topic Re: What is the Best Rewards Card (Cash back or Gift Cards) in Credit Cards

What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Mon, 07 Nov 2011 04:51:09 GMT

I am on a mission to find the best rewards card out there. Credit is not an issue (815+), and I have plenty of other cards (1 with $30K limit, and another with $15K). I pay them off each month.

The Sapphire card has decent rewards, but anything out there that is better without annual fees? Open to suggestions. Saving up rewards to put toward an upcoming trip.

Appreciate thoughts.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

LTomBerry — Mon, 07 Nov 2011 05:02:12 GMT

Depends on what you spend the most money on. Groceries, gas, restaurants, airlines...

Are you willing to pay an annual fee if the rewards outweigh the fee?

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Mon, 07 Nov 2011 05:06:00 GMT

I simply refuse to pay a credit card an annual fee to make money off of me. I don't pay interest ever, but they get crazy card swipe fees from me. Basically my wife and I charge every expense (other than mortgage and car payments) and then pay it off at month's end. Typically $3K - $4K a month. Expenses range from gas to groceries to clothes to whatever catches our eye.

Thanks!

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Odiseous — Mon, 07 Nov 2011 05:32:04 GMT

@Anonymous wrote:
I simply refuse to pay a credit card an annual fee to make money off of me. I don't pay interest ever, but they get crazy card swipe fees from me. Basically my wife and I charge every expense (other than mortgage and car payments) and then pay it off at month's end. Typically $3K - $4K a month. Expenses range from gas to groceries to clothes to whatever catches our eye.

Thanks!

While may be a noble concept; by not paying an annual fee, you may be losing out on extra rewards.

I'm not a fan of Annual Fees either. But it's a matter of running the numbers, to see if it's really worth it. Note: If it's a matter of "It's the principal", that's OK too. Just be aware, that you may be paying them, for the priviledge of "sticking it" to them. Which kind of defeats the purpose.

Take the AmEx Blue Cash Everyday (no AF) as an example:

3% Cash Back at supermarkets

2% Cash Back for Gas & Department stores.

1% Cash Back for everything else

Compare that to the AmEx Blue Cash Preferred ($75 AF) :

6% Cash Back at supermarkets

3% Cash Back for Gas & Department stores.

1% Cash Back for everything else

At a certain point (search the forums; there are a few threads where people have run the numbers); you get more cash back by paying the annual fee. And it's not really that much.

Once you reach that point; if you have the BCE instead of the BCP; you're actually losing money. Because at that point; AmEx is not giving you as much cash back as you could be earning with the BCP.

Edit: Typo

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Mon, 07 Nov 2011 06:44:36 GMT

My current favorites are:

American Express Blue Cash Preferred (6% groceries, 3% gas, 3% department stores, 1% other)
Citi Forward 3.2%-5% cash back on dining, movies, bookstores and Amazon purchases (I'm doing some testing to figure out if all purchases through Amazon.com count)
Target RedCard or Target Visa (5% register discount on nearly all purchases)
Penfed Platinum Cash Rewards (5% statement credit for gas)
Fidelity Rewards American Express Card (up to 2% cash back on all purchases)

I have the first three, and I'm considering getting the last two.

Earlier this year, I figured that I can get between 3% and 4% cash back overall by strategically using the card with the best cash back.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Mon, 07 Nov 2011 07:11:27 GMT

This is such a loaded question, as a reward card benefits everyone differently.

It seems that you want to use the card for TRAVEL. Sapphire preferred has a great 50K point sign up bonus that is still running. That will get you either $500 cash, or $625 if you redeem for travel. You do have to meet the spend requirement. You can transfer the points into hotel or airline partners. That is where the points really have value.

The same holds true for AMEX MR points (not so much for hotels as for airlines with AMEX IMO).

If you are looking to always redeem for some travel benefit (which is what I am focusing on at the moment), you could also look at the AMEX Starwood guest preferred. You get great value for this card if you are wiling to stay at Starwood properties. You may have other hotel arrangements which may not make this card so attractive for you. You can also transfer star points into many frequent flyer plans, if airline rewards is a goal. I would suggest you look into this card of your primary goal is travel.

Another option could be either the Cap1 Venture (the one with the $59 fee) or the Discover Escape card (which is a $60 fee). On both cards, you earn 2% on EVERY purchase. You CAN use the awards for GC, but better to use the points earned for travel CREDIT. What is nice is that there are no travel restrictions at all. Book your trip, pay with the card, and when it shows up on your statement, you can apply your points for a credit.

If you are looking to only earn cash back or redeem for GC, then you should definitely look at AMEX BCE (no fee), or BCP ($75 fee), and Chase Freedom. With Chase freedom, it has the 5% rotating catagories. They are usually capped at $1500 per quarter, then 1% everything else. HOWEVER, if you do a lot of online shopping, you can really rack up the points fast through the UR program (same holds true for the Sapphire). You have an opportunity to earn bonus points per dollar. That is where I make my killing (especially right now with the holidays).

Check out the links.You can input your monthly spend into the different spend catagories, and it will display the cash back bonus you can expect to receive on each card.

http://milecards.com/12/mile-credit-card-calculator/

http://www.creditcardtuneup.com/

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Walt_K — Mon, 07 Nov 2011 08:06:03 GMT

If you're trying to save up for a trip, and your wife also has good credit, you can maximize your rewards by both of you signing up for cards. That way you can get twice the sign up bonuses.

Where are you trying to go? The Asiana American Express card from BofA is a pretty great card if your travel is short-haul trips to Europe from the East Coast. You can get business class awards for 75K miles, and since the card earns 2 miles per dollar for all purchases, that translates to a business class ticket to Europe for $37.5K of spend. I don't see the card being offered on BofA's website anymore, but it is still listed on the Asiana website.

Other than that, Chase Saphire Preferred and Amex PR Gold are some of the best point earning cards out there right now. I think you'd be hard pressed to find better than those. Here's some sites to read about maximizing credit card rewards and sign-up bonuses: thepointsguy.com, frugaltravelguy.com, millionmilesecrets.com, boardingarea.com/blogs/onemileatatime, boardingarea.com/blogs/mommypoints, boardingarea.com/blogs/viewfromthewing.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

thebanjoman — Mon, 07 Nov 2011 11:57:07 GMT

Do you count short-term gains (sign on bonuses, promo periods)?

For the first 6 months, presently, the AARP credit card from chase offers 5% cashback on everything. afterwords it drops to 3% for travel type activities, 1% for the rest. You could buy a 1 year membership to the AARP for about $16. sign up for yours for the first 6 months, and then if the offer is still there, sign up for one for your wife for the subsequent 6 months.

airline card sign-up bonuses tend to be pretty good too.

Fidelity rewards has 2% cashback on everything, deposited into a fidelity account, NASA FCU has a cashback card that offers 2% cashback on anything you spend over 2,000 during a year (but i believe it only cashes out once per year).

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Mon, 07 Nov 2011 14:05:27 GMT

@Anonymous wrote:
My current favorites are:

American Express Blue Cash Preferred (6% groceries, 3% gas, 3% department stores, 1% other)
Citi Forward 3.2%-5% cash back on dining, movies, bookstores and Amazon purchases (I'm doing some testing to figure out if all purchases through Amazon.com count)
~~Target RedCard or Target Visa (5% register discount on nearly all purchases)~~
Penfed Platinum Cash Rewards (5% statement credit for gas)
Fidelity Rewards American Express Card (up to 2% cash back on all purchases)
I have the first three, and I'm considering getting the last two.

Earlier this year, I figured that I can get between 3% and 4% cash back overall by strategically using the card with the best cash back.

That's the setup I eventually want... I already have the forward and fidelity amex.. working on that BCP and I'll get the penfed later after I garden a bit.. I can use the BCP for gas presuming amex approves me for it >_<!!!!!!!

Re: What is the Best Rewards Card (Cash back or Gift Cards)

pastnow123 — Mon, 07 Nov 2011 21:28:04 GMT

I would recommend a AMEX BCE+ BOA 1-2-3 as a good replacement for AMEX BCP? If you don't have tons of grocery expenses to justify annual fee. Everyone agree?

boa 1-2-3

1% every purchase

2% grocery

3% gas

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Mon, 07 Nov 2011 21:42:16 GMT

@pastnow123 wrote:
I would recommend a AMEX BCE+ BOA 1-2-3 as a good replacement for AMEX BCP? If you don't have tons of grocery expenses to justify annual fee. Everyone agree?
boa 1-2-3
1% every purchase
2% grocery
3% gas

The breakeven point between Blue Cash Everday and Blue Cash Preferred is $2,500 in annual grocery spending -- that's just $48.08/week. So, unless you are doing your grocery spending at Costco, Sam's Club, BJ's WalMart or Target, it's really hard to not to cover the annual fee in additional earnings.

Compared to the Bank of America card, the break even point for Blue Cash Preferred is even lower (since the rebate spread is 4%, compared to 3% vs. Blue Cash Everyday) -- $1,875, or $36.06/week.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

pastnow123 — Mon, 07 Nov 2011 22:11:39 GMT

Sorry. I should be more clear. My 2 options here are: BCE + BOA 1-2-3 combo, and BCP

For BCE + BOA 1-2-3:

Use BCE for grocery and BOA for Gas.

For BCP,

Use BCP for both purposes.

The breack even point should still be $2,500 in annual grocery spending --$48.08/week, right?

So, when you can't reach the break even spending, the BCE+BOA 1-2-3 combination would be a good alternative.

Just curious why people not mention BOA 1-2-3 card, think it provides pretty good rewards as well.

@Anonymous wrote:
@pastnow123 wrote:
I would recommend a AMEX BCE+ BOA 1-2-3 as a good replacement for AMEX BCP? If you don't have tons of grocery expenses to justify annual fee. Everyone agree?
boa 1-2-3
1% every purchase
2% grocery
3% gas
The breakeven point between Blue Cash Everday and Blue Cash Preferred is $2,500 in annual grocery spending -- that's just $48.08/week. So, unless you are doing your grocery spending at Costco, Sam's Club, BJ's WalMart or Target, it's really hard to not to cover the annual fee in additional earnings.

Compared to the Bank of America card, the break even point for Blue Cash Preferred is even lower (since the rebate spread is 4%, compared to 3% vs. Blue Cash Everyday) -- $1,875, or $36.06/week.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Tue, 08 Nov 2011 15:23:07 GMT

@pastnow123 wrote:
Sorry. I should be more clear. My 2 options here are: BCE + BOA 1-2-3 combo, and BCP
For BCE + BOA 1-2-3:
Use BCE for grocery and BOA for Gas.
For BCP,
Use BCP for both purposes.
The breack even point should still be $2,500 in annual grocery spending --$48.08/week, right?

So, when you can't reach the break even spending, the BCE+BOA 1-2-3 combination would be a good alternative.
Just curious why people not mention BOA 1-2-3 card, think it provides pretty good rewards as well.
@Anonymous wrote:
@pastnow123 wrote:
I would recommend a AMEX BCE+ BOA 1-2-3 as a good replacement for AMEX BCP? If you don't have tons of grocery expenses to justify annual fee. Everyone agree?
boa 1-2-3
1% every purchase
2% grocery
3% gas
The breakeven point between Blue Cash Everday and Blue Cash Preferred is $2,500 in annual grocery spending -- that's just $48.08/week. So, unless you are doing your grocery spending at Costco, Sam's Club, BJ's WalMart or Target, it's really hard to not to cover the annual fee in additional earnings.

Compared to the Bank of America card, the break even point for Blue Cash Preferred is even lower (since the rebate spread is 4%, compared to 3% vs. Blue Cash Everyday) -- $1,875, or $36.06/week.

My take on the BOA 1-2-3 card is that it's good, but since it doesn't offer the best rate on anything it doesn't make it into the top tier of rewards cards.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Tue, 08 Nov 2011 15:29:46 GMT

I don't know why you'd ever get anything besides the bcp. That card is required for getting the best from your grocery spending. Penfed for gas.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

pastnow123 — Tue, 08 Nov 2011 16:33:55 GMT

Penfed would be the best gas card to have, but it takes time, due to the membership and high score requirement. i would say BOA 1-2-3 is currently the next best for gas.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

thebanjoman — Tue, 08 Nov 2011 22:09:28 GMT

Alternative to Penfed is Fort Knox FCU... same 5% on gas, but 1.25% on everything else... unsure on the requirements/strictness though. I hear they pull TU.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

clocktick — Wed, 09 Nov 2011 02:07:32 GMT

@thebanjoman wrote:
Alternative to Penfed is Fort Knox FCU... same 5% on gas, but 1.25% on everything else... unsure on the requirements/strictness though. I hear they pull TU.

Fort Knox is 5% off of gas if the gasoline is at least $3.50/gallon.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

Anonymous — Wed, 09 Nov 2011 05:11:50 GMT

bofa cash rewards sig visa

3 gas

2 groceries

1 everything else

plus redeem rewards into bofa checking account and get a 10% bonus. 100 directly deposited into your bofa checking or savings would be 110.

Seems like one of the best in my eyes especially with the 10% bonus and No aF

Re: What is the Best Rewards Card (Cash back or Gift Cards)

thebanjoman — Wed, 09 Nov 2011 11:53:24 GMT

@clocktick wrote:
@thebanjoman wrote:
Alternative to Penfed is Fort Knox FCU... same 5% on gas, but 1.25% on everything else... unsure on the requirements/strictness though. I hear they pull TU.

Fort Knox is 5% off of gas if the gasoline is at least $3.50/gallon.

No... the reference to $3.50 a gallon is merely the value used for the statement "which equates to a reduction of 17¢ on the gallon"... If gas drops to $1.00/gal, FKFCU still gives 5%, it just equates to 5 cents per gallon instead of 17cents as in the example of $3.50 per gallon.

Re: What is the Best Rewards Card (Cash back or Gift Cards)

SevenNEW — Wed, 09 Nov 2011 18:09:20 GMT

@Anonymous wrote:
bofa cash rewards sig visa

3 gas
2 groceries
1 everything else

plus redeem rewards into bofa checking account and get a 10% bonus. 100 directly deposited into your bofa checking or savings would be 110.

Seems like one of the best in my eyes especially with the 10% bonus and No aF

Does it have caps on the rewards? I really dislike those...