Optimization of Rewards Cards

**kork13** · 04-10-2012, 06:29 AM

I think alot of us do try to "optimize" our credit card use to maximize rewards... When you're responsible in your use of credit (PIF every month), you can do pretty well. ..."responsible" being the operative word here....

Here's what I use:
Discover: 5% rotating categories (cash back)
PenFed: 5% Gas, 3% Groceries (cash back)
Capital One Venture: 2% on everything (travel-related rewards...hotels, airlines, rental cars, etc.)

I also have a USAA credit card, but don't use it often since it only give 1% points on everything.

**disneysteve** · 04-10-2012, 06:30 AM

We have the Chase card and Discover cards that we use only for the 5% bonuses. We use a Marriott Premier Visa for everything else.

**phantom** · 04-10-2012, 07:19 AM

We have a Chase Freedom Card for the 5% on rotating categories and an American Express Blue Cash Everyday Card for 3% on groceries and 2% on gas.

I got the Amex card a little less than a year ago thinking it would be nice to have some bonus on gas and groceries when the Chase card rotates to a different category, because most of our credit card spending goes towards gas and groceries. But, I have to admit that remembering when to pull out which card takes a lot more thought than I expected.

**J.Apple902** · 04-10-2012, 08:06 AM

Originally posted by disneysteve View Post

We have the Chase card and Discover cards that we use only for the 5% bonuses. We use a Marriott Premier Visa for everything else.

Yeah I got a letter in the mail about the 5% rewards card from Discover. Only issue is that it's still Discover and not accepted everywhere.

In order to have PedFed card you need to work in the Pentagon right?

Do you use your Capital One Venture enough to justify the $59 annual fee after the first year?

That American Exp blue card is looking REALLY nice too

**kv968** · 04-10-2012, 08:06 AM

Chase Freedom for the 5%.

Capital One - 2% gas and groceries and 1% everything else. Which upon looking at it, I don't think they offer the 2% on gas on newer cards even though it's not much anyway.

I'm thinking of getting a BoA card with a $100 bonus after $500 in purchases in 90 days. Also, 3% gas, 2% groceries, 1% everything else plus a 25% bonus when you redeem into a BoA account.

**kobe008** · 04-10-2012, 09:12 AM

I tried to get a rewards card a couple of years ago and was denied even though my credit score is very high. Maybe I'll have to try again.

**J.Apple902** · 04-10-2012, 11:19 AM

Originally posted by kobe008 View Post

I tried to get a rewards card a couple of years ago and was denied even though my credit score is very high. Maybe I'll have to try again.

most rewards cards required excellent credit, normally even higher than 700

**thesmartnickel** · 04-10-2012, 12:45 PM

How I optimize my rewards: if it is in a 5% category, use that card, otherwise, match with the categories below.

5% cash back on rotating categories: Chase Freedom, Discover, Citi Dividend Visa

4.17% effective rate on restaurants/entertainment: Citi Forward (the rate is because I'm converting their thank you points into a gift card that I get often)
3% cash back on groceries: American Express Blue Cash Rewards (also 2% on gas but I don't have a car)
3% cash back on Amazon.com: Chase Amazon.com Credit Card
1% cash back everything else: Chase Freedom/American Express Blue Cash

I also have a Capital One Cash Rewards card that gives 2% cash back on dining, book stores and telecommunication bills, but I don't use it very often especially since my Citi Forward is used for almost all my dining expenses when restaurants is not in a 5% category.

**kork13** · 04-10-2012, 01:58 PM

Originally posted by J.Apple902 View Post

Yeah I got a letter in the mail about the 5% rewards card from Discover. Only issue is that it's still Discover and not accepted everywhere.

Agreed, and it can be annoying, but at least in the states, Discover is getting to be rather widely accepted... at least in most nationwide companies. I've considered looking at some of the other "rotating category" cards, but haven't pulled the trigger on any of them because I really prefer to have fewer open CC's.

Originally posted by J.Apple902 View Post

In order to have PedFed card you need to work in the Pentagon right?

No, the requirement is that you are a PenFed member... You can join the CU if you're in the military, work for the federal government, or if you're associated with any one of a litany of organizations. If all else fails, you can make a one-time contribution ($15-$20) to one of a couple different charities, and essentially "buy" membership. Probably easier if you just see it yourself -- PenFed eligibility link.

Originally posted by J.Apple902 View Post

Do you use your Capital One Venture enough to justify the $59 annual fee after the first year?

I'm not sure yet. I compared it against Capital One's Cash Rewards card (1.5% on everything with no fee), and found you have to spend more than about $1200/mo to make the Venture card worth the annual fee. My free year runs out this October, so I'll look at it then to figure out if it's worth keeping. I'm moving back to the states this summer, so I'm thinking that if I move into an apartment that allows me to pay my rent by credit card (without any extra fees), then the Venture card would most likely prove itself worthwhile. If not, I'll have to look at my spending and make the decision whether to keep it or not. Who knows, maybe if/when I call to cancel it, they'll offer me some more time without the annual fee to try and keep me as a customer... lol

**feh** · 04-11-2012, 08:34 AM

We don't try to optimize. I don't like carrying/using several cards.

We have one CC that we use for everything and get 2% back on all purchases.

**J.Apple902** · 04-11-2012, 08:58 AM

which card feh?

**feh** · 04-11-2012, 09:02 AM

Originally posted by J.Apple902 View Post

which card feh?

Sallie Mae. Just switched a couple months ago when our Chase card reduced their rewards.

**J.Apple902** · 04-11-2012, 11:05 AM

right but you dont get a 2% return until you've spend $50,000 on the card. for me that would take years

Why The Sallie Mae Credit Card Is a 2% Cash Back Monster | PlasticIQ.com

**Slug** · 04-12-2012, 06:17 AM

Originally posted by J.Apple902 View Post

right but you dont get a 2% return until you've spend $50,000 on the card. for me that would take years

Why The Sallie Mae Credit Card Is a 2% Cash Back Monster | PlasticIQ.com

That's a good point on the Sallie Mae card. I have it, but I prioritize the Fidelity 2% AMEX over it when AMEX is accepted.

Optimization of Rewards Cards