Do you forget about CB% when chasing a new sub?

[Anonymous]

I have an Uber card with 4 and 3% CB on food and travel. Two of my biggest expenses. It was quite easy to hit that sub when it was my only card.

I just got Citi DC. I've still been putting food on the Uber, but other everyday stuff on the DC. The SUB may happen organically because I've got some birthday(s) and maybe early holiday(woo price rewind!) shopping to do. BUT do you put one card aside and spend everything on another just to meet the sub?

I guess this might have to be the case with those premium travel cards requiring 2k+ spend

[Brian_Earl_Spilner]

I don't have many bills and don't spend very much in general so I have to put everything on a SUB card or I won't hit goal.

[Anonymous]

I try to only put spend on sign up bonus. In July I messed up and didn't have a card for spend for 3 weeks. So I put all my spend on my SPG card for 3 weeks as at that time SPG points were worth around 3 cents each.

I don't have the patience to worry about categories.

[SBR249]

I don't think of SUB and %CB as different things. For instance, if I just got a card that gives me $100 back for $500 spend, I treat that as 20% CB for the next $500. In that case, my policy of always using the card with the highest %CB dictates that I put spending on the new card until $500 has been reached and the regular rewards scheme kicks in and I go back to my regular usage pattern. 

Practically speaking, since SUB spends almost always give higher %CB than any regular rewards schemes, that means I always put almost all my spending toward an SUB when I get a new card. 

The only exception to this rule that I have is if a card has ancillary non-monetary benefits for the spending. For instance, the Uber Visa offers cell phone insurance if you pay your mobile phone bill on it. In that case, I would still pay my mobile bill using Uber. Same thing if a card gives primary rental insurance and I need to rent a car. 

[NRB525]

To a certain level, certainly you have to focus spend to get the SUB. Once you know upcoming items within the required time period will get you there, then it is time to consider other, non-critical-path spend for category cards outside the SUB.

Like a lot of things credit card related, it takes a spreadsheet to keep track of.

[UpperNwGuy]

When I got the Chase Sapphire Reserve two years ago, I put all my spending on it until I reached the minimum spending target for the 100,000 points signup bonus.

When I got the PenFed Power Cash Rewards a year ago, I continued to use the CSR for travel and dining because I knew I would have enough non-category spending to hit the minimum spending target for the PenFed card.

No new cards in the last year, so no fussing with signup bonuses.

[imaximous]

I time my applications so I don't have to find where to spend. In other words, I don't apply just for the sake of getting a new card, so it's easy for me to meet the SUB without having to resort to charging everything on it, and continue to use every other card as usual.
Even during the SUB period, I only spend on the bonus categories of the new card. I'm always trying to max out each program, so I apply for matching cards right before those expenses are coming up.

[Kforce]

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@SBR249 wrote:

I don't think of SUB and %CB as different things.

They are different things !

If I just got a card that gives me $100 back for $500 spend.  I treat that as 20% CB for the next $500.

I put spending on the new card until $500 has been reached.

It is always less than the (Sub/Spend) because you are taking rewards money from somewhere else to meet the spend requirement

If you divert spend from a credit card that would be giving you a cashback reward of 5%. 

(US-Bank Cash+ - Utilities), Discover, Etc.

@Anonymous card $ = (500 spend @ utilities rate on new card of 1% + SUB of 100) = $105

Diversion of money from 5% card  cashback earnings of (500*0.05) = 25

Value = ((500*0.01)+100 ) - (500*0.05)= 105 - 25 = $80 (16% Gain)

Same but using a 1.5% Capital one cards spend

@Anonymous card $ = (500 spend @ general spend rate on new card of 1% + SUB of 100) = $105

Diversion of money from 1.5% card cost cashback earnings of (500*0.015) = 7.50

Value = ((500*0.01)+100 ) - (500*0.05)= 105 - 7.50 = $97.50 (19.5% Gain)

You gain 17.50 on this low spend SUB by diverting from your lowest earning card

The math is (sub cashback on spend + sub reward) - (diverted money * cashback from diverted card)

In this example 19.5% as compared to 16%

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While diverting funds to meet a SUB, you should get the extra needed money from spend that is earning the lowest cashback or point value and work your way up as necessary. Not always but usually the general spend category is the least profitable and where I would divert spend from. (YMMV depending on cards and spend)

[Anonymous]

I use only non-categorized general spending on my 2% card to meet SUBs unless the new card offers better rewards than category spending, this way I only lose 1% rewards overall.

I also have about $15k business spending per month with a handful of net30/net45 vendors for inventory that charges 2% fee for using CCs, I can easily pay one of the invoices to meet SUB then reimburse myself, with this option I can easily meet multiple SUBs at the same time if I ever want to get into churning.

[Brian_Earl_Spilner]

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@Anonymous wrote:

I use only non-categorized general spending on my 2% card to meet SUBs unless the new card offers better rewards than category spending, this way I only lose 1% rewards overall.

I also have about $15k business spending per month with a handful of net30/net45 vendors for inventory that charges 2% fee for using CCs, I can easily pay one of the invoices to meet SUB then reimburse myself, with this option I can easily meet multiple SUBs at the same time if I ever want to get into churning.

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Yeah, but how do you offset the turbo tax?