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

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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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    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.

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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.

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    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

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    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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    If its a large dental bill, you might inquire whether or not they will reduce the amount owed if you pay cash immediately.

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    I'm kinda in the same boat. My fillings have gutted my teeth and there's more filling than tooth. Osteoporosis isn't helping and any filling replacement can break the tooth. Of course, they want to crown for $1100 but I'll end up with dentures. Way cheaper than implants as I don't heal well.

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    Moderator aka AmyBob AmyBoz's Avatar
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    If you can pay it off immediately, then I say charge it. If you are getting cash back or rewards, you are getting more for your money than just fixed teeth. We charge everything to our CC, pay it off each month, and get cash back. As long as you are sure you can be responsible with the CC, then I see no problem with keeping it for emergencies such as this.
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  13. #12
    Registered User josantoro's Avatar
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    I do this, I put as much as possible on CC for reward points. Only exception is gas, there is a local chain that gives you a 10 cent per gallon discount for linking your bank account. I figured it out and it's better to get the 10 cents off.

    Of course I pay off the CC in full every month.
    Make America Kind Again.

  14. #13
    Moderator aka AmyBob AmyBoz's Avatar
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    Quote Originally Posted by josantoro View Post
    there is a local chain that gives you a 10 cent per gallon discount for linking your bank account..
    10 cents a gallon is nothing to sneeze at! That's a great deal!
    Blog: http://amysreallife.com

    Amy
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    Always remember others may hate you, but those who hate you don't win unless you hate them. And then you destroy yourself."

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