Captain you are not making sense. I will run the math for you. let's say you have on average $3K spend on a card per month.
$3K at zero percent = $0 .... Great.
Now if you got a cash back card 1-3%...
$3K at 1% = $30.
So you have to be earning more than $30 a month with the float. Times that by 12 you missed out on $360.
Now with your history of consistent payments you likely have the option to get better cash cards. I get 1-5% back on all purchases average of 3.3%... Lets use 3% as the example
Now that's $36k*3% = $1,080... My returns on my credit card are higher than the returns on a CD because It's tax free.
Now lets layer in a sign up bonus of $200 times two cards a year you're looking at $1,480... That's actually a lot of straight cash. You just paid over a months rent for free based on your living expenses.
$1.48K/$36k = 4.1%... That's double the return of your cd earning 3% because it is taxed at 35%.
Banks reward healthy customers with better rewards because they borrow short lend long. Banks are not "waiting for you to fuck up" they want you to have more cash on the sheets. They want you to be richer because then you improve their opportunities due to the reserve ratio.
$3K at zero percent = $0 .... Great.
Now if you got a cash back card 1-3%...
$3K at 1% = $30.
So you have to be earning more than $30 a month with the float. Times that by 12 you missed out on $360.
Now with your history of consistent payments you likely have the option to get better cash cards. I get 1-5% back on all purchases average of 3.3%... Lets use 3% as the example
Now that's $36k*3% = $1,080... My returns on my credit card are higher than the returns on a CD because It's tax free.
Now lets layer in a sign up bonus of $200 times two cards a year you're looking at $1,480... That's actually a lot of straight cash. You just paid over a months rent for free based on your living expenses.
$1.48K/$36k = 4.1%... That's double the return of your cd earning 3% because it is taxed at 35%.
Banks reward healthy customers with better rewards because they borrow short lend long. Banks are not "waiting for you to fuck up" they want you to have more cash on the sheets. They want you to be richer because then you improve their opportunities due to the reserve ratio.