Cash reward cards

[Anonymous No.8835360]

How do banks afford to offer cash reward cards that give things like 5% cash back when their fee is only 3%. Its weird to think that the bank is losing money on me, what's the catch?

[Anonymous No.8835383]

>>8835360
they charge retailers 1-2% for the privilege os allowing you to use their card there.
I'm certain that 5% is temporary and has a max payout. read the fine print.

[Anonymous No.8835403]

>>8835360
dont these cards have an annual fee or some shit?

im guessing theres more people that dont pay their credit card debt off in time than people that do

[Anonymous No.8835473]

>>8835383
>>8835403
No annual fee and no expiration on mine. There is a limit though, they'll only give me up to $2000 cash back a year but considering that I could put up to $40k on the card before hitting that its a bit beside the point.

[Anonymous No.8835503]

>>8835473
wait, what card are you talking about? the one in the pic is only 1-3%

[Anonymous No.8835511]

>>8835503
I just did a generic card for the picture, actual card I'm talking about is a VISA cash rewards card through USAA.

[Anonymous No.8835530]

>>8835511
>It offers 5% cash back for gasoline and military base purchases up to $3,000 annually
well that didn't take long to figure out

[Anonymous No.8835546]

>>8835530
Mine has different terms, I get cash back on everything. Might not still be offered.

[Anonymous No.8835587]

>>8835546
I'd double check that, and keep an eye on the money you're getting back. 5% without restrictions does seem a little good to be true.

[Anonymous No.8835602]

OP its pretty simple desu

>m-muh cash rewards incentives

CC industry is profitable due to the mass abundance of retard normies who lack any sort of discipline when it comes to using credit. Plenty of retards out there who continually go overboard on spending and get eaten alive by compounding interest.

[Anonymous No.8835614]

>>8835360
All answers are wrong.

This especially applies to cards that give signup bonuses.

When they do their marketing on aggregate, they count on idiots not being able to pay off their purchases in time to avoid interest. In general, most people get sucked into this spending money to get points and not realizing they are spending more than they can afford. Once they kick into APR territory, it far makes up what they are losing in rewards.

Basically you are streaming your reward cash off of people who spend so much they pay 18%+ in interest, and BOA keeps the rest.

I love these cards. Have a good day!

[Anonymous No.8835617]

>>8835602
Plenty of retards out there who continually go overboard on spending and get eaten alive by compounding interest.

This. It is about fine / interest and not about the cashback. Cashback is Just an incentive to catch the retards

[Anonymous No.8835618]

the absolute state of people who regularly maintain a sub-10% credit utilization ratio

[Anonymous No.8835619]

>>8835602
One guy gets it, as I was typing mine :D

[Anonymous No.8835630]

>>8835473

Wait, is the max 40k or 2k? Because if it is 2k, you get only $100 back.

[Anonymous No.8835677]

>>8835617
I'm surprised this is legal in today's age, to be honest. Shouldn't Blumenthal be all over this?

[Anonymous No.8835678]

>>8835630
Max is $2000 cash back, last year I got a bit over $600 from it.

[Anonymous No.8835824]

>>8835678
> last year I got a bit over $600 from it.

I think you are litereally full of shit. What are you, 12 going on 45? Quite acting like," I knw credit cards and as long as I keep saying MUH TERMS no one will not question me!"

There is no fucking way the credit card company is giving you that much. What are you? A fucking elite?

[Anonymous No.8835859]

>>8835824
I'm a bit confused how I've got such a good deal too, its why I made the thread.

[Anonymous No.8835869]

>>8835859
Okay well if its a legit company you should be fine, the most ive seen is 3% no fine print but fuck man you got a deal going.

[Anonymous No.8835872]

>>8835859

Why would the credit company give you a good deal. What is so fucking special about you? what is your income, Are you related to a rothchild or something?

[Anonymous No.8835939]

>>8835824
I've staggered several signup bonuses over the past year. Mostly bullshit things like "$200 statement credit for $1000 in spend in 3 months". Run my normal expenses through it, budgeted as if it were cash, paid them off as soon as I spent it.

My wife and I both signed up for these individually so we double hit the signup bonuses.

Just opened up Quicken, over the past 12 months I have had $3122.77 in rewards come back.

Both of our credit is the the upper 700s-lower 800s depending on who you ask.

What is so unbelievable about this?

If the guy is claiming getting that on a single card, then he's full of shit, but $600 is laughable if you're talking about many.

[Anonymous No.8835971]

>>8835939
Also, since we've depleted our signup bonuses for the year... I use TD Bank Cash Visa for eating out(3% rewards), BoA Cash Rewards for Gas and Groceries(2% and 3%) and Wells Fargo Cash Wise for everything else(1.5%). Plus we pay our cell phone bill with the WF card and have built in damage/theft insurance on our cell phones.

[Anonymous No.8836075]

>>8835939
Just some screenshots from creditkarma.com

[Anonymous No.8836087]

>>8836075
Got it backward, that was rewards, here is creditkarma