Cash reward cards

How do banks afford to offer cash reward cards that give things like 5% cash back when their fee is only 3%. Its weird to think that the bank is losing money on me, what's the catch?

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they charge retailers 1-2% for the privilege os allowing you to use their card there.
I'm certain that 5% is temporary and has a max payout. read the fine print.

dont these cards have an annual fee or some shit?

im guessing theres more people that dont pay their credit card debt off in time than people that do

No annual fee and no expiration on mine. There is a limit though, they'll only give me up to $2000 cash back a year but considering that I could put up to $40k on the card before hitting that its a bit beside the point.

wait, what card are you talking about? the one in the pic is only 1-3%

I just did a generic card for the picture, actual card I'm talking about is a VISA cash rewards card through USAA.

>It offers 5% cash back for gasoline and military base purchases up to $3,000 annually
well that didn't take long to figure out

Mine has different terms, I get cash back on everything. Might not still be offered.

I'd double check that, and keep an eye on the money you're getting back. 5% without restrictions does seem a little good to be true.

OP its pretty simple desu

>m-muh cash rewards incentives

CC industry is profitable due to the mass abundance of retard normies who lack any sort of discipline when it comes to using credit. Plenty of retards out there who continually go overboard on spending and get eaten alive by compounding interest.

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All answers are wrong.

This especially applies to cards that give signup bonuses.

When they do their marketing on aggregate, they count on idiots not being able to pay off their purchases in time to avoid interest. In general, most people get sucked into this spending money to get points and not realizing they are spending more than they can afford. Once they kick into APR territory, it far makes up what they are losing in rewards.

Basically you are streaming your reward cash off of people who spend so much they pay 18%+ in interest, and BOA keeps the rest.

I love these cards. Have a good day!

Plenty of retards out there who continually go overboard on spending and get eaten alive by compounding interest.

This. It is about fine / interest and not about the cashback. Cashback is Just an incentive to catch the retards

the absolute state of people who regularly maintain a sub-10% credit utilization ratio

One guy gets it, as I was typing mine :D

Wait, is the max 40k or 2k? Because if it is 2k, you get only $100 back.

I'm surprised this is legal in today's age, to be honest. Shouldn't Blumenthal be all over this?

Max is $2000 cash back, last year I got a bit over $600 from it.

> last year I got a bit over $600 from it.

I think you are litereally full of shit. What are you, 12 going on 45? Quite acting like," I knw credit cards and as long as I keep saying MUH TERMS no one will not question me!"

There is no fucking way the credit card company is giving you that much. What are you? A fucking elite?

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I'm a bit confused how I've got such a good deal too, its why I made the thread.

Okay well if its a legit company you should be fine, the most ive seen is 3% no fine print but fuck man you got a deal going.

Why would the credit company give you a good deal. What is so fucking special about you? what is your income, Are you related to a rothchild or something?

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I've staggered several signup bonuses over the past year. Mostly bullshit things like "$200 statement credit for $1000 in spend in 3 months". Run my normal expenses through it, budgeted as if it were cash, paid them off as soon as I spent it.

My wife and I both signed up for these individually so we double hit the signup bonuses.

Just opened up Quicken, over the past 12 months I have had $3122.77 in rewards come back.

Both of our credit is the the upper 700s-lower 800s depending on who you ask.

What is so unbelievable about this?

If the guy is claiming getting that on a single card, then he's full of shit, but $600 is laughable if you're talking about many.

Also, since we've depleted our signup bonuses for the year... I use TD Bank Cash Visa for eating out(3% rewards), BoA Cash Rewards for Gas and Groceries(2% and 3%) and Wells Fargo Cash Wise for everything else(1.5%). Plus we pay our cell phone bill with the WF card and have built in damage/theft insurance on our cell phones.

Just some screenshots from creditkarma.com

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Got it backward, that was rewards, here is creditkarma

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