A Young Couples Journey Out Of Debt, And Down A Path To Financial Independence.

Tuesday, November 20, 2007

A New Credit Card and reward points

I signed up for a new credit card last week. The card company was offering 12,500 reward points upon sign up and another 2500 after one year. My wife and I decided to sign up due to the fact that our previous points were convertable to the new card and because of the special offer. With our previous points and the bonus points we now have enough points for three domestic flights, whereas before we only had enough for one.

I use my credit card quite often, buying groceries and gas. I justified the extra yearly cost to have the card on the points we received, and that we decided to travel more in the future.

The yearly cost is $120.00 vs. the $35.00 I paid with my other card. We are offsetting this cost by downgrading my wifes card to a no fee non-rewards card. It makes sense for us as I am the one putting all of the major purchases on my card already, and the fact that my wife hardly ever uses her credit card.

Does the cost justify the rewards, or am I just throwing my money away.

I am always aware of my balance and pay it off each month.

I have already used 30 000 points to fly to Kelowna in January for a snowboarding trip. So far I am happy with my decision. The flight was $575 return, and I only paid $92.00.

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