Re: reward credit card vs regular credit card
This is probably old hat to you pros out there but I would be wary about using credit cards all together. It sounds as if you all are extremely disciplined with them - which sets you apart from most everyone else - but I've thought a lot about the rewards system with the credit cards and a few things come to mind:
1) Keep in mind that the cc companies still do these reward programs - which means they're profiting from them.
2) Studies have shown (Dunn & Bradstreet, McDonald's/Taco Bell) that consumers spend more money when they use plastic than when they lay down cash - a psychological thing - so getting that 1% cashback might not be saving you anything. The study by D&B showed consumers spent an average of 18% more when they used plastic instead of cash.
3) Having those "rewards" in the back of your mind might (I have absolutely zero proof for this) subconsciously move you towards spending more for the reward.
4) Something like 65% of rewards are never redeemed.
Irregardless of paying your balance off in full and avoiding interest, you might be just spending more than you would otherwise. It's something to think about. I'd be interested in comments.
By the way, new here and absolutely LOVE it.
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