Once you get to the point where you don’t owe anything, and pay off your credit card, in full, every month, and the bank realizes that you’re not falling for their trap anymore, they’ll start using better bait.
They’ll say “For every $100 you spend, we’ll give you points, miles or money towards free <whatever>.” They’re hoping you’ll spend more than you have and go back into debt because they really like it that way.
But now that you’re smarter, know their tricks and have paid off your credit cards, you’re not going to fall for it! You will however, happily take their money. After all, they were happy to take yours. It’s only fair!
Use your credit card for everything. Pay your utility bill with it. Pay your insurance bill with it. Car payment, groceries, anything you can. But not for anything you don’t actually need, or anything you can’t afford. Really afford. As in “I’ve had this money in the bank for 6 months and know it’s there.”
When I spend $100, Bank of America gives me $2 towards a vacation. It doesn’t sound like much, but for a lot of people, instead of getting free money, they’ll have paid the bank $29.99.
The is actual cash. I don’t know about anybody else, but I like free vacations. There’s nothing like steaming around the Caribbean, having breakfast in bed, hanging out on the beach and SCUBA diving all for free, courtesy of the bank.
The trick to consumer credit is to know that the entire process is based on creating demand for stuff you don’t need, getting you to spend more than you have and then bleeding you for the rest of your life. However if you’re careful, it is possible to work the system in your favor.