topic Re: What would you do Chase 5% or Discover 5% in Credit Cards

What would you do Chase 5% or Discover 5%

Anonymous — Mon, 02 Jan 2017 16:03:38 GMT

So of course chase and discover both offer 5 percent chase back this quarter for gas stations and commuter expenseses. Currently my discover is double cash back so essentially it's 10 percent cash back.

What would you guys do use discover for the double cash back this quarter or use chase to get 5 percent cash back to maximize CSP.

Re: What would you do Chase 5% or Discover 5%

Aahz — Mon, 02 Jan 2017 16:07:13 GMT

More money is better than less money.

Re: What would you do Chase 5% or Discover 5%

Anonymous — Mon, 02 Jan 2017 16:50:19 GMT

@Aahz wrote:
More money is better than less money.

Um yes, but some people value 5 UR > 10 cents. So to the OP, guess it depends on how much you value them!

Re: What would you do Chase 5% or Discover 5%

myjourney — Mon, 02 Jan 2017 17:06:38 GMT

@Anonymous wrote:
@Aahz wrote:
More money is better than less money.
Um yes, but some people value 5 UR > 10 cents. So to the OP, guess it depends on how much you value them!

I would be one of those people that value UR points at minimum 2 points each

So when redeeming one could get more than the 10 cents

Re: What would you do Chase 5% or Discover 5%

yfan — Mon, 02 Jan 2017 17:08:30 GMT

You can look at what you value UR points as and then decide. While doing your own evaluation, keep a few things in mind that I feel are often missed in CPP evaluations:

First, the value of cash sales that you can't get with points. For example, if your travel plans aren't set in stone, combine flexible planning with cash sales. If it costs a lot in cash to fly to Paris, making use of fixed points a great value but there's a cash sale for tickets to Hong Kong where using points would be pointless, did you really get a good value by going to Paris when you've always also wanted to see Hong Kong?

Second, following the above point, cash is liquid and available to you earlier generally. Unlike point currencies, you don't have to hold it for a long time to build value. In the above example, if you take the cash, you may well find you're ready to go on the trip sooner because of the extra liquidity.

Your call, but be careful about putting a lot of stock into CPP evaluations on travel blogs. Always do your own based on your goals.

Re: What would you do Chase 5% or Discover 5%

vanillabean — Mon, 02 Jan 2017 17:59:11 GMT

@myjourney wrote:

I would be one of those people that value UR points at minimum 2 points each

Apart from ditto, my scattered pocket change tends to blend into everyday life and wasted on extra cups of coffee that I don't need, while long-term UR points amount to a trip every so often which I have come to appreciate.

Re: What would you do Chase 5% or Discover 5%

Aahz — Mon, 02 Jan 2017 18:12:04 GMT

@Anonymous wrote:
@Aahz wrote:
More money is better than less money.
Um yes, but some people value 5 UR > 10 cents. So to the OP, guess it depends on how much you value them!

In which case more money is still better then less money.

I specifically din't pick a card because everyone values UR differently so which card provides more money and which card provides less money is user dependent.

Re: What would you do Chase 5% or Discover 5%

Anonymous — Mon, 02 Jan 2017 18:49:03 GMT

@Aahz wrote:
@Anonymous wrote:
@Aahz wrote:
More money is better than less money.
Um yes, but some people value 5 UR > 10 cents. So to the OP, guess it depends on how much you value them!
In which case more money is still better then less money.

I specifically din't pick a card because everyone values UR differently so which card provides more money and which card provides less money is user dependent.

OK, but then "More money is better than less money" while being obvious doesn't really address the OPs question...

Re: What would you do Chase 5% or Discover 5%

Anonymous — Mon, 02 Jan 2017 19:09:25 GMT

Im in the same boat.. Im going Discover. Its 10% regardless how you redeem.. and Discover has been great to me. F chase.

Re: What would you do Chase 5% or Discover 5%

Random_idiot — Mon, 02 Jan 2017 19:14:18 GMT

@Anonymous wrote:
So of course chase and discover both offer 5 percent chase back this quarter for gas stations and commuter expenseses. Currently my discover is double cash back so essentially it's 10 percent cash back.

What would you guys do use discover for the double cash back this quarter or use chase to get 5 percent cash back to maximize CSP.

Like many posters here have said already..

Depends on how you value your URs.

Personally, I have both, and you can bet your bottom dollar I value UR more than cash back. So I am going with the Freedom, but to each their own I guess.

EDIT: Or for the first year, since Discover is matching it, use the Discover, and the following year, use the Freedom?

Re: What would you do Chase 5% or Discover 5%

Anonymous — Mon, 02 Jan 2017 19:22:22 GMT

@yfan wrote:

First, the value of cash sales that you can't get with points. For example, if your travel plans aren't set in stone, combine flexible planning with cash sales. If it costs a lot in cash to fly to Paris, making use of fixed points a great value but there's a cash sale for tickets to Hong Kong where using points would be pointless, did you really get a good value by going to Paris when you've always also wanted to see Hong Kong?

I have some sympathy with this, but the question is where do you draw the line. So I am all set to use cash for this great price to Hong Kong, when I see that my local dealer has a huge discount on the 2018 Toyota Camry (in Lime Green!) Is that cash sale to Hong Kong such a good value when I also really want the Camryand don't have cash for both?

So to my mind, best compare like with like: if I am thinking about a trip to Paris, compare cash and point fares just for that. I might be able to get a great point deal or cash deal to another destination, and focussing may have an opportunity cost, but not focussing can lead to paralysis.

Another common argument against valuations does make more sense to me, so much so that I don't get to a conclusion! I can get a first-class flight to my dream destination (Elizabeth, NJ say) for 200K points, and the cash price is $20K, wow, that's 10cpp! But would I pay $20K for the flight? One school of thought is decide what I would be willing to pay (so $5K) and use that for the valuation. On the other hand, I AM getting a flight that WOULD cost $20K (I can't get it for $5k) , so that should be the basis for the valuation

Re: What would you do Chase 5% or Discover 5%

yfan — Tue, 03 Jan 2017 01:21:11 GMT

@Anonymous wrote:
So I am all set to use cash for this great price to Hong Kong, when I see that my local dealer has a huge discount on the 2018 Toyota Camry (in Lime Green!) Is that cash sale to Hong Kong such a good value when I also really want the Camryand don't have cash for both?

That's my point, actually. If to you, the value of the Camry here and now is better than a vacation, then go for the Camry, by all means. Cash gives you that option. You can't buy a Camry with UR points. This is why I'm stressing the need for individual valuations.

@Anonymous wrote:

So to my mind, best compare like with like: if I am thinking about a trip to Paris, compare cash and point fares just for that. I might be able to get a great point deal or cash deal to another destination, and focussing may have an opportunity cost, but not focussing can lead to paralysis.

I was comparing like with like: flight to one destination with another. And it's not like I was suggesting an alternative vacation in Pyongyang. Focus is fine, but to me, focus on the goal. What's the goal here? For me, the goal is to see a new place, have fun, enjoy myself. It does not have to be a particular destination. For you though, if the opportunity cost of flexibility is so high that it leads to paralysis, you should stick to points. That, however, doesn't mean everyone should.

@Anonymous wrote:
Another common argument against valuations does make more sense to me, so much so that I don't get to a conclusion! I can get a first-class flight to my dream destination (Elizabeth, NJ say) for 200K points, and the cash price is $20K, wow, that's 10cpp! But would I pay $20K for the flight? One school of thought is decide what I would be willing to pay (so $5K) and use that for the valuation. On the other hand, I AM getting a flight that WOULD cost $20K (I can't get it for $5k) , so that should be the basis for the valuation

I'm ambivalent about that. It depends on how much I really value being in first class. Do I think it's worth $20K, even if I don't have the money to pay for it? If the experience is worth it to you, then again, you have made the right choice by going with points for yourself. I am rarely awake long enough in flights to enjoy any of the extras, so I'm less impressed by that curtain that closes to First Class.

My entire argument is one has to decide what is most valuable to them. I have suggested they factor in the benefits of cash which are less obvious along with the benefits of points which are more so.

Re: What would you do Chase 5% or Discover 5%

yfan — Tue, 03 Jan 2017 01:32:35 GMT

I should also mention that Discover's cashback is not only redeemable as cash. It is also redeemable for gift cards, which provide a minimum $5 discount from the face value of the card, instantly resulting in an 11% (the worst value on those is $45 cashback rewards for a $50 card) to 100% (certain Cruiseline gift cards double the value) jump in evaluations. These may or may not be as desirable to flights, but if we are going to compare highest possible redemption values, these have to be taken into account too.

Re: What would you do Chase 5% or Discover 5%

galahad15 — Tue, 03 Jan 2017 01:44:25 GMT

I'm not a Chase cards fan (as the APRs on the 2 cards I have with them are approaching 25% V) and I still have the double-cashback promo that was offered with my Discover card, so I'm for Team Discover

Re: What would you do Chase 5% or Discover 5%

Random_idiot — Tue, 03 Jan 2017 01:49:28 GMT

@galahad15 wrote:
I'm not a Chase cards fan (as the APRs on the 2 cards I have with them are approaching 25% V) and I still have the double-cashback promo that was offered with my Discover card, so I'm for Team Discover

Which is understandable based on your spending habits. Op, needs to first figure out what kind of spending will he do. Carry a balance, PIF, etc etc..

While also figuring out what is important to him.. liquidity, or racking up enough points to travel (again, based on his monthly spending), a lot of variables in play.

So if you could give us more details on all that OP, the posters here cn give their opinions from a non biased side.

Re: What would you do Chase 5% or Discover 5%

Anonymous — Tue, 03 Jan 2017 03:21:24 GMT

There seems to have been some confusion through out the post. I am only wondering about the Q1 bonus. I typically spend about 80-100 dollars a week at a gas station between gas and various other things. It would equally about 40 dollars max a month with discover double your cash back. I PIF on my chase freedom card since I only use it if the quarter fits my needs and don't carry a balance unless it's a small one due to the cut of date. Discover I am carrying a ten percent balance due to the zero apr and Christmas shopping. I do travel a lot and use my CSP to greatly reduce my travel spending. Don't always opt to blow points on first class. Still have 6 flights coming up with in the next three months and currently still have about 135,000 UR points.

Discover would double the 5 percent but that won't be till October of 2017. I am thinking because I travel often the immediately UR value is a bigger pay of in the short run and long term. Considering my cash back after would be about 120 max with the cash back. About a little less then one way flying to the east coast.

Re: What would you do Chase 5% or Discover 5%

Anonymous — Tue, 03 Jan 2017 03:22:30 GMT

Also considering with the CSP the 5 percent would equal about 7.5 on average I don't know if the extra 2.5 would be worth holding off on using the freedom.

Re: What would you do Chase 5% or Discover 5%

Anonymous — Tue, 03 Jan 2017 06:16:35 GMT

Discover Q1 also includes Wholesale Clubs such as BJ's and Sam's Club (and Costco.com I think). I'll be using my Discover exclusively for BJ's and my Chase Freedom for Gas and Ground Transportation this quarter to maximize rewards.

Re: What would you do Chase 5% or Discover 5%

Anonymous — Tue, 03 Jan 2017 06:26:22 GMT

You're right creditftw. Just for my neither of those for my spending habits. Can't really justify bulk purchases for two people. Maybe if Amex offers the 40 bucks back for Sam Clubs again I'll jump on it then

Re: What would you do Chase 5% or Discover 5%

Anonymous — Tue, 03 Jan 2017 08:41:21 GMT

Disco-hands down