Saturday, April 23, 2016

Credit Card Signup Bonus $200- Worth opening?

Credit cards can be dangerous!  However, they often seem to offer excellent rewards or cash back offers.  I recently received an offer to earn $200 cash back plus 2% on all dining purchases and 1% on all other eligible purchases.  In order to get the bonus all I would have to do is spend $500 within 90 days.

Obviously, I would not use this as a way to buy something like a new iPhone or Apple Watch. It can really be a dangerous road if you see this as a way to buy things you really want but do not NEED. Instead, I would use this card to pay for an expense related to education.  It is an expense I have every month no matter what and there is no credit card fee to pay this.  So wouldn't it be simple to open this card and essentially make $200 with no effort.  It seems like a simple decision for me.  I have excellent credit and I do not see this affecting my score much at all.  It is definitely something to keep in mind as repeating this too much could lead to a drop in your credit score especially if you end up closing credit cards. But in this case there is no annual fee so I would just leave it open and build the length of time cards have been open overall as well.  I use to track my credit scores and any activity, which helps me understand factors going into the credit score.

Having said that, I went ahead and opened the credit card.  I will write an update post once I figure out more information about the card/earn my bonus.

Short and simple post, but can you give me your thoughts on this?  Have you opened credit cards for a cash back bonus?

I'm not an investment professional or a licensed financial advisor. This blog represents my personal views and decisions, which may not be appropriate for other investors. Please use common sense or consult with an investment professional before investing your money. I am not responsible for the outcomes of your decisions, nor am I responsible for the comments posted by readers or the contents of any linked websites. This blog should viewed for educational or entertainment purposes only.

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