Should we get a rewards credit card?

**HundredK** · 09-21-2016, 11:07 AM

I use a rewards card - an American Express. I like their security features and the rewards are great (I often get free airline tickets with points), and you pay it off each month. That said, typically credit cards are subject to fees that debit cards are not. So I know with many services, if you pay something large like rent using a debit card, there's no fee, but if you use a credit card there might be a hefty fee attached.

**disneysteve** · 09-21-2016, 11:18 AM

If you can actually pay your rent with a credit card for no additional fee, I would certainly consider that.

If so, find a reward card that has a nice sign up bonus and go for it. Just don't fall into the trap of using it to buy things you can't afford. And always, always, always pay the bill on time in full every month. Don't ever carry a balance.

**HundredK** · 09-21-2016, 11:23 AM

RadPad was doing a no fee promo for paying your rent with cc's. They had to cancel it like 3 days after issuing the promo because too many people took them up on it.

**disneysteve** · 09-21-2016, 11:42 AM

Originally posted by HundredK View Post

RadPad was doing a no fee promo for paying your rent with cc's. They had to cancel it like 3 days after issuing the promo because too many people took them up on it.

That's no surprise. I'm shocked that anyone thought that would be a good idea.

I'd love to be able to pay the mortgage with a CC.

**DaveInPgh** · 09-21-2016, 12:15 PM

Originally posted by annibe11e View Post

However, we pay our rent ($975/mo.) through Google wallet using our debit card. If we were to run this through a credit card that offers cash back, would that be worth much?

Based on the replies so far, not so sure you will be able to switch your rent payment from debit card to credit card.

On the chance you do have it as an option, it is most definitely worth it if you pay off the card every month. Using the Fidelity Rewards card that I have, you would earn $19.50 (2%) on a monthly basis.

I would put every single expense of mine on my rewards card if I could. Sadly, it is not an option for many of my expenses and others charge a fee for using credit vs. debit.

**disneysteve** · 09-22-2016, 04:06 AM

Originally posted by Mikey

But my card only rewards a measly 0.75%

That's odd. I thought 1% was pretty much standard. What card is that?

**GoodSteward** · 09-22-2016, 04:47 AM

It depends on 1. how much debt you have, 2. are you adding to it, and 3. how much cash flow do you have?

1. If you have a lot of debt stay away. Don't add to the complications of getting out of debt with the temptation of using this card just for points.

2. If you are adding even 1$ to your debt at any point STAY AWAY. That new card will have 0% and you will justify a lot that will only make this worse. (Been there)

3. If you don't have much cash flow that card will be tempting to use in a tight, which you will get in often with a low cash flow (money that isn't obligated to a bill/need). Cash flow in this sense is how much you have left to use however you need. If you don't have much, you can't undo any bad choices quickly and you are likely to see a need when you are out of cash.

Until you are out of debt or have a proven track record of not rolling new debt I wouldn't touch another card. The rewards are not worth the risk. A rewards card was my excuse to get a credit card when I had some rolling debt, and I ended up rolling more.

If you have any chance of a possibility of rolling debt, stay away!

Once i learned how to manage a card properly I started using it right, and now It is a benefit to us. I recommend trying the online program YNAB. It is awesome how it handles credit cards for you to avoid rolling debt.

Should we get a rewards credit card?