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Since We Can't Get Good Interest Rates....

May 30th, 2013 at 05:46 pm

Since we can't get good interest rates on our savings, I'm going to be taking advantage of the cash bonuses that credit cards offer. It is tax free money. We do have expenses we purchase anyway. Why not? We do not have plans to take on any big loans for cars, student loans or a house....so who cares about the credit score, which will be just fine since we pay off our cards on time and before accruing any interest.

What prompted this? Rates are terrible on savings!
And....I received an offer from Citi Thank You Preferred to spend $1000 and earn $250 in gift cards. I'd rather have cash, but if I redeem for a gift card we will use in regular spending I can just take that money I would have spent and save it.

My goal is to have all rewards go into savings to earn some piddly 0.85% interest. Yeah!! This money will be saved toward that future down payment.

I know that $1000 in 3 months will be no problem. But now, I am debating whether to apply for a couple more at the same time, to avoid that credit ding that does take place initially. Then I can earn several rewards over the next three months. We have both had the Chase Sapphire Preferred which we spent our $3000 and earned the $400 rewards...really $800 in total. I don't think it has been quite a year since I originally applied, but maybe.

I think I can get $700 by opening FOUR cards:
_Capital One Cash Rewards $100 after $500 in 3 months.
_Blue Cash Preferred $250 after $1000 in 3 months.
_Citi Thank You Preferred $250 gift cards after $1000 in 3 months.
_Citi Dividend Platinum Select $100 after $500 in 3 months.

Now that I write that I realize that is two Citi cards. This would still be $3000 in spending in three months, which is no issue around here. But $700 in rewards, rather than going with the one Chase Sapphire Preferred card.

Of course, after these three months, I could have my husband apply for the same three cards...and likely get another $700 before the end of the year. That is good money, that I wish we were earning on our money market account.

So do you think it is okay to apply for four cards at once and two from the same company all on the same day? Think this is a good plan considering I'm a good credit risk and will not incur debt in the process?

I do already have a Chase Freedom card that is active, but DH does not.

5 Responses to “Since We Can't Get Good Interest Rates....”

  1. FrugalTexan75 Says:

    I don't think it would hurt any to try it. You are very responsible with the use of credit. So if you think you can spend the necessary amounts without spending more than you would normally, I'd say go for it!

  2. LuckyRobin Says:

    It's worth the possible payoff.

  3. snafu Says:

    Is there an annual fee associated with these cards? If it fees are charged after one year, it reduces the amount. if you track renewal, it adds one more chore but avoids fees.

    If savings were used to buy Dividend ETFs [ Exchange Traded Funds] at a discount brokerage, would you have even better returns? Yes there is risk but you will need to judge it's value.

  4. creditcardfree Says:

    @snafu, there is not a fee with these cards. I will not apply for any fee based cards, unless waived for the first year, which I would then cancel before the fee would be assessed.

  5. creditcardfree Says:

    Blue Cash Preferred does have a $75 fee that is not waived, thus I will NOT be applying for that card. I've found the Blue Cash Everyday, with no fee to apply for instead.

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