Okay, so I have written about using credit cards for everything we’d normally buy anyway and getting cash back for it. My favorite credit card company, Discover, has apparently created a new card – Discover It.
Looking Into a New Card
Crystal, you should upgrade your Discover More card to the Discover IT card. The new card has all the same features as the More card but it starts at 1% cash back while the More card starts at just 0.25% cash back. I was able to upgrade mine in about 5 minutes with online chat.
I can’t argue with making more cash back, so I checked this new card out. It really does look identical to Discover More except it does simply start at 1% cash back each year without having to hit a certain spending mark. It even has the 5% cash back rotating categories that my card has now. So I logged in to use the online chat yesterday, but all of the chat agents were busy and I was too lazy to call. I’ll get my butt into gear tomorrow.
Why I Use Credit Cards
I know most financial blogs dislike and even hate credit cards, but I look at them as a bonus if you can keep your spending in check. If having a card tends to make you spend more freely, than credit cards are not for you.
Mr. BFS and I actually have a problem with spending cash - it just seems to disappear. So credit cards work well for us since the charges just stare at us in the face all month. Plus, I use our credit card statements to keep up with our budget. I just print them out and input our spending into the correct categories on our Excel budget for the month. Plus, I like getting 1-5% cash back on bills and purchases that we would make anyway.
Cash Back 2012
Just to give you an idea, here is what we got back in 2012 for using our credit cards.
Discover Cash Back (we use this for everything but gasoline)
- $580 cash back (redeemed about $300 worth throughout the year in gift cards to get extra cash back, for example, $20 at Bath and Body Works for a $25 gift card)
PenFed Visa Cash Back (we use this for 5% back on gasoline and for anywhere that doesn’t take Discover)
- $85 cash back
For us, getting $665 for simply charging our normal expenses instead of using cash is considered a win. :-) I wish I could make our mortgage payment on Discover, lol.
Do you use credit cards for their rewards? Or do you prefer cash?