Credit Card Rewards Strategies

[Joel]

What credit card reward strategies do you guys employ?

[asromzek]

Chase Amazon card (PIF) for 100% of our transactions. 3% cashback on Amazon purchases, 2% on fuel & restaurants, 1% on all other purchases. We were going to start looking for other types of rewards cards soon, so I'll be watching this thread.

[Joel]

I'll start. We have 7 cards:

Citi Double Cash - Earns 2% rewards on all purchases. This is our default card for all purchases, unless the rewards for another card are higher.

Chase Freedom 5% - Earns 5% rewards on rotating categories. We use this card whenever there is a 5% category where we would normally make purchases. Frequently, that means gasoline, eating out, and Amazon depending on what quarter it is.

Discover 5% - Earns 5% rewards on rotating categories. Same as the Chase, we only use this card for planned purchases when the category earns 5%.

Target - Earns 5% discount from all Target purchases. My wife loves to shop at Target. It only made sense to get the card and get 5% off all purchases.

Costco Citi Card - Earns 4% on gas purchases and 3% on restaurant and travel purchases. We use this for all purchases of gas and restaurants (unless Chase or Discover offers 5% for that quarter). By going through this exercise, I reminded myself that this card earns 3% at restaurants. When we got it, the Chase or Discover card was earning 5% at restaurants, so we used those cards, and I seem to have forgotten.

Chase Amazon Card - Earns 3% back on Amazon purchases. We only use this card if Chase or Discover does not offer 5% for that quarter.

Capital One Quicksilver - Earns 1.5% on all purchases and has no foreign transaction fees. We only use this card when we are traveling abroad to avoid foreign transaction fees.

[Billy_McSkintos]

We recently got rid of a few credit cards we never use so down to 2 now.

Discover (PIF) - 2% on everything We use the point every month to buy stuff we want or stuff we need from Amazon


Costco Citi (PIF) - 4% Gasoline and (?%) Costco purchases

[jenmas]

My Citi Double Cash is my default card for everything except groceries, gas, and certain department stores.

For Groceries, gas, and certain department stores (Kohl's, Macy's, and I think JC Penny in my area) I use my Blue Cash Preferred (6% cash back on groceries, 3% cash back on gas and the stores, 1% on everything else).

Based on rotating categories, I will sub in my Chase Freedom for the 5% quarterly specials

For large technology purchases, I will use my Best Buy store card for the cash back in the form of gift certificates.

I also have an AMEX traditional charge card that I use a lot when I go on long business trips because it has no pre-set spending limit though it does have foreign transaction fees which suck.

If my international business travel becomes more consistent than hey can you go to X for 3 months but then changing their minds a week later, I may upgrade my traditional green card to the AMEX Platinum because even though the annual fee is $450, I would be able to get lounge access in many many airports, plus it would reimburse for my Global Entry fee, and I think I may also get some free checked bags (though that is an expensable cost usually).

My default overseas card is my ancient Capital One World card which has crappy cash back but no foreign transaction fees which generally are 2.5% so it's a better deal.

Edited to add: I also have the Target Redcard so 5% off all purchases at Target.

[Alex]

USAA reward card - flat 1.5%.

I also have a Discover card that I use around the holidays for 5% off Amazon and other online stuff.

Every now and then I get a card for the signup bonus and then close it afterwards.

That's about it.

[Brooklyn]

Amazon store card which is 5% back on all Amazon Purchases.

Citi Costco Visa Card - 4% Gas, 3% travel, 2% Costco Purchases & 1% on everything else.

Discover and Chase Freedom for the rotating 5%.

Citi Double Cash as a catch all for everything else.

Also, this emoji is legion!  parrot

[isildo]

Citi Double Cash and Chase Freedom for 99% of all purchases. DH does the vast majority of our spending and he values the simplicity. I also have a Target card--I don't shop at Target often but 5% is 5%!

[Shark]

Citi Double Cash at 2% for everything except Amazon.

On Amazon we use their card for 5% and try to also be patient and get things lumped together on Subscribe and Save where possible to get an additional 15%.

I spend so little at Amazon though I've considered dropping that card to simplify down to having just the one card.

[Joel]

I just received my 5% rewards activation for my Discover card, which prompted me to research the category for the Chase Freedom card. I found a lot of speculation online that the Chase Freedom 5% category program will be ending after 2016. Has anyone else heard anything?

[asromzek]

I noticed that Ally is offering a cash back credit card. Does anyone smarter than me see any gotchas with this card?

[asromzek]

To clarify that at 10% number, they have a good example in their terms.

As an example: $10,000 spent in purchases x 2% = a cash back reward of $200, plus the 10% bonus reward equals a cash
back reward total of $220 into your eligible Ally Bank account.

[Joel]

To clarify that at 10% number, they have a good example in their terms.

As an example: $10,000 spent in purchases x 2% = a cash back reward of $200, plus the 10% bonus reward equals a cash
back reward total of $220 into your eligible Ally Bank account.

Yup so that makes it 1.1% on all purchases and 2.2% at gas stations and restaurants. Since I get 4% at gas stations and 3% at restaurants with my Costco Citi Card and 2% on all purchases with my Citi Double Card, it doesn't offer anything better than my current system.

[asromzek]

To clarify that at 10% number, they have a good example in their terms.

As an example: $10,000 spent in purchases x 2% = a cash back reward of $200, plus the 10% bonus reward equals a cash
back reward total of $220 into your eligible Ally Bank account.

Yup so that makes it 1.1% on all purchases and 2.2% at gas stations and restaurants. Since I get 4% at gas stations and 3% at restaurants with my Costco Citi Card and 2% on all purchases with my Citi Double Card, it doesn't offer anything better than my current system.

I may have to look into getting one of those cards.

[Joel]

Capital One also offers 1.5% on all purchases (with no foreign transaction fees) and Chase has a card that earns 1.5% on all purchases as well. Both of which would likely be better than the Ally Bank card.