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Generally those types of deals require either parking six figures out liquid assets at the issuing bank and/or paying high annual fees (which of course favor th
by dcolkitt 4y ago
Generally those types of deals require either parking six figures out liquid assets at the issuing bank and/or paying high annual fees (which of course favor the biggest spenders who amortize the cost over lots of volume). Either way the current system definitely favors the rich over the middle class.
- lotsofpulp 4y agoIn my case, it does not have to be liquid. Any investments count, including IRA/529 and other accounts. The 2% cash back cards generally have no requirements. I am going to have those same investments anyway in VOO at one brokerage or another, so there is no opportunity cost. You are correct that it is sort of a wealth transfer from poorer to richer. But merchants are free to offer discounts for non credit card purchases, and they do many times.
- JumpCrisscross 4y ago> system definitely favors the rich over the middle class This is correct. But it's a far cry from "nobody really has rewards." Framed a bit differently, our credit card system is a regressive tax on consumption.