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Best cashback card for light spenders

Established Member

Best cashback card for light spenders

I was reviewing cards and I'm trying to figure out what would be best as a cash back card for me. I was looking at the Chase Sapphire Preferred due to the no forex fee card but it was too travel oriented I already have a Capital One card but it only has a CL of $750 but it was almost my first CC and a BOA Plat Plus with a CL of $2000. The Amex blue cash cards seem tempting but I hear it is better for heavier spenders. Citi Dividends I hear is good but my family keeps telling me not to do business Citi. Right now I have two CC's that I basically PIF each time, but I'm not getting the best out of it. I'm probably going to just spend it on groceries/electronics/Paypal and it's going to be light spending ($200 per statement period and PIF max).
EXP 787 Equifax 779 TU 768
Message 1 of 43
42 REPLIES
Frequent Contributor

Re: Best cashback card for light spenders

Check Discover More quarterly they have different things that give 5% cash back.

Garden mode till 11/19/2013 Amex Zync 500 H-L I Discover More 1750 I Capital One Rewards 1750 I Barclay Apple 1500 I Macys 2000 I Orchard 400 I Walmart 2000 I Chase Freedom 1500 I Lowes 1K l Barclay NFL 1K l Wright Express gas 2500 l PayPal Debit MasterCard BusinessCard $ ?
Message 2 of 43
Established Contributor

Re: Best cashback card for light spenders


MCHammerFan wrote:
I was reviewing cards and I'm trying to figure out what would be best as a cash back card for me. I was looking at the Chase Sapphire Preferred due to the no forex fee card but it was too travel oriented I already have a Capital One card but it only has a CL of $750 but it was almost my first CC and a BOA Plat Plus with a CL of $2000. The Amex blue cash cards seem tempting but I hear it is better for heavier spenders. Citi Dividends I hear is good but my family keeps telling me not to do business Citi. Right now I have two CC's that I basically PIF each time, but I'm not getting the best out of it. I'm probably going to just spend it on groceries/electronics/Paypal and it's going to be light spending ($200 per statement period and PIF max).


I wouldn't recommend the Chase Sapphire preferred for light spending. Solely because it has an $95 annual fee. Any card with annual fees usually needs a heavier spending to recoup the annual fee cost. Although with it's generous sign up bonus, the card is basically free for 5 years. Further more, its spending is 2% cash back on hotels and restaurants which is not in your list. It is a great card, but not for your purpose today.

 

I think the Amex blue cash card is a good bet. The one without an annual fee though. 3% cash back on supermarkets is what I like most and is on your list. Although I could not find if there was a cap to how much you earn or any fine print on the rewards program.

 

If you have a Chase checking account, I'd recommend the Chase Freedom. The cash back ratio is IMO the best for small purchases or everyday spending because of its rewards bonus if you have a Chase checking. I'll link you to the examples I've previously posted. Just ignore the part about Chase sapphire preferred.

 

http://ficoforums.myfico.com/t5/Credit-Cards/CSP-Freedom-Checking-Use-wisely/m-p/1355519

Message 3 of 43
Established Contributor

Re: Best cashback card for light spenders

Chase Freedom and Amex Blue Cash Everyday are good cards.  Freedom is good with changing 5% categories, but they are capped at $1500 spend per 3 months.  Still, if you are going for $200 a month, that should be fine.  The Amex has permanent 3% on groceries with no cap or minimum spend, so it should definitely be considered.

FICOs (2/24/12): EX 752, EQ 740
Chase Sapphire Preferred, Freedom; American Express PR Gold, Blue Cash Everyday
Message 4 of 43
Frequent Contributor

Re: Best cashback card for light spenders

Chase Freedom for light spender. Discover More is just a bad choice IMO
Message 5 of 43
Established Contributor

Re: Best cashback card for light spenders


Mike360 wrote:
Chase Freedom for light spender. Discover More is just a bad choice IMO

I agree, I've never even considered Discover despite the numerous pre-approvals they've sent me.  The .25% on general spending for the first $3,000 per year is pathetic.  This makes the More a very niche card that is typically only good for the few 5% categories.  If you want a solid, general use cashback card there are better options.

FICOs (2/24/12): EX 752, EQ 740
Chase Sapphire Preferred, Freedom; American Express PR Gold, Blue Cash Everyday
Message 6 of 43
Highlighted
Established Member

Re: Best cashback card for light spenders


Koop10010 wrote:

Mike360 wrote:
Chase Freedom for light spender. Discover More is just a bad choice IMO

I agree, I've never even considered Discover despite the numerous pre-approvals they've sent me.  The .25% on general spending for the first $3,000 per year is pathetic.  This makes the More a very niche card that is typically only good for the few 5% categories.  If you want a solid, general use cashback card there are better options.


I have a Discover More and couldn't agree more Smiley Wink. I was almost surprised when I found out that I have to spend $3k just to get a measly 1% on all purchases! For a person with rather typical spending habits, (buying groceris, gas, paying bills, etc.) the card would really only be good for its 5% categories or maybe the 2% on automatically paid bills.

 

Otherwise, IMO, the Chase Freedom with 1% out of the gate and rotating 5% cateogires easily beats it. One of the Amex Blue cards would also be a good choice, if they are tailored to your particular spending habits.

Wallet:
Chase Freedom
Discover More

SD:
Walmart Discover
Cap1 Platinum
Message 7 of 43
Contributor

Re: Best cashback card for light spenders


ShallRecoverIt wrote:

Koop10010 wrote:

Mike360 wrote:
Chase Freedom for light spender. Discover More is just a bad choice IMO

I agree, I've never even considered Discover despite the numerous pre-approvals they've sent me.  The .25% on general spending for the first $3,000 per year is pathetic.  This makes the More a very niche card that is typically only good for the few 5% categories.  If you want a solid, general use cashback card there are better options.


I have a Discover More and couldn't agree more Smiley Wink. I was almost surprised when I found out that I have to spend $3k just to get a measly 1% on all purchases! For a person with rather typical spending habits, (buying groceris, gas, paying bills, etc.) the card would really only be good for its 5% categories or maybe the 2% on automatically paid bills.

 

Otherwise, IMO, the Chase Freedom with 1% out of the gate and rotating 5% cateogires easily beats it. One of the Amex Blue cards would also be a good choice, if they are tailored to your particular spending habits.


I would agree and disagree with some aspects. 

 

The Discover More card is great if: You purchase gas on your card because you earn 5% 6 months of the year at least in 2012. You earn 5% I believe 3 months of the year which is nice, and the October thru December (3 months) which is a big season for spending with Black Friday, Thanksgiving, and Christmas as well as whatever other Holidays you may celebrate you get 5% at Department Stores vs. Chase Freedom's 5% at only Khols and Bestbuy. Oh and I almost forgot for the Month of May Discover is giving 5% on Groceries so at least you get a month there. 

 

The Chase Freedom you got 5% on Amazon this year for January - March, but they had made that October - December to compete with Discovers 5% at department stores they would have blown Discover away. Chase also gives you 6 months of 2012 with 5% on Gas I beleive and at least 3 months of 5% on grocerys and another 3 months on Restaurants.  

 

As far as Utility Bills go Discover this year is giving 2% on Utility Bills while Chase gives 0. Heck if you use it for just say phone internet and tv and your bill is $120 thats just under $30 in cashback right there. Now pair that with other utilities or if it is more and you can make $50 easily. 

 

Last, but not least if you do a lot of online shopping the Shop Discover is better then what Chase offers in my opinion. I think on average Discover gives you more cashback on online purchases. I don't know if Chase does this I can't remember with my Freedom, but I know for sure Discover allows you to use your cashback towards Amazon purchases which is very nice and all ran for a month I beleive Free 1 or 2 day shipping when paying with your Discover earlier this year. 

 

*** Forgot to mention if you are just spending and not going to pay attention to the revolving categories then the Chase you get the 1% on all purchases where the Discover you get a measily 0.25% (Discover you need to fix this!) until you reach something like 2500 or $3000 spent. 

 

With Both Cards you get great customer service and if you make a little schedule for when to use your card on certain categories you can really bring

in more cashback. I will give the edge to the Discover More Card, but Chase is a VERY VERY good company. Hope this helps some people 

 

 

OH One LAST THING: if you can get the get $300 cashback when you spend $500 with the Chase Freedom then go for that and forget Discover because I think they only give you like $50-$150 where Chase gives you a huge incentive to sign up for the card

Chase Sapphire Preferred (Visa Signature), Citi Dividend World Elite, Discover IT, American Express Blue Cash Everyday, American Express Zync
Message 8 of 43
Established Contributor

Re: Best cashback card for light spenders

I have a blue cash preferred and even though it has a yearly fee, just putting to grocery store stuff on there at 6% back more than pays for the fee for me. I dont spend alot either on credit cards or even cash, but that one makes the most sense for me. I do have a chase freedom as well and like it well enough that i use it pretty regularly. My citi cards dont get much use and i have a wells fargo that is pretty much useless as far as rewards go.
Message 9 of 43
Frequent Contributor

Re: Best cashback card for light spenders

The reason I say chase freedom is because of the cash bank bonus for signing up. I've earned $367.54 so far and I've put about $4k on it since December. Yes discover more is good for certain things but the spent $3k to reach the 1% sucks.
Message 10 of 43