[Capricio]

Originally Posted by pyroguy

Guess I'm the weird one of the group. Don't get the credit card. Credit cards aren't worth it. Statistics show that you will over spend when using a credit card vs. cash. Save your money and don't risk getting into credit card debt. Also, for those of you who say "I pay it off every month", 89% of people don't pay their cards off every month. If you actually do pay it off every month, you are in the vast minority.

If you're fearful about your discretionary spending discipline eroding, just use the card for regular recurring costs. I have several of my utilities, car insurance, cellular, broadband bills all on my GM CC. You can make the monthy amount very predictable and you should be able to have enough discipline to keep that much cash in reserve for when you know the statement will come due.

This is "mandatory" money I have to spend, regardless of discretionary spending, trips to vegas, hooker&blow, etc. Not taking that first $5000 at 5% is just giving up free and easy $250 every year. For gas and groceries, I get a better cash back rate from BoA Cashrewards. It may not make you rich, but not using a rewards card for expenses like these is just leaving money on the table.

[pyroguy]

Originally Posted by DMC75

I will however dispute your statement that the the best way to build wealth is to not have debt. My money makes far more for me than the 4.25% I am paying the bank for my mortgage. Credit, when used intelligently and responsibly can be a powerful tool with which to build wealth.

To each his own, but the number one thing I will argue with your statement is the risk factor. 100% of houses that get foreclosed on have a mortgage, repossessed cars have loans, and while the 4.25% you pay the bank doesn't seem like much, think of what you could do with the money you're giving the bank put into a good mutual fund growing an average of 10%.

Originally Posted by Capricio

If you're fearful about your discretionary spending discipline eroding, just use the card for regular recurring costs. I have several of my utilities, car insurance, cellular, broadband bills all on my GM CC. You can make the monthy amount very predictable and you should be able to have enough discipline to keep that much cash in reserve for when you know the statement will come due.

This is "mandatory" money I have to spend, regardless of discretionary spending, trips to vegas, hooker&blow, etc. Not taking that first $5000 at 5% is just giving up free and easy $250 every year. For gas and groceries, I get a better cash back rate from BoA Cashrewards. It may not make you rich, but not using a rewards card for expenses like these is just leaving money on the table.

I'm not fearful of the discretionary spending. What I worry about is the unexpected. Job loss, disability, death, etc. something that will prevent you from making whatever payment to whoever you owe it to. It is hard for people to come after you if you don't owe any of them anything whether it was for planned expenses or "emergencies".

[DMC75]

Originally Posted by pyroguy

To each his own, but the number one thing I will argue with your statement is the risk factor. 100% of houses that get foreclosed on have a mortgage, repossessed cars have loans, and while the 4.25% you pay the bank doesn't seem like much, think of what you could do with the money you're giving the bank put into a good mutual fund growing an average of 10%.

Risk? Yes, there is always risk. that can not be disputed. But your last sentence actually proves my point.

As a very simple example, If you buy a house that is valued at $400K and you have 600K in cash, putting 100K down and borrowing 300K at 4.25% you will pay the bank roughly 300K over 30 years to use that money. Using the 10% number you gave, compounded annually, the 500K you didnt put down yields 8.7 million over the same 30 years you are paying off your house. take away the 300K you paid the bank, and you net 8.4 million

Now, if you had paid cash for the house (400K) and invested the 200K in the same manner, you would be looking at 3.4 million over 30 years. less than half of the above example.

I know there is more to it in a real world scenario, but you can not escape the math... as long as your yield is higher than your interest rate, you will always come out ahead.

[Karma81]

Originally Posted by DMC75

Actually, you are partially correct... I can only use $1500 of my earnings, but i can use the full $2000 of the bonus earnings. So i can use 3500 total instead of the 4200 that i thought.

So the $700 gets put towards the 2020 Corvette

Oh, ok so I can use the Bonus earnings above and beyond the $1500 max they allow. Thats cool!

[Zack46]

Originally Posted by Karma81

Oh, ok so I can use the Bonus earnings above and beyond the $1500 max they allow. Thats cool!

And you get bonus earnings anytime they offer DOUBLE BONUS points?
I think they did this in December or first week in Jan.?
Not sure though.....................

[DMC75]

Originally Posted by Zack46

And you get bonus earnings anytime they offer DOUBLE BONUS points?
I think they did this in December or first week in Jan.?
Not sure though.....................

I have seen different promotions over the years... sometimes they will double the points, sometimes they will "Top off" your earnings to the max you can use for a vehicle and sometimes they will have different promos for different vehicles... This is the best deal i have seen in a while... My earnings + 2K in bonus points.

[233]

If I have access to supplier's discount, is the card still worth to apply?

[pyroguy]

Originally Posted by DMC75

Risk? Yes, there is always risk. that can not be disputed. But your last sentence actually proves my point.

As a very simple example, If you buy a house that is valued at $400K and you have 600K in cash, putting 100K down and borrowing 300K at 4.25% you will pay the bank roughly 300K over 30 years to use that money. Using the 10% number you gave, compounded annually, the 500K you didnt put down yields 8.7 million over the same 30 years you are paying off your house. take away the 300K you paid the bank, and you net 8.4 million

Now, if you had paid cash for the house (400K) and invested the 200K in the same manner, you would be looking at 3.4 million over 30 years. less than half of the above example.

I know there is more to it in a real world scenario, but you can not escape the math... as long as your yield is higher than your interest rate, you will always come out ahead.

I think I'll live with "only" 3.4 million to know that I don't have to worry about the possibility in 30 years that I could still have my house foreclosed on. If you pay $299,999.99 of the loan and forget the last $0.01 they can still foreclose your house. I'd rather take a 15 year loan, live within my means, spend less on daily purchases because I'm using cash which is proven that you spend less when using cash vs. credit and end up making my money work for me instead of my money working me. We're going to have to agree to disagree because I'm obviously not going to sway you and no offense, but you're not going to sway my opinions. Besides, all the money that I'm not spending extra on things that I might not have needed by using credit, I'll put it back into my investments and get back up to that 8.7 million you figured you'd be up just by saving and investing more.

[Kami]

how often do top offs happen?

[tripowergto]

Originally Posted by Kami

how often do top offs happen?

Typically in Jan/Feb but occasionally at other times.

My 22/yo college grad daughter just applied for her first GM Buypower card last night. It only took a few minutes online and she was quickly approved with a $3K credit limit.

[SS 1LE]

Originally Posted by Tr6

I decided to grab it. Even if you don't buy a vehicle with the points you can always SELL the points for real CASH to another person who is going to buy a car.

This right here. It will never go to waste...

[Zack46]

Originally Posted by tripowergto

It only took a few minutes online and she was quickly approved with a $3K credit limit.

Nice!

[Kami]

Originally Posted by tripowergto

Typically in Jan/Feb but occasionally at other times.

My 22/yo college grad daughter just applied for her first GM Buypower card last night. It only took a few minutes online and she was quickly approved with a $3K credit limit.

So would I be able to use my top off if I get one and buy some else's point for cheaper?

[VQ35DE]

Originally Posted by Kami

So would I be able to use my top off if I get one and buy some else's point for cheaper?

No.