Why credit cards aren't always bad!

[Chicago526]

I only have one major credit card, and 2 department store cards (JC Penneys and Kohl's). I don't want the temptation to spend beyond my means, and pay off the cards every month.

But about 2 months ago, I was shopping in my new fav store, Eddie Bauer. I was buying a $100 worth of clothes. They offered me 10% off if I signed up for their credit card. I said sure. Saved $10 just for signing my name.

Bill comes the next month, I pay it off. They sent a little flyer along with the bill, which I flip through. On the back page is a coupon for 10% off my next purchase. I wanted to pick up a few more shirts anyway, so save another $7 on my next puchase.

Bill comes the next month, pay it off, get another 10% coupon. Buy more stuff last week online on their site, saved $10.

Just got e-mail saying "thanks for ordering online, save $15 on your next purchase of $75 or more". Since I love the clothes they sell and would shop even without the coupons, I'll have no trouble finding stuff to buy! (by the way, even though their clothes are expensive compared to Target and Walmart, the quality is excellant and I find the clothes hold up longer over time. plus, their fashions are more traditional, so you can wear them longer and still be in "style").

I just wanted to point out to people who don't use credit cards, that if you pay the sucker off every month, it can SAVE you money when you get offers like this, especially when you shop there all the time anyway.

 

[imsayin]

Yes, but be wary of signing up for too many store credit cards just to save 10%. You can ruin your credit rating just by applying for too many credit cards (whether you pay them off or not).

 

[Chicago526]

Oh, I'm not saying sign up for every one you're offered! But if there is a store that you shop at all the time, anyway, you should go for it. But only if you know you can pay it off each month. Otherwise you're paying 20% interest to save 10% witha coupon, and that doesn't make any sence!

 

[Muushka]

I agree Chicago526. That is how I got my Kohl's charge. I resisted for about 2 years, but then the credit card offers were just too good to pass up, so I got it! I have saved a chuck of change because of that silly card! (of course I spent a larger chuck of change for it!) .

 

[ksoehrlein]

Petite Sophisticate/Casual Corner/August Max Woman is another good one. Their CC gives you a percentage off each purchase (I forget if it's 5 or 10) even at their outlet stores and then you can turn around and write a check then and there at the register to pay off the purchase you just made on the CC!

Now if only I could get a more professional/better-paying job to justify shopping there more often...

 

[shirleyb]

Just be careful that you don't shop just because you are getting a good deal. Remember, it's not a deal if you don't really need it.

 

[georgina]

I love Eddie Bauer clothes too! If it works for you, great!

I have an LL Bean Visa that gives me free shipping on LL Bean orders. That's the only shopping I use it for. I am a fan of rewards for places I use anyway, so I also have a a Toys R Us Visa, which rewards 5% back on Toys R Us purchases.

 

[Chicago526]

Oh yes, I need the clothes! I lost 30 pounds last winter and droped a size (huray for me! ) so all the clothes shoping I've been doing is justified. Also, it seems like I'm shopping a lot, but I'm not, I'm just spreding out the purchases to be sure I can pay the bill each month. EB clothes are great, I bought 2 t-shirts there a few years ago, wear them ALL the time, and they still look like new! Some other stuff I bought there last year seems to be holding up just as well, unfortunatly it's all too big for me now. Well, it's not unfortunate that I'm skinny, just that I didn't get to wear the clothes longer...you know what I mean!

 

[MrsPete]

Sure, you can get some good deals by having the right credit card at the right time -- as long as you are disciplined to pay it off every month. The credit card companies know, however, that the majority of their customers will carry a revolving balance. That's why they push the cards!

 

[Muushka]

Many years ago (probably 20) I had a credit card that gave 2% cash back. Loved that card. Until one day they sent me a notice that I was being dropped from the program. Not for lack of use or bad paying habits. I was dropped because I paid my balance every month. Nice, huh?

 

[disneysteve]

I never understand folks who refuse to use credit cards. A good rewards card can earn you hundreds of dollars per year. We use 2 - an AOL Visa and a Marriott Visa. We have not paid a penny for our AOL service for about 8 years since we got that card. At $20/month, that means we've saved about $2000! With our Marriott card, we have already redeemed at least 5 free nites that I can think of and we have enough reward points remaining for up to 8 more nites (and we earn more points each month). We've only had that card for about 3 years so we've already earned hundreds of dollars in free travel in that time.

Find a card that pays rewards that you will actually use and pay the bill in full every month. Try to find a card with no annual fee. If there is a fee, make sure you will earn rewards that significantly exceed the fee. For example, our Marriott card does have a $30 annual fee. It was free the first year. So in 3 years we've spent $60, but we've earned at least 10 times that in rewards so I don't mind the fee.

And, as the OP pointed out, sometimes the companies will offer special deals for card holders only so you can save even more.