REI Dividend?

"42 years and i have not needed credit yet.. "
-M.E.

Matthew, that's pretty amazing.
Wouldn't hurt to build yourself some credit though. Never know when or why you might need it – and I don't just mean for borrowing money. Someone can correct me if I'm wrong here, but don't you need some sort of credit history to get a mobile phone nowadays among other things?

And another reason is that you're just leaving money on the table by not using one. I use a card that nets me 1.25% cash back on every purchase. I pay off my balance about every week so no interest ever accrues and I cash in my "points" for a transfer of cash directly into my checking or savings account whenever I get to about $250 or $500 worth ($20k or $40k worth of purchases). It's not much, but it's actually quite a bit higher yielding than I think my savings acount is…..go figure.

"I suppose the only way these credit card companies can offer benefits is if some of the credit card carrying people are missing payments and thus the CC companies can charge interest."

Not exactly. Many people work this way. They buy a $200 item with plastic. Two weeks later the credit bill shows up. They pay only the minimum amount, say $10 or $20, and leave the rest of the bill accumulating interest. Pretty soon, they are struggling to pay even a minimum amount. That is when a real missed payment gets them into credit trouble, and sometimes that gives the credit company the right to increase the interest rates, which makes the problem even worse.

Many of the rest of us use credit cards mostly as a convenience. Anything that I purchase locally over-the-counter is paid in cash. I purchase some stuff online, but that is mostly when the stuff can't be purchased locally, so that goes on the credit card. We pay off the entire balance when the credit bill first shows up, so there is never any interest to pay.

Now, in that last case, who is paying for that convenience? Mostly the merchants since they pay the merchant fees to the credit card company.

Who is making money on this? The postal service and UPS. I think I am on a first name basis with the UPS driver and the FedEx driver.

–B.G.–

>. I think I am on a first name basis with the UPS driver and the FedEx driver.

I tried to get on a first name basis with the fed ex lady. All I ever got out of it was a restraining order.

@ Matthew, who wrote, "As it relates to the REI Visa would there be any other benefits for a guy like me that never uses credit to have an REI Visa Card?"

Yes — if there are things that you buy from REI. Say you spend $2,000 in grocery, gas, and other expenses every month, paying cash. If you charge them all to your REI VISA instead, then you get these benefits:

1. Fewer trips to your ATM machine — you pay your REI VISA statement $2,000 just one time at the end of the month.
2. Simplifying… but you get $240 (1% of your annual charges) of FREE MONEY to buy gear/supplies at REI.

If you are going to shop at REI anyway, the better question is really, why not get an REI VISA card?

But even if you don't shop at REI — you can always get a gas station credit card or an airline mileage credit card. You charge everything to the card and pay everything monthly. It costs you nothing (except for certain cards that charge an annual fee). And you get free cash back or free gas or free flights or whatever at the end!! Why not?

My own example — I travel internationally, so I got myself an airline VISA card. It takes me 3 years of charging daily living expenses to accumulate enough miles for a round trip, business class ticket to Asia. My card also charges me $75 a year plus $70 when I redeem my miles. So, a business class ticket basically costs me $295, But do you know how much a ticket would cost me if I were to buy on my own? Around $6,200!

So, just by charging instead of paying cash for the stuff that I buy anyway… I basically get to buy a $6,200 ticket for just $295. Why not?

In conclusion, a credit card can be very worthwhile!! Pick the card whose return is going to be something that you will use — like gear, or gas, or mileage, or hotel nights, etc., etc.

The other side of Ben's argument has to do with privacy.

I don't like any more commercial enterprises tracking my purchasing than what there already are. I think that is the prime reason why REI offers a patronage dividend at the end of the year, so that they have you tracked. God only knows where that data is flowing. Not only does REI see how much or how little I spend there, but they see my patterns. I don't like having so many companies tracking patterns to figure out how to extract the next dollar out of my pocket. That's why I much prefer to shop locally and pay cash. The local stores all offer me their special membership card, which I decline: "Not necessary today."

Somebody will claim that local companies don't have the resources to track customers that closely. Then why does one local auto dealership send brochures to me every month with the VIN number of my auto included?

Only the paranoid survive!

–B.G.–

I haven't received a single piece of unsolicited email from either REI or my airline card issuer. Not a one.

Given this, and for the benefits I am getting (as described above) — my airline can track my trips all they want. Indeed, I am sure they do since they are the ones awarding me the tickets!

As for other card issuers, it's a business relationship, so go with a reputable company.

Matthew, Don't forget that stores also have to pay a fee to the banks when they swipe a credit card. In the 7 years that I have had my cc's I have only missed payment once when I was traveling in Europe. You can make auto payment to avoid forgetting. Some people tend to spend more than what they are making and putting in their checking account. It sounds like you are a wise man. You shouldn't have a problem paying your card before the end of the bill cycle. I first got my cc to build credit so I can buy a house. You usually need a good credit score to buy a car when taking out a low interest loan. They want to make sure that sure that you can manage your money wisely. Especially the "free" money that you have… I love cashback, the drawback is this can make you spend more or falsely justify making purchases (at rei) by making you think that you are getting a better deal. Now paying most of your bills (some dont accept cc's coz of the added fees they have to pay) with cc's makes it worth it.
ReI is curently giving a $100 gc if you open a view cc with them. Make sure you fill out the actual brochure with the sale mentioning it. You can always make 1 purchase, pay it off, then put it away and use it once a year or so to make sur it doesn't get canceled.

I for one prefer targeted ads, I have my own ability to not purchase things, but if something exists that I may be interested that I don't know of, that interests me too.

90% of that data is mined not to pick you out as an individual consumer but to better track all their consumers as a whole, and to more efficiently run their business, be it stock count, stock type, etc.

American's are too self centered, of course this data is used to target them individually!
The fact is, that data is not at all interesting to anyone, but you and 10,000 of your fellow shoppers, now THAT data is interesting.

Why don't you ask the dealership to stop wasting paper in sending you monthly brochures?

The REWARDS20 coupon works now at REI even though it is not supposed to start until next week.

Awesome, nice to hear. Thanks Greg

What about in stores? Or is it online only?

I think they usually mail out the physical coupon that you can use in stores so I assume that would have a start date on it that might be enforced. I don't know. I haven't gotten my coupon yet. I just saw that someone had posted the code so I figured I would try using it online as programmers are lazy so its likely when they add coupons to the system they only put in expiry dates.

I confirmed it today – you cannot use it in stores until the actual coupon shows up.

Thanks Greg…I wish I had realized this sooner…I have been sitting around waiting…anyway, it does work…I just ordered the Sawyer Squeeze for $47.89 (after the 20% coupon) using my dividend and a few other small items to get my order up to $50 for the free shipping.

(I saved $12.06 on the filter and $8.99 on shipping. Then after my dividends, I only spent $4 so I am a happy camper now… :) )

a lot of personal information on a very public forum.
guess not everyone's worried about privacy.

Worked for me. Thanks for the info!

OK, now that the coupon's in effect, when are they going to stock the NeoAir Xtherm???

NeoAir XTherm is supposed to be release for sale by Thermarest on 4/1. REI will be able to sell it on or after that date.

Thanks. I have been wanting one of those VERY much (I hope that I will like the horizontal baffles, I know that I like the R-value).

Does anyone know if the dividend coupon is valid for bikes?

"a lot of personal information on a very public forum. guess not everyone's worried about privacy."

What's to be worried about? No one is putting the credit card numbers out there.

Typically no. Here's an example from an earlier such coupon

" Offer not valid on bikes, hard-shell boats, stand up paddleboards, any item with GPS technology, personal locator
beacons, skis, ski boots or ski bindings; snowboards, snowboard boots or snowboard bindings."

They do have bike sales through the year, a trick is that the sale is advertised from a certain date but the bikes are marked down just before you can can buy before the main rush of bargain hunters. I bought an REI-brand Novara bike last year using that method, and laid down a decent 5000 of hard hill mileage and no problems.

My dividend was $0.00. Thank me cottage industry.

$1.76 here. No REI within a 3 hour drive. Stocked up on fuel last time I was there.

I feel like I made out fairly well. $20 dividend + 20% off of the Exped Schnozzel pumpbag + 20% off a Mt. Hardwear button up shirt in the outlet means everything for around $35 plus free shipping. I'm pretty excited to try out the pumpbag.