I have a little secret.....
In June, my Discover Card (CC4), expired. I had to call to activate the new one. See...Discover does 5% cash back on certain purchases throughout the year. And for this summer....Gas was one of them.
As a household that can go through over $500 in gas for our cars A MONTH, this could add up. Discover was offering up to $75 cash back for using your card. Well, we have to put gas in our car....so we have used the card for the rewards, and as soon as we get home, pay the credit card with the "cash" from our checking account (where our debit card draws from).
The representative that helped me offered "great customers such as myself" another incentive. If we charged $1,000 per month for July, Aug, and Sept, we would earn a bonus $150! Discover has Home Depot gift cards that you can get with your Cashback Bonus, with a 10% discount. Remember the deck project......see where I am going with this?
So we have been using (and paying immediately) our card for standard purchases. We are not carrying any more of a balance than we were before. Groceries, gas, co-pays at the doctor....all going on the card.
So we talked about using our card for our other bills. We have to pay electric, oil, cell phone, cable, student loans. We pay all of this each month from our checking account. So why not use the card, and earn some cash back (we get 1% for regular transactions). This has not been as easy as I thought.
Student Loans won't let you use a credit card. Electric charges you $3.50 per transaction! I haven't tried oil or cell phone yet. Cable isn't a problem.
Our personal property taxes were due this month too. And right on the bill it says you can use your credit card. Yippee! We already had the money for this....so again, the idea would be to charge it and pay it off immediately. For $200 in taxes, we would earn $2, plus it would be applied toward our $1000 per month that we have to spend. Well....they wanted to charge us $7 to use our card. Um...to earn $2, I would have to spend another $5. No thanks. I wrote a check and was done.
I have liked doing this. They have a nifty graph that tracks your transactions. And the cash back will help pay for our deck.
I will say that we have NOT used our card for anything other than standard purchases that we would have made anyway using our debit card. We aren't floating anything. And this is not a gateway into using it for the sake of using it. This is what is known as responsible usage.
Anyone else do this? Comments (please be nice)?