So I signed up for an Amazon Credit Card offered by Chase Credit Card Services because I wanted to try out the idea of earning points. In the first month, I earned 270 pts. at Amazon and 180 at other locations for a grand total of 450 pts. My bill informed that it would take 2500 pts to earn a $25 Amazon gift card. The actual dollar amount I spent to earn my 450 was $179.95. All of the purchases were in my normal budget for the time period. That is, I wasn’t just spending to spend. I would have spent the cash anyway but I wanted to test the value of this offer. The offer includes a 0% charge if the charges are paid by the billing date.
So I set aside the cash, and I paid the bill immediately. Still, for $179 I received 450 in points. In other words, to get my first reward of a $25 reward certificate, not cash, I would have to spend another $716. Hmmm? Do I need anything immediately? No. Can I be patient enough to spend regularly and monitor the repay cycle so as to avoid the 22.49% APR? Probably. Is this meticulous approach to spending, thinking about the purchase, setting aside the money, monitoring the cycle, and using the reward ($25 or more) appropriately, going to be worth my time and effort? I think so. At this point the key word is Patience.
Some side effects: I won’t hold up the line. I don’t have to use my pocket cash. I can pay via online banking. I can monitor my expenses. I can overspend very easily so being careful is even more important. Especially since being able to buy things without caution has always been my down fall.