I’m beating the system. I buy everything with a credit card that offers reward points. I never carry a balance, so I never pay interest. I get lots of “free stuff” with my reward points that I would otherwise have to pay for. On top of that, I make large purchases with zero percent for one year cards, and leave my money in stocks or CD’s to earn interest, and pay off the card by the end of the year, virtually using the bank’s money for a year, interest free.
Personal finance is 80% behavior. You do not build wealth with credit cards. Use common sense. When you play with a multi-billion dollar industry and you think you’re going to win at their game, you are naive. You cannot beat the credit card companies.
“I’m beating the system. I buy everything with a credit card that offers reward points. I never carry a balance, so I never pay interest. I get lots of “free stuff” with my reward points that I would otherwise have to pay for.”
You are not beating the system. You are using the system. The retailers that sell you stuff are paying 2-5% to the credit card company. That’s how I work as well. As long as you pay off the card every month, you will never have an interest or penalty charge.
I get a new tire, mounted and installed, every year (from my local Harley Davidson dealer) with the 1% points back. I’m thinking of changing to one of the plain old “cash back” cards, however.
Credit cards are a good thing if you are looking for convenience. They make Internet purchases without risk possible. I’m still wary of the debit card.