Strategy help for newbie!

[Anonymous]

Hello all!  I haven't posted since last Feb when I received some great advice on how to persevere after I was initially declined for my AMEX Blue Cash.  Here is what I've got:

Haven't run my FICO in a long time (it was 742 TU FICO in March of 11).

Current cards:

Citibank AA MC  (CL $16,900)

Citbank Thankyou MC (CL $2,000)

Amex BC (CL $16,000)

Before I got the Amex, we used the AA card almost exclusively.  I decided since we only travel once or twice a year, and how restrictive AA's flier program can be, that is when I decided to just start earning cash back as I spend quite a bit on gas (long commute).

So now, we exclusively use the Amex except for the occasions where a merchant doesn't accept Amex and then we use the AA MC.  I'm starting to rethink that strategy.  Since I only get 1% cash back on all other purchases, I might as well be using the AA card on everything but gas, groceries, and pharmacy right?

As I mentioned, we only fly once or twice a year, so I don't see the Amex Platinum worth it.  Any other cards out there I should think about?

Thanks all!!

[youngandcreditwrthy]

Chase Freedom has good categories too! I use BCE for groceries... and dependent on the categories, I may use Chase.

Freedom has 5% cash back on GAS right now.... could be beneficial for you atm.... their cats change quarterly though... but they do 5% on gas like two quarters of the year I think.... they did it the Q3 of 2012 and Q1 of 2013!

congrats on those high lines btw! esp that $16,900 CITI! haha Citi doesn't like me :-(

[Anonymous]

Thanks!  I'll probably continue to use my BCE for gas, groceries, etc because I get 5% cash back all year (as soon as I hit $6500 in purchases).  I just didn't know if there was another card out there better for airline miles besides my AA.

And thanks on the credit limits!  Yeah Citi increased my limit all by themselves up to that limit.  Amex started out at $3k when initially approved in March of 2011, and I just now got approved for a CLI of $24,000.

[bs6054]

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@Anonymous wrote:

Thanks!  I'll probably continue to use my BCE for gas, groceries, etc because I get 5% cash back all year (as soon as I hit $6500 in purchases).  I just didn't know if there was another card out there better for airline miles besides my AA.

And thanks on the credit limits!  Yeah Citi increased my limit all by themselves up to that limit.  Amex started out at $3k when initially approved in March of 2011, and I just now got approved for a CLI of $24,000.

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So it's really a question of your spend.  Cards like the Blue Cash Preferred give 6% on groceries up to $6K spend so this would give you $360 (but has a $75 AF).   What does Blue Cash give you on the first $6.5K, 1%.   Which is better depends on total spend in the covered categories.  

Another good card to consider is Penfed Platinum Rewards (not Cash Back Rewards) which gives 5% on gas and 3% on supermarkets, uncapped, with no annual fee.  Again, depending on what you spend, this could outperform blue cash.

But you might want to decide beween cashback and miles.  If miles are important, you might want something like Freedom and CSP, which allow you to gain UR points and transfer them 1:1 to various frequent flier programs.  Generally more rewarding than the 1 mile per $ of most Citi AA cards.

[nicholasyud]

Follow bs51......Great advice+1