topic Re: Minimum Redemption Levels for Cash Back - I don't like them! in Credit Cards

Minimum Redemption Levels for Cash Back - I don't like them!

Anonymous — Mon, 22 Feb 2016 21:12:52 GMT

Hello Everyone,

I went on a app spree last year for the "ultimate' cash back credit card. After trying a few, especially Citi Double Cash, I've gone back to using a credit union card that offers 1.5% on every purchase. Why, you ask? I don't like that in order to redeem my cash back, I have to reach a minimum redemption level.

Even though Citi DC is 2% CB, my 1.5% NFCC allows me to redeem at any time. With Citi DC, I always feel like at some point, unless I continue to use the same card all the time, that I'm leaving cash on the table unless I reach a minimum threshold and stop using the card. YMMV, but I'm willing to forgo the .5% in favor of a card that allows me to redeem at any time and this is what works for me. There's something about the minimum redemption level that subconciously kinda makes me feel like I gotta spend more to make sure I get my CB. My back-up cards are my Discover IT/IT Miles card since they also allow you to redeem without minimums.

I'd be interested to hear what others think.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

kdm31091 — Mon, 22 Feb 2016 21:20:07 GMT

I do think some people end up spending more subconsciously to meet the thresholds. Cards with no redemption headaches are ideal. Although I'm not a huge capital one fan, the quicksilver is one of the most straightforward cards around for the reasons you mention.

I have a cashforward from barclay and the threshold is 50 bucks which is lame, but at least rewards posts quickly. The double cash has both disadvantages: slow posting of rewards (can be up to two billing cycles for full 2 percent) and a threshold.

Around here, sometimes these opinions are unpopular, as there are people who simply want the highest return and don't care if it's a little less convenient. But I'm with you. I hate hassles and headaches with rewards.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

Anonymous — Mon, 22 Feb 2016 21:29:23 GMT

Thanks for responding, I'm glad there are probably a few folks that think about this the way I do.

And what you said about Citi DC taking a long time to post rewards is one of the other reasons why I recently stopped using the card and switched back to my Navy Federal CC.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

northface28 — Mon, 22 Feb 2016 21:57:32 GMT

I feel the same, I have a CashForward, Quicksilver, and Discover IT. The Discover It posts rewards at the end of the month which is a slight annoyance, but I can deal.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

kdm31091 — Mon, 22 Feb 2016 22:08:27 GMT

That's the one major beef I have with discover. I'm totally OK with rewards coming once a month, but they don't provide any way to really track the rewards per transaction, which is an annoyance.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

CluelessJohn — Mon, 22 Feb 2016 22:24:38 GMT

I'm generally a believer that 2% cash back is better than 1.5%, but I shelved my Citi DC and started using a CapOne QS card for general spend. Citi DC had the $25 minimum and other redemption issues since I don't have a Citi checking account. I know I'm leaving money on the table but I prefer the instant gratification.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

Anonymous — Mon, 22 Feb 2016 22:33:18 GMT

@CluelessJohn wrote:
I'm generally a believer that 2% cash back is better than 1.5%, but I shelved my Citi DC and started using a CapOne QS card for general spend. Citi DC had the $25 minimum and other redemption issues since I don't have a Citi checking account. I know I'm leaving money on the table but I prefer the instant gratification.

I agree and I feel like at the end of the day, getting 1.5% quickly is better than 2% and having to wait for it.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

FinStar — Mon, 22 Feb 2016 22:48:48 GMT

Maybe I'll be the lone dissenter (as I'm sure there are others who deal with the other end of the spectrum) for cash back flexibility and opportunity redemptions, but I've never had any "annoyance" or felt any inflexibility (IME) with redemption thresholds for Fidelity PC, Double Cash, BOA PP Cash Rewards (auto-deposited), Cash+ or Discover, etc. Maybe for high income individuals that can optimize these cash back vehicles in a such a way where such thresholds mean nothing since the cummulative amounts can be redeemed whenever? *shrugs*

While I'm sure some individuals may not like them (depending on who the issuer is), there's plenty of choices and other lenders out there + much worse rewards products/structures.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

kdm31091 — Mon, 22 Feb 2016 22:54:48 GMT

I agree 2 percent is more than 1.5 percent, but if the headaches aren't worth it on the 2 percent card, I can understand.

As finstar said, high income may make it less relevant, but I'm certainly not high income haha.

Anyway, 1.5 vs 2 percent is a relatively insignificant difference at the end of the day, absent very large spend. So I think people should just use whatever they prefer. You leave a little on the table but it's not going to make a massive difference either way, and there's certainly many good options out there for different consumers.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

FinStar — Mon, 22 Feb 2016 23:01:08 GMT

@kdm31091 wrote:
I agree 2 percent is more than 1.5 percent, but if the headaches aren't worth it on the 2 percent card, I can understand.

As finstar said, high income may make it less relevant, but I'm certainly not high income haha.

Anyway, 1.5 vs 2 percent is a relatively insignificant difference at the end of the day, absent very large spend. So I think people should just use whatever they prefer. You leave a little on the table but it's not going to make a massive difference either way, and there's certainly many good options out there for different consumers.

Right. I would definitely agree that not all rewards portals are created equal and some are more favored than others, like Capital One being a decent one. Yet, for instance AmEx can take a while sometimes to update rewards information and yes, Discover can be cryptic almost like bartering (e.g. I harvested lots of lemons to get good lemonade yields but only got a few drops?).

Re: Minimum Redemption Levels for Cash Back - I don't like them!

Closingracer99 — Mon, 22 Feb 2016 23:11:33 GMT

@Anonymous wrote:
Thanks for responding, I'm glad there are probably a few folks that think about this the way I do.

And what you said about Citi DC taking a long time to post rewards is one of the other reasons why I recently stopped using the card and switched back to my Navy Federal CC.

Long? It is after every statement which I am fine with .... HAd the card since June and made over $200 in CB since. I am probably going to make a lot less since I am now putting all my spending on my Amex hilton and Citi AA plat

Re: Minimum Redemption Levels for Cash Back - I don't like them!

Closingracer99 — Mon, 22 Feb 2016 23:12:18 GMT

@CluelessJohn wrote:
I'm generally a believer that 2% cash back is better than 1.5%, but I shelved my Citi DC and started using a CapOne QS card for general spend. Citi DC had the $25 minimum and other redemption issues since I don't have a Citi checking account. I know I'm leaving money on the table but I prefer the instant gratification.

I don't have a Citi account and i get my statement credit the next business day or 2 the max

Re: Minimum Redemption Levels for Cash Back - I don't like them!

Closingracer99 — Mon, 22 Feb 2016 23:14:02 GMT

@kdm31091 wrote:
I agree 2 percent is more than 1.5 percent, but if the headaches aren't worth it on the 2 percent card, I can understand.

As finstar said, high income may make it less relevant, but I'm certainly not high income haha.

Anyway, 1.5 vs 2 percent is a relatively insignificant difference at the end of the day, absent very large spend. So I think people should just use whatever they prefer. You leave a little on the table but it's not going to make a massive difference either way, and there's certainly many good options out there for different consumers.

It is the billing period you get your CB with Citi DC so if you can't wait a month than go use the Cap QS which I won't touch since it's Capital one

Re: Minimum Redemption Levels for Cash Back - I don't like them!

kdm31091 — Mon, 22 Feb 2016 23:19:04 GMT

If you don't PIF before the statement cuts on DC, you do have to wait another month for the cash back. To some people no big deal, to others it's annoying.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

galahad15 — Mon, 22 Feb 2016 23:30:29 GMT

I have quite a few rewards cards collected thus far to date, both 2% and 1.5%, but my favorite is prolly my Cap1 card (rewards are structured like a Venture), since there is no minimum redemption amount, and I can redeem at 2% cashback for frequent and recurring subway travel. Next faves are most likely Citi DC and FNBO BucksBack at 2%, and FNBO Amex at 1.5%, but all of these 3 cards have $25 minimum redemption thresholds.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

BallBounces — Tue, 23 Feb 2016 00:02:59 GMT

@Anonymous wrote:
Hello Everyone,

I went on a app spree last year for the "ultimate' cash back credit card. After trying a few, especially Citi Double Cash, I've gone back to using a credit union card that offers 1.5% on every purchase. Why, you ask? I don't like that in order to redeem my cash back, I have to reach a minimum redemption level.

Even though Citi DC is 2% CB, my 1.5% NFCC allows me to redeem at any time. With Citi DC, I always feel like at some point, unless I continue to use the same card all the time, that I'm leaving cash on the table unless I reach a minimum threshold and stop using the card. YMMV, but I'm willing to forgo the .5% in favor of a card that allows me to redeem at any time and this is what works for me. There's something about the minimum redemption level that subconciously kinda makes me feel like I gotta spend more to make sure I get my CB. My back-up cards are my Discover IT/IT Miles card since they also allow you to redeem without minimums.

I'd be interested to hear what others think.

FWIW, I feel the same way. I prefer the Cap1 Quicksilver over the Citi DC and the Amex BCP that I also have.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

SunriseEarth — Tue, 23 Feb 2016 00:13:12 GMT

If your non-category spend is small, then a CC without redemption limits might make sense. Also, if you're considering applying for a new card and factoring in sign-up bonuses, it can make a lot of sense.

I'm quite happy with my QS, but I'm carrying a promo balance on it now. My gen spend is going on Discover currently. Citi DC is SDed for me. In April, I intend on PCing my VentureOne to another QS and will start using that for gen spend, once my Discover promo ends.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

Anonymous — Tue, 23 Feb 2016 00:15:20 GMT

Thanks everyone! Seems like for some the 2% with either Fidelity, Citi DC or some other card works while others are sticking with 1.5% with Capital One or another similar card. For me Citi DC didn't work well because I PIF and I like to see my rewards post quickly, which I do get with Navy Federal. I think I got spoiled by Navy Federal.

If I ever start spending a lot more per month, or if I have a big purchase, maybe I will reconsider using Fidelity or Citi DC

Re: Minimum Redemption Levels for Cash Back - I don't like them!

Anonymous — Tue, 23 Feb 2016 00:17:42 GMT

my only card that doesnt have minimum points redemption balance is my QS card and most people mentions. Us Bank perks +, BofA cash rewards, chase freedom, citi card all have minimum requirements, so yea i generally use the quicksilver for everything.

Re: Minimum Redemption Levels for Cash Back - I don't like them!

Anonymous — Tue, 23 Feb 2016 00:19:27 GMT

As someone who mostly goes for travel rewards (which means generally redeeming $100+ worth of points at a time) I find complaints about $25 cash redemption levels comical.

What's the point of even having a particular rewards program if it takes a long time to earn $25?