My First Personal Finance Post: Amo, Amas, Amex?

Now would be the time to give background on Pat’s and my financial history, the path we’ve followed, struggles we’ve gone through, lessons we’ve learned. But, I’ve only got 10 minutes, so for now I just want to bring up this, the American Express Blue Cash Preferred card.

According to Consumer Reports‘ November 2012 issue, this is the best card for earning cash rewards. Pat and I put almost everything on our Discover card, pay the balance in full every month, and earn a nice little sum in cash back. So, perhaps this Amex would be a good fit for us. I like the idea of earning more cash back because it’s the closest you get to earning something for nothing.

Dave Ramsey would say this is a warning sign. It isn’t something for nothing because you spend more when you use plastic.

Don’t look at me like that Dave!

I know I know Dave, but . . . I really hate using cash. Also, my dad is the most frugal and debt-averse person I know (Hi Dad!) and he has used credit cards for personal and business expenses for years, earning a lot of cash back and never going in to debt from it.

However, this AmEx has a $75 monthly annual fee. There’s also a no-fee version but it has lower rewards. I hate the idea of paying a fee for something I can get for free. I would be obsessive about figuring out whether the additional cash rewards make up for the annual fee. Also, this card’s best cash back comes from stand-alone supermarkets whereas we grocery shop mainly at WalMart (one of the many distinctions between us and the typical AmEx cardholder). Hmmm. We shall see.


4 thoughts on “My First Personal Finance Post: Amo, Amas, Amex?

  1. Yes, well, Ramsey is credible but not infallible. It seems he takes the Alcoholics Anonymous approach to debt. He himself went bankrupt, so he can never, never borrow money again.

  2. I am very anti-debt and pro-credit card. I very much dislike carrying around cash. I know a lot of people that do spend more when they use plastic, but I don’t. I think it is because I never think of my cards as “credit cards” I think of them as “checks” or “debit cards” since I always pay the balance in full. Personally, I’d stay away from cards with an annual fee–they’d have to have super-duper-amazing rewards to even tempt me in the least. We have one of the Citi Card Rewards Cards and have been pretty happy with it. We earn some cash back on everything and then certain categories (that change monthly) have bonuses that can be up to 5%.

    • Hi Rachel! You found my blog! Our discover rewards system sounds similar to your citi card’s. discover also gives you more cash back if you shop at certain retailers through discover cards website. It has a lot of places we shop at anyway and it’s worked well for us

      • I saw your link over at Jen’s Quick Takes link up and I was pretty sure it was you…so I had to come over and spend some time reading! 🙂

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