Capital One Cash Rewards vs Citi Forward

[Anonymous]

I am a mid-20's young professional who is looking to expand my usage of credit cards, mainly for reporting purposes (think mint.com), credit reporting (do not have any car loans, mortgages, etc.), and to maximize savings via cash back.  I only have one credit card, the legacy Amex Blue Cash (member since 2005) with 15k CL and 10% APR (ALWAYS paid off in full though every single month, never a late payment ever).  I had a platnium credit card with a bank from 2004-2007 but closed it due to lack of use.  I am debating whether or not I should upgrade my Amex Blue Cash to Everyday or Preferred, and am also debating adding another card for maximum savings and to diversity my credit.  My estimated spending portfolio is as follows:

$100 per month in groceries

$175 per month in gas

$225 per month in restraunts/fast food

$500 per month in other misc. spending

What I'm wondering is, do you think I should upgrade to Blue Cash Everyday or Prefrred, or keep current legacy?  And what other card do you think I should add to my portfolio?  Capital One Cash Rewards looks inticing due to 1.5% cash back everywhere, and no International Usage Fees.  I do not travel internationally often, but I think this may be similiar to always having a passport "at the ready" I should be prepared to travel if need be.  Other one that looks good is Citi Forward, due to biggest usage category being dining and that earning 5% cashback on all dining that looks like a possible good pick.  Based on my history, which one would you guys recommend?  Or do you have any other suggestions?  Thanks!

[Anonymous]

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@Anonymous wrote:

I am a mid-20's young professional who is looking to expand my usage of credit cards, mainly for reporting purposes (think mint.com), credit reporting (do not have any car loans, mortgages, etc.), and to maximize savings via cash back.  I only have one credit card, the legacy Amex Blue Cash (member since 2005) with 15k CL and 10% APR (ALWAYS paid off in full though every single month, never a late payment ever).  I had a platnium credit card with a bank from 2004-2007 but closed it due to lack of use.  I am debating whether or not I should upgrade my Amex Blue Cash to Everyday or Preferred, and am also debating adding another card for maximum savings and to diversity my credit.  My estimated spending portfolio is as follows:

$100 per month in groceries

$175 per month in gas

$225 per month in restraunts/fast food

$500 per month in other misc. spending

What I'm wondering is, do you think I should upgrade to Blue Cash Everyday or Prefrred, or keep current legacy?  And what other card do you think I should add to my portfolio?  Capital One Cash Rewards looks inticing due to 1.5% cash back everywhere, and no International Usage Fees.  I do not travel internationally often, but I think this may be similiar to always having a passport "at the ready" I should be prepared to travel if need be.  Other one that looks good is Citi Forward, due to biggest usage category being dining and that earning 5% cashback on all dining that looks like a possible good pick.  Based on my history, which one would you guys recommend?  Or do you have any other suggestions?  Thanks!

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Seems like your biggest usage category is "other misc. spending," so the 1.5% back from Cap 1 Cash Rewards does seem like the best option.  I don't know what the rewards are on the old Blue, but, based on your spending, if you upgrade to the BCP you will net $61 cash back from groceries + gas alone.  BCE will net you $78 on groceries + gas alone.

[Anonymous]

Taking into account only gas and groceries, with BCP your yearly reward would be $60 (this is the bottom line after the $75 AF has been deducted). Your bottom line with the Blue Cash Everyday will give you an annual award of $78.00. I would go with BCE in your scenario. If you spent more for gas and groceries, then it would be wise to get the preferred, but your numbers show that the Everyday is a better option.

The Forward card is great for dining. The reward card for that IMO. The top 5/1 reward is also good at Amazon.com (which I just learned here today), books, movies, etc.

If you have more spending in this catagory, I say go for the Forward.

Have you considered Discover More or Chase Freedom? They offer 5% cash back in rotating quarters.

[Anonymous]

PS....try this link to see if there are any other recommended cards for your spending profie

http://creditcardtuneup.com/

[Anonymous]

Thanks for the prompt replies!

@ptr2593, yes "other misc. spending" is my highest "usage category" but I was referring to the special categories defined by card issuers.  Of those special categories, 5% of $225 is more than 1.5% of $500...also I would still use my Amex Blue Cash as well.  As for the rewards of the legacy Blue Cash, it is 0.5% on all purchases and 1% cashback on "everyday purchases" defined as grocery stores, gas stations, drug stores, etc. with those rewards being bumped up to 1.25% and 5% respectively after $6500 of annual spending.  My thoughts are being a single male not grocery shopping much, Blue Cash Everyday may be better than the Preferred due to lacking of the family yet...but I am still on the fence of Blue Cash Everyday vs Legacy Blue Cash.

@raenys as mentioned above I was pretty sure Blue Cash Everyday would be better for me, however what I am unsure about is Legacy Blue Cash vs Blue Cash Everyday.  I know Amex is in the business of making money, and my first thought is that the old card is better and they changed it because it was more profitable for THEM...and not you.  However since everyones use and situation is differnet, this may not always be the case.  I cannot stress enough historically I only have used ONE CARD and ONE CARD ONLY.  I am trying to diversify my credit portfolio and think I may need to use a second card to help do that (and maximize cash back at same time).  I did see that the 5% cash back for Amazon.com came with the Citi Forward which sounds amazing (just bought a TV on there for $850, would have came in handy), but I have heard from many people you want to keep a Capital One at the ready as they are one of the best with International Usage.  I have looked at other cards with rotating quarters, but think it's better if I just have straight forward rewards.

Keep the thoughts and ideas coming, I really appreciate it!

[trumpet-205]

When in doubt, ALWAYS DO THE MATH!

Blue Cash Everyday,

$3 cashback per month for $100 spending per month in groceries. ($100 x 0.03)

$3.5 cashback per month for $175 spending per month in gas. ($175 x 0.02)

$7.25 cashback per month for $725 spending per month in restraunts/fast food/misc spending. ($725 x 0.01)

Total Annual Cashback = ($3 + $3.5 + $7.25) x 12 = $165

Blue Cash Perfered,

$6 cashback per month for $100 spending per month in groceries. ($100 x 0.06)

$5.25 cashback per month for $175 spending per month in gas. ($175 x 0.03)

$7.25 cashback per month for $725 spending per month in restraunts/fast food/misc spending. ($725 x 0.01)

Annual Fee = -$75

Total Annual Cashback = [($6 + $5.25 + $7.25) x 12] - $75 = $147

Capital One Cash Rewards (Excellent Credit Version),

$15 cashback per month for $1000 spending per month ($1000 x 0.015).

Total Annual Cashback ($15 x 12) = $180

Citi Forward,

On average, 1TY point = 0.7 cents. So essentially a 0.7% cashback/return. Only certain redemptions allow 1% return (student loan rebate, few gift cards, etc).

Approx. $7.88 return per month for $225 spending per month on restraunts/fast food. ($225 x 5 x 0.007)

Approx. $5.43 return per month for $775 spending per month on others. ($775 x 0.007)

Approx. Total Annual Return/Cashback ($7.88 + $5.43) x 12 = $159.72

Now tell me which one is the best for you?

[Anonymous]

Wow thanks for the help with such a detailed analysis trumpet-205, I appreciate it.  The important thing I'm trying to note here is I'm not looking to switch cards (I think...), I am looking to suppliment my Amex Blue Cash.  I have heard and read numerous places you should have multiple lines of credit for best credit score, while I do have excellent credit and an Amex with $15k CL, I do not have any student loans, auto loans, mortgages, or anything like that...just my one Amex.  So what I am looking to do is find a card to suppliment my Amex Blue Cash, and use it the best way possible to also maximize my cashback/rewards.  Also very interested in Capital One due to no international fees, would like to have that convenience when traveling abroad.  The question is...do I go for 5% cashback on dining, or 1.5% cashback everywhere plus free international usage.  I guess a better question would be, if I'm so used to Amex customer service/features/etc. which is better...Capital One or Citi?!?  Also still up in the air on whether I should convert to BCE.

[trumpet-205]

Like I said, with Citi Forward, you can ONLY get 5% return when you redeem your TY points towards certain gift cards (nothing useful), student loan rebates, etc.

Otherwise you are only getting about 3.2% return for restaurant, fast food, Amazon, entertainment, and book. Yep, Amazon counts. I recently built a computer, with about $650 worth of computer parts from Amazon. Citi posted 3250 TY points on my account.

Have you also looked at Chase Amazon and BofA Cash Rewards?

[Creditaddict]

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@trumpet-205 wrote:

When in doubt, ALWAYS DO THE MATH!

Blue Cash Everyday,

$3 cashback per month for $100 spending per month in groceries. ($100 x 0.03)

$3.5 cashback per month for $175 spending per month in gas. ($175 x 0.02)

$7.25 cashback per month for $725 spending per month in restraunts/fast food/misc spending. ($725 x 0.01)

Total Annual Cashback = ($3 + $3.5 + $7.25) x 12 = $165

Blue Cash Perfered,

$6 cashback per month for $100 spending per month in groceries. ($100 x 0.06)

$5.25 cashback per month for $175 spending per month in gas. ($175 x 0.03)

$7.25 cashback per month for $725 spending per month in restraunts/fast food/misc spending. ($725 x 0.01)

Annual Fee = -$75

Total Annual Cashback = [($6 + $5.25 + $7.25) x 12] - $75 = $147

Capital One Cash Rewards (Excellent Credit Version),

$15 cashback per month for $1000 spending per month ($1000 x 0.015).

Total Annual Cashback ($15 x 12) = $180

Citi Forward,

On average, 1TY point = 0.7 cents. So essentially a 0.7% cashback/return. Only certain redemptions allow 1% return (student loan rebate, few gift cards, etc).

Approx. $7.88 return per month for $225 spending per month on restraunts/fast food. ($225 x 5 x 0.007)

Approx. $5.43 return per month for $775 spending per month on others. ($775 x 0.007)

Approx. Total Annual Return/Cashback ($7.88 + $5.43) x 12 = $159.72

Now tell me which one is the best for you?

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I'm coming to you when I figure out my monthly budget and spending categories!!!

However I had an "ugh" that just naturally came out when I see Cap1 won this one!!!

Maybe it's all the $3000-$500 limits that we (sorry lets not group all, so many of us rebuilders have taken on!) that I just can't look at a Capital one card and say no they have a $20k line not a $300 line... but i know the good credit poeople almost have a totally different Capital One bank experience then the rebuilders, my parents have 3, all with over 5k and 1 over 15k... I just rather take my business to Amex, especially if you already have such super long history.

now not talking rewards, I would add a couple more cards if you literraly ONLY have 1 amex... Mortgages down road are going to want to see 3 of pretty much any time of credit accounts.

What about Costco Amex, sorry kind of tired, can't go up and look if I just said a stupid suggestion

[Anonymous]

trumpet-205 is always the best!!!