Made me laugh when I stumbled across this article. It's articles like this that make people think we are crazy for getting a new card for a sign up bonus. http://money.usnews.com/money/blogs/my-money/2012/09/05/avoid-these-3-credit-card-marketing-traps
Apparently a "generous rewards program" is nothing more than a "marketing trap." Yep, I've been trapped into flying up front as a result of the dastardly marketing ploys of these scheming credit card issuers. Maybe someday I'll be able to break out and find myself free to enjoy a meal of pretzels and a soft drink while sitting in E- next to the author of this article.
As long as you pay off the balance in full every month and use the card instead of letting it use you, no problem. Most people don't do that. Those generous X0,000 mile rewards are like the lights in Vegas; some loser paid for them.
Like any other product, you need to know how to use credit cards to get the benefits out of them. You really need to be know why you are opening them - and that is NOT to get credit lines, but to get the benefits. Although that can also be problematic - in my several last applications I had some really hard time to convince the representatives why I need more credit. As I never carry a charge, and have large credit lines on the my credit cards (except from Barclay's of course, I don't know why they are so stringent) at one point it might become a problem.
Right, because most people look at CCs as a way to pay for something they can't afford. After just completing a big vacation and using 3 different cards...all are paid off.....except for the NEW charges
Interesting advice, although not so easy for most folks. Heck, its hard enough for all of us to agree on what a mile or a hotel point is worth! For a lot of people the cash back programs are a good deal. But, they're no fun. They're not aspirational. And they don't give us here on the forums much to talk or dream about.
Yeah!! I REALLY wish those marketing vampires would just stop enticing me to sign up for a CC to get a bonus. Taking my family of for on vacation and flying and staying for free or next to free SUCKS. Those people are evil. Making my credit score actually climb over time since I started signing up arrrgghh!
The reality is that the people who have credit card problems would have them with or without mileage or point bonuses. Self contol and discipline aren't the responsibility of the issuers, other than to not extend more credit than is prudent for the owners or shareholders of the company extending the credit. Unlike Las Vegas, the credit card companies do not fill you with alcohol to get you to spend more.
The author is a journalist, and the breadwinner for her family (per her "about" page). I think that's all I need to know about where her perspective is coming from.
But that does not mean she should write about "bonuses" when all the 40k miles you earn goes on one flight ticket
"Avoid These 3 Credit-Card Marketing Traps" - quite uneducated article... must be desperate for posting something or drawing attention....
I agree with circi. The average FT/MPer laughs at this kind of stuff because we study how to maximize these programs. The average person doesn't think about this stuff even half as much as we do and probably won't get half as much value out of the programs either. Heck, before I started this hobby, I *gasp* redeemed my UR points for 1% cash back and thought I was getting a great deal!
