stealing from the CC companies?

[gamecock43]

I was reading about the psychology of credit card reward programs thread...and here is my question that developed out of that combined with the govt handouts thread too.

If a CC company offers rewards to you (5% cash back, points, giftcards), and you choose to 'stretch the system' and charge everything in your life, then pay it in full every month to 'earn' the reward, is that not stealing in a way?

I understand the gifts are provided to entice a person to use one card over another. The CC company understands that some percentage of people WILL pay in full at the end of the month, but many will not. The CC pays out a bit in rewards but earns it back and then some in intrest.

But some sneaky responcible people have learned to milk the system and charge up tens of thousands of dollars a year, pay it in full before the CC company gets any profit, and then also gets hundreds of dollars in rewards.

Anyone feel guilty? I know CC companies are the devil. It's us against them and there are many more 'them' than 'us' making a profit here, but....guilt? anyone?

[MonkeyMama]

Pfffft.

I earn about 3% back on all my charges, on average. & the credit card companies charge something in the realm of 3% for every transaction. (Is it maybe more?) So I figure, I come out even. (Everything I buy probably has a 3% premium due to the credit card companies, so if I get 3% back, maybe I am even. Maybe I haven't given those blood suckers one dime).

Stealing? Puh-leez.

& I am sure they feel real bad charging those 25% interest rates. About as bad as I feel taking all those rewards.

[SnoopyCool]

Nope. No guilt here. They've already sold my personal info to lots of their marketing buddies, so they can pay me rewards.

[Like2Plan]

Originally Posted by gamecock43

If a CC company offers rewards to you (5% cash back, points, giftcards), and you choose to 'stretch the system' and charge everything in your life, then pay it in full every month to 'earn' the reward, is that not stealing in a way??

Ummm, No.
If you pay the CC company 15-20% in interest (or whatever), then technically you wouldn't be getting 5% back, would you? You would only be getting a slight discount on the rapacious interest you are paying.

Originally Posted by gamecock43

Anyone feel guilty?

Ummm, No.

[cptacek]

They charge the store owner a percentage every time the card is used. They are also betting that most people won't pay the bill in full, so it is a slight risk that they have to take in order to get people to use their card. It makes good business sense for them, because how many people slip up and forget to pay the bill on time? Or thought they could handle the 0% interest offer but they really can't so eventually they will get the money.

Just because one can play by their rules to one's advantage shouldn't make you feel guilty.

[gamecock43]

Well, I dont feel guilty because many of you guys have mastered credit card thriftyness! I have proven to myself that the company gets plenty of money through me. So no guilt here! Just checking in on you all.

[MonkeyMama]

I hadn't even thought of selling my info. I figured they were ahead though, or they would have dropped me. (Though, just as likely, they are waiting for me to stumble and hit me with some insane interest. )

[disneysteve]

They wouldn't be doing it if they weren't making money. They collect a fee every time I use my card. And I assume they collect some type of fee from the company whose name is on the card - like my Marriott Visa.

All I'm doing is following the rules. Why should I feel guilty about that?

[feh]

Originally Posted by gamecock43

But some sneaky responcible people have learned to milk the system and charge up tens of thousands of dollars a year, pay it in full before the CC company gets any profit, and then also gets hundreds of dollars in rewards.

Anyone feel guilty?

Absolutely not.

[Terin]

My eye ear nose and throat specialist charged a nice jaguar to his cc. Then in a week payed it off, just for the frequent flyer miles. I think the rewards are honestly geared more towards the people capable of doing this. As the company is making its real money off of the late fees and interests they charge to the "regular joes" If you are capable of doing this and getting "free" things then more power to you.

[maat55]

Originally Posted by gamecock43

I was reading about the psychology of credit card reward programs thread...and here is my question that developed out of that combined with the govt handouts thread too.

If a CC company offers rewards to you (5% cash back, points, giftcards), and you choose to 'stretch the system' and charge everything in your life, then pay it in full every month to 'earn' the reward, is that not stealing in a way?

I understand the gifts are provided to entice a person to use one card over another. The CC company understands that some percentage of people WILL pay in full at the end of the month, but many will not. The CC pays out a bit in rewards but earns it back and then some in intrest.

But some sneaky responcible people have learned to milk the system and charge up tens of thousands of dollars a year, pay it in full before the CC company gets any profit, and then also gets hundreds of dollars in rewards.

Anyone feel guilty? I know CC companies are the devil. It's us against them and there are many more 'them' than 'us' making a profit here, but....guilt? anyone?

I hope you are kidding. I say take them suckers down. They have some of my money and I intend to get it back.

[moneybags]

Originally Posted by gamecock43

If a CC company offers rewards to you (5% cash back, points, giftcards), and you choose to 'stretch the system' and charge everything in your life, then pay it in full every month to 'earn' the reward, is that not stealing in a way?

Stealing is taking something that is not yours. If the CC company offers me a reward, and I take it, within their terms, it is not stealing. If they wanted to eliminate users like me, they could simply tie the rewards to a balance carried forward. They would then lose the approximate 3% merchant fee on all my purchases.

[LivingAlmostLarge]

Guilt over what?

[GrimJack]

CC companies consider people who pay off their cc bill each month Deadbeats. Go ahead and game their system but remember - it only takes one slip and the cc companies will pwn you!

[glock35ipsc]

I don't have a CC so I can't say for sure.....

[LivingAlmostLarge]

Grimjack, how many years of using CC does it take to not fall into the deadbeat category? 20 years? I'm barely 30 and coming up on 20 years of CC usage. Never a late fee, never paid %.

When do I move out of the category of possible deadbeat and into responsible person?

I think that people who pay CC in full are likely people who always pay bills on time. They likely have a large buffer in a checking account and many PF bloggers who use CC have autopay. I don't because I pay every bill asap.

Guess i'll be owned one day, near death.

[glock35ipsc]

Originally Posted by LivingAlmostLarge

When do I move out of the category of possible deadbeat and into responsible person?

I guess when one payment is 37 minutes late for some strange goofy reason beyond your control, then they will raise your rate and consider you responsible!

[cptacek]

They call you a deadbeat because they aren't earning interest from you. You should aspire to be a credit card deadbeat!

[sounderella]

Guilt? Heck no! They make too much money on interest and various fees for me to feel guilty about getting a reward that they offered me in the first place

[Coleroo]

LOL.

I'll admit that I use to question myself as to whether I should feel guilty or not, back when I "used" the system.

But then I remind myself of all the sneaky ways they trick consumers....especially in their 3 pt arial fine print...

....and when I remind myself of the time when I was one day late in 5 years with my online payment...and the late fee took me 39 cent over the credit limit and I was hit with a $29 over the limit fee as well..

and I know that...NO...the feeling of guilt is just not there.