A credit card with 2.5% cash back on every single purchase – not specific categories

[longtimelurker]

For just one year, there is also the Discover IT Miles, giving 3% on everything (well, 1.5+1.5).   But after a year it's just another 1.5% card.

But just how valuable a 2.5 (or 3%) card is really varies.   If you just want to use 1 card, then yes, it's obviously better than cards with lower rates.  But those willing to work with several cards, it's worth seeing how much your annual uncategorized spend is.  Then the 0.5% extra, while perhaps worthwhile, often isn't huge.

[simplynoir]

To me it's dependent on what you're going for. If cashback is the preference the USAA Limitless/BoA PR are the best for everyday spend. Travel cards depending on your airline/hotel chain is if you want points.

[Anonymous]

Man, you teased me with that 5% cash back on everything. I read the details on that card you suggested and saw this nugget "the $49 annual fee will be assessed to the card account one year from credit card account approval."

I despise annual fees.

I make about $100 - 200$ per year on the 2.5% cash back. Minus that $50 annual fee (with the card you suggested), I would only be making about 1.5% to 2% cash back, instead of the 2.5% with USAA. So right back where everyone (except USAA) else is offering. I appreciate the suggestion though.

[Anonymous]

Wow K in Boston, 2.65% from BoA even beats the 2.5% of USAA. Impressive! Anyone wanna loan me 100k so I can use it? =p

[wasCB14]

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@longtimelurker wrote:

For just one year, there is also the Discover IT Miles, giving 3% on everything (well, 1.5+1.5).   But after a year it's just another 1.5% card.

But just how valuable a 2.5 (or 3%) card is really varies.   If you just want to use 1 card, then yes, it's obviously better than cards with lower rates.  But those willing to work with several cards, it's worth seeing how much your annual uncategorized spend is.  Then the 0.5% extra, while perhaps worthwhile, often isn't huge.

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I look at my total CC spend, and subtract:

Travel I want insurance on

Merchandise I want price/purchase protection on

Bonus categories (even with a conservative value for travel redemptions)

Minimum spend towards an occasional new card or retention bonus

...and not very much remains!

As you say, a no/low-bonus 2.5% or 3% card is really only valuable if it gets a lot of spend. I know for how little I'd use it, I'm better off focusing on getting $500+ in travel early on.

[longtimelurker]

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@Anonymous wrote:

Man, you teased me with that 5% cash back on everything. I read the details on that card you suggested and saw this nugget "the $49 annual fee will be assessed to the card account one year from credit card account approval."

I despise annual fees.

I make about $100 - 200$ per year on the 2.5% cash back. Minus that $50 annual fee (with the card you suggested), I would only be making about 1.5% to 2% cash back, instead of the 2.5% with USAA. So right back where everyone (except USAA) else is offering. I appreciate the suggestion though.

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So a 2% card would get  you $80 - $160, so on that level is spend the difference is really small.  Potentially use of a 5% in a few places would earn more.

[happypill]

BofA Travel Rewards is my default card with 2.625% rewards.  Great card if you can meet the deposit requirement (without costing yourself money of course).

Nobody has mentioned the JCB Marukai - probably because it's kind of weird.  It's a JCB card which is accepted most places on the Discover network.  It's geographically limited (CA and HI I think).  It has a $15 AF and 3% doesn't start until you spend $3k for the year, but you get a $50 bonus if you spend $5k for the year to offset this.  Basically, it's about equal to a 2.5% card if you spend exactly $5k per year.  Everything over that is gravy, as long as you don't have problem with getting the card accepted.

[Anonymous]

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@Anonymous wrote:

I make about $100 - 200$ per year on the 2.5% cash back. Minus that $50 annual fee (with the card you suggested), I would only be making about 1.5% to 2% cash back, instead of the 2.5% with USAA. So right back where everyone (except USAA) else is offering. I appreciate the suggestion though.

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I'm not really sure how you net such little rewards on a 2.5% card. 

$100 a year on the Limitless [or any 2.5% back card]  is $4,000 in spending a year. 

You're telling me you only spend $4-8k a year? 

[Anonymous]

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@happypill wrote:

BofA Travel Rewards is my default card with 2.625% rewards.  Great card if you can meet the deposit requirement (without costing yourself money of course)...

 .

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Here's the catch. Unless you're investing that $100,000+  through ML, you're losing more money than the gains on the cash rewards card is giving you. Bank of America's CD rates are the worst in the industry. 

[SBR249]

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@Anonymous wrote:

Man, you teased me with that 5% cash back on everything. I read the details on that card you suggested and saw this nugget "the $49 annual fee will be assessed to the card account one year from credit card account approval."

I despise annual fees.

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According to the website: "Rewards credit card members who maintain an active Rewards Savings Program and No Fee Checking account, plus related services including, direct deposit, debit card, free Virtual Branch, and eStatements on all accounts, will have the Rewards Credit Card $49 annual fee waived."

So that sounds like have savings+checking+DD+e-statements = no AF. That seems pretty standard. Even the Limitless requires a monthly DD to get the 2.5% CB rate. 

In any case, the CU is only open to employees/families of local companies in select areas of WI so I doubt there are many on here who would be able to even apply.