Optimization of Rewards Cards

[J.Apple902]

Yeah I have a co-worker who just sent in for the Fidelity 2% IRA rewards Amex card. That thing is baller, I am going to get it as soon as I set my ROTH up with them. Need to establish a more solid RF and save up another $2500 for the min deposit.

[Slug]

I'm glad some asked about optimization. I re-configure my optimization quarterly and write a post about it.

Best Cashback Rewards for Credit Cards Q2 2012 | Sunk Costs Are Irrelevant

The basics are:

Gas - 5% PenFed Platinum Cash Rewards card
Groceries+Anything you can buy a gift card for from the grocery store - 6% BlueCash Preferred ($75 annual fee)
Everything else: 2% Fidelity Investment Rewards AMEX or Sallie Mae 2% VISA is AMEX not accepted

[feh]

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

Actually, I think they may have the calculations on that page messed up. It appears to me that 2% back is achieved once you've spent $12500. For us, that's about 6 months worth, which I'm willing to wait for.

If you don't want to wait that long, it looks like the percentages work like this:

$1250-4999: 1.3%
$5000-12499: 1.7%
$12500+: 2.0%

[kork13]

hmm, that Sallie Mae card looks interesting, but I can't seem to find a working link for it anywhere... ( GOOGLE HAS FAILED ME!!!! hahaha )

How did you guys apply for it? I think I may look into that once I get back to the states.

[feh]

To clarify an earlier comment - the numbers on that plasticIQ.com page are correct. It was the information presented by the poster (you need to spend $50K before getting 2%) that was wrong.

[J.Apple902]

I'm glad some asked about optimization. I re-configure my optimization quarterly and write a post about it.

Best Cashback Rewards for Credit Cards Q2 2012 | Sunk Costs Are Irrelevant

The basics are:

Gas - 5% PenFed Platinum Cash Rewards card
Groceries+Anything you can buy a gift card for from the grocery store - 6% BlueCash Preferred ($75 annual fee)
Everything else: 2% Fidelity Investment Rewards AMEX or Sallie Mae 2% VISA is AMEX not accepted

I like what you have going here Slug. The only other thing I could imagine you throwing in is one or two more 5% rotational category rewards cards such as the Discovery More card and the Citi Dividends card

[kv968]

I'm glad some asked about optimization. I re-configure my optimization quarterly and write a post about it.

Best Cashback Rewards for Credit Cards Q2 2012 | Sunk Costs Are Irrelevant

The basics are:

Gas - 5% PenFed Platinum Cash Rewards card
Groceries+Anything you can buy a gift card for from the grocery store - 6% BlueCash Preferred ($75 annual fee)
Everything else: 2% Fidelity Investment Rewards AMEX or Sallie Mae 2% VISA is AMEX not accepted

Is there an annual fee with PenFed card? I looked at their "Summary of Terms" and in there it says you MAY be subject to an annual fee. Do you know what would constitute them charging one?

I don't belong to any of their associations so I'd have to pay the initial contribution to a charity but I was just wondering if that would have to be an ongoing thing and/or would they charge an extra fee?

Also Slug, if you are always writing those quarterly reports on reward CC's, you should see if you could get a "sticky" post at the top of one of the boards like poundwise has for interest rates. It's very informative and someone always seems to be asking about which is currently the best.

DisneySteve or Jeff, could you do something like that for him if he's willing to do it?

[kork13]

Is there an annual fee with PenFed card? I looked at their "Summary of Terms" and in there it says you MAY be subject to an annual fee. Do you know what would constitute them charging one?

I don't belong to any of their associations so I'd have to pay the initial contribution to a charity but I was just wondering if that would have to be an ongoing thing and/or would they charge an extra fee?

I've never seen a fee for the PenFed card. I've had it myself for about 5 years, and my parents have had credit cards with them for decades (and I know that they'd never keep a card with an annual fee). And the charitable donation is a one-time thing. Once you're a PenFed member, you never have to "requalify" for membership again.

[Slug]

@kv968 No fees on PenFed cards. Credit unions typically abhor that kind of thing. They are supposed to be working in their member's best interests. Some do that better than others.

@J.Apple902 I actually list the Discover More card. I'm using it this month on restaurants at 5%. Regarding Citi Dividends, I hate ThankYou points. They have done too much re-valuing of the points for me to trust. Thus, I ignore their card

[kv968]

I've never seen a fee for the PenFed card. I've had it myself for about 5 years, and my parents have had credit cards with them for decades (and I know that they'd never keep a card with an annual fee). And the charitable donation is a one-time thing. Once you're a PenFed member, you never have to "requalify" for membership again.

@kv968 No fees on PenFed cards. Credit unions typically abhor that kind of thing. They are supposed to be working in their member's best interests. Some do that better than others.

Thanks guys. I didn't think they'd have a fee but I just noticed that it said they "may" in their disclosure and just wanted to make sure.

[pixiechik]

I use a Sallie Mae card that offers 5% of gas and groceries on the $500, 1% for everything else.

Penfed for gas. 5%

Costco Amex (1% on everything) for Costco and a few other things.