Best cashback card for light spenders

[MarineVietVet]

---

@john398 wrote:

 

Do you get 2% back on power bill and city water too?

---

I don't think it includes local utilities but you might call and ask. Here is a screenshot of the offer:

[john398]

---

@MarineVietVet wrote:

---

@john398 wrote:

 

Do you get 2% back on power bill and city water too?

---

I don't think it includes local utilities but you might call and ask. Here is a screenshot of the offer:

---

thanks I guess not

[HiLine]

Not sure what you would call a light spender, but the difference between a 1% cash back and a .25% cash back on the first $3,000 is minimal, at most $22.50 per annum. Using a Discover More can earn you way more than that. 

[bribro]

Even with the Chase Freedom's 10 & 10 program being somewhat nerfed, I still think it's the best card for low spenders. However, I would still use other no AF cards for their bonus categories (Citi Dividend, Discover More/IT, etc.).

Not only do you get the 1% on your very first Freedom purchase (unlike with Discover where it's 0.25% for the first $3k spend), but if you save up your points and transfer them to a CSP and then a travel partner like Hyatt or United, each UR point you earn is easily worth >$0.03. So even when I'm earning 1% on Freedom purchases, I consider it a 3% value, and that's how I compare it to other cards when trying to optimize my CB/rewards.

[HiLine]

---

@bribro wrote:

Even with the Chase Freedom's 10 & 10 program being somewhat nerfed, I still think it's the best card for low spenders. However, I would still use other no AF cards for their bonus categories (Citi Dividend, Discover More/IT, etc.).

Not only do you get the 1% on your very first Freedom purchase (unlike with Discover where it's 0.25% for the first $3k spend), but if you save up your points and transfer them to a CSP and then a travel partner like Hyatt or United, each UR point you earn is easily worth >$0.03. So even when I'm earning 1% on Freedom purchases, I consider it a 3% value, and that's how I compare it to other cards when trying to optimize my CB/rewards.

---

3 cpp is a really high valuation for UR points. Usually United miles are worth less than 2 cpp. Don't know about Hyatt though. Anyway, if you're a light spender, chances are you won't accumulate enough UR points for a hotel stay or flight, so UR points aren't really worth as much as you claim.

[bs6054]

As always, depends on your spending patterns and what you really want (OP, many months ago, mentioned cashback!)

So I would go with a 2% card such Priceline Visa or Fidelity Amex as a basis, and whatever 5% card you think will be best for where you spend.

[YahComb]

well now the IT factors in since it has removed the tier to achieve 1% cash back on all purchases.

[bribro]

---

@HiLine wrote:

---

@bribro wrote:

Even with the Chase Freedom's 10 & 10 program being somewhat nerfed, I still think it's the best card for low spenders. However, I would still use other no AF cards for their bonus categories (Citi Dividend, Discover More/IT, etc.).

Not only do you get the 1% on your very first Freedom purchase (unlike with Discover where it's 0.25% for the first $3k spend), but if you save up your points and transfer them to a CSP and then a travel partner like Hyatt or United, each UR point you earn is easily worth >$0.03. So even when I'm earning 1% on Freedom purchases, I consider it a 3% value, and that's how I compare it to other cards when trying to optimize my CB/rewards.

---

3 cpp is a really high valuation for UR points. Usually United miles are worth less than 2 cpp. Don't know about Hyatt though. Anyway, if you're a light spender, chances are you won't accumulate enough UR points for a hotel stay or flight, so UR points aren't really worth as much as you claim.

---

The last United flight I booked came in at ~3.5 cpp, so 3 cpp is very doable. I've even booked domestic coach flight on United earlier this month at ~3 cpp, but this is admittedly higher than usual because it was during the holiday season. I've gotten as high as 4 cpp on Hyatt at their nicer properties. Even Southwest gets you 1.66pp, for a minimum value of 1.83 cpp. However, if the OP is a really light spender, and doesn't have the patience to bank points, perhaps it's not the best option.

It's kind of a moot point since the 10 points per transaction bonus has been discontinued, but that was really ideal for light spenders. Any charge under $10 was a minimum of 2.1% cash back.

It all depends on the OP of course, but if he wants to keep it simple with just CB, he should probably go with a 2% card and be done with it.

[Cdnewmanpac]

While United may be less useful for light spenders, you can also transfer UR points to Southwest, which remains the king of domestic short haul redemptions. If you spend enough on dining and uncategorized purchases to offset the 95 AF, then add the Freedom for bonus categories, you should still come out ahead of the straight 2% cb and discover. At least you could if you are in a convenient SW city. 

You aren't going to get 3cpp with Southwest, but I've consistently gotten 2. 

[ccnewcc]

Wow Discover Pros and cons are full force in this theard lol!

@OP:  For Light Spenders:  STAY AWAY FROM DISCOVER!!!  (not Discover More/IT or the Pros and Cons of Discover product CC vs another Discover product CC)  

For light spending and for CB, why go for a CCC that has the lowest merchant acceptance rate?

For light spending, you need a CB card that is accepted everywhere (MC/Visa) and has at least bare minimum of 1% CB for every purchase.  So that would mean Citi Dividend or Chase Freedom.