How much longer do you think these Credit Card Loyalty programs will be around in this economy?

Dante · Jan 1, 2011

I have a chase freedom visa and I charge everything on it and pay it all at the end if the month.. been doing this for 3 yrs ...not a dime of interest paid but I collect an average of about 500$ in free cash/giftcards etc a year ...this is totally free. they even have items you can buy and earn triple bonus points on for example. All GAS transactions 3X points for the quarter

They must hate me as I pay no interest... im wondering if they will eventually make you have to pay interest to get these free cash/etc...

Soriano12 · Jan 1, 2011

Dante said:
I have a chase freedom visa and I charge everything on it and pay it all at the end if the month.. been doing this for 3 yrs ...not a dime of interest paid but I collect an average of about 500$ in free cash/giftcards etc a year ...this is totally free. they even have items you can buy and earn triple bonus points on for example. All GAS transactions 3X points for the quarter

They must hate me as I pay no interest... im wondering if they will eventually make you have to pay interest to get these free cash/etc...

Not sure how much volume you generate with charging anything on your cc to get these 500$ in rewards, but over here in Germany there are only a handful of banks/cc which give you some sort of cashback and it's around 0.5% of the volume you generate. As long as they give you just such a low reward/cashback, in my opinion there's no reason to shut down these programs since they should earn far more by fees, the shop owner has to pay them for accepting your cc payment.

kidman232 · Jan 1, 2011

some local gas stations around here tack on .06 cents a gallon if your paying by credit card

Dante · Jan 1, 2011

Soriano12 said:
Not sure how much volume you generate with charging anything on your cc to get these 500$ in rewards, but over here in Germany there are only a handful of banks/cc which give you some sort of cashback and it's around 0.5% of the volume you generate. As long as they give you just such a low reward/cashback, in my opinion there's no reason to shut down these programs since they should earn far more by fees, the shop owner has to pay them for accepting your cc payment.

I would guess since all my bills go onto the card like 850$ a month ... so maybe 10-12G a year I would assume

bigtendominator · Jan 1, 2011

I don't know, but without people like us, but i have wondered the same thing. As soon as they stop it, I will stop charing certain items

Dante · Jan 1, 2011

bigtendominator said:
I don't know, but without people like us, but i have wondered the same thing. As soon as they stop it, I will stop charing certain items

exactly no reason to do it if they stop with the freebees ..... I know they make there money on what the stores pay to take the visa card

oldirtyku · Jan 2, 2011

I don't think they will stop anytime soon with these plans. For every Dante, there are 10 people paying interest/late fees etc. + these companies make fee's from the stores. They only put these plans in place to hope that you carry a balance a few months so they can make the freebies back.

I spend a boat load on CC every month on my Marriott card and pay it off in full every month. I earn a few nights a year of free rooms + get 1 free night when i pay the annual fee of 60 bucks.

Works out great for vacations.

ThreeKings · Jan 2, 2011

Anyone that flies delta should have the american express gold card, everyone in your party if booked with your card gets one bag free (saves $25 each way), also you get one mile per dollar spent on the card and there are some things that pay a higher %. You also get up to 25000 miles when you sign up. Every 25000 miles equals a free round trip.

The card companies make 2% to 4% on your purchases from the merchants so I don't think the offers are going to go away.

Fishhead · Jan 2, 2011

My limits have been slashed from 179,000 to around 40,000

Not a happy camper about this.......................

Dante · Jan 2, 2011

Fishhead said:
My limits have been slashed from 179,000 to around 40,000

Not a happy camper about this.......................

only 40K... wow that is low

How much longer do you think these Credit Card Loyalty programs will be around in this economy?

Search

Dante

Active member

Soriano12

Member

kidman232

Member

Dante

Active member

bigtendominator

New member

Dante

Active member

oldirtyku

Rx Senior

ThreeKings

Member

Fishhead

Active member

Dante

Active member

Forum statistics

Share this page