Hey everyone! I'm looking for a new credit card to #1 have a backup in case I'm at the grocery store with a long line behind me and the debit card doesn't feel like working and to #2 take advantage of a rewards program. I see these 1-5% cash back things and figure I may as well be taking advantage.
I won't carry a balance so I'm not concerned about what the interest rate is. I have pretty good credit. I'm just wondering, before I start looking too hard, if anyone here is happy with a particular card? I don't have much interest in travel so some other form of rewards would be best and annual fees are annoying but if the rewards make it worth it, I'd consider putting up with one.
Anyone get any good stuff just for using a certain credit card?
Best Credit Card Rewards Program
mike,
I have a chase freedom card and a chase e ink business card. The business card offers 1-3% cash back. The 3% is in gas and restaurants. The chase freedom offers 5% cash back in categories that change every quarter, and they are currently running a promotion where you get 100 dollars cash back just for signing up, plus 0% interest until middle 2012. They both offer 1% cash back in everything else that isn't a bonus category and have no annual fees. One is visa, the other is a mastercard.
I would highly recommend either of these cards. Between the two of them I've made over a thousand dollars over the years. I love credit cards.
I have a chase freedom card and a chase e ink business card. The business card offers 1-3% cash back. The 3% is in gas and restaurants. The chase freedom offers 5% cash back in categories that change every quarter, and they are currently running a promotion where you get 100 dollars cash back just for signing up, plus 0% interest until middle 2012. They both offer 1% cash back in everything else that isn't a bonus category and have no annual fees. One is visa, the other is a mastercard.
I would highly recommend either of these cards. Between the two of them I've made over a thousand dollars over the years. I love credit cards.
I'm not sure about the best but this credit union visa card gives 1% cash back on purchases each *month*.
https://addisonavenue.com/visa/platinum.htm
https://addisonavenue.com/visa/platinum.htm
What card do you have already? "Best" is often very dependent on what you spend money on, and how much you spend per year. I use:
Chase Freedom (http://www.chasecreditcards.com/click.a ... c=FREE100B): $100 bonus for spending $800 in first 3 months. 1% all purchases. 5% on rotating categories.
Discover Rewards: 1% on everything. 5% on rotating categories.
Because the two cards have rotating categories, you increase the chances that what you want to buy is 5% on one of the cards.
I also am interested in Fidelity Visa (http://personal.fidelity.com/products/c ... shtml.cvsr) Which is 1.5% on everything, 2% after first 15k annually, and the money is deposited into your Fidelity account (which can be withdrawn if it's not IRA, etc.).
My parents have a Costco Amex, which gives you 3% on restaurants and gas, 2% on travel, 1% everywhere else, but the reward is a costco check. I'd definitely look into other Amex cards if you spend a lot per year because they often have a tiered system that gets pretty good after you spend enough to get into the higher tiers (but pretty bad in the lowest tiers).
Chase Freedom (http://www.chasecreditcards.com/click.a ... c=FREE100B): $100 bonus for spending $800 in first 3 months. 1% all purchases. 5% on rotating categories.
Discover Rewards: 1% on everything. 5% on rotating categories.
Because the two cards have rotating categories, you increase the chances that what you want to buy is 5% on one of the cards.
I also am interested in Fidelity Visa (http://personal.fidelity.com/products/c ... shtml.cvsr) Which is 1.5% on everything, 2% after first 15k annually, and the money is deposited into your Fidelity account (which can be withdrawn if it's not IRA, etc.).
My parents have a Costco Amex, which gives you 3% on restaurants and gas, 2% on travel, 1% everywhere else, but the reward is a costco check. I'd definitely look into other Amex cards if you spend a lot per year because they often have a tiered system that gets pretty good after you spend enough to get into the higher tiers (but pretty bad in the lowest tiers).
This may be a real one off, but might be worth looking around. My credit union pays 2% on deposits up to $25k. Ally bank is like 1.09% right now, for reference. Only requirement is that you use your debit card 12 times a month (or get crap interest that month). So I tend to hover around $20k of emergency cash and the extra %0.9 is about $180 a year. I'd have to spend $18k on a 1% rebate card for that.
Follow up on dragoncar's post: Fidelity Amex is 2% all purchases (Fidelity Visa starts at 1.5%). http://personal.fidelity.com/products/c ... owcard=all
Wow, thanks guys. I spend about $15k/year with my debit card (hoping to lower that just a little bit this year). More than half of that is on food and transportation.
So looks like for me the best bet will be the Chase Freedom and the Discover Rewards card for 1% cash back all the time and 5% on rotating categories of stuff. Hopefully by year's end I can get a few hundred cash back. Not really interested in AmEx or opening a fidelity account just for a credit card.
So do they just cut you one rewards check at the end of the year or is it on every monthly statement or quarterly or how does it work generally?
So looks like for me the best bet will be the Chase Freedom and the Discover Rewards card for 1% cash back all the time and 5% on rotating categories of stuff. Hopefully by year's end I can get a few hundred cash back. Not really interested in AmEx or opening a fidelity account just for a credit card.
So do they just cut you one rewards check at the end of the year or is it on every monthly statement or quarterly or how does it work generally?
If you're dependent on gasoline-based transportation on a regular basis, I recommend the BP VISA:
http://www.choosebp.com/
5% Cash back on gas (only at BP)
2% on dining & travel
1% everything else
or the Shell Mastercard
http://www.shell.us/home/content/usa/pr ... astercard/
5% Cash back on gas (only at Shell)
1% on everything else
The BP is better because it is unlimited in all categories, while the shell limits you to only $20 max in cash-back each month. I use both...... depending on my gas needs.
I find the 5% is a good deal, especially because gas is so competitive, a BP and Exxon may be right beside each other, but the 5% cash back gives you an edge =].
http://www.choosebp.com/
5% Cash back on gas (only at BP)
2% on dining & travel
1% everything else
or the Shell Mastercard
http://www.shell.us/home/content/usa/pr ... astercard/
5% Cash back on gas (only at Shell)
1% on everything else
The BP is better because it is unlimited in all categories, while the shell limits you to only $20 max in cash-back each month. I use both...... depending on my gas needs.
I find the 5% is a good deal, especially because gas is so competitive, a BP and Exxon may be right beside each other, but the 5% cash back gives you an edge =].
My Chase Freedom is actually a similar version to M's (3% on gas, fast food, grocery stores, 1% elsewhere)... it's kind of frustrating that they keep changing the program so your exact rewards depend on which offer you accepted and when you applied.
The way it works for me is that you accrue dollars/points on a monthly basis. You can cash the points for a statement credit or a check after something like $50. As of now, with my card, if you save $200 you can get a $250 check, so that's what I do.
Discover is similar, with a $50 increment... so if you've accrued $55, you can get a $50 statement credit and then you have to wait until you accrue another $45. I also forgot to mention that the last 2 years, Discover has given double cash back for internet purchases during December and maybe November too. The 5% rewards have a dollar limit (like 5% on travel, hotels, and bookstores until May on purchases up to $800). You can check out the upcoming calendar here: http://www.discovercard.com/customer-se ... endar.html (sometimes the offers overlap in time).
Both cards also offer other ways to spend the cash which may or may not be cost effective.
With Discover and Amex, of course you sometimes find a place that won't take it. Discover has gotten a LOT better in recent years, so most bigger restaurants take it although Mom & Pop places still tend to only take Visa/MC.
The way it works for me is that you accrue dollars/points on a monthly basis. You can cash the points for a statement credit or a check after something like $50. As of now, with my card, if you save $200 you can get a $250 check, so that's what I do.
Discover is similar, with a $50 increment... so if you've accrued $55, you can get a $50 statement credit and then you have to wait until you accrue another $45. I also forgot to mention that the last 2 years, Discover has given double cash back for internet purchases during December and maybe November too. The 5% rewards have a dollar limit (like 5% on travel, hotels, and bookstores until May on purchases up to $800). You can check out the upcoming calendar here: http://www.discovercard.com/customer-se ... endar.html (sometimes the offers overlap in time).
Both cards also offer other ways to spend the cash which may or may not be cost effective.
With Discover and Amex, of course you sometimes find a place that won't take it. Discover has gotten a LOT better in recent years, so most bigger restaurants take it although Mom & Pop places still tend to only take Visa/MC.
I've been with Discover since 1988, and so far as I know, I have never paid them a dime for anything. I would be what the CC industry calls a "deadbeat". At first there was some spots not taking Discover due to the higher costs to the merchant. These days, almost everyone takes it. Discover Card service is excellent. On all fronts, I have been completely satisfied. I keep thinking "This can't last forever".
The secret is to know your cut off date, and your billing date. I get the notice by email that my statement is available on line, and the hard copy statement arrives almost always on the 25th of the month. Twin actions happen on the 25th:
The statement is received by mail by me on the 25th.
The check to Discover for the statement amount is mailed by me on the 25th. Yes I could pay it on the on line notice, but I prefer to handle and mail as stated. In three (3) days or less I get an email saying "Your Discover Card Payment Has Posted".
I also have a Chase Visa just in case, but seldom ever use it.
Discover is a Sears Roebuck product. I had a Sears Card from 1970 to 1988, when I turned it into a Discover Card. Some say there is no free lunch, but I do feel I have a free accountant with Discover. For how much longer, I won't venture a guess, but will scoop it up while I can. As far as I know they are one of the best--at least in my experiences. As long as the end of year statement always shows Interest Paid: 0, I will stay with them. And no fees showing either.
The secret is to know your cut off date, and your billing date. I get the notice by email that my statement is available on line, and the hard copy statement arrives almost always on the 25th of the month. Twin actions happen on the 25th:
The statement is received by mail by me on the 25th.
The check to Discover for the statement amount is mailed by me on the 25th. Yes I could pay it on the on line notice, but I prefer to handle and mail as stated. In three (3) days or less I get an email saying "Your Discover Card Payment Has Posted".
I also have a Chase Visa just in case, but seldom ever use it.
Discover is a Sears Roebuck product. I had a Sears Card from 1970 to 1988, when I turned it into a Discover Card. Some say there is no free lunch, but I do feel I have a free accountant with Discover. For how much longer, I won't venture a guess, but will scoop it up while I can. As far as I know they are one of the best--at least in my experiences. As long as the end of year statement always shows Interest Paid: 0, I will stay with them. And no fees showing either.
-
runrunruneateateat
- Posts: 26
- Joined: Tue Aug 17, 2010 7:47 pm
I have the Fidelity Amex card. I already had a Roth IRA through Fidelity so the credit card has been great. I pay it off every month and get about $150/year deposited into my Roth IRA. Amex also periodically runs promos for the card. In December, if you registered your card for this particular program, you'd get a $25 statement credit if you spent $25 at a local merchant. I got another $16 as a statement credit a few weeks later for a similar promotion.
I like the Amazon visa card. You get 1% on most purchases, 2% on things like groceries and gas (I think), and 3% on Amazon purchases. Every month you get points, and you can use those points to either get Amazon.com gift certificates or to get a credit on your card. They regularly run promotions to give you extra points
I (my family)) uses an MBNA Platinum SmartCashMasterCard for family purchases (basically, food and gas). It pays 3% on gas and groceries, 1% on all other purchases. This is ideal for us because gas and groceries are just about the only family purchases we make.
http://www.mbna.ca/smartcash_cardList.html
They send you a cheque each time you accrue $50 in cashback rewards. I guess they don't apply it as a credit on your balance as they are banking on the % of people who will lose or forget to cash the cheque
JeremyS (not to be confused with the Jeremy above)
http://www.mbna.ca/smartcash_cardList.html
They send you a cheque each time you accrue $50 in cashback rewards. I guess they don't apply it as a credit on your balance as they are banking on the % of people who will lose or forget to cash the cheque
JeremyS (not to be confused with the Jeremy above)
I'd get the 3 rotating rewards cards: Discover, Citi Dividend and Chase Freedom... Most offer a $50-$100 signup bonus... I have a small section of my 3.5 inch wallet register that tells me which rotating card to use and on what.
If your purchase isn't on one of the rotating rewards categories, have a blanket wide 1-2% card. The Fidelity might be good... I'm lucky to have gotten the FIA Schwab 2% Visa. Another favorite of mine is the Starwoods AMEX, but rewards are in the form of hotel stays... I believe PerkStreet has a 2% rewards debit Visa.
Another favorite of mine is the CitiForward. 5% on restaurants, movies and books. It's fantastic, because the 5% works on Amazon, trumping Amazon's own rewards card.
If you do an AOR (app-o-rama) you'll likely be approved for all the cards and the credit rating hit will only last for about 7 months...
Back when credit cards were profitable (0% 24 month APR, no balance transfer fees) I dropped my credit score from about 820 to 690... But completely worth it for the arbitrage that isn't around after 2008... Now I'll take an additional 1-3 cards every 7 months just for the bonuses.
If your purchase isn't on one of the rotating rewards categories, have a blanket wide 1-2% card. The Fidelity might be good... I'm lucky to have gotten the FIA Schwab 2% Visa. Another favorite of mine is the Starwoods AMEX, but rewards are in the form of hotel stays... I believe PerkStreet has a 2% rewards debit Visa.
Another favorite of mine is the CitiForward. 5% on restaurants, movies and books. It's fantastic, because the 5% works on Amazon, trumping Amazon's own rewards card.
If you do an AOR (app-o-rama) you'll likely be approved for all the cards and the credit rating hit will only last for about 7 months...
Back when credit cards were profitable (0% 24 month APR, no balance transfer fees) I dropped my credit score from about 820 to 690... But completely worth it for the arbitrage that isn't around after 2008... Now I'll take an additional 1-3 cards every 7 months just for the bonuses.
I think rewards checking accounts are better "bang for your buck" for an ERE accumulator than rewards credit cards.
for credit card spending you can expect:
1% cashback on $15k/yr spending => $150
2% cashback on $15k/yr spending => $300
If instead you put your purchases on a rewards checking debit card, you can expect somewhere between 3% to 4% on your checking account. Example for Boston: 3.25% on up to $20k. Similar cash investments pay around 1%. So rewards checking accounts have a 2% to 3% edge over normal checking/savings/cash accounts.
$5k @ 2% edge => $100/yr
$10k @ 2% edge => $200/yr
$20k @ 2% edge => $400/yr
$5k @ 3% edge => $150/yr
$10k @ 3% edge => $300/yr
$20k @ 3% edge => $600/yr
While this only works if you plan to keep cash around, I feel better about my ability to keep on average $5k in a rewards checking account with a 3% edge than I do about my ability to spend $15k/yr on my credit card. If you're keeping more like $20k+ in cash (say to buy another house), no credit card can keep up.
for credit card spending you can expect:
1% cashback on $15k/yr spending => $150
2% cashback on $15k/yr spending => $300
If instead you put your purchases on a rewards checking debit card, you can expect somewhere between 3% to 4% on your checking account. Example for Boston: 3.25% on up to $20k. Similar cash investments pay around 1%. So rewards checking accounts have a 2% to 3% edge over normal checking/savings/cash accounts.
$5k @ 2% edge => $100/yr
$10k @ 2% edge => $200/yr
$20k @ 2% edge => $400/yr
$5k @ 3% edge => $150/yr
$10k @ 3% edge => $300/yr
$20k @ 3% edge => $600/yr
While this only works if you plan to keep cash around, I feel better about my ability to keep on average $5k in a rewards checking account with a 3% edge than I do about my ability to spend $15k/yr on my credit card. If you're keeping more like $20k+ in cash (say to buy another house), no credit card can keep up.
@akratic: good point, but you can do both... Some of the credit card rewards programs, bonuses and perks are excellent and hard to ignore...
Rewards checking accts are great, but seems they are dying. I remember when rates were much higher... I still have a few worth keeping up, but the overdraft caps are likely limiting the profitability of RCAs.
RCA # of transaction tips:
1. Gas stations: you can get 2 immediate transactions before you get locked out.
2. Self checkout: go when there is no line and just do all your transactions for items you need.
3. Walk and get a piece of fruit at lunch a few times a week.
4. Online utilities: easy, but widely abused, might have a hand in the rate drops.
Rewards checking accts are great, but seems they are dying. I remember when rates were much higher... I still have a few worth keeping up, but the overdraft caps are likely limiting the profitability of RCAs.
RCA # of transaction tips:
1. Gas stations: you can get 2 immediate transactions before you get locked out.
2. Self checkout: go when there is no line and just do all your transactions for items you need.
3. Walk and get a piece of fruit at lunch a few times a week.
4. Online utilities: easy, but widely abused, might have a hand in the rate drops.
I'm not understanding why people are talking about rewards checking here. Rewards checking and credit cards are not mutually exclusive... in fact you are likely to use both. Sure, you can put your cash in rewards checking and make the minimum number of debit withdrawals (usually something like 12, right?). But once you've made the 12 withdrawals, you no longer get any benefits from using your debit card. It makes sense to have a credit card.
I don't use cards enough to justify having both. I make about 15-20 card purchases a month naturally. This means I can either have a headache free 3%-4% rewards checking account, or 1%-2% back on my spending.
I wasted a lot of hours trying to eke out the best possible rewards I could on my old credit card... only to realize later that it was a total waste, and that I would have been way better off with a rewards checking account and minimal credit card usage.
Maybe someone else who reads this thread will be in the same situation. Keep doing whatever works for you.
I wasted a lot of hours trying to eke out the best possible rewards I could on my old credit card... only to realize later that it was a total waste, and that I would have been way better off with a rewards checking account and minimal credit card usage.
Maybe someone else who reads this thread will be in the same situation. Keep doing whatever works for you.