@ndzmolek wrote:I've been trying to figure out the best credit card combo for just gas and groceries. Right now I have applied for the Citi Custom Cash Card (for gas) and the American Express Blue Cash Preferred Card (for groceries). Is this a good combo? I've done quite a bit of research and this is the best combo I've came up with.
I also plan to get the Chase Sapphire Preffered at a later date.
Welcome to My Fico Forums, @ndzmolek. . 
Yes, it's a "good combo." Is it the "best combo?" That depends in the details of the card agreement and your personal spend.
Citi Custom Cash is good for gas ... but your spending is limited to $500 per month ($125 per week) to earn the 5% rewards. For some, that may not be enough, especially if they take road trips periodically where they spend more than normal months. Meanwhile, there are other cards that earn 5% uncapped on gas or a lower rate but uncapped or capped at a higher (ANNUAL - not monthly) limit. In those cases with higher spend, the lower-earning card on the surface may actually yield a higher total rewards.
Likewise, the grocery card also depends on spending. And you realize you're not actually getting a full 6% (net) on the Blue Cash Preferred? The problem with the BCP is the opposing complications of the the $95 AF and the $6K spending cap. Maximizing rewards is tricky. Looking purely at grocery spend, after deducting the AF and assuming someone spends exactly $6K annually (not a penny more or less), the rewards earning is 4.416%. (6000 x .06 = $360 - $95 AF = $265/6000 spend = 4.416%). If you spend less than $3,200 per year, the no-AF Blue Cash Everyday actually earns a better return with no-AF and 3%. If you spend between $3200 and $6K, you slowly increase return from 3% to 4.416%. Then if you spend more than $6K, you erode your earnings with 1% back. The wild card is the value of streaming services at 6%, but even with heavier streaming you're unlikely to reach 5% total. In my opinion, there are cards that are more simple to manage and optimize. For example, the Comenity AAA Visa cards that were recently introduced have 5%/3% on groceries, gas, warehouse clubs, dining with spending caps of $7K or $10K in some categories, depending on if you go with their Daily Advantage or Travel Advantage. The Redstone FCU Visa offers 5% on restaurants and gas (each capped separately at $7K), 3% (capped separately at $7K) on groceries - telecom - utilities - discount stores - streaming services, and an uncapped 1.5% on everything else, all with one card. And the Navy FCU More Rewards card is *uncapped* with 3% return on gas, groceries, transit, and dining out. If you use Verizon for cell phone, the Synchrony Verizon Visa earns 4%* cash back (*uncapped*) on gas and groceries, 3% on dining, and 2% off your Verizon bill if auto-billed. *The caveat is the cash back has to be redeemed as a credit to your Verizon bill for monthly services or new equipment purchases; however, it works out the same for applying towards your monthly cash flow.
See my links above for more details.
Those are just a few other examples of cards that might be of interest, depending on your spending levels and desire for simplicity in rewards. While the cards you mentioned are popular, there are many other great choices.
Looking at grocery purchases only, and assuming $6,000 spend per year, a 5% no-AF card beats the 6% AE BCP mathematically.
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6%CASH BACKat U.S. supermarkets on up to $6,000 per year in purchases (then 1%).‡
6%CASH BACKon select U.S. streaming subscriptions
3%CASH BACKat U.S. gas stations and on transit
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Im new with them. But got 3 CLI's for $8500 in 4 months with heavy spend. Dont think the others would do such a thing. And I have a BK still showing.
