Thanks, MIT, We Know Credit Cards Can Make You Feel Good

Debit Spending Millennials

We probably did not need rocket scientists to tell you that credit card purchasing makes you feel good, but the level of detail MIT brings to the table is at least interesting to understand.  As London’s Daily Mail points out,

Hmm, the drug connection is a little aggressive. Still, there indeed is a “feel good” associated with my laying down my Discover It card, especially when I am at the right store during their quarterly 5% reward rotations.  During 1Q21, that means I get 5% back at grocery stores, Walgreens, and CVS.  Next quarter, it is gas stations, wholesale clubs, and streaming services.

Now, the 5% does not make me want to buy more than I need, but I will take the 5% and feel good about the savings.  OK, I am a rewards junkie.  Now, back to the rocket scientists at MIT.

Here is the study for those equally inclined to understand the nerdy details.  But be prepared for the gory details, such as the authors talk about brain scans.

And, call me an operational hack, but what is this?

I am not embarrassed to say that sent me to google, where I found a Bonferroni correction is:

Well, let’s cut to the chase.  Using credit cards makes you feel good.  We could have saved a lot of time and academic research on that one.

Know what makes you feel even better?

Paying off the debt.

Don’t be a revolver if you can help it.  Be a credit card transactor. 

You will feel even better.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

Exit mobile version