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3% Cash Back Card Query

Saeren
Mega Contributor

Re: 3% Cash Back Card Query


@arkane wrote:
If not looking to churn, then best to stagger applications so you get a new 3% card each year. I'd probably start with CFU because 5/24, and also I'm sure the promo won't last.

I doubt the promo is going anywhere. It’s cheaper for Chase to offer it than a SUB. 





Message 21 of 36
SouthJamaica
Super Contributor

Re: 3% Cash Back Card Query


@IncrsCreditScore wrote:

Occasionally, someone will mention they just got their 3% cash back credit card.  I don't know if I am searching incorrectly, but I have not been able to find such a card.  Therefore, decided I would ask the members of this forum.  TIA for any info.


There is no permanent overall 3% cash back card.

 

 


Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 22 of 36
arkane
Established Contributor

Re: 3% Cash Back Card Query


@Saeren wrote:

@arkane wrote:
If not looking to churn, then best to stagger applications so you get a new 3% card each year. I'd probably start with CFU because 5/24, and also I'm sure the promo won't last.

I doubt the promo is going anywhere. It’s cheaper for Chase to offer it than a SUB. 


It's even cheaper for them to not offer anything lol Smiley Wink

 

I can't remember now but the CFU either didn't use to have a SUB, or it was something insignificant like $150 for $500 or something (might be the 5% Freedom...)

 

I'm just saying if one does not wish to churn and the end goal is to maximize 3%, best strategy is to stagger applications by exactly one year apart. Discover It Miles has been around long enough that I don't think it'll get nerfed anytime soon, so I'd probably save it for last. Starting with CFU also makes sense if you're under 5/24 and don't want to keep track or deal with that headache later on.

 

So a hypothetical app ladder could look something like:

Year 1: CFU

Year 2: HSBC Cash Rewards

Year 3: Alliant VS

Year 4: Discover IT Miles

 

And there you have it, 4 years of 3% cards. Still not permanent but 4 years is a long enough time to wait for banks to come out with new promos. Smiley Happy

Active:

Closed:


6/8/20:

Message 23 of 36
IncrsCreditScore
Established Contributor

Re: 3% Cash Back Card Query

Thank you to all of you.  I appreciate your responses to my inquiry.


Message 24 of 36
sarge12
Valued Contributor

Re: 3% Cash Back Card Query


@IncrsCreditScore wrote:

Occasionally, someone will mention they just got their 3% cash back credit card.  I don't know if I am searching incorrectly, but I have not been able to find such a card.  Therefore, decided I would ask the members of this forum.  TIA for any info.


I just got approved last week for an HSCB Cash Rewards mastercard that is 3% for the first year up to 10,000 dollars of charges. It also gives a 10% bonus annually on all earned rewards, so it is actually 3.3% after adding that in. After the first year it drops to 1.5%, but still gives the 10% rewards bonus to in effect be 1.65%. If it is important to you it also has a little lower lowest APR than most cards with that much rewards at 15.24%, but has 0% interest for 12 months. It is a fairly decent alternative to the Citi DC card after they nerfed many of that cards benefits.

TU fico08=842 04/29/21
EX fico08=830 05/08/21
EQ fico09=827 05/01/21
EX fico09=824 05/05/21
EQ fico bankcard08=856 04/27/21
TU Fico Bankcard 08=881 04/23/21
EQ NG1 fico=802 01/21/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 25 of 36
FortifiedHM
Valued Contributor

Re: 3% Cash Back Card Query

Blue Business Plus give 2x MR on everything, easily 3%, can be 4% or higher.

 

But it is a business card, and not a cash back card.

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PⵢA: Wear a respirator (Π95, Кп95, ҞҒ94), period.
Message 26 of 36
wasCB14
Super Contributor

Re: 3% Cash Back Card Query


@FortifiedHM wrote:

Blue Business Plus give 2x MR on everything, easily 3%, can be 4% or higher.

 

But it is a business card, and not a cash back card.


While it's my favored off-category card, several cautions here...

- $50k calendar year spend cap for 2x (I've hit it)

- Requires travel in general for good value

- Tricky to get good value for certain routes/airlines

- 1.25 cpp (2.5% cash on capped 2x) requires the $550 Schwab Platinum (a card I have and like, but very inefficient for a non-traveler)

- and yes, business and not personal

 

For cash back, a BofA Premium Rewards card with Platinum Honors ($100k in assets) would beat an imaginary flat 3% card for the first ~$135k of spend.

Spend: BofA PR + WWFCR, BBP, Schwab Platinum, CFF+CF, Costco, Discover
Perks: IHG49, Hyatt75, Delta Platinum, "Old" SPG95
SD/AAoA Ballast: Arrival, CFU, DC
Upgrade/downgrade games: BCE, EDP
SUB: JetBlue, Amex Platinum
Mostly earning MRs and cash back as I use up hotel and airline points spread across several programs.
Message 27 of 36
sarge12
Valued Contributor

Re: 3% Cash Back Card Query


@arkane wrote:

@Saeren wrote:

@arkane wrote:
If not looking to churn, then best to stagger applications so you get a new 3% card each year. I'd probably start with CFU because 5/24, and also I'm sure the promo won't last.

I doubt the promo is going anywhere. It’s cheaper for Chase to offer it than a SUB. 


It's even cheaper for them to not offer anything lol Smiley Wink

 

I can't remember now but the CFU either didn't use to have a SUB, or it was something insignificant like $150 for $500 or something (might be the 5% Freedom...)

 

I'm just saying if one does not wish to churn and the end goal is to maximize 3%, best strategy is to stagger applications by exactly one year apart. Discover It Miles has been around long enough that I don't think it'll get nerfed anytime soon, so I'd probably save it for last. Starting with CFU also makes sense if you're under 5/24 and don't want to keep track or deal with that headache later on.

 

So a hypothetical app ladder could look something like:

Year 1: CFU

Year 2: HSBC Cash Rewards

Year 3: Alliant VS

Year 4: Discover IT Miles

 

And there you have it, 4 years of 3% cards. Still not permanent but 4 years is a long enough time to wait for banks to come out with new promos. Smiley Happy


Maybe...My crystal ball is indicating, by seeing current trends, that credit card issuers will likely have less attractive rewards by then. For a while there was steadily increasing rewards. Lately the rewards have been lower and many cards are also eliminating what was once standard such as extended warranty and rental care liability insurance. Citi is also cutting out the price rewind feature on the DC card. We are likely more to blame for this trend than the general public, as many here, including myself has been making a decent profit off of cards at the issuers expense. There is a reason for many here having over 15 credit cards, me included, and it often involves the SUB on these cards. I think my annual receipt of 2 cards each year to extract these SUB's might be nearing an end. There is a point where the rewards due toSUB's will be too low to justify the effort.

TU fico08=842 04/29/21
EX fico08=830 05/08/21
EQ fico09=827 05/01/21
EX fico09=824 05/05/21
EQ fico bankcard08=856 04/27/21
TU Fico Bankcard 08=881 04/23/21
EQ NG1 fico=802 01/21/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 28 of 36
kdm31091
Super Contributor

Re: 3% Cash Back Card Query


@sarge12 wrote:

@arkane wrote:

@Saeren wrote:

@arkane wrote:
If not looking to churn, then best to stagger applications so you get a new 3% card each year. I'd probably start with CFU because 5/24, and also I'm sure the promo won't last.

I doubt the promo is going anywhere. It’s cheaper for Chase to offer it than a SUB. 


It's even cheaper for them to not offer anything lol Smiley Wink

 

I can't remember now but the CFU either didn't use to have a SUB, or it was something insignificant like $150 for $500 or something (might be the 5% Freedom...)

 

I'm just saying if one does not wish to churn and the end goal is to maximize 3%, best strategy is to stagger applications by exactly one year apart. Discover It Miles has been around long enough that I don't think it'll get nerfed anytime soon, so I'd probably save it for last. Starting with CFU also makes sense if you're under 5/24 and don't want to keep track or deal with that headache later on.

 

So a hypothetical app ladder could look something like:

Year 1: CFU

Year 2: HSBC Cash Rewards

Year 3: Alliant VS

Year 4: Discover IT Miles

 

And there you have it, 4 years of 3% cards. Still not permanent but 4 years is a long enough time to wait for banks to come out with new promos. Smiley Happy


Maybe...My crystal ball is indicating, by seeing current trends, that credit card issuers will likely have less attractive rewards by then. For a while there was steadily increasing rewards. Lately the rewards have been lower and many cards are also eliminating what was once standard such as extended warranty and rental care liability insurance. Citi is also cutting out the price rewind feature on the DC card. We are likely more to blame for this trend than the general public, as many here, including myself has been making a decent profit off of cards at the issuers expense. There is a reason for many here having over 15 credit cards, me included, and it often involves the SUB on these cards. I think my annual receipt of 2 cards each year to extract these SUB's might be nearing an end. There is a point where the rewards due toSUB's will be too low to justify the effort.


I agree, overall, I think rewards have peaked. While I think there will always be rewards and signup offers, I think we will see a shift. Signup offers will tend to be more of "use card for a year and get x%" vs "spend x get y". Blogs and many forums like this have made it more common for people to simply split spending among cards, so not as many people are using them for 1% purchases. While I would say it's still a large chunk of the population who doesn't care about these things and is probably using one card for everything, the "maximizer" population is probably much larger than it was 5 years ago. If you're only using your card for 2 or 3 or 5% categories you aren't exactly making the banks much if any profit.

 

I think the benefit cuts i.e. price rewind are related, but it's also just the banks being cheaper and seeing what they can get away with cutting. Since most people in the general population aren't aware of and aren't using these benefits, the majority of ones who were heavily using most of them were unfortunately the same ones abusing them, so it goes away for everyone.

 

Not all that many years ago most cards were paying out a flat 1% so there wasn't much of a point in juggling several rewards cards. Now that things have changed and many people are using multiple cards, it will be interesting to see how the products shift.

Message 29 of 36
wasCB14
Super Contributor

Re: 3% Cash Back Card Query

SUBs may be limited if you're only looking at no-AF cash back cards. But when were they ever that great for those cards?

 

If you don't mind earning miles, getting AF cards, playing retention games, downgrading or closing cards, etc...there are still green pastures.

Spend: BofA PR + WWFCR, BBP, Schwab Platinum, CFF+CF, Costco, Discover
Perks: IHG49, Hyatt75, Delta Platinum, "Old" SPG95
SD/AAoA Ballast: Arrival, CFU, DC
Upgrade/downgrade games: BCE, EDP
SUB: JetBlue, Amex Platinum
Mostly earning MRs and cash back as I use up hotel and airline points spread across several programs.
Message 30 of 36
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