Talk to me about rewards cards

[SeanH]

The Fidelity/Amex 2% card and the New Blue Cash Variations (6% groceries with a fee or 3% groceries without) are the 2 most interesting to me. I like the idea of being rewarded for an essential (groceries) as opposed to being rewarded for a luxury (eating out) though I suppose being rewarded for everything is nice too.

Perkstreet only provides the 2% for signed transactions - not PIN transactions. I don't know if you can opt to sign at say.. grocery stores and other places that ask for a PIN.

The credit card sites tend to push the same cards over and over again, and if you ask me most aren't very impressive. Discover is sung far and wide, but offers less than 1% until you spend 3k (that's not an incredible amount of money, but its one of those finer point complications that you don't think about). The Discover 5% rewards are capped so even if you spend in their target categories you still will only earn ...~$100 or so in interest.

[Slug]

The credit card sites tend to push the same cards over and over again, and if you ask me most aren't very impressive. Discover is sung far and wide, but offers less than 1% until you spend 3k (that's not an incredible amount of money, but its one of those finer point complications that you don't think about). The Discover 5% rewards are capped so even if you spend in their target categories you still will only earn ...~$100 or so in interest.

That's absolutely fair criticism of Discover. I only use Discover in 5% reward categories which means for the most part, it just sits in my wallet doing nothing. And, it does take a bit to build up rewards this way. However, I take solace in the knowledge that eventually I'll be getting that $ out of Discover and that I'm only paying 95% of the price of anything I buy with it. Same thing with Chase Freedom.

[MonkeyMama]

I just had to jump back in to say the rewards are phenomenal this year.

In addition to our 2% back card (it is the Fidelity AmEx), + 1% on visa (since AmEx is not taken as widely), we are well on the way to earning:

$1000 cash from Chase

+

$500 gift certificates from Citi.

Just for opening a card and charging a bit. I applied for the Chase; my spouse applied with Citi. We will close these cards once rewards are in hand.

& the year is young...

[MaxPowers]

so what is the current best rewards card for someone who is single, perfect credit, and only spends money on stuff like gas, walmart, amazon, and occasionally eats out. I was looking at chase freedom but it looks like it only offers 1%.

[krantcents]

If you are getting credit cards with zero interest, it sounds like you have debt. You may want to work on that because rewards cards are more beneficial when you pay the entire balance off each month. I like the Marriott and airline cards. Since you travel a lot, see if you can use just one airline and get that card. Both cards can generate enough miles or rewards for a trip fairly quickly. Generally when you apply there is a bonus just for the application.

[maat55]

To add, I use my debit card on my high yield checking as little as possible to get the interest, then I use my chase card for the 1%.

I have to make 12 swipes per month, so I do 2 dollar or less purchases. This allows me to earn the additional 1% on other transactions.

[JoshuaHeckathorn]

so what is the current best rewards card for someone who is single, perfect credit, and only spends money on stuff like gas, walmart, amazon, and occasionally eats out. I was looking at chase freedom but it looks like it only offers 1%.

It sounds like you don't travel much, so I would say go the cash back route. If you don't want to pay an annual fee, the Amex Blue Cash would be a good option. 3% cash back at supermarkets, 2% for gas and department stores, and 1% for everything else. There's also a preferred option with an annual fee and higher % cash back. Depending upon your annual spend, it could make sense.

As I mentioned previously, the Amex TrueEarnings card is a great option too if you're already a Costco member.

[BMEPhDinCO]

I would suggest looking into PenFed - they have a 5% back on gas card and they offer 1% back on everything else and sometimes "bonus" stuff (like right now, 2% back on restaurants).

I would supplement that with a Costco Amex card if you are a costco member already and use it for the 2% categories.

For anyone who uses Amazon, they have a credit card that offers cash back and Amazon reward $$.

For those that fly a lot, some cards have perks such as free access to airport lounges, rebooking services, miles, etc that are beneficial and pay for the fee with a few uses.

There are lots of options. Just remember to ALWAYS Pay In Full Every Month!

[MaxPowers]

Looking at the amex blue preferred card. Looks like a good option. Most of my money goes to Walmart and gas, so I can make up for the annual fee fairly quick I think. And it still has the 1% everywhere else. Is there any down side to having an American Express card?

edit:
The fine print says "Each eligible purchase shall qualify for a reward of 6, 3, or 1% of the purchase amount as follows: 6% for eligible purchases at supermarkets (excluding superstores and warehouse clubs), 3% for eligible purchases at department stores and for automobile gasoline purchased at stand-alone gas stations, and 1% for all other eligible purchases posted to your account. "
After chatting with them, the 6% does not cover walmart. What are my other options for cards if I shop at Walmart and gas all the time? Should I get the blue cash everyday card and take advantage of the 2% on gas and 1% on everything else? Or maybe go with the Costco Amex card that has 3% on gas and 1% on everything else.
Or maybe even the Amazon card. 3% at Amazon, 2% for gas and restaurants, and 1% everywhere else...

[danieldroga]

It's not really new that people are taking advantage with the 0% interest. For me, you re not really missing anything yet.

[JoshuaHeckathorn]

Looking at the amex blue preferred card. Looks like a good option. Most of my money goes to Walmart and gas, so I can make up for the annual fee fairly quick I think. And it still has the 1% everywhere else. Is there any down side to having an American Express card?

edit:
The fine print says "Each eligible purchase shall qualify for a reward of 6, 3, or 1% of the purchase amount as follows: 6% for eligible purchases at supermarkets (excluding superstores and warehouse clubs), 3% for eligible purchases at department stores and for automobile gasoline purchased at stand-alone gas stations, and 1% for all other eligible purchases posted to your account. "
After chatting with them, the 6% does not cover walmart. What are my other options for cards if I shop at Walmart and gas all the time? Should I get the blue cash everyday card and take advantage of the 2% on gas and 1% on everything else? Or maybe go with the Costco Amex card that has 3% on gas and 1% on everything else.
Or maybe even the Amazon card. 3% at Amazon, 2% for gas and restaurants, and 1% everywhere else...

Amex cards are not as commonly accepted as Visa/Mastercard, so keep that in mind when making a decision. I primarily use Amex cards, but I always have a Visa/Mastercard with me as well.

If you're already a Costco member, the Amex TrueEarnings should be in your wallet. Your membership covers the annual fee, so there's really no reason not to use it. I would then supplement that card with a no annual fee Visa/Mastercard.

[Frugal]

We use a rewards credit card, but honestly we don't get all the rewards we are SUPPOSED to accrue each month, and it seems like we hardly ever get a check. I personally think they are all rip-offs, designed to entice the consumer into buying more, in the hopes of getting some future "rebate check". In the meantime, though, they run up a fortune and more than they normally would on the card, all because of the incentive supposedly offered by the CC company. These guys make a fortune off people!

[SeanH]

Best to never consider the reward, never be motivated by the reward and just enjoy them when you get them. 2% is considered a good reward and requires $2500 of spending to get $50 bucks. Cards that offers 5% tend to be category based and have caps (5% on $100 of spending is still just $5). People work hard to earn 2% while they bleed the change they are earning away elsewhere. If you've ever lost $0.50 in your car somewhere you just lost a $50 dollar purchase at 1%.

Since the AMEX Blue Cash Preferred keeps coming up I want to throw a few thoughts out. As already mentioned it counts as 1% at Target, Costco, and Walmart. 6% is nice, but the $75 dollar fee eats into it. To truly come out ahead you need to overcome both the $75 fee and the fact that the 3% version of the card doesn't have a fee. The breakeven point isn't the $25 dollars you'd spend a week to pay off the fee. Its ~$208 a month so that you get a better deal than the Everyday card (0.03x = 0.06x-75). I know the gas/department stores options are slightly better, but you'd have to be pouring money into that sort of spending for it to truly shift the equilibrium (2% vs 3%).

[photo]

If you're a Costco member, check out the Amex True Earnings card. 3% cash back on gas/restaurants and 2% on travel. Your Costo membership fee covers the annual fee. My wife and I use this card and love it.

This little card has been gold. As others have said, if you aren't disciplined, then rewards won't do any good because you'll have extra expenses and fees. But if you use cards for convenience only, the rewards can add up to hundreds of dollars a year.