As much of a fan as I am of personal finance blogs, my eyes glaze over when people harp on paying with cash only. Having a good credit card — no annual fee, low interest rate, automated payments and some healthy rewards — makes my financial life much easier.
Dumb Little Man breaks down that if you’re going to have a credit card, it’s all about getting good rewards.
One card he doesn’t mention is US Bank’s REI Visa. You get rebates for all purchases, plus extra dividend with your REI membership. The plus about REI’s annual dividends? You can choose how you use them — as credit towards purchases, or you can have them cut you a check.
I totally didn’t know that REI would send you a check for your dividends! I’m still in the “buying outdoor goods” phase, so I use my dividends, but that’s good knowledge in case I ever need that money back.
I agree about not understanding the cash only folk. It all depends on how you budget and track your money. IMO, using a CC requires a tighter idea of budgeting (since it’s so easy to overspend), but it’s definitely not a deathtrap.
Yep, they will indeed. It’s usually listed somewhere on your dividend notice. They don’t mail checks until later in the year – I believe starting in June or July – but it is nice option. We love REI, but sometimes we know we won’t be spending a lot of dividend there that year, so it’s nice to have the option to do something else with the money.