SPENDING FOR REWARDS
If a $100 dinner with friends puts you over the minimum spending for a 50,000-point sign-up bonus on a rewards card, picking up a tab just to earn credit card rewards may be worth it — and 47 million Americans have done such a thing, CreditCards.com says. But with a credit card with a quarterly 5 percent cash back bonus on restaurant spending, a $100 restaurant tab for yourself and four other people will earn back just $5. If no one pays you back, you might pay $95 for a meal instead of $15. You can rack up a lot of rewards buying groceries or gas and immediately repaying your balance, but don’t think you’re breaking even.
