Playing the card game

[Admin]

You have all heard me go on and on about taking advantage of the credit card offers and getting heaps of goodies without spending a dime of my own money. I spent a few hours on line today researching credit card companies and going through the fine print, phone calls and live chat and am getting my next strategy down. Within the next couple weeks I will restart this thread and show you how I will stock up with my YEARS SUPPLY of staple foods, dry goods and canned goods with NO out of pocket expense. I will post a pic of the goods when I get home from shopping and will have 15 months (or better) to pay for it in dribbs and drabbs with the banks money and not a cent of my own.

We all have monthly expences for food, home and auto. The money goes through our hands. It is spent. With a little common sence you can pay the same bills, with the same money, but get a great deal of free money back and feed the family.

Stay tuned

[mike692]

Looking forward to this! ;D

[Admin]

I knew if there was anybody that would reply to this it would be you Mike I know you play the card game too ;D I been working on a new attack and have some interesting tidbits to share with ya

[mike692]

I just have the Cabelas card now, but the words 'free money' always make me snap to attention.

[Admin]

Aside from the Cabelas points, I put the free dollars into food. It tends to make more of an impact that way for some reason. When the missus and I are eating a fine steak dinner with home made steak fries and a cold one, it's nice to know that Citibank paid for it

[acewoodsman]

you got my wifes attention jc she's good about stuff like that she's really good with numbers when i showed her ur post about the 9 cent steak she said she's got to figure that out

[flyguy]

You are starting to get my attention on this JC....With my and Jazzy's little side company we are starting, we need all the free money we can get..

[badger]

I'm waiting..........

[Admin]

I've got a little more research to do before I unleash this. What I'm intending to do here is a much larger scale than what I'm used to, but it all works the same way. Ya see... credit card companies and any bank for that matter, make their money from interest and there are whopping interest charges with credit cards. People get burried with them because they look at the (available balance) as spending money... so they spend it. It's not long before the interest swallows them and they are broke. This is common knowledge and because of our greediness and (i want it now) attitudes, the credit card companies offer some sweet 0% deals and cash back rewards. The cash back rewards don't mean diddly dick when you carry a balance cause they aint paying you more cash than what they are charging you in interest. This is where we fail, flounder and go broke, and alas... revert to paying cash or check.

Lets just say that we have the following expenses each month:

electric = 75.00
phone & internet = 60.00
cable or satellite = 50.00
insurance = 200.00
heat = 100.00
car payment = 300.00
food, 100. per week x 4 weeks = 400.00
eating out = 100.00
lunches, quick snacks, beer for the road = 50.00
trapping supplies, shoes for the wife & a video = 100.00
gasoline = 150.00
____________________
total $1585.00

I'm sure there are other expenses like auto maint, tuitions, clothes etc etc etc, but lets leave it at 1585.00 and you paid by cash or check. The 1585.00 was earned and spent - end of story and you probably spent .42 to mail out each bill.

With this simple fact, why do people think it cost so much more to use a credit card? It doesn't. You just have to be disciplined NOT to go spend that money. Put it in the bank and leave it there until the credit card bill comes in and PAY IT OFF IN FULL. You would have spent the money anyway by paying by check.

If you paid ALL THESE BILLS with a 2% rewards card, you would have earned 31.70 in cash back. plus saved money on checks and stamps. If your monthly expenses came to 3500.00 you would have earned 70.00 in free money just for paying your normal bills.

70.00 may not sound like much, but if you bought food with it you could have gone to BJ's and bought whole chickens at .59 per pound and stocked the freezer with 118 pounds of free chicken for the family.

Within a couple weeks I will do a major stock up and drop a wadd on a mountain of groceries. This will be on a special 0% for 15 month offer and I will pay this back entirely with rewards earned for all the rest of my spending throught the year. Free money for paying my bills and 15 months to pay it with no interest. At 14 months I will cancel the card and start over on another offer.

Something else to chew on... Some cards pay 5% cash back. Take that 31.70 x 5 = 158.50 in free food for paying one months bills. do that for a year and it's 1,902.00 free cash.

[determinator]

The card game sounds like a good deal.

My problem is that I've had trouble getting credit cards in the past. Over the years, I've always paid for everthing I needed with cash, so I never established a credit record. I always got turned down when applying for one. I do have a debit card for my free checking account.

Any ideas for getting a good credit rating?

Thanks in advance!

Kerry

[payne]

Just out of courosity JC do you have to claim this on your taxes at the end of the year? Just wondering.

You deffently have my and the wifes attention and are also putting the plan in action.
THANKS!!!

[Admin]

Jan 10, 2009 19:47:42 GMT -5 determinator said:

Any ideas for getting a good credit rating?

Nice to finally see some interest in this.

Payne, I have never thought of this but most likely if you wanted to get technical I would think it would fall under taxable income. So the answer is yes. Then what you need is a home business to offset the capitol gains. But that's another game I play.

Kerry, Credit is a funny thing. It can be a valuable asset when used properly but can also be your worst enemy and has ruined more lives that it has enhanced. Personally I would rather pay cash for everything. Cash is great, when I'm spending it I can keep track of how much I have left with no surprises and it is accepted everywhere. It's the old fasioned way of doing things and I'm an old fasioned kind of guy, but cash doesn't pay me back. Credit can be tricky. There are plenty of bait & switch offers and shrinking grace periods that can rob you in a hurry. Credit cards dominate your credit score. You can be late on your car payment, your mortgage, your taxes and your hair cut appointment but be late on your credit card bill and it can be very damaging. On the flip side of that coin however - a good credit card history will raise your credit score tremendously and seems to be the most important factor when applying for any installment plan.

When applying for an auto loan they don't give a fiddlers fart that I have an long history of paid on time installments on cars, properties, loans etc. All they care about is my credit score and it's where do I sign? ;D

A little later today I will post dome things to look out for when applying for credit cards.

Everything that I am posting here is not a reccomendation for folks to run out and charge themselves into oblivian. I am not reccomending anyone to get a credit card. All I am doing here showing you all what I do to put free food on my table. The credit card game takes a tremendous amount of self discipline and organization. and unfortunately it also takes good credit to play.

[wolverine]

Something else to chew on... Some cards pay 5% cash back. Take that 31.70 x 5 = 158.50 in free food for paying one months bills. do that for a year and it's 1,902.00 free cash.

So in other words you have 2 cards involved?
Buy with the one that pays 2%,then pay that card with the one that pays 5%, then pay the latter from your checking?

[Admin]

Jan 11, 2009 9:41:34 GMT -5 wolverine said:

Something else to chew on... Some cards pay 5% cash back. Take that 31.70 x 5 = 158.50 in free food for paying one months bills. do that for a year and it's 1,902.00 free cash.

So in other words you have 2 cards involved?
Buy with the one that pays 2%,then pay that card with the one that pays 5%, then pay the latter from your checking?

Unfortunately you can't pay a credit card with a credit card. That would be sweet though if I could cause I'd have a revolving money train going.

My comment about the 2% vs 5% was that the figures I first posted could earn a higher gain if that person was buying with a 5% card rather than a 2% one. Some cards offer a 0% balance transfer for x amount of months. For example;

I hit a deer once and had 3500.00 damage on my truck. My insurance co sent me a check for 3500.00 payable to me.
I was intending to just sign the check over to the body shop when I went to pick up my truck but saw the VISA sticker in the window.

I whipped out my Cabelas card and earned 35.00 worth of free Cabelas stuff with that purchase ;D

I then transferred the 3500.00 balance from my Cabels card to a Citibank offer with 0% balance transfer for 15 months. ;D

I deposited the 3500.00 check into a 12 month CD.

During that 12 months I paid piddly a** payments to the Citi Bank card cause it was 0% interest.

When the 12 month CD matured I skimmed off my 56.00 in interest and paid off the Citibank card 3 months early.

I cancelled the Citibank card.

By playing this circle game I earned 56.00 in free cash and 35.00 in free Cabelas merchandise.

It's a complete riot

[bluegrasshammer]

JC, How many hours did it take you to earn that $96 in interest on the CD and Cabelas Club card? I realize most of your suggestions take little time, buy how do you factor that variable in?

[Admin]

Jan 11, 2009 12:58:29 GMT -5 bluegrasshammer said:

JC, How many hours did it take you to earn that $96 in interest on the CD and Cabelas Club card? I realize most of your suggestions take little time, buy how do you factor that variable in?

I'm not sure what you mean by How many hours?
When I paid for my body work with the card I automatically earned 35.00 for making a purchase with it. (if I remember correctly) I transferred the balance to the 0% card shortly before the billing cycle ended on the Cabelas card so there was nothing to bill me. Since I had the balance now on a 0% card I only paid the minimum balance while the CD was maturing (which took 12 months). When the CD matured it had earned 56.00 in interest, which I skimmed off and then paid off the balance on the 0% card. All I did during this whole circle was move funds around.

I could have just signed the insurance check over to the body shop, got in my truck and gone home. End of story.

By paying with the card I immediately earned 35.00

Putting the insurance check in a CD earned me 56.00

The 0% card never got used for anything else and stayed in a folder until I cancelled it when I got my money back from the CD.

My friends (at the time) had critisized me a bit for going through all this to earn a measily 56.00 . At the time I earned 1600.00 a week doing carpentry and I could make 56 before morning coffee. But this is free money. 56.00 aint squat but if you put it on the grocery bill it amounts to something. Look at my post about the nine cent steaks. Those 19 steaks only cost 59.00 . I'm not too proud to shuffle funds around to get 19 free Delmonicos.

If you guys knew how many games I play like this your head would spin

[farmergirl]

I'm one of those that always looks at the high interest rates on credit cards I never thought about dropping the card after the free interest rate was over. thank you JC for the good information I thank I might just start getting Ace and me some of that free money.

[Admin]

The interest rate doesn't mean anything when you DON'T carry a balance. The ONLY way to benefit from this is to pay off the card in full every month. No fail.

[bluegrasshammer]

What I meant by hours was how much time did it take to accomplish this? I realize the Cabela's stuff was free, but that isn't really money, just free stuff.

I should have clarified this was about the $56. I just opened a bunch of CD's yesterday, and it definitely took some time at the bank. It is going to take more time if I don't let them automatically roll over in 15 months. I just don't consider the money I would get from them as "free" because of the amount of time it takes to acquire it (from bank visits).

I'm not knocking your method, as you have definitely opened my eyes to some good techniques. I suppose the time in the example you gave is negated by the $3500 that was essentially free in the first place.

[Admin]

I see what you mean now. This post is primarily about earning free money in the terms of (cash back rewards) from using credit cards. The CD I spoke of was an incident that I was using as an example of how I capitolized on a situation and stretched 3500.00 into 3591.00. The Free money from the cash back rewards is by all means free money becasue they do automatic deposits into my account and /or send me checks.

I redeem my Cabelas points only on stuff that I want to buy for myself so that is free money or X amount off the original price. It depends how you look at it.

I don't run out to a bank and open a CD everytime I make a credit card purchase. This was an isolated incedent. Either way, as I said earlier, if it took me an hour at the bank to open the CD and then another 30 minutes to cash it out - I'll certainly surrender 90 minutes of my time for 19 free steaks.

If I looked at time strictly as money I don't htink I'd bother gardening or trapping for that matter.

[patricimo54]

Awesome thread can't wait to share it with my Bride! She is our household financial nerd and a Dave Ramsey disciple again I can't wait to share it with her she is out of pocket until Tuesday.

[Admin]

Here are a few things to consider when shopping for a rewards card: Before I accept any card offers I have this list of questions ready and call and talk to a live person.

NO Annual Fee. I make sure there are no annual fees for having their card. cabelas card has an annual fee of 25.00 but they give it back to you in cabelas points. I can accept that.

Flat rate cash back rewards. If you are applying for a 1% cash back rewards card make sure it is a fixed rate of 1% NOT an (up to 1%) offer. The up to's have too many loopholes and may only give you .025% back unless you spend a fortune.

No fee for canceling the card. Don't get stuck in a contract where you need to keep the card for X many years and whatnot. Make sure you have an easy out when you want to cancel.

Grace period. Make sure there is no less than a 20 day grace period - preferably 25 days.

Redeeming your rewards. I will only apply to cards that will allow me to redeem my rewards in cash and not in coupons for BS merchandise. I prefer to set it on a schedule where they send me the funds automatically when I reach 50.00 .

Multiple cards. Since we pay for everything with cards we want to maximize our cash rewards. I make sure I can get 2 cards on the same account so we both have one.

Fixed rate on rewards. Some cards reserve the right to change the reward agreement and pull the old bait and switch. If I sign up for a 2% cash back rewards card I want it to stay that way. Ask this question before applying.

Expiration date on rewards. Make sure that the rewards you earn have NO expiration date and they will always be available to you.

What purchases earn rewards? Some cards offer rewards only for certain purchases such as travel or restaurants. These cards are useless to me. I want to earn rewards on the things I spend the most on. gas, groceries and utilities. Citibank offers 2& on gas, groceries, utilities and pharmacy items and 1% on everything else. This type of card will earn the most rewards.

View account on line. Not totally necessary but convenient to be able to view your card activity and earnings on line rather than an automated message or trying to talk to some foreigner speaking jibberish .

Grocery dividends. Some cards pay 2% for groceries but 1% on other stuff. If you grocery shop at a Walmart super store you won't earn the 2% because Walmart billing is under a different SIC code and bills all transactions as a department store. Good thing to know.

Credit score. Applying for lots of cards will lower your credit score. It is best to seek out the best card offer with a reliable firm and stick with them. Keeping a steady relationship with one or two banks and occasionally taking advantage of the sweet 0% offers is the best way to go.

[badger]

I'll be the first to admit I'm not the best when it comes to spending wisely, or trying to work the system. But here's something we do that helps out some, and I think it fits this thread.

Anytime we are going to make a purchase at a store that has gift cards wich most do now. We buy them at the local Giant Eagle grocery store that offers points off for gasoline purchases. I don't buy many groceries there because thier higher prices offset what you get in fuel perks. But I can buy gift cards for almost any store around here at Giant Eagle and get free gas for doing it!

For example, we bought gift cards for Home Depot to buy the materials for remodelling our bathroom. That is alot of fuel perks right there.

At Christmas I bought gift cards for the stores where I shopped for my wives Christmas presents.

I just got my first rewards card for Gander Mountain, and I plan to use it to buy gift cards the next time I have to make a large purchase at a Home Depot or a Kohls. I will get rewards money, and fuel perks at the same time.

[Admin]

That's the way to do it Dale ;D Every little bit helps ;D You wouldn't beleive the stuff we get for free. Last month we bought 464.00 worth of canned goods and dry goods and we will pay this all back over 12 months at 0 interest and entirely with rewards money from paying our bills ;D That's free staple goods for about a year for free ;D

[snydboshawn]

Badger, we do that to at times. You are right their prices are out of reach anymore. Buying the gift cards is truly a form of free money even if it is the form of gas.
I just looked over one of my cards and have over 7700 points! Yay! Free Delmonico's Here I Come !! !!