas, TX
Posts: 861
My Ride: S2000
I use a citi executive platinum for AA. $450/year gets me my AA miles I fly a lot and lounge access, the lounge alone is worth $5000 for me and a guest.
__________________
-Ron
rohde88 is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Censor is ON



All times are GMT -5. The time now is 02:05 PM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
(c) 1999 - VerticalScope Inc. All rights reserved.