What are my options?

[SunriseEarth]

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@DomLS3 wrote:

Since I do the majority of my spending on gas/groceries/department stores, I think the cash back cards are where I need to aim. I don't quite understand exactly how the cash back works though. Say I spend 50$ on gas, and my agreement on a card is 5% on gas. Does that means I get $2.5 back, or off of the transaction? If I get it back, where does the money go? Back onto the card? Into a rewards program? Sorry I know these are noob questions.

I just looked up the Amex Blue Cash card and saw it gets 3% on gas and department store purchases and 6% on groceries. How does this compare to that Barlcays card, and is there another card that may be better?

Thanks

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You must be looking at BCP.   If you spend a good amount on groceries, it might be worth the AF.   However you should definitely consider Salle Mae.   As for the department stores, if you have a particular store you frequent, you might benefit more from their store (or cobranded) card.   However, my BCE gets 2% cash back for most major dept stores, so I use that at stores I don't have a card for.  

[DomLS3]

I think I may do Sallie Mae + CSP, or BCP + CSP.

Thoughts?

[Anonymous]

I would do BCP to lock in your member since date and a credit union credit card.

One day, you will realize the tremendous benefits to these accounts.

[DomLS3]

I've just read over the Sallie Mae card. It says it's only useful if you spend $250 a month or less on groceries, etc. I spend roughly around $700 a month of groceries, or around $8000 a year, so I'm being told the BCP is the way to go??

[Anonymous]

With that spendig profile, you might want one of each. BCP caps grocery purchases at 6k per year. If you evaluate Sallie Mae on a yearly basis, it comes to about $3k per year. Go for one of each, use the SM on the first $250 of groceries each month and the AMEX on all groceries thereafter. 

[Gunnar419]

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@DomLS3 wrote:

I've just read over the Sallie Mae card. It says it's only useful if you spend $250 a month or less on groceries, etc. I spend roughly around $700 a month of groceries, or around $8000 a year, so I'm being told the BCP is the way to go??

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Yes, if you spend that much the BCP is probably worth it for you (but note that there's both an annual fee and annual cap for the grocery bonus). The Sallie Mae could still be a great card if you shop at Amazon or buy a lot of books because aside from the gas/grocery cashback bonus already mentioned there's a $750/month 5% bonus on bookstores (and Amazon is considered a bookstore no matter what you purchase).

[DomLS3]

I don't do any spending on Amazon or books.

I may have been a little mistaken in the information I gave, since on my budget sheet I include dining and groceries under the same "food" category.

My monthly spending goes more like this:

Groceries - $450

Dining - $250

Alochol - $60

Gas - $375

Department stores - $450

Normal bills - $2,400

[Anonymous]

Best option is 2x Sallie Mae cards + 1x Chase AARP + Citi DC/Fidelity Amex + Discover IT/Chase Freedom:

2x Sallie Mae covers your monthly grocery bill and your monthly gas bill with 5% back. The AARP covers your dining with 3% back. I don't know of any place that offers good rates for alcohol purchases that are outside of grocery stores, so I'd go with Citi Double Cash for that (2% back). A Chase Freedom/Discover IT have rotating categories that include department stores at 5%. BCP does include department stores at 3%, but it isn't worth it if you aren't getting the groceries.Assuming "Normal Bills" is utilities, I do not know of a card that covers that any more. 

Of course, if you would rather have points than cash back, there are options that go that way as well

[DomLS3]

Well,  I'm not looking to get more than 2 cards as I don't want that many hard inquries on my credit. I really don't even want 2, so we will see how it goes. Thanks everyone for the advice! 

[Anonymous]

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@DomLS3 wrote:

I don't do any spending on Amazon or books.

I may have been a little mistaken in the information I gave, since on my budget sheet I include dining and groceries under the same "food" category.

My monthly spending goes more like this:

Groceries - $450

Dining - $250

Alochol - $60

Gas - $375

Department stores - $450

Normal bills - $2,400

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I can't find any cash back benefits for the Citi Dividend Preferred. I'm therefore assuming you get 0% back from that card.

Running numbers for BCP, SM, and Citi DC, I get the following results:

Sector	Monthly Expense	BCP	SM	DC
Groceries	450	27	12.5	9
Dining	250	2.5	2.5	5
Gas	375	11.25	3.75	7.5
Alcohol	60	0.6	0.6	1.2
Department stores	450	13.5	4.5	9
Bills	2400	24	24	48
AF	0	75	0	0
Total Annual Gain		871.2	574.2	956.4

The Citi Double Cash is the best overall card for you, due to your bills. It may also be beneficial to you, because you have an existing relationship with Citi, so they may give you a better rate or higher credit limit. Good luck!