topic Re: Is that "everything else" card really necessary? in Credit Cards

Is that "everything else" card really necessary?

kdm31091 — Wed, 08 Jun 2016 22:21:49 GMT

Just another musing of mine similar to my "spreading too thin" thread in the past. Most of us have several cards for various categories, be it groceries, gas, dining, whatever. Most also have a generic 1.5% or 2% card for "everything else".

But outside very large spenders, is that "everything else" card really necessary? Yes, it's nice to make sure some transactions are not only earning 1%, but how many transaction is that really? Most cards have redemption thresholds, and some require a lot of spend to meet, so if you are diluting across many specific use cards, how long is it taking to get to even cash out on the "generic" card?

This isn't an argument or knock against anyone but I'm finding that really the 1.5% or 2% cards seem to be best for people who want to just have one card, put all their spend on it, and be done. Otherwise, there's just not a huge gain to be had if you're already using specific cards for gas, groceries, dining, etc which are the basic major spend areas. Of course, monthly bills are a factor, but many of them surcharge for CC use anyway.

Thoughts, anyone? I realize it's similar to "spreading too thin" or "diluting rewards" but I was just thinking about it recently and it seems that having a bunch of category cards AND a general spend card may be redundant for some and mutually exclusive, at least if you want to actually cash out your rewards with any frequency. I come from a perspective of fairly low retail job income and spending, so keep that in mind. Higher spend can obviously justify more.

Re: Is that "everything else" card really necessary?

Anonymous — Wed, 08 Jun 2016 22:26:31 GMT

I've actually been surprised by how many transactions I do that don't fit a category, and I'm not a big spender. My DC gets lots of use. Is the extra 1% on those swipes going to change my life? No, but I like having it, and the card itself is free.

Re: Is that "everything else" card really necessary?

kdm31091 — Wed, 08 Jun 2016 22:29:26 GMT

@Anonymous wrote:
I've actually been surprised by how many transactions I do that don't fit a category, and I'm not a big spender. My DC gets lots of use. Is the extra 1% on those swipes going to change my life? No, but I like having it, and the card itself is free.

Right but you also have a CSP and PRG, two annual fee cards. Don't some "everything else" transactions kind of necessitate being placed on those to justify the fees?

Re: Is that "everything else" card really necessary?

jacetx — Wed, 08 Jun 2016 22:33:14 GMT

@kdm31091 wrote:
Just another musing of mine similar to my "spreading too thin" thread in the past. Most of us have several cards for various categories, be it groceries, gas, dining, whatever. Most also have a generic 1.5% or 2% card for "everything else".

But outside very large spenders, is that "everything else" card really necessary? Yes, it's nice to make sure some transactions are not only earning 1%, but how many transaction is that really? Most cards have redemption thresholds, and some require a lot of spend to meet, so if you are diluting across many specific use cards, how long is it taking to get to even cash out on the "generic" card?

This isn't an argument or knock against anyone but I'm finding that really the 1.5% or 2% cards seem to be best for people who want to just have one card, put all their spend on it, and be done. Otherwise, there's just not a huge gain to be had if you're already using specific cards for gas, groceries, dining, etc which are the basic major spend areas. Of course, monthly bills are a factor, but many of them surcharge for CC use anyway.

Thoughts, anyone? I realize it's similar to "spreading too thin" or "diluting rewards" but I was just thinking about it recently and it seems that having a bunch of category cards AND a general spend card may be redundant for some and mutually exclusive, at least if you want to actually cash out your rewards with any frequency. I come from a perspective of fairly low retail job income and spending, so keep that in mind. Higher spend can obviously justify more.

I have a few family members that use their Quicksilver card exclusively since their spend is not much, one of my coworkers uses his Freedom. The thing is, it works for them. Me on the other hand have these in my wallet: Marvel (dining and entertainment - my biggest spend), Penfed Platinum Rewards (gas), Blispay (everything else), Discover (rotating categories). I have no plans on getting anything else at the moment.

Re: Is that "everything else" card really necessary?

Anonymous — Wed, 08 Jun 2016 22:38:20 GMT

@kdm31091 wrote:
Just another musing of mine similar to my "spreading too thin" thread in the past. Most of us have several cards for various categories, be it groceries, gas, dining, whatever. Most also have a generic 1.5% or 2% card for "everything else".

But outside very large spenders, is that "everything else" card really necessary? Yes, it's nice to make sure some transactions are not only earning 1%, but how many transaction is that really? Most cards have redemption thresholds, and some require a lot of spend to meet, so if you are diluting across many specific use cards, how long is it taking to get to even cash out on the "generic" card?

This isn't an argument or knock against anyone but I'm finding that really the 1.5% or 2% cards seem to be best for people who want to just have one card, put all their spend on it, and be done. Otherwise, there's just not a huge gain to be had if you're already using specific cards for gas, groceries, dining, etc which are the basic major spend areas. Of course, monthly bills are a factor, but many of them surcharge for CC use anyway.

Thoughts, anyone? I realize it's similar to "spreading too thin" or "diluting rewards" but I was just thinking about it recently and it seems that having a bunch of category cards AND a general spend card may be redundant for some and mutually exclusive, at least if you want to actually cash out your rewards with any frequency. I come from a perspective of fairly low retail job income and spending, so keep that in mind. Higher spend can obviously justify more.

Most of my monthly spend are bills that I can pay with credit cards without surcharge. So a general card works for me. And though I don't have a ton of spend, the Quicksilver doesn't have redemption limits so I can get any amount earned.

Re: Is that "everything else" card really necessary?

mongstradamus — Wed, 08 Jun 2016 22:43:37 GMT

i don't know if it counts as an "everything else " card since it does have bonus spend on groceries and gas, but I use EDP as my everything else card to get the thirty swipes and get the 50% bonus.

Re: Is that "everything else" card really necessary?

zerbherb — Wed, 08 Jun 2016 22:49:47 GMT

it is. My prg gets no love now that i have the PRG. hence my wishlist. In the bio

Re: Is that "everything else" card really necessary?

Blodreina — Wed, 08 Jun 2016 23:02:20 GMT

I actually reached the same conclusion not long ago. My Sallie Mae is my primary card, for everything.

Re: Is that "everything else" card really necessary?

sr383 — Wed, 08 Jun 2016 23:13:57 GMT

It depends on your lineup. For me, there's always a "best" card, and in many cases, it's my "everything else" Fidelity. I have no annual fees and no thresholds to reach, so nothing is robbing benefits from anything else.

Re: Is that "everything else" card really necessary?

Anonymous — Wed, 08 Jun 2016 23:17:28 GMT

@mongstradamus wrote:
i don't know if it counts as an "everything else " card since it does have bonus spend on groceries and gas, but I use EDP as my everything else card to get the thirty swipes and get the 50% bonus.

Yes, if you value MR/UR/TYP etc enough, getting one of those per $ (min) greatly reduces the need for an everything else card

Re: Is that "everything else" card really necessary?

CatOfSpades — Wed, 08 Jun 2016 23:22:30 GMT

I like the simplification of just having one card and paying one bill. I don't see it as diluting rewards since I can redeem everything into the same account, or at least the equivalent by stockpiling statement credit since my bill may be less or whatever. Recently, though, I decided to stop caring about an extra 1%, so other than occasional use to keep them active, I only really use two cards: Freedom & DC was replaced by Marvel because dining and entertainment are my highest spend categories anyway. Freedom doubles as my everything else card as well. The rest I keep for diversification reasons.

Re: Is that "everything else" card really necessary?

core — Wed, 08 Jun 2016 23:38:28 GMT

Yes, the 'everything else' card is really necessary. Because all the "interesting" spending opportunities usually fall into the everything else category. For example I can't tell you how many times I've opened a bank or credit union account (because I really wanted the account, not for nefarious purposes) only to find our during the process that they accept credit cards for your opening deposit... sometimes a sizeable amount. They never take Amex though, so while you never want to leave home without it, it doesn't do you much good at home, it seems.

Lots of other non-online opportunities present themselves too. This is the only reaon I keep my Citi DC and QS1 limits higher than I usually would.

Re: Is that "everything else" card really necessary?

deltatee — Wed, 08 Jun 2016 23:47:03 GMT

I think it depends on how many categories you're running and how long it takes you to redeem. If you have a million cards each representing a different category, earning an extra .5% on three small purchases a month is pretty negligible. But if you're somewhere in the middle where you have a good chunk of non category spend, then the extra amounts can add up.

With me, I find I have quite a few non category charges. And generally I just use my CSP for those because a UR point is just as good, if nother better, than 1.5%. But I have my QS set aside for online bills and recurring expenses because it keeps me organized and I like minimizing the number of cards I use online.

I dunno, redeem my rewards about once a year and never have an issue with redemption thresholds.

Re: Is that "everything else" card really necessary?

Anonymous — Thu, 09 Jun 2016 00:16:59 GMT

I always feel like these pseudo-philosophical musings -- when taken down the same slippery slope that forms the basis of the threads I've seen that are similar to this -- really all end up with the same conclusion. Why have a Double Cash when you already have a Quicksilver -- it's only a .5% difference!!! .5% difference in a month is only a small amount, a few dollars really!! So why bother?? But then, why bother having a Quicksilver when you have a Freedom that earns 1% on non-category spending -- only a .5% difference!? The difference is only a small amount, a few dollars really!! Is it necessary?!

Well, of course it's not "necessary". Virtually no one earns rewards in such a substantial fashion (assuming they are earning their rewards in an artless way) that it has a vastly meaningful difference in their lives, particularly when we're talking about a few percentage points in rewards for each swipe. When people get a Double Cash over a Quicksilver they have been using, their mindset isn't, "Oh, my gosh. The extra .5% cashback on my purchases will help me afford my water bill this month that I never would have been able to afford before with my Quicksilver's 1.5%!" It's not a matter of necessity, of course, but this is not only obvious, it's also a bit of a straw man argument to depict anyone's position as such. These people are simply looking for a long-term, better value card, and that's fine.

Re: Is that "everything else" card really necessary?

redpat — Thu, 09 Jun 2016 00:25:41 GMT

I'm finding the best benefits are coming from my Amex plat and citi prestige. These benefits would require a large amount of spend anyway. The AFs are tiny compared to the perks and the spend needed for some of the benefits.

All personal is MR and business is UR. My business spend is high and all my monthly personal bills and spend is put on EDP when ever possible income is well above average.

The highest rewards come from travel redemptions and if you want strictly cash back then you have to settle for less.

Re: Is that "everything else" card really necessary?

kdm31091 — Thu, 09 Jun 2016 00:27:19 GMT

@Anonymous wrote:
I always feel like these pseudo-philosophical musings -- when taken down the same slippery slope that forms the basis of the threads I've seen that are similar to this -- really all end up with the same conclusion. Why have a Double Cash when you already have a Quicksilver -- it's only a .5% difference!!! .5% difference in a month is only a small amount, a few dollars really!! So why bother?? But then, why bother having a Quicksilver when you have a Freedom that earns 1% on non-category spending -- only a .5% difference!? The difference is only a small amount, a few dollars really!! Is it necessary?!

Well, of course it's not "necessary". Virtually no one earns rewards in such a substantial fashion (assuming they are earning their rewards in an artless way) that it has a vastly meaningful difference in their lives, particularly when we're talking about a few percentage points in rewards for each swipe. When people get a Double Cash over a Quicksilver they have been using, their mindset isn't, "Oh, my gosh. The extra .5% cashback on my purchases will help me afford my water bill this month that I never would have been able to afford before with my Quicksilver's 1.5%!" It's not a matter of necessity, of course, but this is not only obvious, it's also a bit of a straw man argument to depict anyone's position as such. These people are simply looking for a long-term, better value card, and that's fine.

Perhaps "necessary" conveys the wrong tone but I mean it with the implication of "worthwhile" more than anything. Of course, no cash back or rewards are a necessity to live one's life. My point here is that are the gains from having a "generic" card, amongst a handul or more of category cards, really useful enough to justify a separate account and the HP/AAOA ding? That's the discussion, not so much whether these things are vital/necessary to life, which of course they are not.

Re: Is that "everything else" card really necessary?

Anonymous — Thu, 09 Jun 2016 00:27:50 GMT

Some of my uncategorized spending:

TV/landline/internet bill

Cell phone bills

Water bill

Gas/electricity bill

Trash bill

AAA Auto Club

Car insurance

Yes.

That 2% adds up.

Re: Is that "everything else" card really necessary?

GeorgiaBulldog — Thu, 09 Jun 2016 00:37:24 GMT

@kdm31091 wrote:
Just another musing of mine similar to my "spreading too thin" thread in the past. Most of us have several cards for various categories, be it groceries, gas, dining, whatever. Most also have a generic 1.5% or 2% card for "everything else".

But outside very large spenders, is that "everything else" card really necessary?

I sort of look at it in the opposite way... DC and Discover (while it's in the double cash back promo) *are* my everything cards. "Everything else" is made up of the category cards for me (Discover sort of fits the bill for both everything and everything else right now, actually, but it will be an everything else card after the first year is up). While the category cards reflect things that I do spend a good amount on, the extra benefits are icing on the DC/Discover cake.

edit: I realize my wording is kind of odd by categorizing my spend as 'everything' and 'everything else,' but I think it gets the point across

Re: Is that "everything else" card really necessary?

Anonymous — Thu, 09 Jun 2016 00:43:19 GMT

@kdm31091 wrote:
@Anonymous wrote:
I always feel like these pseudo-philosophical musings -- when taken down the same slippery slope that forms the basis of the threads I've seen that are similar to this -- really all end up with the same conclusion. Why have a Double Cash when you already have a Quicksilver -- it's only a .5% difference!!! .5% difference in a month is only a small amount, a few dollars really!! So why bother?? But then, why bother having a Quicksilver when you have a Freedom that earns 1% on non-category spending -- only a .5% difference!? The difference is only a small amount, a few dollars really!! Is it necessary?!

Well, of course it's not "necessary". Virtually no one earns rewards in such a substantial fashion (assuming they are earning their rewards in an artless way) that it has a vastly meaningful difference in their lives, particularly when we're talking about a few percentage points in rewards for each swipe. When people get a Double Cash over a Quicksilver they have been using, their mindset isn't, "Oh, my gosh. The extra .5% cashback on my purchases will help me afford my water bill this month that I never would have been able to afford before with my Quicksilver's 1.5%!" It's not a matter of necessity, of course, but this is not only obvious, it's also a bit of a straw man argument to depict anyone's position as such. These people are simply looking for a long-term, better value card, and that's fine.
Perhaps "necessary" conveys the wrong tone but I mean it with the implication of "worthwhile" more than anything. Of course, no cash back or rewards are a necessity to live one's life. My point here is that are the gains from having a "generic" card, amongst a handul or more of category cards, really useful enough to justify a separate account and the HP/AAOA ding? That's the discussion, not so much whether these things are vital/necessary to life, which of course they are not.

Ah, but see, that's a very different question and one that is much more subjective. Is couponing worthwhile? Is discount-hunting worthwhile? Is getting that small amount of extra cashback worthwhile?

It's a complicated equation for each person that involves many variables -- one's value of time, savings, expended effort, and enjoyment gained from doing it are the main ones. It seems to not be worthwhile to you -- that's ok. It is to me and a lot of other people as well. We can agree to disagree.

Re: Is that "everything else" card really necessary?

pizza1 — Thu, 09 Jun 2016 00:50:17 GMT

my monthly spend is so low, compared to some here, that I could have just one card and use it for everything, and probably reap better reward on that one card, than trying to put a spend here, and a spend there.

But...we all know, most people here have in excess of CC for util/cushioning. Im not against that at all, LOL..(don't need it, but don't condone it either)

But back to the "everything else".....I have several of those cards, and you're right, its redundant. Some of those will be going away next year as I set my sights on long term, and quality of cards, vs quantity.