Comments on: The credit game

By: Credit card rewards comparison calculator « Logic High

Credit card rewards comparison calculator « Logic High — Sat, 07 Jun 2008 09:33:58 +0000

[...] if you’ve read my post on why getting a credit card is a good idea, and how to use it so that the credit card companies [...]

By: The Credit Game, Level 2 « Logic High

The Credit Game, Level 2 « Logic High — Tue, 13 May 2008 07:44:56 +0000

[...] had a pretty surprising response to my first post on credit, so I’d like to share another way to beat the curve, this is a little tougher to pull off, [...]

By: badpirate

badpirate — Mon, 12 May 2008 21:51:08 +0000

BC / Math: Thanks for the catch, APR is annual gains, so when calculating monthly gains you need to divide by 12

By: mr math

mr math — Mon, 12 May 2008 21:37:19 +0000

your math is off.

on $2000 principle 2.5% APR, would net you only $50 over the course of a year, not in the span of a month.

the interest you make by leaving it savings is roughly $4

By: Lucky

Lucky — Mon, 12 May 2008 19:22:57 +0000

They keep raising your limit because most people who have a higher limit spend more. Also, they make between 1% and 5% off of every purchase you make. That money comes out of the store’s pocket, not yours. It is their price to pay for accepting credit cards and increasing their potential customer base exponentially.

I’ve been doing the same thing as you have with your bank accounts and credit cards for as long as i remember and it’s great. I have a high limit, i make the interest in my saving and money account every month and i have my cash back and points that buy me random appliances or airline tickets when i need them.

By: BC

BC — Mon, 12 May 2008 19:18:40 +0000

I agree with the idea of paying off your credit card bill each month whole heartedly, but your math is quite bit off when you talk about how much interest you will earn in your savings account each month. $2,000 sitting in a savings account at 2.5% APR will earn $50 over the course of a year (I’m using simple interest for the sake of simplicity). 45 days is roughly 12% of a year, so in that time you will only earn 12% of that $50, or about $6. You are right about the rewards amount, and that can really add up over time.