Are Credit Card Rewards Going Away?

[@shelleyirwin6104]

Locally we have noticed restaurants charging a 3-4% swipe fee for both credit and debit cards. So we are now carrying cash for dining out.

[@ds5651]

I put everything on my credit card and pay it off for my vacations. I don't shop at places that charge a fee

[@kariatkinson4121]

It is illegal to charge a swipe fee in debit cards or goes against interchange rules and the store/restaurant should be fined. Visa and MasterCard don't play.

[@shelleyirwin6104]

@@kariatkinson4121 not sure where you get your info from but there are several restaurants doing it.

[@CalebPratt2]

​@@kariatkinson4121 b.s. pay ur online utility bill with a debit card. They'll charge u 3 to 4 % on top for a card regardless if its a debit or credit card

[@johnathin0061892]

As a merchant myself, it is GREAT to see other merchants standing up to the credit card processing bullies. They are not supposed to do that, but good for them for doing it anyway. Make people who are too lazy to pay with cash for in-person purchases pay the fees THEY are incurring.

[@michelehatcher9620]

I don’t use my debit card it’s linked to my savings and my accounts was hacked from Walmart and it was a mess to fix. Still pay off bal every week.

[@libbysworld7649]

I'm not freaking out, but what you aren't telling people is that merchants get charged from both credit cards and debit cards. And while it's risky to use credit cards to get the rewards, if you are responsible enough you can use it to your advantage. In 5 months I've made over $150 cash back from planned purchases that I had cash to pay immediately. I also have an emergency fund and we have that money to use when needed. And finally I also have a budget, which is how I'm able to keep up with using credit cards for rewards. Now all that said, I realize that there are people who truly shouldn't use credit cards. And I used to be one of those people. I use mine responsibly. If credit card rewards go away, I'll just have to ramp up my other income streams. No big deal.

[@rcvillapando]

With all due respect Rachel, I will not use a debit card. If you are hacked and they get your debit info, it will be much harder to dispute nefarious charges on your card. Credit card transactions has more protections from fraudulent purchases.

[@trebmaster]

They have an episode addressing this. It's kind of a myth.

[@egs2169]

@@trebmaster here’s the difference. When your account is cleaned out you have no cash in the short term. With a credit card it’s just a balance that the bank eats.

[@LorreneRomanic]

My understanding is that if you swipe a debit card but select "credit", then you are protected just like when you use a credit card. But if you are overcharged by a merchant by accident or otherwise, it can be a big pain if you don't have enough money in your account to cover it.

[@phoneuse2012]

But then if you use credit instead of debit you are using visa or Mastercard processor again, which sounds like will be changing soon. To answer the question, both credit cards and debit cards are protected but it may take longer to get your money back with a debit card. In these cases, that’s where the emergency fund comes in. I’m not opposed to the only using debit cards, because credit card transaction tracking takes work in order to not overspend

[@tduck828]

@phoneuse2012 you also may not get your money back at all on debits. I had fraudulent charges and the bank ruled against me. Never got my money back. Won't ever use that bank or debit card again

[@ihaveadreamformykids4400]

I collect rewards myself every month on things I would normally pay anyway in a month. I use the rewards on buying gifts 🎁

[@alaskanmom2659]

We have a Costco credit card and boy did it save us a ton of money when gas started going up like crazy! We pay off the card at the end of the month. I rarely use my debit card, I use cash except when we get gas.

[@egs2169]

Ramsey is off base with this. Plenty of people responsibly use credit cards and get rewards for free

[@robocop581]

60% of credit card users in the US are revolvers. That means the majority of credit card users are over using their credit cards

[@zruthl]

I used to use my credit card for everything just for the rewards. The problem is I tended to overspend because it is credit card then use the rewards to pay for the amount I overspent, so the rewards were not really that good. Now I use my debit card for most things.

[@roythousand13]

A large majority of people DO NOT use credit cards responsible. Americans have billions of dollars of credit debt. So, someone is lying! Either people like yourself claiming to have no credit balance actually are paying off the balance before the due date, or people are lying to justify credit card usage

[@mikeyoung7640]

@@roythousand13I don’t not hav E any credit card debt I pay for things that I need with a credit card and I pay it off plus I’m not American I’m Canadian

[@roythousand13]

@mikeyoung7640 Consumer debt is still a terrible thing to have, even if you are Canadian!

[@donofd9626]

In the last 18 months I’ve gotten $2094.61 in credit card rewards while paying off every month and paying $0.00 in interest. I love my credit card😃

[@MsSimpleMovies]

The problem is that it's a predatory system, and befitting from it feeds the beast. Is it worth $1500/year for propelling this evil industry? I don't do interest. I don't accept it, I don't pay it.

[@sarahbennett7235]

This is silly. If you are responsible and pay it off every month you are literally getting something for nothing! If I pay cash for my gar and groceries the price is exactly the same so I am going to reach for my reward card every time! I have flown internationally using miles and my family of 5 has traveled to Florida every year for just the fees ($52 for all 5) flights cost $0 because all my expenses are paid via credit card on time every month and have been since I got my first card at age 20.

[@nicolesobol936]

We LOVE the rewards from our credit cards. We put everything on them. Pay everything on the card every month, so we aren’t getting paying any interest fees. Definitely takes some extra time keeping track or “playing” the credit card system, but worth all the free air miles my family gets to take advantage off!

[@tduck828]

Yep!

[@GabeRyanMedia]

I think a big part of Rachel's point was missed: when you put everything on a credit card, you are far more likely to spend more money than you would if you used a debit card or paid with cash. Instead you could be putting that extra money you spent straight towards paying for the same flight you would use the airline miles for. Just my two cents. Maybe I misunderstood something 🤷 lmk if I'm off base here.

[@terminaterjohn]

this is a losing battle with Ramsey. Credit Cards are great if you pay them off every month. I'll never change.

[@volvotwoseries3384]

They’re not great ever, you’re ignoring the psychology of them. Don’t get on here just to troll.

[@Jen-qd4qc]

@@volvotwoseries3384ok sheep

[@trebmaster]

I never understood why it's just as bad according to Ramsey to have a credit card where only recurring payments and utilities go on the card and nothing else. The whole point of not having one is the discretionary spending. If you remove that discretionary spending, what's the problem?

[@kingsgold]

I think for a lot of people, they only look at the credit card's spending limit rather than the spending limit of their own bank account. Too many people fall into the trap of buying stuff with money they do not have. A lot of Ramsey's stuff is focused on getting and staying out of debt, which for those that follow it means not owning a credit card to not be tempted to spend money they do not have.

[@AdamConstantine]

They have stated that it’s still a game where some win and some lose so they prefer to not participate in getting rewards while the “single mom” pays interest because she’s struggling. That’s what I’ve heard in their videos

[@ds5651]

They market their program to the irresponsible

[@nicolewin4180]

Credit card companies wouldn't offer "rewards" if they didn't get something out of it. I'm good with using my cold hard cash to pay for my vacations on the dates I choose, being able to pick what seats I actually want on the flight and being able to get a full or even partial refund on trips of I cancel. None of that is guaranteed with those rewards programs.

[@ds5651]

@@nicolewin4180 you have a lot to learn. They don't work like that

[@theplatinumog3283]

I sure hope not. This year I have stayed in 10 hyatt hotels. An adults only all inclusive in the Dominican republic. And now taking my in-laws to Hawaii for a week. All free on points! I am a (multi)millionaire, I budget, and I pay off my cards every month. Could I afford to pay cash for the vacations? Sure, but it would still sting. The savings are real!

[@theplatinumog3283]

Oh, and the flights to all of these too. Including 4 to hawaii. "Free" with points. Just the credit cards annual fees and normal spending. I forgot about 2 trips to see grandma in NY. Those were flights and hotels on points too.

[@MrNiceGuy500]

I agree I am in the same situation. I would just boycott the CC companies for the most part

[@staceyculver4892]

Gosh, what credit card do you use to get all these rewards?

[@theplatinumog3283]

@@staceyculver4892 this year so far? 4 chase ink cards, barclays and citi AA business cards. Wife also got a Marriott card and I got points for referring her. Next, wife will get the United consumer card with my referral and then refer me back. I will probably pick up IHG either business or consuner and definitely 1 more ink preferred by the end of the year.

[@AvalonMisty]

Rachel did not address one area....Cash Back to Statement in lieu of Rewards. In ALL the years I have had a Credit Card I have paid in full every month and use the Cash Back for Statement Credit.

[@edd06001]

It's the most flawed Ramsey philosophy out there, that credit card rewards directly correlate to spending more. Every month, I have to pay an Auto Insurance Premium, Groceries, Pet Food, Internet, and a Gas Bill, among some other needs, that provide me the option to use a credit card for no additional fee. These aren't discretionary, these are true needs to live a basic lifestyle. I don't wish for these bills to go up to pad my rewards.

[@tduck828]

Exactly. No difference using a credit card for budgeted expenses.

[@PlannerMemaw]

I agree AND I get $100 cash each month in rewards for doing so

[@joeylee5128]

Remember that holds can be placed on your debit cards that will impact your available funds. You'll need to check your bank's hold policies to see how this will affect you. This is important when using debit cards for hotels, car rentals and flights. Also look at your bank's debit card dispute steps. You may not have immediate availability if you dispute a charge. There is a process in place. Provisional credit is not guaranteed which will affect availability. One of the perks of a credit card is having the availability if a situation like fraud or holds happen. It can be impactful on life if you do not have that availability.

[@GabeRyanMedia]

Or better yet, you can simply have 2 or more debit cards from different banks. Folks often have multiple credit cards from different institutions, so why not multiple debit cards? Problem solved. Also, just a note on what you said about holds on a debit card: when it comes to hotels or car rentals, the hold is usually a hundred dollars or so more than the booking amount. So if there is a concern with not having enough money to cover the hold or having enough money left in that account for other purchases while the hold is in place, maybe you simply shouldn't be booking a hotel right now until you get a bit more money in the account. Just a thought. Lmk if I'm totally off base here or didn't understand what you were saying in the first place.

[@joeylee5128]

@@GabeRyanMedia No. I understand what you are saying. People need to understand the potential limitations of using strictly debit cards. Being on the other side at an FI, there are problems that arise. Provisional credit is not always granted. Depending on the hold amount, it can be impactful. Stating "don't do it unless you have funds" isn't a realistic answer. Emergencies happen. Life happens. Understanding risk and knowing your options always helps a long the way.

[@LorreneRomanic]

I use credit cards for convenience of rewards and pay them off every month. I haven't carried a credit card balance since 1999. If rewards go away, I'll probably stop using them and switch to my debit card. But, I noticed at a small, local restaurant recently that they charge a fee to use a credit card (I think it was 3 or 4%) - I can't remember if they charged for a debit card too, but I was paying cash so I wasn't worried about it. And yet there's another restaurant in my general area that is a cashless business! They only accept debit or credit.

[@jasonleatherwood2172]

Would be hard to keep wait staff cause none of them claim all thier tips no way around it at that place

[@egs2169]

Debit cards also charge processing fees

[@tduck828]

I hope not. I love rewards. No difference in using a credit card for budgeted expenses versus debit card where you get zero. I mean I have to have gas, might as well get my 5% because I budgeted for it. I refuse to use debit at pump (many cards get skimmed this way) and almost all in my area don't take cash...

[@alexpietsch7997]

Funny how you're worried about a local card skimmer when you're supplying the company that's outright robbing 150 million Americans

[@mattcollins4550]

I thought that Rachel was smarter than her dad, but after watching this, it's apparent she is not. If you don't take credit card rewards then you are losing our and subsidizing rewards for other people. It's a simple way to get your own money back.

[@Pstmstr]

Why do you watch?

[@candy2325]

@@Pstmstrthey watched because they wanted to. Silly question

[@mattcollins4550]

@@Pstmstr to point out idiotic advice like this. Rachel has been a lot better than Dave until this video. Yea of course lots of people don't have the discipline to use a credit card responsibly. But many people do. A one size fits all approach is idiotic and just bad advice in general. Rachel is smarter than this.

[@Pstmstr]

@@candy2325 obviously. Lots of trolls with some need to make derogatory comments. Most are in credit card debt yet lie about their points and how smart they are using credit cards.

[@Pstmstr]

@@mattcollins4550 so what's the downside to not using cards and getting yourself in debt. 2% cash back.

[@scoutandscooter]

Charge it. Auto pay. 25-30 day float. What's the problem?

[@chriscallaham3629]

No way dude, they use the rewards to get people to buy the cards and then end up not paying them off and blowing it on interest. They aren't going to change that, and this video hardly argues they will. Yeah if you pay off your card you are good to go, this is nonsense.

[@elnivekify]

This is excellent news. 50% of credit card users are responsible and no single mothers were harmed.

[@libertarian4323]

This legislation is DOA. It gets proposed every year and never even gets put up for a vote.

[@Chele-nm4qx]

Just because 80% of people carry a balance shouldn't affect those who do pay their balance off every month. I love my cash back & I am in that 20% & will not get rid of my card. It's essential for my business.

[@Jen-qd4qc]

Yes I use credit cards and get rewards from my purchases. I am a responsible adult and don’t have debt.

[@RiSkyNick]

I only use a credit card to insure myself against fraud. I have a low limit and pay it off regularly.

[@markhines192]

Rachel, the rewards are paid by late fees and overdraft fees that irresponsible people pay. These fees give the banks billions of dollars profit, not swipe fees. Please. Do your research.

[@AmySimmonds-luv4Jesus]

Lots of people are saying it isn't bad to have a credit card if you pay it off every month. While I agree with that, millions of Americans are thousands of dollars in credit card debt. So, if you aren't in debt with credit cards, no problem and this doesn't apply to you.

[@CalebPratt2]

Debit cards also make money off those same transaction fees . Dont be surprised if debit cards charge a small monthly fee or free checking going away if it passes

[@chriscallaham3629]

Also are not mentioning that it is less risky to use a credit card, fraudulent purchases are guaranteed, and not made with your money. A debit card has much more theft risk involved.

[@joannecalcutt6724]

Why promote Target ?

[@BoldTruth3]

Boycott Target!

[@Jen-qd4qc]

🤡

[@radioheadfanlove]

I kid you not, I had a full-on nightmare last night where "Telestrations" was being advertised 🤣😭🤣😭 I guess I've been watching too many of these videos!! Hahaha but that's okay, I always love Rachel anyway! 💖

[@johnqcitizen9177]

Well go to know I’m in the 20% bracket. I will not get/use a debit card. I make about $900 in cash back a year. House paid off And just retired

[@baldy2344]

I have a credit card, but i don't use it that much. I payoff the balance every month so i don't get interest on it.

[@ghfan2011]

If rewards actually do go away Ramsey will finally have a decent argument for recommending debit instead of credit. The reasoning is always “plastic and rewards make you spend more”, but they’re ok with coupons and debit cards.

[@Snugswinebundle]

Dave Ramsey is almost 100% dead wrong about credit cards. I said almost because the only thing that he says about using credit that's maybe true (for me at least) is sometimes allowing you to spend more than you normally would. Before I got into the credit game and before I actually knew what I was doing (using cash only/debit cards), I wouldn't spend money on things that I usually wouldn't buy. But now knowing that I have literally over a month and a few weeks to pay it off in full without being charged interest kinda does something to you. NO, I never go too crazy on spending but yes sometimes every now and then I do splurge a bit and then pay it off in full to avoid interest. Never have I ever paid interest, never have I ever paid any other credit card fee, never have I ever not known what I paid for a full tank of gas, yes that cashback and other actual free points comes in handy and is NOT meant to be a get-rich-quick scheme and the list goes on... Cash is no longer king especially if you talking long term. His advice is literally just for people who don't know how to manage money and/or for people who doesn't know how credit cards work.

[@chicagoan81]

Credit cards make so much money off irresponsible customers that they can risk losing all the customers that do the hacks for rewards. With debt at $1 trillion, they can focus their efforts on the debtors.

[@justincase8795]

Thanks Rachel

[@MrNiceGuy500]

If so I would just start using cash and spending less and putting less money into the economy

[@anathebudgetfriendly5963]

It’s nice to have at least one credit card unless you are a millionaire

[@stevenporter863]

... and just yesterday another Ramsey personality laid out his plan if no rewards then no late charges for single mothers. Bank's revenues are going to take a hit, you think their next move is to slash late fees? 😅

[@Josyeliel]

Credit card owners know they are spending more money than they would have even if they pay them off. The only thing that has helped me in that case is having a budget.

[@andreamiller6200]

Amen to that about budgeting to plan spending. What keeps me using credit cards are their protections. Rewards are nice but they are not the drivers for my motivation to use the cards.

[@noracummings8866]

They should make credit cards go away as well!

[@katyedwards3935]

Spoken like a true fan of Dave and/or his personalities.

[@tduck828]

They are a useful tool when used appropriately. No difference in budgeting when using a card to get rewards. I spend the exact same.

[@uah9]

You should really caveat that the advice is for the majority, not those 20% who pay it off and don't carry a balance

[@LadyMatriarch.]

No she, as well as everyone at Ramsey HATE debt. No credit cards, no excuse.

[@Claire-Rita]

Exactly! I have two cc and do not carry a balance. One gives me miles while the other is cashback. I'm smart enough to run the numbers and I have come out so far ahead even with paying a small fee each year for these cards.

[@uah9]

@@LadyMatriarch. I've seen a lot of videos, I know how they roll

[@MrNiceGuy500]

We need the Rachel Cruz credit card network 😂

[@Pstmstr]

Funny how most of the posters here probably have credit card debt. Even funnier is how they watch the show and feel the need to comment about how smart they are with credit cards.

[@zzzarkka]

It’s not gonna happen.

[@MrNiceGuy500]

I will boycott Credit Cards for sure if this happens. Cash all the way

[@johnqcitizen9177]

I like your thinking. If you take my profits i will take yours.

[@katyedwards3935]

This is click bait cuz I thought she was gonna cut up some cards in this video like her dad did in one of his and didn't.

[@johncameron4194]

I pay off my credit card in full

[@ds5651]

The credit card companies will just increase their balance sheets because of this

[@sunilmathew349]

Sorry Rachel, this is the only part I disagree with you guys. I really get good deals when we take our Family Vacations over seas !!! We pay off our debt every week and get points. We dont spend extra money like you guys say. You guys need to let this go.

[@tressalewis7004]

Wait, many people don’t know the meaning of that word😂

[@brittanypleasant4517]

You’re either a credit card person or you’re not. There’s no in between!

[@Jen-qd4qc]

Forever a credit card person

[@GamerC2]

I am surprised how many people use credit cards here AND follow this channel lol.

[@shoppingislifeuk]

Nice

[@ericl6386]

These single mums better pay more in interest I want my rewards 🤣

[@ihaveadreamformykids4400]

How sad

[@MariaCsn]

I never understood the credit card rewards, I don't think we have that in Denmark.. Never heard of it until I started listening to Dave Ramsey.. Hope they pass the bill ;)

[@drunclecookie216]

booo... some of us are responsible with paying our cards off each month and getting rewards in return. my cash back rewards from gas and groceries are how I buy my family Christmas. Also, the other card I use to pay online bills and make emergency home repairs pays for vacations about every 2 years or so. Without those rewards there likely won't be Christmas or vacations anymore.

[@user-ex2yt1pl6u]

As usual, everyone in the comments section is lying through their teeth about how they pay off their balance every month. Yeah right. I am also the world's first trillionaire.

[@jamesingwersen4240]

I pay mine off every month th. Money charges are protected. Guess I'm in the 20% no interest ever and I get $ back every year

[@Pstmstr]

@@jamesingwersen4240James is a genius and beating the credit card companies at their own games. 😂

[@Pstmstr]

Yep, and some of them say they live on a budget too. 😂 people tell more lies about their personal finances than they do about who they sleep with.

[@AlannahGardener]

​@Pstmstr Just because you don't have the personal discipline to pay it off, doesnt mean everyone else is the same

[@Pstmstr]

@@AlannahGardener right. Everyone else here is telling the truth and has no credit card balance. I got $100 bill that says you have credit card debt

[@BBEX-fu5ho]

This comment section is a cesspool of credit card fanboys coming out of the woodwork LOL

[@Rashaadthegr8]

I cabt wait until people use theur precuoys rewards. Maybe then most Americans will wake up sunce recessions, depressions, and pandemics cabt do it. When does thus go in effect?

[@jirehguy]

I dont think it will affect rewards. A recent Ramsey clip said merchant fees only account for 1/3 of profits and intrest rates are at highs along with credit card balances. If they felt the need to compensate, they’d likely just raise some of the fees IMO