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URL:  http://boards.fool.com/most-cards-have-it-the-other-way-around-they-30308718.aspx

Subject:  Re: Question about cash back cards Date:  10/9/2012  12:12 PM
Author:  2gifts Number:  306042 of 308232

Most cards have it the other way around... they pay you less, or even nothing, until you get to a certain level of spending and then the cash back picks up even more.

Actually, I think more and more cards have gone the way of Citi and cap your cash back. I know that Citi does it, and I'm pretty sure that Discover and Chase also do it. I do know that because of that, I don't use my Citi, Chase or Discover very much unless they give the best cash-back bonus at the time. Generally speaking, I use my AMEX Blue card for everything, and they do work as you say where I have to spend $6500 to reach the top tier, but I do that when I make the first college tuition payment, so I get a lot back each year.

probably the upper middle class to rich types who can just pay off their card every month

I disagree with this thinking on a very fundamental level. I don't think that it is only rich types who can afford to pay off their card every month. I think it is anyone who only spends within their means and only charges each month what they can afford to pay off at the end, and that has nothing to do with the size of the means and everything to do with the ability to manage that means, whatever size it might be.

In my house, I won't put anything on the credit card that isn't in the budget/plan and for which the money isn't already sitting in the bank at the moment I make the purchase. I don't consider it within my means if I need the next paycheck to be have the money. I either have the funds right now or I don't, and if I don't, I will wait until I do prior to making the purchase.
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