There may be such a thread, but I haven't found it or if I did it was really old, but what are others' opinions on the best way you can use your cashback to get the most benefit?
I was wary of cards when I first found this forum. They where a contributing factor to me having to do a rebuild, but back then cards ( unless they were the elite cards) did not give you money back for using them or anything for that matter. Anyway, once I got one and saw what the credit mix factor was, then I've gotten several, but I'm still not using these to get the maximum benefit of Cashback to help the most important credit number in your life. Your Net Worth.
So I have 3 cards that could all be considered prime.
Amex Cash Magnet with 1.5% CB on anything
CapOne SavorOne 3% restaurants 2% Groceries 1% everything else that matters
Discover IT 2% restaurants/fuel, pretty much 1% on everything else
Two of these cards the Discover and Amex are getting closed to the end of their promo periods.
I've been using the Amex for the recurring type expenses. Netflix, Daily Driver, etc.. I still have some other recurring bills that could go on this card.
Groceries and Out to eat go on the CapOne.
The Discover I have pretty much not used much since I put up a decent balance on it for a family emergency and put it on the cards, but hey I got Discover to give me double cashback on my mother's funeral. She would have liked that.
I don't really care about temporary swings in my scores. I may be one of the few people in this forum who could care less about 10-15 point swings between months depending on the number of revolvers reporting and their balance. I've got plenty of limits so utilization would not be an issue even if I figured out a way to run all 4K of my monthly expenses through a card that would in some way give me some benefit.
How do others manage their card benefit strategy?
Thought is
USB Cash + will definitely be a card I put in my wallet. If they will give me one. Since they let you choose to 5%, and that is more than the penalty my Electric company would access if I paid with a card. Going to need to look into that one.
I do only have the 3 cards right now. I did have a starter Capone that I closed. I would prefer to keep the management down so that I do not consume all my energy trying to keep up. I'm also not opposed to opening up some others that will help the cause.
I'm mainly looking for ideas on how you can get CB back in some decent amount of your monthly expenses to live. Since my Amex pays me 1.5% CB on everything, then all of the ones that would pay 1% get put on the better category. 1.5% is a 50% gain on 1%
5% is a 500% gain on 1 %. So definitely need another card too.
@kdm31091 wrote:
As far as using the cash back for the best purpose, I think it's largely preference and really isn't going to impact your life in any meaningful way. It's a nice bonus, but not life changing. The biggest thing I would say I see people do that (IMO) is a bad idea, is to hoard the cash rewards. Especially with no redemption minimum, I think you may as well redeem them every month. Even if it's only $2 or something paltry, better in your pocket than the issuer's pocket. The whole point of rewards cards is to get rewards, so leaving them sit forever is self defeating.
This is part of it too. I just use it to cut down on the card balance and as a result, its actually saving me on recurring expenses each month, which is better for long term financial health. More money to save as a result. Right now this makes the best sense as there are longer-term purchases on the CapOne. I actually like the idea of being directly deposited into a bank account. Could put it in one to speculate on penny stocks if you so desired.
Which catetories do you put your largest expenses? Focus on those first. Then get a catch all card that will cover everything else.
For example, if you enjoy dining out and traveling, use Uber for dining at 4% and travel at 3% and Citi Double Cash for all other expenses at 2%.
@dynamicvb wrote:... I'm still not using these to get the maximum benefit of Cashback to help the most important credit number in your life. Your Net Worth ... which is better for long term financial health ... More money to save as a result ... I actually like the idea of being directly deposited into a bank account. Could put it in one to speculate on penny stocks if you so desired.
I keep seeing a theme of savings which I think others have missed. Not only maximizing cashback but also consolidating it in one place and using that to add to one's Net Worth.
That said, there are some cards that are specifically designed to do that. Or you could choose one flat 2% card and have the money deposited into an account if you are disciplined enough to do that. Segregating it separate from your other funds is probably best.
The Fidelity Visa (Elan Financial Services) pays 2% back on all purchases when deposited into a Fidelity investment account. ($50 minimum redemption.) Also, the Charles Schwab AMEX Investor's card (basically their brand-labeled version of Cash Magnet) has $200 SUB right now and pays 1.5% when deposited into a Schwab investment account with no AF.
How do you calculate networth?
Anyway, credit card optimization is done mostly for fun. It will not make you rich. Even super churners and msers only get some free trips and that's it. yes there were WF millionaires but that was never meant to be at a large scale and they got shut down in a hurry. 
I’m less than a year into really utilizing cash back, and I only currently have 1 CB card, so my experience is limited. However, we are on pace to earn $1300+ for the year, but this due in part to Discover’s Cash Back Match program for the first year.
We basically funneled all of our spending that we could through the Discover card. The only thing we use our debit card for is to pay car payments, mortgage, and to get cash out of our checking account. We use the card for all day to day expenses, and pay all utilities, insurance, online shopping, gas etc.
As time goes by, I plan to get more cards with higher % categories for certain things to maximize my earnings, but I doubt I’ll ever utilize more than 3 or 4 cards for the sake of simplicity. Even not doing it at pro level, it’s hard to fault earning over $100 per month for money I have to spend anyway.
We basically funneled all of our spending that we could through the Discover card. The only thing we use our debit card for is to pay car payments, mortgage, and to get cash out of our checking account. We use the card for all day to day expenses, and pay all utilities, insurance, online shopping, gas etc.
As time goes by, I plan to get more cards with higher % categories for certain things to maximize my earnings, but I doubt I’ll ever utilize more than 3 or 4 cards for the sake of simplicity. Even not doing it at pro level, it’s hard to fault earning over $100 per month for money I have to spend anyway.
