Credit card cash back

**ua_guy** · 07-23-2015, 07:56 AM

Personally, the mental anguish of having to remember what rewards are on tap at what time isn't worth it, let alone managing and carrying multiple cards.

I have a cash rewards card but I don't game it. It's 3% back on gas and groceries and that's good enough for me.

Interesting on the gas rebate...It's actually cheaper to pay cash or use debit for gas than it is to use credit (at a higher price) even with the 3% rebate.

**Jluke** · 07-23-2015, 08:18 AM

More power to you if you are able to pull it off.

I have 1 rewards card and 1 non-rewards card. I only ever use the rewards card; I use the non-reward card maybe twice a year to keep it active.

Just don't fall into the habit of buying things to get the "rewards"

**Bob B.** · 07-23-2015, 10:30 AM

I have only one credit card. It has a rewards program. I have no idea how it works, or what percentage comes back. Now that I think about it, I think it's 3%. I know there are promos, like right now there is a promo for big box home improvement stores. Not sure how or why I remember that because I normally pay no attention.

I do know that my rewards are good on Amazon, because when my wife orders things on Amazon, she uses my rewards. So, when I look at my CC statement each month, I do notice that I accumulate some rewards, and that some rewards have been used on Amazon purchases.

I could concern myself with maximizing my rewards, and keeping track on how to best utilize them, but I don't. Because I think it changes every quarter. I've got better things to do.

**snafu** · 07-23-2015, 09:50 PM

We all have different reasons for holding specific CCs. Besides the 5% cash back for gas & groceries, my primary card offers only 1% for other purchases. I've a 2nd CC because that specific [bank] 'card doesn't charge 'transaction fees' on international exchange for foreign ATM machines. When COSTCO dropped AMEX, I rejected the offer from Capital One but was surprised to discover a new AMEX card [without warning] in the mailbox. WestJet airline dropped travel miles and replaced it with a discount CC. We fly WJ regularly and it's been the most cost effective for us thus far.

Over time we've acquired several CCs related to major discounts on big ticket items. Who knew they had a 10 or 12 year life span! I accepted the discount and left the CC in the safe. Encrypted ATM cards also function as CCs but the are needed for deposits. BTW, if your bank offers free photo deposits, it's very efficient.

**phantom** · 07-24-2015, 04:19 AM

I have three credit cards with cash back: Chase Freedom (rotating 5% categories), Amex Blue Cash Everyday (extra % on gas and groceries), and Discover It (different rotating 5% categories). I use the following algorithm to decide what card to use:

1. If I am paying for my daughter's day care, which only takes Discover, I use my Discover card.
2. If I'm at a gas station or grocery store, the store takes Amex, and that type of store is not a Chase 5% category for the quarter, I use the Amex card.
3. Otherwise, I use the Chase card.

Technically, the Discover card also has rotating 5% categories that are different than the Chase card categories, so if I really wanted to optimize my cash back, I would be using that for more than just day care. But, to do that, I'd have to remember the all the Chase categories and all the Discover categories. I'd also have to give a bit more thought to paying my Discover bill. (As long as my daughter's day care is the only thing I'm putting on that card, I know exactly how much I'll owe on it and can feel comfortable setting it to auto-pay.) So, I choose not to optimize in the interest of keeping things simpler.

If I'm spending several hundred dollars on something, I will take some time to do additional optimization. I might look and wait for 5% at grocery stores and buy gift cards for my purchase. I might open a new card for bonus cash back. I might look and wait for 5% at a store where I could make my purchase. In short, if I stand to save enough money, I'll put more effort into getting cash back for my purchase.

I think you've got to figure out what level of cash back optimization makes sense for you. If you've got the time for juggling lots of cards and enjoy the game of optimizing your rewards, I say you might as well keep adding cards till it gets to be too much. Just make sure you have an easy way to track the activity on all of your cards (like Mint), and that you have a good system for making sure you don't miss payments.

**Bal.Leona** · 07-24-2015, 04:37 AM

I have 3 I use regularly: AmEx BCP for groceries (6%), Sallie Mae for gas/Amazon (5%), and a Quicksilver (1.5%) for just about everything else. I have a Chase Freedom and Discover IT that I might use very rarely for the bonus categories, but most of them don't apply to me. I also fly a couple of times a year, so I have a Huntington Voice with the travel category selected (3%). I found this to work better for me than trying to game stupid airline miles.

**Fishindude77** · 07-24-2015, 05:30 AM

Unless you are a huge credit card user, I feel like this is one of those "tripping over dollars, worrying about nickles" type of discussions.

I have a Cabelas credit card that credits us with points towards store purchases. Since we buy lots of stuff from Cabelas every year, if works for us. Usually apply the points once or twice each year and get a purchase for free.

**ronb** · 07-24-2015, 07:25 AM

I have the Discover it card for cash back. I don't really pay attention to the rotating categories - I think I get auto-enrolled now. It's alright.

Checkout the Sallie Mae card for really great cash back. I'm going to apply for it once I get a chance.

And no, you don't have to have student loans.

Credit card cash back