Vermonster wrote:rockyrock wrote:augiedog wrote:I bought a $60 Amazon gift card to qualify for the $15 off Amex offer, and it seems that you cannot purchase gift cards (for other stores like WF) with a gift card. I've noticed there are other restrictions on using gift card balances, such as using them for digital purchases (you can't even use their store credit card for that).
I do have to agree that tying up $1500 in Amazon gift cards is excessive and not financially sound. Although $1500 in groceries could be used up quickly unless you eat out constantly. I still haven't decided on purchasing the next $1250 in WF gift cards, but I have received the first $25 in points that I originally thought I wouldn't use.
You mean for you it's excessive and not financially sound.
In the last 60 days I've spent $1390 at Amazon. That puts me on track to spend >$8k in a 12 month period. How is spending $1500 up front to save $150 excessive and not financially sound?
I think what Augie is saying is that for the normal shopper, tying up $1500 in gift cards, simply for the sake of maxing the 10% back is not financially sound. Sadly, the norm on credit card forums is for people to maximize rewards at all costs. It tends to follow the idea that you should spend money in a certain category simply because you get good rewards.
If you are on track to spend $8k at Amazon this year then you are the exception, not the norm. (I would be more interested in spending over the last 6 months though. I have spent $600+ in the last 3 days, but that doesn't suggest I will spend another $1.)
And I agree. Spending $1500 on amazon in a quarter is probably outside of the norm for the general populace. Yes, there are people who routinely spend that much on amazon, but again, does that mean they should? Is all the spend necessary? Or is it merely conditioned spending to maximize rewards? Most of us do not have the disposable income to spend $500 a month on things we don't really need. Now, there are plenty of things people buy on amazon that they do "need" but the line gets blurry and again, people simply spend more to get the rewards. I have spent $500 in a month on amazon before but it was a single large purchase or something out of the ordinary, not a monthly ritual spend.
If you are buying $1500 in GCs to maximize the 10% and ignoring other financial goals like actually saving up some money, etc, then you are losing out a lot more than you are gaining from a 10% discount. While nice, it should not rule your spending, and I think some credit card forum users adjust their spending to match categories (along with overspending to match categories), which is completely working backwards. Just have to be careful of that and if it's something one can't handle, they need to dial back from credit cards altogether. There are several users on myfico who I truly get a sense that they have spiraled out of control, are spending way more than they need to in order to get rewards, etc.
And rockyrock - don't take this as being directed at you. It's just a general statement.