Gotta love free silver!

Wingsrule

Cash back credit cards are a great way to put back some money and not even realize it. The silver below was paid for with such funds, and I'll be hitting a LCS tomorrow to try and spend the rest!

hchcoin

As long as people pay them off during the grace period

Nice stack!

Wingsrule

$0 in interest and fees.

ChrisRx

How much did you need to spend for that

OnlyGoldIsMoney

I look forward to the $400 to $500 bonus offers for accepting new credit cards - typical in late summer and early fall. I can spend the requisite $3,000 over the first 90 days with a handful of bullion purchases. Most years I can pull in $1,000 free that way.

BAJJERFAN

@OnlyGoldIsMoney said:
I look forward to the $400 to $500 bonus offers for accepting new credit cards - typical in late summer and early fall. I can spend the requisite $3,000 over the first 90 days with a handful of bullion purchases. Most years I can pull in $1,000 free that way.

I have not seen those kinds of offers in some time. Now it's $100 or $200 if you're lucky.

BAJJERFAN

@ChrisRx said:
How much did you need to spend for that

A little estimative math. A kilo bar is about 32 ounces. At $18.50 per ounce, that's around $592. With 2% cash back you'd need to spend about $29,600 to generate that. I have a couple that give 5% back on gasoline, but that's only up to a few thousand dollars worth.

Bochiman

@BAJJERFAN said:

@ChrisRx said:
How much did you need to spend for that

A little estimative math. A kilo bar is about 32 ounces. At $18.50 per ounce, that's around $592. With 2% cash back you'd need to spend about $29,600 to generate that. I have a couple that give 5% back on gasoline, but that's only up to a few thousand dollars worth.

If you charge almost everything, and you have a house, that's pretty easy to do

abcde12345

Most morgages don't allow credit card payments.

BAJJERFAN

@Bochiman said:

@BAJJERFAN said:

@ChrisRx said:
How much did you need to spend for that

A little estimative math. A kilo bar is about 32 ounces. At $18.50 per ounce, that's around $592. With 2% cash back you'd need to spend about $29,600 to generate that. I have a couple that give 5% back on gasoline, but that's only up to a few thousand dollars worth.

If you charge almost everything, and you have a house, that's pretty easy to do

I use my CC for just about everything and every place that will take it. I think I rack up somewheres near that figure every year.

BAJJERFAN

@ChrisRx said:
How much did you need to spend for that

Also, I don't think that reward points expire, so you can accumulate them for quite awhile.

mkman123

Very nice!!

Bochiman

@BAJJERFAN said:

@ChrisRx said:
How much did you need to spend for that

Also, I don't think that reward points expire, so you can accumulate them for quite awhile.

Mine aren't "points".... actual 2% cashback on EVERYTHING I use the card to purchase. Straight into my brokerage account. I get a tidy sum monthly and love it.

The OP has the right idea. I use my ebucks that way, but my CC is pure cash into my brokerage so I do stocks with it.

BAJJERFAN

@Bochiman said:

@BAJJERFAN said:

@ChrisRx said:
How much did you need to spend for that

Also, I don't think that reward points expire, so you can accumulate them for quite awhile.

Mine aren't "points".... actual 2% cashback on EVERYTHING I use the card to purchase. Straight into my brokerage account. I get a tidy sum monthly and love it.

The OP has the right idea. I use my ebucks that way, but my CC is pure cash into my brokerage so I do stocks with it.

With mine [Bank of America] I accumulate cash at 1% with bonus of 2% or 5% depending upon category. You get 1 point/1 cent for each dollar spent. I can redeem for statement credit, get a paper check or put it into my associated brokerage account. Since the brokerage account is an IRA and I'm retired, option 3 isn't doable.

cohodk

Darn evil banks. Lol

Death of cash is a good thing?

Way to go for all who invest their savings. Thumbs up.

Geckster109

What does it tell you about the value....the REAL value of cash when big banks are happy to just give it away through promotional offers? Im glad some of you are taking advantage of this before the music stops!

bigjpst

@Geckster109 said:
What does it tell you about the value....the REAL value of cash when big banks are happy to just give it away through promotional offers? Im glad some of you are taking advantage of this before the music stops!

They are giving away a commission to us for getting them the extra 2.5%+ in cc processing fee for merchant payments. I don't think it's about the "value" of the dollar, it's about them training us to make them more money.

Geckster109

@bigjpst said:

They are giving away a commission to us for getting them the extra 2.5%+ in cc processing fee for merchant payments. I don't think it's about the "value" of the dollar, it's about them training us to make them more money.

Considering that the "break even" for the above would require a 5x increase in credit card use, I doubt this is the reason!

bigjpst

@Geckster109 said:

@bigjpst said:

>

Considering that the "break even" for the above would require a 5x increase in credit card use, I doubt this is the reason!

Not sure what you mean. Every time I use my credit card instead of cash they get a fee that they would not have gotten. Add to that most people don't pay off their bills every period and fees are collected in the balances.
It's about training us to stop using cash. I could put on my tinfoil hat and wonder if that means the death of cash etc, and maybe it is, but I thing it's more about generating income for the cc companies than any conspiracy about how they value the dollar. Jmo

Geckster109

@bigjpst said:

@Geckster109 said:

@bigjpst said:

>

Considering that the "break even" for the above would require a 5x increase in credit card use, I doubt this is the reason!

Not sure what you mean. Every time I use my credit card instead of cash they get a fee that they would not have gotten. Add to that most people don't pay off their bills every period and fees are collected in the balances.
It's about training us to stop using cash. I could put on my tinfoil hat and wonder if that means the death of cash etc, and maybe it is, but I thing it's more about generating income for the cc companies than any conspiracy about how they value the dollar. Jmo

It means that if an individual spends $10,000/year on goods and services via credit card with no cash back program, and carries no balance, the CC company gets 2.5% of that amount from the merchant paid fees for a total of $250.

If that same CC company institutes a cash back program of 2% for all purchases, then that same individual would need to spend $50,000/yr on goods and services via credit card to where he gets 2% of that 2.5% and the CC company gets just 0.5%, or $250.

If the customer increases spending by any less than 5x, the CC company loses. Example: $25,000 in spending nets the CC company just $125 now instead of the $250 it made when the customer spent just $10,000 without cash back incentives.

All the above assumes the customer does not carry a monthly balance of course. And for those who are going to utilize the cash back benefit, they will not be paying any interest. Those who do carry balances will quickly realize they are shooting themselves in the foot because of the cash back incentives.

bigjpst

@Geckster109 said:

@bigjpst said:

@Geckster109 said:

@bigjpst said:

>

Considering that the "break even" for the above would require a 5x increase in credit card use, I doubt this is the reason!

Not sure what you mean. Every time I use my credit card instead of cash they get a fee that they would not have gotten. Add to that most people don't pay off their bills every period and fees are collected in the balances.
It's about training us to stop using cash. I could put on my tinfoil hat and wonder if that means the death of cash etc, and maybe it is, but I thing it's more about generating income for the cc companies than any conspiracy about how they value the dollar. Jmo

It means that if an individual spends $10,000/year on goods and services via credit card with no cash back program, and carries no balance, the CC company gets 2.5% of that amount from the merchant paid fees for a total of $250.

If that same CC company institutes a cash back program of 2% for all purchases, then that same individual would need to spend $50,000/yr on goods and services via credit card to where he gets 2% of that 2.5% and the CC company gets just 0.5%, or $250.

If the customer increases spending by any less than 5x, the CC company loses. Example: $25,000 in spending nets the CC company just $125 now instead of the $250 it made when the customer spent just $10,000 without cash back incentives.

All the above assumes the customer does not carry a monthly balance of course. And for those who are going to utilize the cash back benefit, they will not be paying any interest. Those who do carry balances will quickly realize they are shooting themselves in the foot because of the cash back incentives.

But all of this assumes that the individual would use the CC either way. Many people use a card or a certain card solely because they get the cash back. Many here have stated just that. If they didn't get the cash back they may use another payment including cash where the CC gets nothing. So yes you make a point about the potential for loss but my arguement is that by offering the cash back they bring more users into the pool.
And without looking it up I would assume that the majority of people carry some balance, at least from time to time otherwise the CC companies wouldn't be in business.

BAJJERFAN

Unless the merchant [like Heritage] is offering you an incentive to use cash, it's perfectly OK to use a CC whenever you can. You get the protection the CC offers. I don't necessarily spend more because of a CC.

bigjpst

@BAJJERFAN said:
Unless the merchant [like Heritage] is offering you an incentive to use cash, it's perfectly OK to use a CC whenever you can. You get the protection the CC offers. I don't necessarily spend more because of a CC.

I agree but my point was regarding the reason why cc companies offer cash back. IMO it's about generating more revenue and not about their perceived value of the dollar.
Heck they used to give free toasters at banks Why not points.

BAJJERFAN

@bigjpst said:

@BAJJERFAN said:
Unless the merchant [like Heritage] is offering you an incentive to use cash, it's perfectly OK to use a CC whenever you can. You get the protection the CC offers. I don't necessarily spend more because of a CC.

I agree but my point was regarding the reason why cc companies offer cash back. IMO it's about generating more revenue and not about their perceived value of the dollar.
Heck they used to give free toasters at banks Why not points.

Agree too. I look at it like junk mail in that if it wasn't worthwhile they wouldn't be doing it. There are 2 ways that they can increase revenue. Get you to spend more or get you to put more of what you do spend on their card. For myself, I'm not going to purposely spend more just because of some incentive.

The Heritage incentive amounts to basically what you would get back in reward points so it's mostly a wash.

Bochiman

@bigjpst said:

But all of this assumes that the individual would use the CC either way. Many people use a card or a certain card solely because they get the cash back. Many here have stated just that. If they didn't get the cash back they may use another payment including cash where the CC gets nothing. So yes you make a point about the potential for loss but my arguement is that by offering the cash back they bring more users into the pool.
And without looking it up I would assume that the majority of people carry some balance, at least from time to time otherwise the CC companies wouldn't be in business.

You'll learn...you can't use logic to argue with gecko.....

Wingsrule

I would have spent every one of those dollars in 2016 regardless of the method of payment. And unlike eBay bucks, I didn't pay a "premium" to get a discount or a rebate.

bigjpst

@Wingsrule said:
I would have spent every one of those dollars in 2016 regardless of the method of payment. And unlike eBay bucks, I didn't pay a "premium" to get a discount or a rebate.

Exactly my point. You would have spent the money either way, but you chose to use the card where you got the cash back. Good for you because you got the bonus silver, good for the card issuer because they collected the merchant fees.
Had they not offered you the casback you may have used that green stuff wadded up in your pocket that has no value.

Wingsrule

"Had they not offered you the casback you may have used that green stuff wadded up in your pocket that has no value. "

Nah, I would have have used the card that 'only' paid 1% back.

golden

Wow. I have not though of that. I think I will use the cash back to buy common circ. Silver Dollars.

BAJJERFAN

@Geckster109 said:

@bigjpst said:

@Geckster109 said:

@bigjpst said:

>

Considering that the "break even" for the above would require a 5x increase in credit card use, I doubt this is the reason!

Not sure what you mean. Every time I use my credit card instead of cash they get a fee that they would not have gotten. Add to that most people don't pay off their bills every period and fees are collected in the balances.
It's about training us to stop using cash. I could put on my tinfoil hat and wonder if that means the death of cash etc, and maybe it is, but I thing it's more about generating income for the cc companies than any conspiracy about how they value the dollar. Jmo

It means that if an individual spends $10,000/year on goods and services via credit card with no cash back program, and carries no balance, the CC company gets 2.5% of that amount from the merchant paid fees for a total of $250.

If that same CC company institutes a cash back program of 2% for all purchases, then that same individual would need to spend $50,000/yr on goods and services via credit card to where he gets 2% of that 2.5% and the CC company gets just 0.5%, or $250.

If the customer increases spending by any less than 5x, the CC company loses. Example: $25,000 in spending nets the CC company just $125 now instead of the $250 it made when the customer spent just $10,000 without cash back incentives.

All the above assumes the customer does not carry a monthly balance of course. And for those who are going to utilize the cash back benefit, they will not be paying any interest. Those who do carry balances will quickly realize they are shooting themselves in the foot because of the cash back incentives.

AFAIK and I could be in error, but I believe that the merchant absorbs most of the cost of reward points/cashback and not the CC company.

bigjpst

>

AFAIK and I could be in error, but I believe that the merchant absorbs most of the cost of reward points/cashback and not the CC company.

I've heard this from merchants, but I think it' s a bit more complicated. My CC processor charges me the same percentage no matter what card is used so it is likely built into that.

SurfinxHI

I convert mine to air miles, as those seem worth more to me. 20k points = $400 ticket or less, and I get to keep those miles as well. I can frequently rack up 40-80k points in a year, depending on expenses. And yes, I carry no balance. That means that Christmas with the in laws or parents is typically "free" for both of us. Or a European vacation flight this year.....in business class!

Wingsrule

Made it to a local show yesterday to spend a few more free dollars!

1630Boston

I love all of this ....BUT.......I really do not believe that anything is "FREE"
just my opinion JMO

asheland

Nice bars, Wingsrule!

coinspacks

i just got a coupon code mailed to me from provident $20 off a $100 purchase.
thats like a free silver oz..i had to place an order...they forced me

Geckster109

108 oz of silver @ $18 = $1944. At a 2% CB rate, that's $97,200 in CC purchases. At a 1.5% CB rate (which is what I get) that's $129,600 in CC purchases. Either you are wealthy, or you have let the CB bonuses pile up for a few years!

Wingsrule

Your math looks good but your conclusions are incorrect. The card I use use gets 1, 3 or 5% depending on the spending category. All of that spending was in 2016.

Lots of folks here are wealthier than I in terms of a bigger house and more 'stuff', but I have a beautiful wife and daughter, so that is 'wealthy' enough for me.

Geckster109

Ok, the 5% does bring down the required amount of CC purchases quite a bit. But at 1-3-5, if spending was an equal distribution across those categories, we end up with an average of 3% CB which would require $64,800 in total CC purchases for the year! Still a very significant amount for sure.