topic Re: Best cashback card for light spenders in Credit Cards

Best cashback card for light spenders

MCHammerFan — Wed, 25 Apr 2012 23:32:03 GMT

I was reviewing cards and I'm trying to figure out what would be best as a cash back card for me. I was looking at the Chase Sapphire Preferred due to the no forex fee card but it was too travel oriented I already have a Capital One card but it only has a CL of $750 but it was almost my first CC and a BOA Plat Plus with a CL of $2000. The Amex blue cash cards seem tempting but I hear it is better for heavier spenders. Citi Dividends I hear is good but my family keeps telling me not to do business Citi. Right now I have two CC's that I basically PIF each time, but I'm not getting the best out of it. I'm probably going to just spend it on groceries/electronics/Paypal and it's going to be light spending ($200 per statement period and PIF max).

Re: Best cashback card for light spenders

Brian_Trying_700 — Wed, 25 Apr 2012 23:56:40 GMT

Check Discover More quarterly they have different things that give 5% cash back.

Re: Best cashback card for light spenders

SamsungHDTV — Thu, 26 Apr 2012 00:13:45 GMT

@MCHammerFan wrote:
I was reviewing cards and I'm trying to figure out what would be best as a cash back card for me. I was looking at the Chase Sapphire Preferred due to the no forex fee card but it was too travel oriented I already have a Capital One card but it only has a CL of $750 but it was almost my first CC and a BOA Plat Plus with a CL of $2000. The Amex blue cash cards seem tempting but I hear it is better for heavier spenders. Citi Dividends I hear is good but my family keeps telling me not to do business Citi. Right now I have two CC's that I basically PIF each time, but I'm not getting the best out of it. I'm probably going to just spend it on groceries/electronics/Paypal and it's going to be light spending ($200 per statement period and PIF max).

I wouldn't recommend the Chase Sapphire preferred for light spending. Solely because it has an $95 annual fee. Any card with annual fees usually needs a heavier spending to recoup the annual fee cost. Although with it's generous sign up bonus, the card is basically free for 5 years. Further more, its spending is 2% cash back on hotels and restaurants which is not in your list. It is a great card, but not for your purpose today.

I think the Amex blue cash card is a good bet. The one without an annual fee though. 3% cash back on supermarkets is what I like most and is on your list. Although I could not find if there was a cap to how much you earn or any fine print on the rewards program.

If you have a Chase checking account, I'd recommend the Chase Freedom. The cash back ratio is IMO the best for small purchases or everyday spending because of its rewards bonus if you have a Chase checking. I'll link you to the examples I've previously posted. Just ignore the part about Chase sapphire preferred.

http://ficoforums.myfico.com/t5/Credit-Cards/CSP-Freedom-Checking-Use-wisely/m-p/1355519

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 00:24:11 GMT

Chase Freedom and Amex Blue Cash Everyday are good cards. Freedom is good with changing 5% categories, but they are capped at $1500 spend per 3 months. Still, if you are going for $200 a month, that should be fine. The Amex has permanent 3% on groceries with no cap or minimum spend, so it should definitely be considered.

Re: Best cashback card for light spenders

Mike360 — Thu, 26 Apr 2012 00:30:34 GMT

Chase Freedom for light spender. Discover More is just a bad choice IMO

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 00:35:41 GMT

@Mike360 wrote:
Chase Freedom for light spender. Discover More is just a bad choice IMO

I agree, I've never even considered Discover despite the numerous pre-approvals they've sent me. The .25% on general spending for the first $3,000 per year is pathetic. This makes the More a very niche card that is typically only good for the few 5% categories. If you want a solid, general use cashback card there are better options.

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 00:47:28 GMT

@Anonymous wrote:
@Mike360 wrote:
Chase Freedom for light spender. Discover More is just a bad choice IMO
I agree, I've never even considered Discover despite the numerous pre-approvals they've sent me. The .25% on general spending for the first $3,000 per year is pathetic. This makes the More a very niche card that is typically only good for the few 5% categories. If you want a solid, general use cashback card there are better options.

I have a Discover More and couldn't agree more . I was almost surprised when I found out that I have to spend $3k just to get a measly 1% on all purchases! For a person with rather typical spending habits, (buying groceris, gas, paying bills, etc.) the card would really only be good for its 5% categories or maybe the 2% on automatically paid bills.

Otherwise, IMO, the Chase Freedom with 1% out of the gate and rotating 5% cateogires easily beats it. One of the Amex Blue cards would also be a good choice, if they are tailored to your particular spending habits.

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 01:33:06 GMT

@Anonymous wrote:
@Anonymous wrote:
@Mike360 wrote:
Chase Freedom for light spender. Discover More is just a bad choice IMO
I agree, I've never even considered Discover despite the numerous pre-approvals they've sent me. The .25% on general spending for the first $3,000 per year is pathetic. This makes the More a very niche card that is typically only good for the few 5% categories. If you want a solid, general use cashback card there are better options.
I have a Discover More and couldn't agree more . I was almost surprised when I found out that I have to spend $3k just to get a measly 1% on all purchases! For a person with rather typical spending habits, (buying groceris, gas, paying bills, etc.) the card would really only be good for its 5% categories or maybe the 2% on automatically paid bills.

Otherwise, IMO, the Chase Freedom with 1% out of the gate and rotating 5% cateogires easily beats it. One of the Amex Blue cards would also be a good choice, if they are tailored to your particular spending habits.

I would agree and disagree with some aspects.

The Discover More card is great if: You purchase gas on your card because you earn 5% 6 months of the year at least in 2012. You earn 5% I believe 3 months of the year which is nice, and the October thru December (3 months) which is a big season for spending with Black Friday, Thanksgiving, and Christmas as well as whatever other Holidays you may celebrate you get 5% at Department Stores vs. Chase Freedom's 5% at only Khols and Bestbuy. Oh and I almost forgot for the Month of May Discover is giving 5% on Groceries so at least you get a month there.

The Chase Freedom you got 5% on Amazon this year for January - March, but they had made that October - December to compete with Discovers 5% at department stores they would have blown Discover away. Chase also gives you 6 months of 2012 with 5% on Gas I beleive and at least 3 months of 5% on grocerys and another 3 months on Restaurants.

As far as Utility Bills go Discover this year is giving 2% on Utility Bills while Chase gives 0. Heck if you use it for just say phone internet and tv and your bill is $120 thats just under $30 in cashback right there. Now pair that with other utilities or if it is more and you can make $50 easily.

Last, but not least if you do a lot of online shopping the Shop Discover is better then what Chase offers in my opinion. I think on average Discover gives you more cashback on online purchases. I don't know if Chase does this I can't remember with my Freedom, but I know for sure Discover allows you to use your cashback towards Amazon purchases which is very nice and all ran for a month I beleive Free 1 or 2 day shipping when paying with your Discover earlier this year.

*** Forgot to mention if you are just spending and not going to pay attention to the revolving categories then the Chase you get the 1% on all purchases where the Discover you get a measily 0.25% (Discover you need to fix this!) until you reach something like 2500 or $3000 spent.

With Both Cards you get great customer service and if you make a little schedule for when to use your card on certain categories you can really bring

in more cashback. I will give the edge to the Discover More Card, but Chase is a VERY VERY good company. Hope this helps some people

OH One LAST THING: if you can get the get $300 cashback when you spend $500 with the Chase Freedom then go for that and forget Discover because I think they only give you like $50-$150 where Chase gives you a huge incentive to sign up for the card

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 01:17:51 GMT

I have a blue cash preferred and even though it has a yearly fee, just putting to grocery store stuff on there at 6% back more than pays for the fee for me. I dont spend alot either on credit cards or even cash, but that one makes the most sense for me. I do have a chase freedom as well and like it well enough that i use it pretty regularly. My citi cards dont get much use and i have a wells fargo that is pretty much useless as far as rewards go.

Re: Best cashback card for light spenders

Mike360 — Thu, 26 Apr 2012 01:24:33 GMT

The reason I say chase freedom is because of the cash bank bonus for signing up. I've earned $367.54 so far and I've put about $4k on it since December. Yes discover more is good for certain things but the spent $3k to reach the 1% sucks.

Re: Best cashback card for light spenders

MCHammerFan — Thu, 26 Apr 2012 13:25:24 GMT

Thanks so much for the replies! I'm between the Blue Cash Everyday/Preferred and the Chase Freedom. Right now I'm leaning towards the Freedom since I do actually do make purchases in the bonus 5% categories but the Amex gives a static 3% bonus for groceries which I always buy. What confuses me though is some of the card descriptions say: all other "qualifying purchases" will give you 1%. I hope my Paypal transactions would count toward the 1%.

I read more into the Discover More and the .25% until I spend $3000 made me immediately dismiss it. However, my father keeps saying: "Why do you need another credit card? It's just going to make you spend more, its a trap." My rationale is: I use my card responsibly and I might as well get something out of using it instead of just paying cash like he does and get nothing out of it.

Re: Best cashback card for light spenders

Quips — Thu, 26 Apr 2012 13:45:56 GMT

If you have a Costco Membership - the Amex Costco card is great - no annual fee (just your costco membership billed to your account) 3% on gas (up to $3K a year) 2% on Restaurants and Travel and 1% on everything else. Combine that with the Chase Freedom or other card that gives bonuses on groceries and you have it all covered. Especially given that Freedom has a couple quarters with 5% bonus on gas so no chance of hitting the $3K limit on Amex.

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 15:03:08 GMT

Chase Freedom and Citi Dividend come to mind. They both have 5% rotating categories and no AF. Stay away from Discover for light spending.

Re: Best cashback card for light spenders

Smerri1029 — Thu, 26 Apr 2012 14:23:06 GMT

I just had the GF get the AmEx Blue Cash card. With no annual fee and the unlimited bonus categories I figured this would be best for her. She doesn't spend enough to make an AF card worth it nor does she spend enough to rack up enough frequent flyer miles to where that would be a benefit. I think for a light spender the AmEx Blue Cash is the perfect card. Also, it's great because you have the benefits and purchase protection of American Express.

Re: Best cashback card for light spenders

Open123 — Thu, 26 Apr 2012 14:49:45 GMT

Here's how I would do it.

1. Chase Freedom + Chase checking - 5% rotating and mininum 10 points per perchase

2. Amex BCE - For groceries 3% on non rotating categories from the Freedom

3. Discover - use exclusively for 5% rotating and shop discover

All are no annual fee and offer a high rate of rewards per dollar spent.

PS - If you qualify, I'd also go with either the Fort Knox or Pen Fed rewards gas cards - 5% year round, and use them exclusively for gas

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 14:49:55 GMT

@Anonymous wrote:
Chase Freedom and Citi Dividend come to mind. They both have 55 rotating categories and no AF. Stay away from Discover for light spending.

If you would choose the Citi Dividend over the Discover More you should rethink that. The Discover Card has better rotating categories and their Shop Discover you can earn a lot of cashback. Also with Discover you can look at the rotating categories in advance for the calender year where Citi you only get to see 3 months at a time so you don't know what the future holds for Cashback. Like April -June is purchases at home depot and and home furnishing purchases which for many is a waste of a category. Discover for April-June is restaurants and movies for 5% back and the Month of May you get 5% on $300 of groceries.

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 15:02:41 GMT

^ The OP said "light spender" so wouldn't that make the $3k minumum spend to get 1% on Discover an issue? Just figure he'd appreciate the flexibility of not having to reach spending hurdles, especially if he's using multiple 5% rotating cards to maximize rewards.

Saying Discover has "better rotating categories" isn't necessarily true; it obviously depends.

Re: Best cashback card for light spenders

Open123 — Thu, 26 Apr 2012 15:05:35 GMT

@Anonymous wrote:
^ The OP said "light spender" so wouldn't that make the $3k minumum spend to get 1% on Discover an issue? Just figure he'd appreciate the flexibility of not having to reach spending hurdles, especially if he's using multiple 5% rotating cards to maximize rewards.

Saying Discover has "better rotating categories" isn't necessarily true; it obviously depends.

Even if I were a big spender, I'd forget about Discovers's $3k spend threshold.

For Discover, use ONLY for 5% rotating and shop discover bonuses. Everything else should go on another card.

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 15:10:51 GMT

Chase Freedom/Checking Account Combo

AMEX BCE

These are my top two in the rotation.

Discover More is just there to cover whatever category it might have that the other two don't (Right now, restaurants).

And soon the 1-2-3 from BoA to cover Gas at 3% whenever the others don't have it at 5%.

Re: Best cashback card for light spenders

Anonymous — Thu, 26 Apr 2012 15:15:31 GMT

@Open123 wrote:
@Anonymous wrote:
^ The OP said "light spender" so wouldn't that make the $3k minumum spend to get 1% on Discover an issue? Just figure he'd appreciate the flexibility of not having to reach spending hurdles, especially if he's using multiple 5% rotating cards to maximize rewards.

Saying Discover has "better rotating categories" isn't necessarily true; it obviously depends.
Even if I were a big spender, I'd forget about Discovers's $3k spend threshold.

For Discover, use ONLY for 5% rotating and shop discover bonuses. Everything else should go on another card.

Couldn't Agree More and don't forget Utilities if you would like 2% back.