Rewards point credit cards are only useful if for free or rich people
Serious. If you are an average person, don't get a reward points card it just doesn't pan out unless your earning over 6 figures a year and it is simple to see why...
I just got the top of the line card with reward points from work, I did this cause for some strange reason I qualify but more importantly it just became fee free for me.
The fee for my card for your average joe is a few hundred quid a year, I think that is ridiculous, in fact since I've been on government payments mostly all my life, I find it really difficult to comprehend the whole "bank fees" thing, which is odd considering the place that I work, but anyway...
Back to the card, my card gets a point for every dollar you spend, sometimes if your lucky you can buy stuff and get 3 or more points, this is probably available to you about 90% of the time if your super scrooge about it all (and oh yes, I am). To actually earn enough points to say, get a voucher at a big chain store for the amount of cash you pay in your annual fee, you have to get at least 50,000. Yes that is right, 50,000. so even if you spent all your cash at the 3 point or more stores, you'd have to dolly up at least 16.666K of cash a year. That is after tax folks, and if you want to avoid fees, you can't include rent/mortgage payments in there. 16 and a half thousand is a lot to spend in a year for your regular person, you'd have to blow on average over $300 a week (remember no rent) just to get close to that amount. It is crazy.
But you know if your in a relationship with two incomes and can do the whole additional card thing well you'll probably breeze it in. I know married couple at work that do serious damage with their points, I know some guy who reckons he has accumalated 300,000 points with his wife and kids over the last 1 and a bit, that is some serious coinage being channelled through the plastic. Does this guy not know how many over priced wine chillers he could get with those points?!?! at least like 8...
So in closing, reward points cards are bad, when I go home this Christmas, I am so going to talk my parents into a rewards free, account fee free banking world, they better believe it.
I just got the top of the line card with reward points from work, I did this cause for some strange reason I qualify but more importantly it just became fee free for me.
The fee for my card for your average joe is a few hundred quid a year, I think that is ridiculous, in fact since I've been on government payments mostly all my life, I find it really difficult to comprehend the whole "bank fees" thing, which is odd considering the place that I work, but anyway...
Back to the card, my card gets a point for every dollar you spend, sometimes if your lucky you can buy stuff and get 3 or more points, this is probably available to you about 90% of the time if your super scrooge about it all (and oh yes, I am). To actually earn enough points to say, get a voucher at a big chain store for the amount of cash you pay in your annual fee, you have to get at least 50,000. Yes that is right, 50,000. so even if you spent all your cash at the 3 point or more stores, you'd have to dolly up at least 16.666K of cash a year. That is after tax folks, and if you want to avoid fees, you can't include rent/mortgage payments in there. 16 and a half thousand is a lot to spend in a year for your regular person, you'd have to blow on average over $300 a week (remember no rent) just to get close to that amount. It is crazy.
But you know if your in a relationship with two incomes and can do the whole additional card thing well you'll probably breeze it in. I know married couple at work that do serious damage with their points, I know some guy who reckons he has accumalated 300,000 points with his wife and kids over the last 1 and a bit, that is some serious coinage being channelled through the plastic. Does this guy not know how many over priced wine chillers he could get with those points?!?! at least like 8...
So in closing, reward points cards are bad, when I go home this Christmas, I am so going to talk my parents into a rewards free, account fee free banking world, they better believe it.
posted by serp at 8:40 PM
1 Comments:
Can't agree more. A lady at work just went to Europe and back on points alone. I know a few others who have too. Then someone else went business class to the US or something (paid for economy, used points to go business - apparently this is a good thing to do, cheaper than buying it).
Makes me think, them people chugging up the express lanes, one after the other, using credit cards, are doing it for the points.
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