Cash-Back credit cards
 

We are probably a little slow to take advantage of this type of credit card, but my DH can't convince himself that there isn't a 'catch' to these programs. We have our cards through Bank of America and they swear there is not catch, no extra fees, no extra interest rates, etc. Any one have any comments I can use to convince my DH to try it?

I used our bank's cash-back credit card for several years. It was really nice to regular use the rewards cash-back to pay down the credit card balance (all online). However, after the crash the rewards kept getting smaller. Now we use mostly a Sam's Club Discover card because we get a higher rate of cash back (I had to do the calculations to figure out that this actually is the case). I put everything I can on that one card to optimize our cash back. With Sam's Club it's a once-a-year check that comes in the mail.

There's no downside at all if you don't carry a balance. (Pay your bill in full each month. Otherwise, you still get the bonus points, but the interest fee you pay for keeping a balance is higher than the value of your bonus). I have been a Discover card holder for many, many years. My cash back bonuses throughout the year pay for some nice Christmas presents.

Ps- I am the kind of customer in the minority because the credit card companies Do Not make any money from me.

I use a Casey's credit card. Casey's is a gas station chain in the midwest in case you don't have it. It automatically sends up gift cards for their stores every month based on what we spend. It doesn't matter where you use the card, you will still get points toward your gift card. We end up with about $40 a month in gift cards that my husband uses to buy gas for his commute to work. No catches. No problems. No interest because we have never carried a balance.

i get checks all the time. We put EVERYTHING on cards. We have a visa, mastercard and discover. Discover has a program to chose what you want higher return on, I chose gas. We have our utility bills automatically posted to Mastercard. I get the 1% back on my electricity and natural gas. i charge even if I go to McDonalds.
I have charged a new furnace, roof, everything if they take cards.

Of course the second part is CARRY NO BALANCE. Pay the entire bill every month.

Back to your first comment on the "catch". It not the consumer that pays, it is the merchant. The merchant has to pay the credit cards a fee for every transaction. By the consumer encouraged to use the cards more, the credit cards get more money from the merchants and share it with the consumer, thus the kick back to you.

My thought is if the merchant wasn't willing to pay the fee, they wouldn't take the cards.

I never carry a balance and I have bonus points waiting for me.