Who Actually Pays For Credit Card Rewards?

To put it simply: don’t spend money you don’t have, and always pay off your monthly debt in full.

I treat my credit cards like debit cards. I spend only what I know I have, and pay my credit card off in full.

I sometimes wonder how successful investors manage to accumulate enormous wealth from their investment endeavours because I am an avid investor. I currently have equity from a recent house sale that exceeds $545K, but I'm not sure what to do with my money next. Is now the right moment to buy stocks, or should I wait for a better opportunity?

“If everyone made the rationally correct decision at every point, the banking industry would probably not exist.” Profoundly true.

You need to use a credit card like a debit card. If you carry a balance except for large planned purchase, you're gonna have a bad time

My Amex limit is about $7,000 a month. I’m fully aware I could not afford that level of spending, so I only spend about $600-$700 a month because I know I can afford to pay it off, in full, every month.

I dont even wait for the end of the month, as soon as a pending purchase goes through, I pay it the next business day

This is not a credit card issue, this is a user error issue. Knowing how to leverage debt and maximize the rewards of a credit card is very profitable.

I never once paid any interest in 20 years.

People in credit card debt got a credit card without knowing how to use it. It’s an education issue, not a credit card issue. I had a bankruptcy because I was stupid and didn’t know how to use credit, then I learned and now I’m raking in rewards with no problems.

I went in-person to my bank to ask some questions about a new rewards card they were offering. I must have come off as a little clueless because the employee I was speaking to had this moment where he looked at me for a long second, covertly checked where his boss was, and told me quietly, "The bank only wins when you fail. They are expecting you to fail." I personally did not need that warning, but he made a judgement call about my financial literacy and instead of selling me on the card, he tried to protect me. Thank you, bank dude.

I am blue collar, I make $700+ in rewards annually and have never paid interest. I think financial literacy is the key.

Simply pay it off at the end of each week……… if you know you won’t have the money, stop spending over the amount you earned.

I alway pay all cards off in full. I keep them all on autopay, but I keep track via a spreadsheet to make sure I don't overspend. I had a record amount of cash back this year and work actively to maximize our cash back/ travel points from month to month on basic purchases.

Thanks for his video! It's been very informative and educational. I have three CCs Capital One, City, and my debit card from my credit union. I always pay in full what I owe and I'm fully awara of the 30% interest rate. In this inflation era, I'm trying to use my CCs rarely but it is a colosal task. Until know I have been blessed in being able to pay in full my debt each month ...but CCs are like swords with double edges.😱

I got in trouble with cards many years ago when I was living paycheck to paycheck. I only owed $2-3,000 USD, but it was still a struggle to eliminate them. I cut up my cards and closed the accounts. I now have a job with a lot of travel. For the first several years, I could only get $350-500 credit, so had to keep some cash in a separate checking account to cover work travel. My credit then improved from lousy to great over a 3 year period. I do use a card with a cashback reward for travel and I pay it off before the due date. So I make a few hundred $ a year. But I am at a point in my life where I can afford to pay it off. I am well aware of the trap because I have been there. It isn't designed for the benefit of the consumer.

Don’t even look at the credit limit. You should know how much you can afford monthly, so you can pay it off weekly or by the end of the period. If you can’t pay off the card, then you should use cash or debit card.

Pay my cards off weekly. Get $3000-5000 back each year. Have not paid interest in years.

Thank you for sharing your experiences and for allowing us to share them with you. Safe trip.

I have literally never paid a credit card fee or interest in my life. Just pay it off every month or don't use it if you cant.