Narrowing down my card strategy

[MrDisco99]

I made a purchase earlier today that made me realize I'm not a computer.

I thought I could work 6 cards into my rewards optimization strategy.  I may have been a bit too ambitious.  I've seen some YouTubers pull this off, but often they have a little paper cheat sheet to go with.  I thought I could keep it all straight in my head.  Then I used a card at the drugstore today... and then realized that what I thought was my best strategy at the time was just dumb.

I could draw up a sheet of paper and use it to document my strategy and consult it anytime I make a purchase... but I know myself... not only would I lose it or not look at it when I'm fiddling with my wallet at the check-out, but I don't think I could account for every type of purchase I could possibly make on a cheat sheet.

So new rule... narrow down my strategy to 3 cards and only carry that many at a time.  Yes I have plans for specific large purchases on SD cards like mortgage payments and such, but when I'm making a trip to the drugstore or the grocery or a fast food drive thru, I need to have as few choices with me as possible so I can be more sure I'm using the right one.

What about the rest of you?  Some of you have way more cards than I do.  Do you do anything to help you optimize your card strategy for ad hoc purchases?  Do you limit yourself to a certain number of cards at a time?  How many cards are in your optimization strategy?  How do you manage them?

[Anonymous]

I've been writing my own online software that lets me categorize spending and manage rewards better but it is seriously weaksauce right now and not for the public to play with, lol.

I actually laminated a little card that lists which card for which category.  Works fine.

My biggest factor is that I plan 100% of my purchases.  When I go out to a store, I really only bring the card I will use.  I always keep a backup general use card in my wallet but otherwise I might only have 1 or 2 other cards if I am visiting 1 or 2 stores where I can maximize rewards or savings.

I also don't buy a lot.  Most of my shopping is planned well in advance of going, and even groceries and the like are pretty much pre-planned so I stay on budget and don't buy needless junk.  When I forced myself to downsize from my 5000 sqft loft to a 1000 sqft home, it took me 3 years to get rid of tons of junk I bought that I didn't need.  That was a huge learning lesson for me and shopping, haha.

I want every penny I can make back from the banks, so I will always manage my reward strategy well -- but I don't buy things just because I have credit or cash.  I am very patient on anything I buy just so I can wait for a sale AND combine it with rewards strategy.

If it means I will need 20 CCs in the future to get every last cent, I will deal with it, but all my cards are in the sock drawer (except my general emergency card) and they stay there unless I absolutely need them.

All my balances are $0 and I checked twice a month to make sure (also use Mint for tracking).

[Anonymous]

Ahh, the "rewards card" strategy...we're the new generation of "coupon clippers" but at least we don't hold up the checkout line for half-an-hour. I have nothing to add. I'm mired in the same conundrum and I'll just hang up and listen.

[Anonymous]

I use the TPG (The Points Guy) To Go app and it keeps me fairly straight. I only daily carry four cards plus my work card so it's usually not to crazy to keep straight. If I ever second guess something I just open the app while I'm in the store or in line and it lets me know. The only caveat to that is that you have to know how you intend on using points on the cards that accrue them because the way they're valued on TPG may not be in-line with how you would normally use them. I think they have some overrides in there for that but I haven't been that curious to go find them.

[UpperNwGuy]

I keep it very simple.  I carry two credit cards in my wallet:  the Chase Sapphire Reserve for travel and dining and the PenFed Power Cash Rewards for gas, groceries, and other.

[HeavenOhio]

I don't find it that hard. Maybe it's because I only have six cards, and three of them are the same product. Or maybe it's because none of them are complicated travel cards. And none of them have rotating categories, although I don't think I'd have any trouble dealing with that.

While getting the best reward on a particular purchase generally prevails, it's not the end-all. I'm trying to gear up my AMEX for a CLI request, so it's getting a lot of 1% swipes that would normally go on a Quicksilver.  I go to fallback cards if statement time is approaching and I want to control the balance. And I want to make sure that each card shows enough spending to justify its limit. The only reward that I refuse to compromise on is the 5% Amazon reward. I cover myself by having a supply of gift card points on hand when that card goes to the sock drawer for a couple of days at statement time.

[wasCB14]

Merchandise:

1. Is there no warranty, do I think it's likely to break soon / never work properly in the first place, or am I uneasy in dealing with the merchant? If "yes" to any of these, Platinum.

2. Is there a warranty (so there's something to extend), or do I think I can get it for less somewhere else? If "yes" to either, Costco.

3. What maximizes my rewards?

Restaurants:

1. Am I in a situation where it would be socially awkward (or just cause a rather inconvenient delay) if a card was declined? If "yes", Platinum.

2. Even slightly inconvenient? If "yes", anything but Discover.

3. Just me alone at a takeout counter? I'll use Discover if it's the best rewards option.

Beyond that, it's a bit of a mishmash. In general (and especially with travel), I prioritize protections over rewards for when it might matter (and focus on rewards over benefits when it doesn't).

[NRB525]

OP, have you also calculated what the "risk of error" is for your strategy?

If you have a 5% card such as the Freedom in a quarterly category, that's a stand-out situation and I find fairly easy to manage.

You don't have a Cash+, but with the two that I do have, I try to stack simlar types of 5% categories on the same Cash+ card. For example, having both Sporting Goods and Department Stores active on the same card at the same time covers potential misses.

The others with larger rewards look like  the AMEX for Groceries.

Beyond that I am interested to hear what the marginal difference is between the rest of the categories. Taking the Quicksilver 1.5% vs the Double Cash 2%, for example, in your drugstore situation, if you spent $50, the difference in rewards here is $0.75 for the Quicksliver ( seventy-five cents) vs $1.00 for the Double Cash ( One dollar). I don't think I would lose any sleep over that $.25 ( twenty-five cents )  that I missed out on.

If you have a larger purchase, then you likely want to spend a little more time both planning when that purchase occurs, and making sure the card is in your wallet. On most minor daily spend, however, it just doesn't make a difference on one transaction. In some ways, it is helpful to mess up, because you need to keep cards active anyway.

[Anonymous]

Pick you default "random charge that may or may not hit a card category but isnt huge amount" and then its easier to organize the rest.

I have 8 cards but only reguraly use about 5 and they are have clear easy use. In my case Disco is my fallback card as I'm in the cashback match period and 2% meets or beats my other flat rate cards, plus for the last quarter its been default dining at 5%. Amex is grocery, Costco for gas and costco, chase saphhire pref for travel & dining. I tend to shop the same handful of places pretty reguraly so by associating a card with each & then assigning one as a "I dunno" situation card I almost always avoid any missed oportunities. And even if i do I tell myself 2% is better than no %.

[Anonymous]

I'll say this - if anyone on here is either current or retired military, the PenFed Rewards Visa card gives a flat 3% cash back and I'm using it for almost everything I charge with some exceptions (i.e., 5% cash back on Amazon for the Amazon Prime (Chase) Visa card. IF you are military/retired military and you do not pursue this card, I'd love to know why, because I'm always open to more ways to save $$$$.