I love going through the self checkout line at Target. Well, I’ve started to appreciate going through any self checkout line really. But especially at Target, because if you get someone who’s really good at their job, then chances are they’re going to make a hard sell for the Target credit card or debit card.
And they really make the hard sell. Target’s cards give you 5% back on your purchase when you use their card in the store. That’s a pretty good deal, especially if you shop at Target a lot like we do.
But, we’ve been pretty happy with our 2% back Venture card. So I always say no, even though I’m one of those people who feel like they’re a jerk for saying no to people.
It’s a heavy burden.
One time we were leaving Target and they had this sign on the exit door that said something to the tune of, I hope you enjoyed your 1% reward-get the Target Red Card today!
It makes you feel like you’re just throwing free money away by not using their card, which is exactly the way they want you to feel.
They spend a lot of money in marketing to get people to commit to their Target credit and debit cards. And even if you are against credit cards(not a bad philosophy), they hit you with the: Well, that’s why we have a debit card.
Credit cards are a dangerous game. I’ve talked about how using a credit card to weather storms could be teaching you some dangerous habits. I’ve also talked about the best way to spend using a credit card.
Credit card companies are paying millions to figure out exactly how you work and to use your own phycology against you. When they’re paying that much money, this is a game you don’t want to play with them.
So what should you do if you’re wanting to pick a card that gives points?
I suggest picking a good 2% card that doesn’t rotate categories and just stick with it.
Cards that offer 5% or 3% often don’t offer that for every purchase. There are a lot of cards that offer rotating categories like 5% back on dining but then 1% cash back on everything else. Then the next month, that 5% category may change to something else like gas.
Here’s the dangerous part.
Your card shouldn’t dictate where your money is spent. Your budget should.
If you’re going to avoid the dangerous traps set by credit card companies to get you to spend more, you will have to select a card that you like, and then ignore the points.
The points are bonus. The icing on top.
Accumulated points are something that you want to wake up to one day and think-Dang, I didn’t realize how much money we’ve earned.
And then at the end of the day, realize that points aren’t going to make you rich anyway. If you didn’t use any credit card at all, you’d still be fine.
And remember, the absolute best way to spend using a credit card is to back every dollar spent with a real dollar that’s already sitting in your bank account.
So my best advice is to pick a 2% card for all of your purchases, ignore the points, and then just move on.
Jared
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