My Disney Credit Card, I’m racking up the points.
I have a Disney credit card and this month I’m getting a bunch of Disney rewards dollars. It’s both exciting and depressing at the same time. The depressing part is that I’m putting so much on the card because I have to pay for some medical expenses (a lot of medical expenses) and will probably have to continue to do so for a while.
The good part is that as I put some of the charges from the hospital on the Disney credit card I get Disney rewards points. It works almost like getting a one percent bonus. You get a “Disney Dream Reward Dollar” for every hundred dollars you spend on your Disney credit card. It takes a while for the points to add up. For example, to get a one day pass to Disneyland it will cost $96 after the recent price hike. To earn that on my Disney credit card I would have to spend $9,600. It seems like a lot, but it’s possible.
A couple of years ago we had accumulated enough point for a couple of park hopper passes. It was really cool. It wasn’t like we went out of our way to put everything on the card either because we have a couple of other rewards cards. This time though we opted for the Disney credit card.
Key to Disney Credit Card Success
Here’s the key to making it work well, you have to pay off the balance each month. The same goes for any rewards program you might have on any other credit card. If you can’t pay off the balance without interest you are better off not using the card if at all possible. Here’s an example, the APR (annual percentage rate) on the standard Disney credit card is 15.24% right now (it’s variable and changes with the prime rate). Let’s say you have a $3,000 expense that you have to pay. If you use your Disney credit card to pay for it you will earn 30 Disney rewards dollars.
Pay off your Balance
If you pay it off before the next billing cycle, you won’t pay any interest. For some people this is a difficult task, even if they have the ability to do so. Some say it takes a laser like focus on your finances to keep it all in order. Here would be no exception, the more focused you are the more potential benefit you’ll receive. If you don’t pay it off you get to pay that 15.24% interest on the balance. After just one month (30 days) you end up paying $37.57. Guess what? You are losing money on the deal. From that point on until the balance is paid you negate any benefit to getting the rewards dollars from using the Disney credit card.
Reap your Rewards
If you learn how to manage your finances and can always keep your balance paid off you can reap some great rewards from your Disney credit card or any other rewards card. You just have to make sure you understand how they work and most importantly only use them when you can pay them off quickly.
More great credit card articles on NottaLotta®
- Negotiate a Lower Credit Card Interest Rate In 5 Simple Steps
- Winning the Credit Card Game
- Disney Credit Card, is the Reward Worth the Risk?
- Southwest Credit Card Member Perks