I’m Proud to Be a Deadbeat!
Posted on By Jim at 7 July, 2008, 9:31 amI was doing some reading over at MSN’s Money Central and I ran across this article by Liz Pulliam Weston. Liz talks about some of the best rewards credit cards, but that’s not what prompted me to write this post. Instead, it was this comment in particular that got my attention:
“Deadbeat” is the credit card industry’s code word for people who pay their balances in full every month.
As readers of my tutorial on free money know, I am a staunch supporter of paying off balances in full every month. So as the saying goes, “if the shoe fits…” 
In all seriousness though, Liz’s article is a great overview of the various rewards cards out there. In the cash back credit card category, she recommends the Amex Blue Cash and the Chase Freedom credit cards. I agree completely. In fact, I would go so far as to say these two cards are the best ones to use period.
What do you think? What’s the rewards credit card you use and why?
Popularity: 45% [?]
My favorite rewards card is a hotel points card. We’ve earned lots of free lodging that way.
Have you ever discussed the pros and cons of cash back rewards vs. something like hotel points or airline miles when it comes to taxes?
Hi there - no I haven’t but it sounds like an interesting topic for a post.
Curiously, the IRS hasn’t published explicit guidelines on credit card rebates. In a nutshell, the general consensus among tax advisors is that cash rebates are not taxable, since they can be considered a reduction in the purchase price of a good or service instead of income.
Interesting twist though when it comes to hotels and airline tickets… that would seem to gray the line a bit. I’d need to some digging on that angle.
I’m a deadbeat as well. I read an article in Money magazine discussing how financial companies don’t like deadbeats. Interesting though, the cards are still making money from merchants, even if we are deadbeats.