Using a credit card is like smoking. Back in the day, smokers were the cool kids. Now smokers lurk in dark corners away from the disapproving public eye. 

Back in the 1980’s credit cards and shoulder pads were a sign of success. Drop a platinum card and your mates thought you were rich. Now days, banks give platinum cards to customers who borrow the most. Get a huge mortgage and you’ll get an equally prestigious credit card. 

Wealthy people pay cash or use debit cards. Be like the wealthy people.

But my credit card gives me points
The number of credit cards with point schemes have exploded, CanStar track over 130 of them. The reason for the popularity is that they work for the credit card provider, not for most customers. 

Point schemes are worth around $0.005 per $1.00 you spend. Put another way, you’ll get a $1 reward when you spend $200. Most reward cards have a minimum annual fee, to keep things simple let’s use $120. You will need to spend $24,000 a year or $2,000 a month to have enough reward points to pay off your annual fee. In addition, point cards typically have high ongoing interest (approx. 20%) and penalties if you miss a payment. 

If you don’t want to spend over $20,000 a year on your credit card, can’t pay your card in full each month, or occasionally forget a payment, points are not for you.


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