@kilroy8 wrote:We still don't know where their spend is, without that, hard to help.
@kilroy8, OP posted but it was incomplete and semi-buried in the long reply.
(More detail may be forthcoming and would be helpful.)
@Anonymous wrote: ... I did spend a bit of time determining the areas where my spending is highest in, and I found that groceries falls around $3600, restaurants/dining is $2400, Amazon/Online Shopping is $6000 (PayPal is included in that), but the other areas I'm still determining ...
Be very careful with those You Tube videos on credit cards. It's possible to learn something new but those self-proclaimed experts sometimes don't know what they are talking about. These review websites are for-profit, so they are making money off your views and referral links. Like anything you read on the webz, remember that SOMEBODY is paying for that website, and it's probably YOU as the reader/customer.
@Anonymous wrote: As for wholesale clubs, my main one is Costco, and they've always done me good with their services. I'm surprised I didn't mention it at first, but then again I haven't really looked into co-branded cards as of late. I haven't applied for Citi's cards before, but would you say that your Citi-Costco card still gets moderate usage currently? I was initially thinking that this card was viewed as more of a niche card, but it is certainly a card that would receive a warm welcome into my wallet.
I just wanted to expand a little more on your question about my Citi Costco card and give you more of my back-story. It puts my changing usage of the Costco card in perspective.
I originally had the AMEX "True Earnings" Costco card, but Costco ended their exclusive relationship with AMEX in 2016 and changed to the Citi-Costco and the Visa network. My card was converted in the process. The AMEX card was a good rewards card for its' day, but rewards programs have really evolved and improved over the years. (I've had cards since the early 1980's.)
The AMEX "True Earnings" Costco card earned 3% back on gasoline (up to $4K annually), 2% back at US restaurants and for travel, and 1% on everything else.
The Citi Costco card earns 4% on gasoline (up to $7K annually), 3% on restaurants and travel, 2% at Costco or Costco.com and 1% on everything else. From 2016 to 2018, it got heavy use before I added my Chase Sapphire Reserve and eventually added better general-purpose 2%+ cards. Besides gas and dining, the card got all our everyday warehouse purchases including more expensive items like car tires, eyeglasses, computers, appliances, tools, and cell phones. We also purchased an expensive Hawaiian vacation package through Costco and put it on the card.
When the program converted in 2016, cards earning 2% or higher on general spend were still pretty limited or new. My best uncapped and uncategorized cards were 1.5% on either Capital One Quicksilver or Chase Freedom Unlimited. So the 2% at Costco was awesome, in perspective!*
*The original Fidelity Rewards card that earned 2% was launched in partnership with American Express in 2009 and later converted to a Elan Financial services Visa. However, it was a convoluted card to use for cash back since you had to have a Fidelity investment account, earn $50 in rewards, deposit the rewards into the investment account, and only then could they be redeemed for 2%. If you took straight cash, it was a 1% card. And the Citi Double Cash wasn't launched until the fall of 2014. A lot of the other 2% or higher-earning cards have only been around less than five years, including the PayPal Mastercard which launched in 2017. So for most of my 35+ years of credit, 1% to 1.5% for Cash Back has been the golden standard for uncapped and uncategorized return.
Since joining My Fico in 2019, I've added several cards earning 2% to 3% cash back, everywhere, uncapped and uncategorized. (That was an area that I knew where I needed to update my cards and My Fico helped me in the process.) I've added the AOD FCU Visa (3% everywhere), Bank of America Premium Rewards (with Preferred Rewards Platinum Honors status = 2.625% everywhere), PenFed Power Cash Rewards (2% everywhere), and my Chase Quadfecta making my Chase Freedom Unlimited's 1.5% cash back worth 2.25% in travel points on the Chase portal when transferred to my Sapphire Reserve. I also added the Goldman Sachs Apple Mastercard giving me 2% anywhere Apple Pay is accepted, 3% at selected merchants including Apple and Walgreen's, and 1% everywhere else.
In addition to the above, since I moved assets to qualify for the Preferred Rewards program, my Bank of America Cash Rewards card which earns 2% at grocery stores or warehouse clubs now earns 3.5% at those locations. The BofA Cash Rewards, AOD FCU, BofA Premium Rewards, Chase Freedom Unlimited, and PenFed Power Cash Rewards are all VISA network cards accepted at Costco. So I have multiple cards that earn as-good or even significantly better at Costco than even the enhanced value of the Citi-Coscto card (2% at Costco) over the AMEX-Costco (1% at Costco.) Obviously, my card-of-choice now at Costco is my Bank of America Cash Rewards Visa for the 3.5% back.
Likewise, for dining out and travel, my Citi card used to get that spending, and it got heavy use. I had no other cards earning 3% or higher on dining. (Five years ago, you didn't find so many no-AF cards earning 3%+ on dining and the Chase Freedom/Freedom Unlimited cards just added that benefit in 2020.) Now, I earn 3x URs worth 4.5% to 6% on my Chase Sapphire Reserve, 4x MRs worth 4% to 8% on AMEX Gold, and 3.5% cash back on Bank of America Premium Rewards (with Platinum Honors.) I have my choice of cash, URs, or MRs at no less than 3.5% return.
My Citi Costco's 4% on gas, combined with buying much of my gas at Costco, still saves me a bundle. I augment that with the 5% rotating category cards in the quarters when gas is the category. (Discover IT and Chase Freedom.)
In your case, with your highest-earning general card being your PayPal Mastercard (which as a Mastercard won't be accepted at Costco), your best bets for savings at Costco would be either the Citi-Costco Visa or a 2% or higher earning card like the BofA Cash Rewards, or a 2% to 3% Visa card like PenFed PCR or AOD FCU Visa Signature.
My Costco card is still my only Citi card and I value the lender diversity and the returns on gas purchases. While I can beat many of the other cash back categories, it's always nice to have backups and for now I will hang onto it. It doubles as my membership card anyway and it's grown to a nice limit. It could be a good fall-back card if I elect to go the no-AF route or move assets from Merrill Lynch, since all my higher-earning dining cards have AFs. At some point, I may add another Citi card, but I've read that members are unable to move limits from this card to other core Citi cards.
Hope this gives you a little better insight. In general, I would recommend the Citi card, but it also depends on what other cards you elect as part of your overall strategy.
The card network cut the following benefits in February 2018: purchase protection, return guarantee, extended product warranty, auto rental insurance and flight accident coverage. Additionally, Discover no longer offered price protection as of Oct. 31, 2018.
Discontinued Discover benefits
- Purchase protection: Purchases made before Feb. 28, 2018, were covered; no claims could be made after July 13, 2018. Insured damaged or stolen purchases up to $500 for 90 days after purchase.
- Return guarantee: Coverage applied to purchases made prior to Feb. 28, 2018; no claims could be made after May 29, 2018. Helped get money back on unsatisfactory items within 90 days, up to $500 per item and $2,500 a year.
- Extended product warranty: Purchases made before Feb. 28, 2018, were covered. Covered additional year after original warranty expires, for eligible items with warranties 36 months or less.
- Auto rental insurance: Coverage applied for auto rental purchases that posted prior to Feb. 28, 2018; no claims could be made after May 29, 2018. Secondary insurance for loss or damage up to $25,000.
- Flight accident: Coverage applied for incidents that happened prior to Feb. 28, 2018. Travel accident coverage up to $500,000 when buying airline tickets.
- Price protection: Purchases made before Oct. 31, 2018, were covered. Refunded the difference on purchases up to $500 on eligible items (up to $2,500 per year) if you spotted an identical, lower-priced item within 90 days of purchase.
@Anonymous wrote:@Aim_High Wow, I gotta say that quite the history you've got with both the Citi Costco card and the AMEX True Earnings Costco card, even with that lengthy credit history going back to the 80's! It is quite interesting to read on how the card's usefulness and benefits change overtime, and how the changes certainly impact their value and practicality. It really does sound like the Citi Costco card shined for your spending, especially with a wide range of purchases that I foresee myself undertaking in some fashion.
Actually, it's funny you mention Fidelity, because I recently opened up an investment account with them as a first step into investing/stocks and getting into cryptocurrency. If I knew of the Fidelity Rewards at the time, I would've at least gotten a foot into their door by setting up an account with them earlier on. Besides that, it's quite noteworthy on coming to realize that 1% and 1.5% cashback (looking at you, C1 Quicksilver) were the golden standard at a certain time period. It's true that the arrival & expansion of 2% (or higher) uncapped has overshadowed a good number of them though. Sadly, a good number of the 2% cashback cards seem to carry the FTF (soon to be PayPal Cashback MC in 07/2021).
As for the 2% and 3% cashback cards you listed, that's quite a number of cards from different lenders, two of which I have not heard of until now (AOD and PenFed Power Cash Rewards). I know I don't carry a 3% cashback card at this moment, but that would certainly be very nice to have, especially if its uncapped and uncategorized. The BoA Cash Rewards card is certainly the competitive card when complemented by the Preferred Rewards program. But you did mention the majority of your cards being VISA network cards, which is something I forgot to mention in my first post. I've read up on the benefits, perks, and differences between VISA (VISA Signature, VISA Infinite) and Mastercard (World Class, World Elite), but from what I've read it seems as though many people have no preference for either one or may prefer one over the other due to the perks or banks they're associated with (Chase being more VISA, Capital One being more MC). (I think Costco is perhaps related in this too, since they only accept VISA cards, thanks to the partnership between Costco and VISA.) Does it really not matter which network I have on the credit cards I decide to get in the future? Because based on the insight and information you shared, it seems as though the BoA Cash Rewards, Citi Costco Card (VISA), and the AOD FCU Visa Signature cards could all be worth picking up.
So I have some good news and some bad news over the course of the past few days. Having reviewed the benefits and categories of BoA Cash Rewards, I decided to apply for their card a few days ago to see what their response was. Sure enough, my suspicions were confirmed, as I got a denial from their card application status webpage, with a letter to come soon detailing the reasons for the non-approval. Not surprised, but can't say I'm happy about the outcome, maybe I just have not yet reached a certain acceptable threshold for them to provide me more credit, or I still might be high-risk in their eyes.
Nevertheless, since I'm still under the 5/24 rule for Chase, I decided to look next at Chase's Freedom Flex credit card, and read up on the odds and chances for approval or denial, in consideration of my credit profile and score. I honestly anticipated I would get a denial from them, since I had no banking relationship with them at all nor received any pre-qualified offers, but I wasn't afraid to take a chance. I submitted an application for the Freedom Flex yesterday morning, and got the message saying it would take up to 30 days to receive a final decision. Usually, I don't mind playing the waiting game, but I was somewhat anxious about it, and figured why not call their automated line to check the status - I got the same message yesterday afternoon for the 30 day waiting period. I was going to let it sit and just wait and pray, but I called again the evening later to speak to a live person about the application status. Strangely enough, the associate told me that my Experian credit file was frozen, which I had assumed it was unfrozen, until I found out thereafter. After unfreezing my file, the associate ran the application through again to pull my credit report for review, and I was delighted to hear that my application was APPROVED! While the lady said that I would receive a mail containing the CFF credit card in 3-5 business days, she did say that my SL would be $500 and that it would carry a 23.74% variable APR. With that kind of SL and APR, I'm guessing that I literally got borderline approved on the application, or am I wrong in this? Overall, I can't complain, I'm just shocked that Chase really approved my application! Go figure!
Congrats!
Freedom and Freedom Flex are the closest things Chase has to a "starter" card, so good choice to app for those. Treat them right, and the offers will start showing up in 6 months or so for more.
