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Earn 3% on everything using one card - RECENT UPDATE

Regular Contributor

Re: Earn 3% on everything using one card

When you try to pick your backup funding method it will list the accounts that you added to your paypal minus visa gift cards and any credit card not issued by paypal. That's why paypal cashback 2% is essential for this method.

 

Also I don't understand why people are asking in the comments whether this actually works or not and if they will get hit with cash advance fee. This is kind of insulting, I am publishing good information about a method that changes the cash back game completely (at least for the time being) and people thinking that I copied something that I read online.




Message 11 of 263
Established Contributor

Re: Earn 3% on everything using one card

Thanks for clarifying about the backup funding method, but dude - insulting? Really? Surely you are aware of how many reward setups end up being not as lucrative as they seem. You should be pleased: you've presented something so lucrative that people here are actually skeptical about it because it seems too good to be true. So take a chill pill and enjoy your 3%.

Personally, I still think I stand to gain more value from the Spirit Airlines MasterCard as a non-category spend fallback (because I can easily avoid their fees, my airport is only 2nd to Spirit's main hub in terms of the number of destinations they offer, and I can take advantage of the reduced redemption rates of their off peak dates), but 3% cash back on everything is solid too, especially with no annual fee. This setup kills the alliant card and basically any other non-category spend card that I'm aware of. Although there is a very selective credit union I think in the green Bay area that offers a card that's 5% back on everything capped at $1k a month I believe it is - not bad especially if you supplement it with other 5% cards.
Chase UR: Amex MR:Citi TY:
Cash back:Travel:
Debit: + DCU savings acct for 5.12% APY for $1k
Message 12 of 263
Regular Contributor

Re: Earn 3% on everything using one card

If you can earn 3% on everthing using paypal method or any other method that really limits the cash back (no annual fee) game to these cards:

 

The rotating 5% capped cards (Cash+ - Discover - Freedom)

Uber for 4% dining year round

Ducks for 5% gas year round

And paypal business debit

 

I don't think you can earn more than 3% in any major category not listed above.

 

And let's not forget that using this card earns you cash back at places that don't take credit so if you are looking to optimize it's a must.




Message 13 of 263
Established Contributor

Re: Earn 3% on everything using one card

*opens wallet* you left out the Nusenda Platinum Cash Rewards, another 5% rotating category card but it's effectively 6% (I got $48 back on an $800 purchase), the Vantage West Connect Rewards (similar to the Us Bank Cash+ except you can pick only 1 category but the list tends to be more useful than the cash+ options), and the Chase Ink Cash (5% back on internet, cable, phone services and office supply stores). There's also the target red card, but there's a debit version which I linked to a Kasasa checking account that gets 5% cash back on up to $200 in purchases a month - so potentially I can get 9.75% off at Target. Not to mention the 5% card on everything I spoke of in my last post, though very few people will be able to get that one.

for anyone who does travel I still think the CSP is a worthy addition, even though theres a $95 fee, because it boosts the return on the Freedom and Ink Cash - double without much trouble, triple or even quadruple if you put more effort into it and can get the stars to align. Since my Nusenda card gets restaurants in q2 and q4 every year, and I bought gift cards at my favorite restaurant when they had a great deal in December ($600 gift card for $400), I'm pretty much in the camp of screw the Uber card. Mostly forget Barclay for putting the kibosh on the Sallie Mae Rewards card - the Commence card they stuck us with is basically useless.

You do bring up a great point on being able to use the PayPal method anywhere that doesn't accept credit, though. I did order a PayPal debit card yesterday after reading your post, and if this still works long term (which I suspect there's a good chance as I don't imagine the number of people taking advantage of this will be statistically very significant: I expect anyone clever enough/willing to put the effort into doing it will supplement this 3% catch all with several 5% cards and thus won't be using the 3% for most nearly everything).
Chase UR: Amex MR:Citi TY:
Cash back:Travel:
Debit: + DCU savings acct for 5.12% APY for $1k
Message 14 of 263
Community Leader
Super Contributor

Re: Earn 3% on everything using one card

Im probably too average to follow this method as it seems too complicated ( to me anyway) to try and get an extra 1% . Lol. I do remember something along this method was posted earlier in the year but if i recall in the end the method wasnt going to work real well for op. Good thread though patoot. Some lively debate is healthy lets just make sure its stay on topicSmiley Happy
Message 15 of 263
Regular Contributor

Re: Earn 3% on everything using one card

The cards that you mentioned are good however they are credit unions cards.

 

With those cards you actually need to pay money to some instituion you never heard of to be eligible for membership  and some of them are not available to the public.

 

Once again you might get cashback as travel credit using more expensive cards. But if you wanna stick to no-hassle no-fees cards. The list above is conclusive.

 

People might argue about that citi card that no one can apply for again but the categories are really weird on that one like super not everyday or even every month categories.

 

I do agree that cash+ categories are not the best but fast food and phone bill are semi-solid ones.




Message 16 of 263
Valued Contributor

Re: Earn 3% on everything using one card


@patoot10wrote:

When you try to pick your backup funding method it will list the accounts that you added to your paypal minus visa gift cards and any credit card not issued by paypal. That's why paypal cashback 2% is essential for this method.

 

Also I don't understand why people are asking in the comments whether this actually works or not and if they will get hit with cash advance fee. This is kind of insulting, I am publishing good information about a method that changes the cash back game completely (at least for the time being) and people thinking that I copied something that I read online.


That wasn’t my intention.  I merely wanted to know if you’ve seen the end results of that process or if you were simply speculating that it would work.

 

You’ve since answered that question. Thanks 🙏  for clarifying as it’s a valuable bit of information. 



Beginning Journey April 2017 – FICO 8

Current Scores May 2018 – FICO 8

Started this credit game with $8400 TCL in 04/17 now I'm at $150K+.
Message 17 of 263
Community Leader
Valued Contributor

Re: Earn 3% on everything using one card


@601flyguywrote:
I can confirm that it works. It doesn't matter if the funds come from paypal balance or backup funding, all signature purchases receive 1% cash back. As far as the credit card, there will be no cash advance fees. The charges will show up like any other paypal purchase.

For reference, i used my paypal debit card with discover as backup funding. I used to pay my ebay fees with paypal card essentially earning 3% back on the fees. I highly suggest this to ebay sellers.

I think only PayPal credit cards (and bank accounts) can be used for backup funding for PPDebit, but if they do allow Discover wouldn't disco only pay 1% rewards? But thanks for the idea, I missed that one - I'm not a big eBay seller but do sell occasionally & have my eBay fees going straight to a 2% card, I might as well set my PP Debit for eBay fees & get an extra 1%, as I do have the PP 2% MC.

 

We need to be careful to avoid drifting into MS (manufactured spend) in discussing this PP Debit + PP2% MC method, as MS discussion is rightfully not allowed on MyFico. Also if folks go crazy doing this PayPal may shut it down. But it can be useful. I'm going to try it for my property taxes due next month. My county's 3rd party processor charges a 2.5% fee for CC payment, but a flat $2.50 for debit, which for my taxes is much less than the 2.5% fee. So I'll use PP Debit w/PP 2% MC for backup funding. Yeah, I'll get a bit extra cashback rewards, but the main goal is to save on CC fees.


Fico 08: 720/721/719 TU/EX/EQ
Message 18 of 263
Established Contributor

Re: Earn 3% on everything using one card

@patoot you don't pay money to the credit unions to become eligible, you donate to an affiliate of theirs (I donated I think it was like $15 each to the new Mexico wilderness alliance and an organization in Arizona that does quality of life things for the aging and elderly). I already donate to charity so I had no problem giving to such worthy causes.

Also, the Target and Chase Ink cards are very available and don't require such things.

Not available to the public? That's just the last one I mentioned and I made it very clear that hardly anyone would be eligible for it. The other 4 cards, Target, Chase Ink, Vantage West, and Nusenda cards are available to anyone, the former two with aforementioned small, one time donations to worthwhile causes.

The Citi card that nobody can apply for? You mean the Dividend, which you can product change to? Yeah, I did leave that out, its categories do tend to kinda suck. But the rewards structure is better than the other rotating category cards as it's a $6k per year cap rather than a $1.5k per quarter cap, so you can blow the whole thing on the single most useful category or what have you. Worth applying for a card just to PC to it in a year? Probably not. Worth PCing to with a card you no longer have use for? I fail to see why not. It does offer airlines, hotels, home improvement, furniture, best buy - not completely useless, especially if someone is foregoing the excellent travel rewards cards with fees and doesn't have a good one for airlines or hotels. Personally, I plan to get the Citi AAdvantage Platinum for the 60k AA miles with no fee in year 1, then downgrade to the Dividend in year 2. Why not? I'm not gonna go for the double cash or Costco cards, and I'd rather not close the acct if there's a decent no annual fee cash back card I can product change to...and there is - the Dividend.

Man, I splayed out 4 additional 5% cards for you that are easy to get for anyone in the country, 2 of them without joining a credit union. Just because donating a few bucks to a charity is something that is apparently too much of a hassle in your eyes (?) doesn't mean that the cards aren't worth it. Since they both function as long term keeper cards, you'll earn what you donated back in cash back in due order. Not to mention: credit union cards have better rates and fee schedules. The Vantage West card, for example, has no balance transfer fee or cash advance fee ever and 0% apr for the first 6 months. 0% apr for 6 mos isn't too uncommon but no BT fee or cash advance fees ever, especially on a 5% cash back card, are highly unusual if not unheard of from major banks. So don't write off those 4 cards just cuz you didn't think to list them or whatever. Besides someone else in this thread just said that your system seems too complicated to be worth setting up, and look at the form which they're a member. I really doubt that if someone finds the target red card or even one of those CU cards too much hassle to get that they will find this PayPal method approachable.

Fast food and cell phone bills? Dude, the single most useful category on Cash+ is bookstore, since it codes for a lot of stuff at amazon, including Amazon gift cards, but in q2 that category is being replaced by one that's arguably more valuable: utilities. Of course if your utility company charges a 3% fee to use a credit card...but whatever mine doesn't lol.
Chase UR: Amex MR:Citi TY:
Cash back:Travel:
Debit: + DCU savings acct for 5.12% APY for $1k
Message 19 of 263
Valued Contributor

Re: Earn 3% on everything using one card

What do the purchases post as on the backing card?  If they all post as PayPal, I can see how this could be a problem for other cards.

EDIT: I just saw where you said non-PayPal credit cards are excluded, so that makes more sense.

That's actually a nice little scheme you've got there.  How are rewards redeemed?  Do both cards just add money into your PayPal account?  Any fees associated with cashing that out?

Message 20 of 263