topic Re: Discover It - grocery cashback options? in Credit Cards

Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 01:07:09 GMT

So yeah, I am still in my first year with Disco so I don’t really want to leave $150 on the table but I don’t have $1500 worth of groceries in a quarter, I’m going wild if I break $600, do they frown on gift card purchases to get your spend?

I really don’t see any other way I can get my spend as my roommates provide most of the household stuff but I also don’t want to break any rules along the way. I was thinking about getting $100 gift cards for Amazon when I go shopping... I’ll end up with a huge balance for Amazon (I already have $650 from capping my 5% spend this quarter but Discover specifically says that’s allowed in the terms for Amazon cash back) but I can spend money quick when I want a new TV anyway.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 02:13:35 GMT

Yes, Discover is fine with GC purchases but the most important element often not discussed in rewards chasing, do not fall into the trap of spending more than what you otherwise would have, this is one of the ways they get you.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 02:19:47 GMT

I am still 0% until June on that card and my cashback match payout is 3/21 so this is my last chance to double my rewards so I figured I would go for it.

I definitely wouldn’t do it if it wasn’t 0% or the card didn’t have a limit that could buffer it sufficiently especially since I’m working on my BBVA $100 for $1500 SUB as well but at $7500 limit, $1500 is only 20% utilization.

So much Amazon though... I’ll have to think about it. Thanks for the info, I just didn’t want to violate some rule somewhere since only Amazon says gift cards in the fine print.

Also my Disco is unlikely to get usage until 4Q after this anyway because the other categories don’t do much for someone who’s home bound with agoraphobia and my cashRewards’ ongoing 1.5% is better than Disco offers too.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 02:29:56 GMT

Well, you can do GC just the same for 2nd quarter gas stations, Discover counts convenient store purchases attached to gas stations, you won't get cashback match but it's still 5%.

Re: Discover It - grocery cashback options?

kdm31091 — Sun, 16 Dec 2018 02:32:41 GMT

@Anonymous wrote:
Yes, Discover is fine with GC purchases but the most important element often not discussed in rewards chasing, do not fall into the trap of spending more than what you otherwise would have, this is one of the ways they get you.

I would agree. There's no rule that has you have to spend up to the cap or something! I know it feels like leaving money on the table, but you're saving so much more by not forcing spend. Even with double rewards, you save 100% by not spending money you don't need to spend to begin with.

Personally I just utilize the categories for my actual spend and I find the gift card thing a hassle (keeping track of various GC balances, etc). I mean, yes, it's a savings, but it's only $5 for every $100, so nothing to go too crazy about IMO. Keep things in perspective.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 02:43:41 GMT

@Anonymous wrote:
Well, you can do GC just the same for 2nd quarter gas stations, Discover counts convenient store purchases attached to gas stations, you won't get cashback match but it's still 5%.

I am unable to actually go to the store myself, I have a personal care assistant that does that for me but they are only allowed to go to the grocery store (although sometimes they bend the rules and get me fast food if I ask).

I probably won’t do it because it does seem like an added hassle and any extra balance on Amazon would likely not be used if I were to make a big purchase anyway because I would rather get the cashback, especially for something like a TV, so I guess I’ll just loosen up my normally very tight $150 a month grocery budget and stock up on frozen and canned stuff I enjoy.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 02:44:53 GMT

@kdm31091 wrote:
@Anonymous wrote:
Yes, Discover is fine with GC purchases but the most important element often not discussed in rewards chasing, do not fall into the trap of spending more than what you otherwise would have, this is one of the ways they get you.
I would agree. There's no rule that has you have to spend up to the cap or something! I know it feels like leaving money on the table, but you're saving so much more by not forcing spend. Even with double rewards, you save 100% by not spending money you don't need to spend to begin with.

Personally I just utilize the categories for my actual spend and I find the gift card thing a hassle (keeping track of various GC balances, etc). I mean, yes, it's a savings, but it's only $5 for every $100, so nothing to go too crazy about IMO. Keep things in perspective.

To be fair, Amazon gift cards you just redeem on your Amazon account and they just pile up your Amazon.com gift card balance so they’re not really a big hassle but point well taken. I’ll just get my SUB from BBVA and wait and see if there’s an offer for a BT from Navy so I can get rid of this personal loan that’s costing me 18.99% right now. I always forget about that thing and it’s definitely costing me more in interest than I’m gaining in cash back on my cards.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 03:45:36 GMT

Depending on your grocery store, that might well be other types of gift cards that could be useful, depending on where else you buy things. Mine have stuff ranging from clothing (such as GAP), chain restaurants, gas, cell phone topups, home improvement (Lowes, Home Depot), sporting goods (REI), crap (build-a-bear etc) as well as Amazon etc.

So bearing in mind KDMs comment about not overspending, if there is something that you will use soon, it CAN be worth it.

But 5% is only 3% more than you would get with a standard 2% card, so it's not all that imperative to spend it all!

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 04:30:11 GMT

@Anonymous wrote:
Depending on your grocery store, that might well be other types of gift cards that could be useful, depending on where else you buy things. Mine have stuff ranging from clothing (such as GAP), chain restaurants, gas, cell phone topups, home improvement (Lowes, Home Depot), sporting goods (REI), crap (build-a-bear etc) as well as Amazon etc.
So bearing in mind KDMs comment about not overspending, if there is something that you will use soon, it CAN be worth it.

But 5% is only 3% more than you would get with a standard 2% card, so it's not all that imperative to spend it all!

Yeah it’s King Soopers (Kroger) - they have tons and tons of different GCs but really outside of Amazon, I don’t buy much anyway. I don’t eat out often because I won’t pay delivery charges and I can’t do normal things like go to see a movie so all that is out too. And Amazon cards are just easy to redeem to boot.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 04:36:13 GMT

@Anonymous wrote:
@Anonymous wrote:
Depending on your grocery store, that might well be other types of gift cards that could be useful, depending on where else you buy things. Mine have stuff ranging from clothing (such as GAP), chain restaurants, gas, cell phone topups, home improvement (Lowes, Home Depot), sporting goods (REI), crap (build-a-bear etc) as well as Amazon etc.
So bearing in mind KDMs comment about not overspending, if there is something that you will use soon, it CAN be worth it.

But 5% is only 3% more than you would get with a standard 2% card, so it's not all that imperative to spend it all!
Yeah it’s King Soopers (Kroger) - they have tons and tons of different GCs but really outside of Amazon, I don’t buy much anyway. I don’t eat out often because I won’t pay delivery charges and I can’t do normal things like go to see a movie so all that is out too. And Amazon cards are just easy to redeem to boot.

Makes sense. The only issue with Amazon is that there are cards (for Prime members) that get 5% on Amazon anyway, so giftcards aren't really saving. But if you don't have such cards, then this strategy is as good as any

ETA: forgot you were in the first year with discover, so its 10%, which is worth it!

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 05:04:40 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Depending on your grocery store, that might well be other types of gift cards that could be useful, depending on where else you buy things. Mine have stuff ranging from clothing (such as GAP), chain restaurants, gas, cell phone topups, home improvement (Lowes, Home Depot), sporting goods (REI), crap (build-a-bear etc) as well as Amazon etc.
So bearing in mind KDMs comment about not overspending, if there is something that you will use soon, it CAN be worth it.

But 5% is only 3% more than you would get with a standard 2% card, so it's not all that imperative to spend it all!
Yeah it’s King Soopers (Kroger) - they have tons and tons of different GCs but really outside of Amazon, I don’t buy much anyway. I don’t eat out often because I won’t pay delivery charges and I can’t do normal things like go to see a movie so all that is out too. And Amazon cards are just easy to redeem to boot.
Makes sense. The only issue with Amazon is that there are cards (for Prime members) that get 5% on Amazon anyway, so giftcards aren't really saving. But if you don't have such cards, then this strategy is as good as any

ETA: forgot you were in the first year with discover, so its 10%, which is worth it!

Yeah the 10% is my big draw lol. I guess we will see what ends up happening.

Going forward I may actually go for the Amazon store card next year and SD Disco because that would enable me to save money on Amazon year round, not just one quarter in the year although I don’t do most major purchases until Black Friday anyway which is when Disco always has 5% for Amazon.

But — knocking out the $300 and change I pay in interest a year on my personal loan is priority 1.

Re: Discover It - grocery cashback options?

FireMedic1 — Sun, 16 Dec 2018 10:27:05 GMT

I got Visa/MC GC's at the grocery store each month during the quarter on my first card to pay the monthly cable, cell, auto insurance,ect. Doesnt have to be a store GC. Had no problems. I'll do the same again on my 2nd card too.

Re: Discover It - grocery cashback options?

NRB525 — Sun, 16 Dec 2018 10:45:40 GMT

OP what is your cost sharing arrangement with your roommates? If they do not have a card that is getting 5% or 10% back in Q1, maybe you could buy more of the household items, and get reimbursed from them for the items they would otherwise buy? That way your spend is more aligned with current use, and you can separately decide how to approach Amazon.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 11:00:16 GMT

@NRB525 wrote:
OP what is your cost sharing arrangement with your roommates? If they do not have a card that is getting 5% or 10% back in Q1, maybe you could buy more of the household items, and get reimbursed from them for the items they would otherwise buy? That way your spend is more aligned with current use, and you can separately decide how to approach Amazon.

I have thought about this but they aren’t responsible with money like I am. I would probably have to hound them to get reimbursed and I don’t like doing stuff like that. It’s always messy when you mix finances with roommates, I won’t even do it with a significant other. Both of them each take home over twice what I get from SSDI and they are always broke and have credit so bad they can’t even get a secured card right now.

I really do think it might be best to just leave it alone and work on my sign up bonus with BBVA and then tackle my $1600 I have left on my personal loan because that 18.99% is killer and totally negates any benefits I get in cash back right now anyway. It’s also something I could knock out quickly and then have an extra $90 a month in my pocket.

I will at least increase my budget for the 3 months though. I bought a chest freezer for the house recently which means I can actually buy things I like (previously I got just under a third of the freezer compartment above the fridge which was barely enough for a few party pizzas and some frozen fruit and chimichangas) and there are canned goods I consume on a pretty regular basis I can stock up on too.

Re: Discover It - grocery cashback options?

CreditInspired — Sun, 16 Dec 2018 11:18:02 GMT

+1 @kdm. Agree 100%.

It has never occurred to me to try and get the maximum reward when taking advantage of categories. I was just excited about getting any cashback on things I normally buy anyway.

Now I did buy my Apple iPad Pro, keyboard and pen online from Costco using my Discover but this was a planned purchase to begin with. I was just thrilled I got the 5% cashback by using Discover.

Yes, the best way is not to spend money on things you dont need just to get back a few dollars. Not wise behavior.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 12:25:35 GMT

@FireMedic1 wrote:
I got Visa/MC GC's at the grocery store each month during the quarter on my first card to pay the monthly cable, cell, auto insurance,ect. Doesnt have to be a store GC. Had no problems. I'll do the same again on my 2nd card too.

what is max amount you can get from those visa/mc gcs?

Re: Discover It - grocery cashback options?

FireMedic1 — Sun, 16 Dec 2018 15:53:48 GMT

500 bucks. I got 1 GC each month to pay the bills for 3 months.Add it up around 900 in 3 months.

Re: Discover It - grocery cashback options?

Anonymous — Sun, 16 Dec 2018 16:39:09 GMT

@FireMedic1 wrote:
500 bucks. I got 1 GC each month to pay the bills for 3 months.Add it up around 900 in 3 months.

The disadvantage of this approach (apart from any MS police here or at the issuer) is the fee (here between 5.95 and 6.95) taking slightly more than 1% (of the 5%, so more than 20% loss). So, if you can use a particular store card it's better value, but of course cash equivalent gift cards have more flexibility for spending.

You also need a store that lets you buy them with credit cards, which isn't the case in all areas.

Re: Discover It - grocery cashback options?

luxlight — Sun, 16 Dec 2018 19:38:09 GMT

Are we allowed to talk about MS on this forum? If OP doesn't have enough organic spend, its either that or to not overspend

Re: Discover It - grocery cashback options?

UncleB — Sun, 16 Dec 2018 19:49:36 GMT

@luxlight wrote:
Are we allowed to talk about MS on this forum? If OP doesn't have enough organic spend, its either that or to not overspend

No, this isn't the place for MS discussion.

That said, there's often confusion about what constitutes MS. For our purposes, MS is using a credit card to purchase items that can be easily converted back to cash to pay the credit card bill. To clarify, purchasing a gift card at the grocery store (even a MC/V GC) for normal purposes is not MS.

TL;DR... people who are into MS know what it is without our having to split-hairs or break it down. Anyone who is truly confused about it likely has nothing to be concerned about.

If you (or anybody else) needs further clarification feel free to send me or any moderator a PM.