Best Cash Back CC?

[LivingAlmostLarge]

Okay fellow users, what credit card do you have and why?

I have a citi simplicity cash card giving me 5% back on gas, 1% on everything else. I am grandfathered in and it's a lovely card. We shop mostly at costco and use the Costco American Express card (3% travel, 2% dining out, and 1% else) and of course the discover card for the 5% back categories.

I am contemplating the chase freedom card, haven't done enough research. A friend today mentioned the $75/year Blue Cash from American Express. You get 6% grocery stores, 3% gas, and 1% else.

I am debating changing our credit cards but I'm really not sure. Thoughts? Suggestions people?

[greenskeeper]

$75/yr is that the annual fee? I'll never pay to use a credit card no matter what the "rewards" are

[GREENBACK]

I got a chase freedom card back in the summer. Basically because of an instant 20,000 pt.($200) promotional redemption offer. It offers rewards by categories at different times of the year. I'm sure many others are doing this as well. I got it for the $200. I'm sure I'll use it for certain purposes in the future but I didn't really need it.

[SeanH]

Just a couple of thoughts.

(1) Discover just won me back to their camp today. Discover reward dollars may now be cashed in at Amazon dollar for dollar. ie. you don't have to save up to $50 or what not to spend your reward. I had given up on them as I felt like it was a hassle trying to keep track of 2 credit cards and a rewards debit card. I also felt that I didn't spend in their categories often enough to bother - it might take the whole year to get $50. They also have gotten rid of international exchange fees if I understand it correctly.

(2) I have the American Express Blue preferred. There are 2 variations of the card and its essentially a card to use at grocery stores. It has some other perks like 3% back on gas/department stores and 1% elsewhere, but those don't really distinguish it from other cards. The preferred variation is only worth having if you spend ~210+ a month in groceries. If you don't spend that much, then you actually lose out compared to the 3% version of the card. Other then that - there are not limits on the rewards and no one else comes close to matching this value at grocery stores. The everyday version of this card is free and gives 3% at grocer stores and some variation of the other perks above (maybe 2% instead). Long story short - if you don't spend $2500 a year at the grocery store do not get this card. As a fellow Costco shopper you will only earn 1% there so the Costco AE card is basically equivalent for you there.

(3) Chase Freedom. Some people swear by this card. I think its awfully similar to Discover. You have monthly categories that you get 5% in. There are limits on the rewards just like Discover. Unlike Discover, you always receive 1% on non-5% purchases. Discover is tiered - you receive less than 1% until you spend ~$3k. Not accepted at Costco - neither is Discover.

(4) 1 last card that might be worth researching is the Fidelity American Express. The reason I mention this is the following (a) it gives 2% everywhere its used (b) it could probably be used at Costco (c) if it could be used at Costco it would be the only card that would get 2% there. There are no cards that get more than 1% at Costco - not even the Costco AE itself. If it doesn't get 2% at Costco then you can probably forget about it. It is a cute card though in the sense that the rewards go into a retirement account so you actually save the money.

[G-Force]

The AmEx Blue Cash Preferred is what I use. I like getting higher rates of cash back on my common expenses (grocery and gas). I use a USAA mastercard from Sam's club and places that don't take AmEx. I try to use some good base rewards cards, but I don't go nuts trying to optimize my cash back using a ton of cards.

[kv968]

I have the Chase Freedom card and its like Sean described...1% on everything and 5% on select quarterly categories (currently dining, department stores, movie theaters and charitable organizations). The 5% is only up to $1500 that you spend and you have go to the website and activate it each quarter. No big deal really, just go on and click a button. If you decide to go this with one, I'd wait and see if they send you any offers. I got a $200 signing bonus but I've also seen ones for $300 although not lately.

I also have a Capital One No Hassle Cash Mastercard that pays 2% on gas and groceries and 1% on everything else. However, I forgot exactly what the 2% applied to so I looked on their website and I see that this card now has a $39 annual fee. I guess I'm grandfathered in since I don't pay this but I will keeping an eye out to make sure they don't start charging it. Capital One also has another cash rewards card that doesn't have an annual fee, currently has a $100 signing bonus, gives you 1% back on everything and 50% of the previous year's rewards. Oh the math you have to go through...

One question I have...I've kinda been interested in the AmEx cards, but does anyone find that some places don't accept them? I've never really paid attention, but I know that some places will accept Visa/Mastercard but not them. Just wondering if anyone has had any problem.

[Slug]

Originally Posted by SeanH

Just a couple of thoughts.

(3) Chase Freedom. Some people swear by this card. I think its awfully similar to Discover. You have monthly categories that you get 5% in. There are limits on the rewards just like Discover. Unlike Discover, you always receive 1% on non-5% purchases. Discover is tiered - you receive less than 1% until you spend ~$3k. Not accepted at Costco - neither is Discover.

(4) 1 last card that might be worth researching is the Fidelity American Express. The reason I mention this is the following (a) it gives 2% everywhere its used (b) it could probably be used at Costco (c) if it could be used at Costco it would be the only card that would get 2% there. There are no cards that get more than 1% at Costco - not even the Costco AE itself. If it doesn't get 2% at Costco then you can probably forget about it. It is a cute card though in the sense that the rewards go into a retirement account so you actually save the money.

I just wanted to re-emphasize a couple of Sean's points. The tiered piece of Discover's program is one of the key reasons I prefer Chase Freedom to it. Also, Chase sets much higher limits on the amount you can buy in the 5% categories. You can quickly exceed that limit with Discover. I keep them both though for periods where their 5% categories are not overlapping.

Regarding the Fidelity Retirement Rewards AMEX, this is a pretty great card when shopping for everything else where you can't get 5 or 6%. No annual fee. Rewards get dumped into a Fidelity account once your reach $50 I believe.

PS There are lots of other threads on this if you search. Here's another: Best Cashback Credit Cards - including a 2% cashback card

[MonkeyMama]

I'll second/third the Fidelity AmEx - it is the one we use for ongoing rewards.

It is also easy to find a flat 1% cash back on everything (we have a credit union visa with 1% cash back for places that don't take AmEx).

I had the Freedom for years - was a great card. BUT, they then started charging an annual fee (I declined the new terms), and took away the 3% cash back on EVERYTHING. I never use any of the categories they rotate through. Of course, if it fits your buying profile and you can get more from that card, use it. But I am no longer a fan. I closed it a while ago.

These days is harder to find good ongoing rewards, but lots and lots of great one-time rewards.

[MonkeyMama]

Originally Posted by kv968

One question I have...I've kinda been interested in the AmEx cards, but does anyone find that some places don't accept them? I've never really paid attention, but I know that some places will accept Visa/Mastercard but not them. Just wondering if anyone has had any problem.

Exactly. This is why we have an AmEx and a visa. If I had a visa, I'd just have a visa. I haven't been overly impressed with AmEx as a whole (this is the first time I have ever had one). But, so far has been worth it for the 2% cash back on everything. Most placed will tax AmEx. Some utilities and many restaurants we have to run through the visa. On vacation we tend to use the visa more. More touristy places don't take AmEx.

[Slug]

Originally Posted by MonkeyMama

Exactly. This is why we have an AmEx and a visa. If I had a visa, I'd just have a visa. I haven't been overly impressed with AmEx as a whole (this is the first time I have ever had one). But, so far has been worth it for the 2% cash back on everything. Most placed will tax AmEx. Some utilities and many restaurants we have to run through the visa. On vacation we tend to use the visa more. More touristy places don't take AmEx.

Yeah, I get my AMEX declined at the food co-op which means I have to switch from 6% cashback to 1%. Makes shopping local that much more expensive. I really wish my Schwab 2% VISA was not ending tomorrow. I feel like I should have a funeral for it - I loved it so much. Over $1,500 in rewards in about 2 years.

[kork13]

Originally Posted by Slug

I really wish my Schwab 2% VISA was not ending tomorrow. I feel like I should have a funeral for it - I loved it so much. Over $1,500 in rewards in about 2 years.

Ditto. That was an awesome card, I really wish I could keep it.... I'm replacing it for now with the Capital One Venture card, but I'm going to be keeping my eyes open for something better if/when it comes around.

[LivingAlmostLarge]

I have citi simplicity, amex for costco shopping, and discover for 5% categories, right now dining.

To G-Force, my friend said he plans on using the AmEx Preferred to buy MasterCard and Visa Prepaid cards at the store. Because honestly AmEx isn't taken everywhere. Does that work, or does it not earn 6%?

If it does earn 6% to buy prepaid credit cards, I might switch and pay the $75 fee because then it would be worth earning the 6% on groceries. I definitely don't spend $210 on groceries outside of Costco.

[Slug]

Originally Posted by LivingAlmostLarge

To G-Force, my friend said he plans on using the AmEx Preferred to buy MasterCard and Visa Prepaid cards at the store. Because honestly AmEx isn't taken everywhere. Does that work, or does it not earn 6%?

If it does earn 6% to buy prepaid credit cards, I might switch and pay the $75 fee because then it would be worth earning the 6% on groceries. I definitely don't spend $210 on groceries outside of Costco.

This doesn't work. There is an additional fee to buy those type of cards. You can buy other store gift cards at cost though so it is useful that way.

That would be sweet though....a 6% discount on the card and then take it to the bank and deposit...arbitrage heaven.

[SeanH]

I'm sort of glad to see they've caught onto the tricks. The prior format of the Blue Cash card was a tiered card which gave unlimited 5% back at certain venues (ie. grocery stores) once $6,500 had been spent on the card in all categories. Some people figured out that they could buy $6,500 worth of $1 dollar coins from the US Mint and then deposit them into their bank accounts. They were in effect buying free money and the Mint would pay for the shipping as they were trying to spread the use of $1 coins (in things like coke machines and such). The Mint added a note to their website indicating that they wished people wouldn't do this and they eventually stopped accepting orders from credit cards.

From browsing the internet, I think there are a lot of websites that push extremely rosey reviews of literally every card that crosses their website. I suspect most of them receive advertising cash from credit cards and perhaps money if people sign up through them. While it still says nice things - I think PlasticIQ is one of the better sites for getting a review. The blog on the site reviews and has reviewed cards for a number of year. They do give bad reviews to cards. Several of the cards we've indicated here are positively reviewed and they have an engine that assesses spending to attempt to determine the best card for people: 3 Best Cashback Credit Cards | Best Cash Back Cards | PlasticIQ.com

[Frügal]

Loving my Chase Freedom card thus far. I am not a huge fan of the revolving categories, but it's better than nothing. And it's annual fee-free. 5% on revolving categories that you MUST sign up for, or else you don't get it, and there is no way to make sure you've signed up, so I do it multiple times for the same one. 1% on everything else. I believe Capital One had a card that was 5% cash back on gas all year round, 1% on everything else. I, however, just barely did not qualify for it. I am sure I would qualify for it now, as my score is up by over 80 points, but I won't be applying for any in a while.

[LivingAlmostLarge]

Slug why doesn't it work? The friend said even with the fee the return is like 4.875% if you buy these visa/mastercard prepaids.

Did anyone try this out?

[disneysteve]

I have a Chase card that I get cash from but our main card is our Marriott Rewards Premier card. It doesn't give cash back but we love the free travel we get from it. We also both have Discover cards but hardly ever use them.

[JoshuaHeckathorn]

I travel a lot, eat out a lot, and shop at Costco a lot. The Amex TrueEarnings "Business" card is my friend.

[photo]

Originally Posted by JoshuaHeckathorn

I travel a lot, eat out a lot, and shop at Costco a lot. The Amex TrueEarnings "Business" card is my friend.

I don't eat out locally much, but do travel a fair amount and shop at Costco frequently, so I share your sentiment. I've never received a check for over $1,000, but some years it comes close.

[Slug]

Originally Posted by LivingAlmostLarge

Slug why doesn't it work? The friend said even with the fee the return is like 4.875% if you buy these visa/mastercard prepaids.

Did anyone try this out?

LAL,

I'm not sure how your friend does math. If you purchase a $100 gift card for $105 (not sure - fee could be more) including the fee, you'll get $6.30 in rewards and a $100 gift card. 106.30/105 - 1 gives you a return of 1.23%. That's still not worth it to me. I'm happy to understand how it's 4.875% though because that would be worth it if you can explain.