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Using Reward Credit Cards

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Anonymous
Not applicable

Using Reward Credit Cards

I finally just paid off some high debt credit cards that accumulated over the years. Now that I'm in control of my credit cards and given a second chance recently, I would like to take advantage of rewards cards, and I recently got a Chase Freedom, Discover and AMEX rewards cards. I'm always going to pay my cards in full, thats a given for me. However, this is my question and I hope I word it correctly.

 

For instance, let's say my Chase Freedom card close date is the 10th of April and is due on May 7th. The amount reported and due is $100. I know that I will get my rewards for that $100 amount for the month. However, starting on April 11th through the 7th of May, I charge another $75 to this card. If I pay $175 on the due date of May 7, will I get credit for all of the reward points for $175 or just on the $100 that was the statement closing date?

 

I hope this scenario makes sense. Again, I will pay each month and not do installments, I just want to know what is best to maximize my rewards points and if I would lose points by paying the extra $75 by the due date.

Message 1 of 16
15 REPLIES 15
JustBPatient
Established Contributor

Re: Using Reward Credit Cards

You will receive the reward on the money spent when the account cuts.  The spend starting on the 11th will be the start of the next months reward bonus.

Amex Gold =Amex ED 20k = Amex BCP 14k = Amex SPG Lux 2k = Arrival 2k = Ring 14k = BOA 321 30k = BOA BBR 10k = CSR 25k = Freedom 10k = Citi Simplicity 9k = Citi DC 5k = Citi DP 3k = DCVR IT 16k = DCVR IT(2) 10k = CAP1 QS 15k = NFCU CR24k/AE25k/CLOC 15k = BBVA 14k = Wells Plat. 5k = (2) US Bank Cash+ 13k, 18k = PenFed 17k

FICO scores TU 764 EX 739 EQ 745
Message 2 of 16
Anonymous
Not applicable

Re: Using Reward Credit Cards


@Anonymous wrote:

I finally just paid off some high debt credit cards that accumulated over the years. Now that I'm in control of my credit cards and given a second chance recently, I would like to take advantage of rewards cards, and I recently got a Chase Freedom, Discover and AMEX rewards cards. I'm always going to pay my cards in full, thats a given for me. However, this is my question and I hope I word it correctly.

 

For instance, let's say my Chase Freedom card close date is the 10th of April and is due on May 7th. The amount reported and due is $100. I know that I will get my rewards for that $100 amount for the month. However, starting on April 11th through the 7th of May, I charge another $75 to this card. If I pay $175 on the due date of May 7, will I get credit for all of the reward points for $175 or just on the $100 that was the statement closing date?

 

I hope this scenario makes sense. Again, I will pay each month and not do installments, I just want to know what is best to maximize my rewards points and if I would lose points by paying the extra $75 by the due date.


Eventually, you will get all of the rewards points owed. However, when you get them depends on the bank underwriting the card you're using. If you provide the cards you're using, the more knowledgeable members can tell you when you should expect your rewards points. 

Message 3 of 16
Anonymous
Not applicable

Re: Using Reward Credit Cards

Petrovius - the three rewards cards I have are AMEX Blue Cash, Chase Freedom and Discover IT. 

 

Thanks for your two answers so far. So, eventually if I paid the entire $175, I'd get the points regardless?

 

Also, I'm new to the forum, how do you display your cards in the bottom of your posts? I was looking but could not figure that out.

Message 4 of 16
Ghoshida
Valued Contributor

Re: Using Reward Credit Cards


@Anonymous wrote:

Petrovius - the three rewards cards I have are AMEX Blue Cash, Chase Freedom and Discover IT

 

Thanks for your two answers so far. So, eventually if I paid the entire $175, I'd get the points regardless?

 

Also, I'm new to the forum, how do you display your cards in the bottom of your posts? I was looking but could not figure that out.


Which Blue Cash? 

 

Regardless, AMEX rewards will post two cycles later. So, let's say in the March 11 - April 10 cycle, you spent $100, and you're supposed to get 3% Cash back. You will see those in the May 10 cycle statement. Similarly, cash back from April 11 - May 10 will show on June 10 statement.

 

Chase Freedom

 

You can see current points earned against each posted transaction, by clicking the blue box with plus sign on the left side of each transaction. That'll include the regular points and the bonus points. For all transactions between March 11 - April 10, they will add up and be available for redemption / combining etc on April 10. If you want to redeem for Cashback, I believe that Chase Freedom needs minimum $20 / 2000 points to redeem. So if you spent $100, and got 5X points on all, you'll see 500 points on April 10 statement.

 

Discover It;

 

All points earned for March 11 - April 10 cycle will post on April 10 along with the statement. For $100 spend, 5% rewards, you'll see $5 cashback available for redemption on April 10. You can redeem any value you want.

 

Except for Citi Double Cash, your points don't depend on your payment, but on your spending. So if you bought $100 worth of stuff, you'll get rewards accordingly. In case you didn't pay on time, and with interest ended up paying $105, you'll not get rewards for the extra $5 that you paid. 

 

You may also lose all rewards if your account is reported for missed payments etc. That depends on the bank.

Message 5 of 16
Anonymous
Not applicable

Re: Using Reward Credit Cards

Ghoshida....thanks for the great information. I appreciate you taking the time to let me know how this all works.

 

I have the AMEX Blue Cash Everyday card. I didn't realize there were different versions of it.

 

Also, with the Chase Freedom card, I will get additional points if I hit $500 in purchases the first three months. That will easily be achievable since I can put my Verizon and DirecTV bills on it.

Message 6 of 16
Anonymous
Not applicable

Re: Using Reward Credit Cards

There is a preffered version of it.

Message 7 of 16
Ghoshida
Valued Contributor

Re: Using Reward Credit Cards


@Anonymous wrote:

Ghoshida....thanks for the great information. I appreciate you taking the time to let me know how this all works.

 

I have the AMEX Blue Cash Everyday card. I didn't realize there were different versions of it.

 

Also, with the Chase Freedom card, I will get additional points if I hit $500 in purchases the first three months. That will easily be achievable since I can put my Verizon and DirecTV bills on it.


You're welcome.

 

I have the same card. There are also the BC Preferred and the old BC. The BCP gives 6% on groceries for first 6k annually, and has an annual fee. The old BC gives 1% on gas / groceries for first $6.5k and then 5% for the rest up to $50k annual spending.

 

If you end up spending that $500 say by Apr 30th or even first week of May, you'll see that reflect on your May 10th statement, along with whatever regular points + 5% quarterly bonus points on dining etc that you get anyway.

 

Enjoy your cards and your bonus cashback. All 3 are pretty good cards. I've had them all. Discover is one of my older cards, followed by AMEX, then Freedom.

 

In case you are unaware, you can ask for 3X your current credit limit from AMEX. It used to be after the first 60 days of your account, and then every 181 days. Nowadays it might have changed; but that's a good way to increase your limit.

 

With Discover, you can ask for CLIs every 3 month or so. Both are soft pulls. You can decline if they ask for a hard pull. 

 

Asking Chase for a credit limit increase will be a hard pull; I don't generally recommend it. Only go for it if you really, really need it.

Message 8 of 16
Ghoshida
Valued Contributor

Re: Using Reward Credit Cards


@Ghoshida wrote:

@Anonymous wrote:

Ghoshida....thanks for the great information. I appreciate you taking the time to let me know how this all works.

 

I have the AMEX Blue Cash Everyday card. I didn't realize there were different versions of it.

 

Also, with the Chase Freedom card, I will get additional points if I hit $500 in purchases the first three months. That will easily be achievable since I can put my Verizon and DirecTV bills on it.


You're welcome.

 

I have the same card. There are also the BC Preferred and the old BC. The BCP gives 6% on groceries for first 6k annually, and has an annual fee. The old BC gives 1% on gas / groceries for first $6.5k and then 5% for the rest up to $50k annual spending.

 

If you end up spending that $500 say by Apr 30th or even first week of May, you'll see that reflect on your May 10th statement, along with whatever regular points + 5% quarterly bonus points on dining etc that you get anyway.

 

Enjoy your cards and your bonus cashback. All 3 are pretty good cards. I've had them all. Discover is one of my older cards, followed by AMEX, then Freedom.

 

In case you are unaware, you can ask for 3X your current credit limit from AMEX. It used to be after the first 60 days of your account, and then every 181 days. Nowadays it might have changed; but that's a good way to increase your limit.

 

With Discover, you can ask for CLIs every 3 month or so. Both are soft pulls. You can decline if they ask for a hard pull. 

 

Asking Chase for a credit limit increase will be a hard pull; I don't generally recommend it. Only go for it if you really, really need it.


Also, if you have the bonus on $500 only on the Freedom and not the Discover it, and if you spend some money on dining, fast food, or bars, first spend that on Freedom upto $1,500 this quarter (April - June). Once you have exhausted that you can spend on Discover. That way you'll reach your bonus $100 or $200 whatever amount on Freedom, faster. 

 

Reward redemption: Generally, Chase Freedom rewards are best redeemed to frequent flyer miles etc but that's possible if you have either a Chase Sapphire Preferred or one of their Ink cards. Assuming you don't have those, redeeming for cash is your next best bet. Gift card redemption through Chase doesn't give good value in general.

 

AMEX: Redeem for cash, whenever you reach $25

 

Discover It: You can also redeem for some gift cards; and generally they provide pretty good value. I have redeemed $20 for $40 of Enterprise Rent-a-car. They regularly have others at $20-for-$25 value, or $40-for-$50 value. Depending on which merchants you use, you may find those gift cards more valuable than simple cash back. 

Message 9 of 16
Anonymous
Not applicable

Re: Using Reward Credit Cards

Ghoshida - thanks for the additional information on the cards. I looked on my Chase, and yes, it is really nice that you can click each purchase and see what the rewards are going to be. Now I know that I don't have to really wait for the close date to make sure I get the points, I'll get them just for using the card. I will probably make a payment on it every couple of weeks. 

 

After I paid off all my credit card debts and a motorcycle loan the end of November, I decided to "clean house" and I was prepared to not have any credit cards at all and just pay everything with my bank debit card. I never considered FICO scoring, so I closed a couple of long term cards. One of them was a Costco AMEX card that I was a slave to since 2001. Also closed the Home Depot, Lowes and Kohls cards. Then I started getting interested in FICO and how important that is in today's society. I've learned a lot since November, and started opening new cards, some that were the rewards cards and a couple of just low interest rate cards like the Barclays Ring with 8% APR. One card I did leave open that I paid off was my Capital One that I've had 19 years. I asked them to lower my credit limit (before I started reading about FICO) and decreased my limit to $8,000. That card is a 15.9% APR and I've put that card away in my lockbox. I just want to keep it for the longevity of it. So, since I opened up a total of 7 cards (two I cancelled right away), I've had a few hard inquiries. Now I realize I really wanted rewards cards all along. I recently tried to get a US Bank reward card and was turned down because of too many inquiries. That was my eye opener that I need to cool it for a while. 

 

The Chase card gave me $2,500 limit when I applied online. I called them and asked the same night if they would consider raising it to $5k since I have our home mortgage with them and used to have a credit card with them since 1995 that I had closed a couple of years ago but recently paid off. They reviewed it and immediately gave me the increase to $5k. Sweet. I also look at it that I don't want to go over 30% on any one card so I could have a balance of $1,500 at any one time (sure hope I don't ever do that). My Discover card has a $9,500 CL and the AMEX that is my most recent card only gave me $2,000. I also called them and asked for a review to increase my CL but they declined so I'm stuck with $2k for a while. I've been paying each card in full every bill cycle, and will never carry over a debt again, but getting clarification on how the rewards cards work, I will not worry about a purchase on any of the 3 rewards cards not giving me the points if I pay them before the close dates. It's also nice not carrying cash in my wallet either. Right now with my 6 cards, I have available credit of $38,500. I'm sure with the hits lately and the rash of new cards, the banks are nervous I'm going to go back to an old habit. I think in a few months I'll ask AMEX for a CL increase to maybe even $4k, that way I'll have a higher limit before I would hit 30%. Right now I'm using it for my gas since it's offering 2%. 

 

I also use free sites like Credit Karma and Credit Sesame, as well as Capital One, Barclay Ring, Discover and my credit union's montly FICO scores (Vantage 3.0). According to Credit Karma today my TU is 762 and Equifax is 788. So, I'm sure the banks are just nervous about me Smiley Happy

 

This is my first day on myFICO as I never knew about the Community until today. I plan on being a regular now since I'm so obsessed with all this.

 

Thanks everyone! Now if I can just figure out how to add my info at the bottom of each of my posts like my credit cards I have I'll be really happy.

Message 10 of 16
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