I never really see a thread about this. So excuse if it exists.
Looking at current offers, this is how I see the maximum rewards combination of cards. Feel free to correct or add unmentioned offers as this is a work in progress as new offers come to market. Now, I realize that some people have particular goals for which certain cards deliver better value for certain redemption categories. However, in the world of cash back value at about one cent per point or flat out cash back, there is an optimum mix with the current offerings available. Here is how I see it (Biz Cards left out):
Gas: PenFed...hands down. PenFed Platinum Rewards at 5 points or PenFed Cash Rewards at 5%. The 5 points equal 5% cash back in the form of prepaid cards. Only problem is that you have to spend it. Can't save it. Just make sure you use it on stuff that doesn't fall into a bonus category on any card. I mention that points version because of the next category. If you can't get that card. The Chase Freedom has 5% on gas half the year and 1% the other half. If you don't use up $1500 per quarter rewards spending, you can buy gas cards during rich times to redeem during 1% times. BofA 123 gives 3.3% if you deposit into a BofA checking because of the 10% bonus.
Groceries. Two Answers. If you don't shop at Walmart SC's, the obvious choice is Amex Blue Cash Preferred at a whopping 6%, If you do shop at Walmart SC's, then Visa rewards cards are the way to go since WalMart SC's use the supermaket code of 5411 under the Visa system. There, you have the anove mentioned PenFed Platinum rewards Visa at 3 points. If you can't get that card, the BofA 123 cash rewards gives 2.2% if you deposit in a BofA checking because of the 10% bonus. BTW, if you have $50k in assets between BofA and Merrill, you qualify for Platinum Privileges, which gives a 50% bonus.
Restaurants. Excluding Citi forward as it is only for students @ 5%, 2% seems to be tops. Any ideas? US Bank (if you pick the category) and Venture to name two. Of course, if you have better rewards cards, you can buy gift cards at places in those categories to your favorite places. But that will limit you to chains or places with offers through places working with the Chase Ultimate Rewards Mall via discount restaurant sites that give extra cash back. But you can't just walk in and swipe anywhere with those. Strictly in the 5% group with US Bank cash + would be fast food places. Not a bad start. Or, US Bank Cash+ has all other kinds of restaurants as another 5% category. That's the best you'll find.
Utilities. US Bank's new Cash + makes this category accessible in the consumer card realm. Just pick Bill Pay as a 5% bonus category and pay your cell, landline, insurance and utlity bills. This category is huge.
Now that covers daily normal spending. US Bank is quite a beauty with other 5% choices to pick from. But really, Gas, Groceries and Utilities about covers the bulk of people spend money on every month.
With that in mind, if you shop Walmart SC's for groceries, A PenFed Platinum rewards and a US Bank Cash + pretty much gets you the best of mundane daily, weekly and monthy spending. From there, a Chase Freedom helps pick up some extra stuff througout the year. And a 1.5% Cash Rewards from Cap1 (or Venture at 2% if you don't mind the miles) gives you a better baseline for everything else.
If you shop for grcoeries at regular grocery stores, then PenFed Cash rewards for gas and Amex Blue Cash for groceries couples with the US Bank Cash + for utilities through bill pay does even better.
Start (Sept 2011): low-mid 600s. NOW: TU FICO: 801, EQ FICO 808, EX FICO 798 (PSECU). Goal: Achieved! Now Maintain!
Crashem,
I have never heard of those other cards. But yes: Cash+ from USBank is an obvious central cog to maximizing returns for most people. The arrival of this card is partly what prompted the post.
To me, the 5% categories are easily the Bill Pay and then one of several others depending on your lifestyle. Restaurants (full serve) is one option. Fast Food is another. If you spend more on hotels or airfare, then they are also 5% options. Big shopper? Dept. Stores is yet another. Of course, it's possible that Bill Pay is less lucrative for some people depending on the details of your life but I think it's a crucial piece of the puzzle for most. Then, their 2% rewards are actually less interesting to me since those categories are better served with other cards mentioned....especially gas.
BTW, if you can swing it, the Capital One Spark Cash for Business (part of my arsenal) is the best catch-all, last resort, floor rate card around. 2% cash back (not points!) on anything and everything is simply awsome. The Chase Ink business card (also part of my arsenal) gives 5% on telecom and cable (and internet if it's bundled with Phone or Cable). It also gives 2% on gas stations and restaurants. Makes for a great consumer card even though it's for businesses.
BTW, anyone know if Cash+ limits 5% cash back on Bill Pay to certain categories that they mention? They specifically mention utlilities and insurance and phone service. But through the link provided, there also ways to pay taxes. Do they count as well?
Crashem,
WOW!! That Marukai card would be awsome for business. I'd reach the $3,000 threshold halfway through the first month of use. I have never heard of it. Strange. That would essentially replace my Spark card. I gotta look into that one. But is that only for CA residents?
I have heard of the Fidelity card. But I don't use them so I stick with the Spark.
I'm still thinking about that Marukai card though......mmmmmm
UPDATE: Looks like I am not eligible for that Marukai card. Oh well....:-(