Using credit cards and paying right away to get cash back rewards.
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  1. #1
    Registered User KathyB's Avatar
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    Default Using credit cards and paying right away to get cash back rewards.

    I am scheduled for some expensive medical treatment. Even with the insurance, the amount we are paying is still a lot. But we have enough money in the bank to cover it.

    My husband said to use the credit card to get the cash back/reward points. The credit card that we finally got paid off after years of putting extra money towards it. But my husband said we could charge everything and pay it off right away. Our autopay for the card is currently set on pay entire balance.

    I do not think we get actual cash, but we can get gift certificates from places we shop at regularly.

    I know some people get rid of credit cards completely after paying they off. Does anyone keep them and try to game the system by getting reward points without paying interest?
    KathyB

  2. #2
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    We have a card we put most things on, and pay off each month. We can get cash back or use the cash back to put towards the amount on the card, or get gift cards with it. We have only done the amount added back to the card, or gotten gift cards with it. It does work for us, but if you cannot pay it back in full each month, the amount you would get as cash back is actually negated. ( less than what you would pay in interest if you did not pay it off in full) We have disciplined ourselves to pay it off each month as the interest rate is quite high and I do not want to pay any interest if we can help it. We have been CC debt free for several years now so it works for us at this time.

  3. #3
    Registered User Spirit Deer's Avatar
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    It sounds like your medical expenses are a planned expenditure, which you have the savings to cover. IMO, go for the cash back. You will not be carrying a balance because you have savings to pay it off immediately. That's not irresponsible. It's not as though you're charging luxuries with no plan or money to cover the costs. Either way, you have to spend this money. How it leaves your savings and gets to where it's owed doesn't matter, so if you can get some money back in the process, that can only be a win.

    The only thing is to make sure there are no fees involved. If you plan to pay the medical provider directly with a CC, be sure they don't tack on a fee to cover the CC fees they have to pay. If there are fees, you might not come out ahead.

    Good luck with your procedure. 🙂

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  5. #4
    Registered User Spirit Deer's Avatar
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    Also, if you have a high annual deductible and can delay your procedure till after 1/1, it may be to your advantage, insurance-wise.

  6. #5
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    I put everything on my card, and pay it off monthly, for the rewards. I typically just apply the rewards back to the balance every once in a while.

    For medical procedures, there's generally several steps I go through. First, is applying as much as possible to insurance. The remaining amount that I owe, I call the hospital for a discount. After that, I pay with the credit card to get the rewards. Then I use the tax-advantaged HSA for the final reimbursement.

  7. #6
    Registered User jettsmom's Avatar
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    As long as you're you pay it off right away, go for it. I tried that, but then things happened and ran the card up again. Once we pay a card off, it's gone. No more. We're starting to get a savings going so we don't have to use a card for anything.

  8. #7
    Registered User KathyB's Avatar
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    Our insurance is pretty good, but this is for dental work. For some reason dental coverage is never as good as insurance for non-dental problems - and this is with paying extra for a supplemental dental insurance. It would not matter if I did it this year or next year or split it up. The insurance covers half of it. The lady at the front desk says it is one of the better insurances for dental coverage. Well to be fair, it covers most of it for some things like cleaning, cavities and pulling a tooth.

    But my teeth are literally falling apart. The dental technician said she has seen this before with people who have deep fillings with the old metal filling. The metal expands and contracts with heat and cold. Teeth don't. So over a long period of time it can cause the teeth to crack and break. Repairing that is expensive.

    The dentist did mention that dentures would be cheaper...

    I think I have just learned a limit to my frugality. I am willing to pay the extra to not go the denture route.
    KathyB

  9. #8
    Registered User Spirit Deer's Avatar
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    Watching Husby struggle with dentures, I'm right there with you, Kathy. I'm paying out of pocket for extra cleanings insurance won't cover. I hope that will help me keep my teeth. I don't want dentures either.

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