Continued from Part II (see earlier post)
When it comes to finances, I'm a relative conservative person by nature. I try not to waste it on frivolous things; I do my research before making a big purchase; I think things through and make smart, wise choices. I have never gotten myself into too much debt and kept myself financially in good shape at all times. Too many people, especially in the 1990s and early 2000s before the U.S. economy tanked, got themselves in over their head by spending money on things they really couldn't afford. And the biggest culprit was over-extending themselves with credit.
Prime example...credit cards. For the longest time I had seen these commercials on TV talking about "cash back" and "bonus miles" by signing up for credit cards. I had always dismissed these commercials as just a way for the banks and credit card companies to get you hooked into their little game. They would give you a big credit limit, offer you 0% on transfers from other credit cards, and dangle those huge "bonuses" just for signing up. They made it sound so good...like you could take trips around the world or get a ton of cash back for each purchase. The sarcastic, doubter in me was telling me "Yeah right!!!!" I always thought there was a "catch" to this and somehow, someway the banks and credit card companies would find a loophole or use something in their small print of the forms you signed to get out of giving you anything and sticking you with a huge interest rate and no bonuses. In short...like most things in life...I figured this was just like a lot of things out there in this world where if it sounds too good to be true, it probably is.
Up to this point I had only had one general-use credit card my entire life (outside of a Best Buy credit card I got once just to help me string out the payments on my first big screen TV). But my bank-issued MasterCard offers no bonuses, no "miles", no cash back. It was really my one true credit card that I owned and I only used it when needed because most of my purchases to this point were paid for by cash or check. I never wanted to put too much on the credit card for fear I wouldn't be able to pay it off and then be stuck with huge interest and penalty payments. In fact, I never put anything on the card unless I could pay if off the next month. I never liked to pay interest. I just thought that was throwing money down the drain. Nope...for nearly 25 years I had my one card and I was was fine with that. I got it when I was in college and I still have it today. It has served me well but it was just there to help me out when cash or checks were either not an option or not convenient.
However, about three years ago I came across an article on the internet talking about these so-called "reward" credit cards and why everyone should have one. I was curious so I read the article. It was very well written and it pointed out a lot of the concerns I had always had about these credit cards. But the article also correctly mentioned that it is not the credit cards that get people in trouble...it is people that get themselves in trouble with credit cards through their own poor decisions and lack of responsibility.
The article emphasized that for those people out there who manage their money well, don't over-extend themselves, pay off your balances monthly, and are organized, these "reward" credit cards can be a very good thing as they really do "reward" you for using your credit responsibly. That got me thinking...I'm pretty good with my credit...I'm responsible...I pay off my balances every month. Why shouldn't I get a card that will allow me to use it just the way I have been all this time but instead of getting nothing in return (like with my old reliable MasterCard) have a card that will "reward" me for my responsibleness.
Now the article did not mention many of the "rewards" credit cards out there but it did specifically mention on one card that was geared towards travel "rewards". And since I had been trying to figure out a way to help pay for some of the enormous expenses that are associated with taking a vacation, I thought this card sounded promising.
MORE IN PART IV
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