A few weeks later, I received a notice in the mail stating my request for “downgrade” was denied. When I called and asked why, the CSR told me that because I had activated the card, I could not downgrade. I told her that I had activated the World card because I’d previously been told I had no choice.

I’m one of those people who don’t carry cash, and pay everything with one card. Yes, it’s a hefty bill, but that includes house, utilities, groceries, gas, etc., so it’s a real benefit.

After the way I was treated, I called corporate office, and sent two emails asking why this program was in the place and complaining about the way I was treated. Of course, no response.

Now, I’m going to cancel the card, because while it’s nice to receive benefits, none of us like to be treated like a number. Or ignored.

On a positive note, my AMEX platnium has been great to work with, and if you spend enough and call, they will waive the annual fees. Plus, you get to speak to people in the States. You can actually understand their CSRs! Pass it along - World card sucks.

From my own experience:
- I’ve earned several free roundtrip airfares to Europe *and* within the U.S. due to my credit card spending (purchase points). In fact, with my Citibank cards (I recently switched to the Premier Elite), I’m already eligible for a free rt airfare to Europe with no blackout dates after using the cards for about a year and a half.
- American Express reimbursed me in full when a camera I purchased on their card was stolen two months after purchase (Purchase Protection).
- Citibank efficiently protected me when a company I bought a computer from refused to replace a defective system under warranty.
- In the month of May, I was able to enter several popular area museums for free with my Bank of America card.
- When traveling in Australia, showing my HSBC card got me 15% off at several attractions.

I think the key is using cards responsibly. In the aggregate, I believe, credit card companies screw over consumers by charging horrid interest rates on remaining balances, by charging nasty fees for paying 2 hours late, and so on. I know, because I’ve been on the receiving end of this nonsense. But I cleaned up my act, and now I make credit cards work for *ME* (and I damn well never accidentally forget a bill anymore!) :).

Definitely well aware of those protections and that’s a value that non credit cards don’t have. Also intrigued by the dividends prospect you guys have mentioned. We receive money back when we shop at places like Fred Meyer, Best Buy and Costco already through their Rewards clubs but other than frequent flyer miles, none of our credit cards ever paid back dividends. We must not have shopped around for the best type credit cards.

If you are going to explore the option of credit cards vs. debit cards, I would definitely look into the protection clauses. When I last compared the two (a few years ago), debit cards were not nearly as secure as credit cards (i.e. in the event of a loss, there was little means to reclaim all fraudulent charges). Credit cards by far had the best consumer protection with minimal financial impact.

Also Rob O. brings out a good point… I consider dividends as an additional source of income… as small as it may be… both my AMEX and REI Visa cards provide returns each year. It’s nice receiving $200-400 back each year.

Speaking of experiments… I lived without a TV for 3 years (no tv at home, but occasionally watched a college game at friends). Then Halo forced me to buy a 36″ Wega. I also went nearly a year with no phones (other than the one I had at work) - if you needed to contact me, you had to a) knock on my door, b) send email/IM or c) relay a message via a friend.

Dede & I have, for nearly 10 years, used our Citi Dividend Mastercard for nearly everything. From gas to groceries to tacos, almost nothing’s too small to charge and it all adds up towards cashback dividends points. But we never, ever carry a balance, so we’re not charging anything we couldn’t just as well buy with a check or cash.

We do have another dividend-earning card that we switch over to once the Citi Dividends have paid out all for the year that they’re gonna, which is a max of $300. The exception there is that we prefer the Citi card for travelling since it offers better protection and a better foreign currency conversion rates - something we hope to be making use of in Moscow this Summer! (Keep an eye on our Russian Adoption Journal for upcoming news on that!)