Last year, I used many months' rewards to buy my daughters a nice play kitchen set. A few months before Christmas, I requested my Discover Card Cash Back Bonus Award to be given in JC Penny gift cards. For every $40 in cash back bonus, I received a $45 gift card. With these gift cards, I ordered my daughters their Christmas present.
Christmas was great! The girls loved their kitchen and, as an added bonus, it was free!
I have to say, my husband and I do not have any credit card debt. If you have credit card debt, the finance charge is much more than you will ever get back from cash back bonuses. I know that a lot of people are cutting up their credit cards due to Dave Ramsey’s Total Money Makeover. I agree that credit cards should be cut up if you are using them for credit, but we are using credit cards for convenience and so that we do not have to carry around cash. Also, our Discover Card has a discount program with some online stores if you order through their website. We bought our washer and dryer online and saved 15% through this program.
If you can maintain discipline and avoid carrying a balance, take a look at the benefits of credit card rewards you could be missing!