There aren’t very many areas of life where you get rewarded for being bad. In fact, most of us learn at a very young age that bad behavior has its consequences — getting a spanking, having to sit inside during recess, getting after-school detention. As we get older, we realize that things really don’t change that much. Bad behavior still has its consequences although the stakes do get a little higher (e.g. ending up in jail).
However, another thing we learn as we grow up is that everything depends on your perspective. What one person sees as bad may be considered good by somebody else. Let’s take credit cards for example. From my point of view, I’m a great credit card user. Thanks to the credit card companies, I get cash back and rewards for money that I was going to spend anyway.
Credit card companies see things differently though. In fact, the credit card industry even has a name for people like me — deadbeats. That’s right. I’m a credit card deadbeat and proud of it. Guess what? You can be a deadbeat too.
Use your credit card like it’s cash. It doesn’t take a genius to realize that if you use your credit card like it’s cash, then you’ll never end up in debt. Why? Because if you treat credit cards like cash, then you’ll never spend more than you actually have. Easier said than done, I know, but nobody said being a deadbeat was easy.
Pay off your full balance each month. Once you start treating your credit card like it’s cash, you’re well on your way to becoming a successful deadbeat. The next step is simple. Since you’re already spending within your means, you should be able to easily pay off your credit card balance in full every month. Credit card companies hate that.
Cash in on the rewards. So now that you’re spending only what you can afford and paying off the full balance each month there’s only one thing left to do — milk the credit card companies for the rewards. Get yourself some cash back, gift cards, plane tickets, or whatever else you can find, and then enjoy! You are now the ultimate credit card deadbeat. Being bad has never felt so good.
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So they already don’t earn from you and you are getting extra too! Sounds great to me, give the companies what they don’t expect!
Ha! I guess I’m a proud deadbeat!
Credit cards still make plenty of money off of you. When you use a credit card, it costs the retailer somewhere around 2-3%. Paying with cash is actually better, as the retailer does not have to pay these fees and thus can offer lower prices. In fact, I believe Aldi’s (discount grocery store) doesn’t even accept credit cards, presumably because of the fees and the cost of the more sophisticated systems.
Sounds good to be able to stick it to the man!
Nicely done, sir. Big fan of credit card leveraging myself.
Ah, yes, I love being able to use my credit cards, get all the rewards they offer, and yet not pay any interest or penalties on the money that I borrow; it makes me very happy. Definitely a good, good time.
@David: There are some places that will either refuse to use credit cards, or charge you more if you use credit than using cash. You just have to watch out for those places, and use cash instead.
I LOVE sticking it to the credit card companies. They try so many sneaky things to try to lead you to carry a balance that it is a delight to give them a little jab in the financial ribs is just a kick in the pants. I would even use a card for something random, like my car insurance bill or something, just to pay it off in cash immediately and get the “points.”
Jerry
Even better is credit card arbitrage. When you leverage those o% percent balance transfer or new purchase offers. I almost max out the card and carry the balance until it’s time to pay it off. Meanwhile I earn 2% on the balance and then keep the money in my checking account to earn 4% on it. The return isn’t huge and it will ding your credit score a little cause of the high balance, but it’s so nice to make money off of spending.
Credit card companies have recently been trying to raise rates and levy fees for everything since the credit card consumer protection legislation will be enacted soon.
Hah, I liked the way you titled this post and the tips you gave, It’s so true that the reality is, credit card companies want the “bad eggs” and want people who can pay the minimum on the balance, they never want the true good people with credit, you know what I mean?
Till then,
Jean
I wish it would work like that in reality, treating cc like cash i mean. Its never that easy.
@Beaded Napkin Rings. You are right, it’s never that easy to treat money like that