rewards induced spending

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12 posts

do rewards tempt you to spend more?

yes, i spend more
3
20%
no, my spending is unaffected
12
80%
i dont have a rewards car
0
No votes
N/A
0
No votes
 
Total votes : 15

ashleyAMX
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rewards induced spending

Postby ashleyAMX » Mon Mar 21, 2011 9:08 am

So, lately I've noticed that my spending has been a little off due to 2x points on this 3x ponts on that. Does this happen to anyone else with rewards cards (cash back, points, miles, etc.)?


c0Ld
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Postby c0Ld » Mon Mar 21, 2011 2:33 pm

I wouldn't say my spending is higher, but I'll notice myself going to stores/restaurants etc that give bonus points or cashback over those that don't pretty often. If I can get 5% cash back at Old Navy and only 1% at Walmart, for example, you can make a pretty good guess as to where I'm buying my next pair of jeans.

Smerri
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Postby Smerri » Tue Mar 22, 2011 10:00 am

At first I did but now it is just regular spending.

jeffysdad
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Postby jeffysdad » Fri Mar 25, 2011 7:40 am

I use a 2%-on-everything card mainly but do take advantage of 5% back on groceries, restaurants when it's offered by Chase Freedom. Yes, the 5% does cause me to spend more, particularly on restaurants. However, I don't spend beyond my means and the increased spending doesn't bother me. Tell me what quarter Freedom is paying 5% on restaurants and I'll tell you when I'm most likely to blow 80 bucks on sushi.

BTW, in the fourth quarter Chase Freedom pays 5% back on "charity." Worth noting, I think.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

AmanteDecor
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Postby AmanteDecor » Sun Mar 27, 2011 2:56 pm

I can't say that I spend more money because of the rewards that come with higher spending, but I'm in the same boat as c0Ld, as I am more likely to purchase products from stores that give me more points/actually accept credit (there are quite a few places in my city that charge an extra 50 cents for credit cards, so I end up paying with cash :/)

parli
 
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Postby parli » Wed Mar 30, 2011 3:27 am

I believe the entire purpose of credit card rewards is to get us to spend more. Duh. Why else would we be given free money if they weren't getting something in return for it? If there were no rewards offered the growth of credit cards over the last 20 years would not have happened. It was the rewards that motivated us to start using cards and pushed more stores to accept for small transactions, because the customer wanted it to get their points.

AmanteDecor
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Postby AmanteDecor » Wed Mar 30, 2011 3:36 pm

parli wrote:I believe the entire purpose of credit card rewards is to get us to spend more. Duh. Why else would we be given free money if they weren't getting something in return for it? If there were no rewards offered the growth of credit cards over the last 20 years would not have happened. It was the rewards that motivated us to start using cards and pushed more stores to accept for small transactions, because the customer wanted it to get their points.


But the question is this: Do the rewards merely make you use your credit card more often as choice of payment, or do you spend more money simply because of the rewards? I would say that I'm the former--I don't go out of my way to earn points, simply because I know I'm losing more money than I'm making. But I do try to shop only at places that accept my credit card, because if I'm spending a ton of money I'd at least like to gain something in return. The other day I went shopping at Cosco with my friends--I don't personally have a membership there and thus couldn't use my credit card to purchase my items--and I was pretty upset that I had spent all that money and not received a single cent back :(

ashleyAMX
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Postby ashleyAMX » Thu Mar 31, 2011 7:10 pm

AmanteDecor wrote:But the question is this: Do the rewards merely make you use your credit card more often as choice of payment, or do you spend more money simply because of the rewards? I would say that I'm the former--I don't go out of my way to earn points, simply because I know I'm losing more money than I'm making. But I do try to shop only at places that accept my credit card, because if I'm spending a ton of money I'd at least like to gain something in return. The other day I went shopping at Cosco with my friends--I don't personally have a membership there and thus couldn't use my credit card to purchase my items--and I was pretty upset that I had spent all that money and not received a single cent back :(


Exactly, my point. I eat more at restaurants when I can benefit from the points. I shop less elsewhere when I don't get anything. I'm not a wild spender period, but the rewards induce me to shop certain places and less at others that I don't benefit from. Thanks for clarifying the question I think parli misunderstood.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Apr 11, 2011 2:16 pm

I wouldn't say I spend more but I will shuffle my buying to maximize the 5%. That might mean stocking up on something if it is during a 5% season or only dining at restaurants that take Discover during the 5%. There was one restaurant I regularly go to buy boycotted all of Jan thru March because they refuse to accept Discover.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

milkthatcard
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Postby milkthatcard » Thu May 19, 2011 5:21 pm

I can conclusively say that rewards do not cause me to spend more.



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