Monthly Spend on Daily Drivers

[Anonymous]

Hey, guys.

I am curious what some of you think about a minimum monthly spend on a daily driver that would make it worthwhile to use the card as a daily driver?

For instance, if you spend about $3000-3500 monthly on two "daily drivers" is it worth adding a third "daily driver" if the monthly balance is going to be under , say, $250? 

As far as rewards go, even $250 monthly at a high rate of 5% would only earn $12.50 monthly. That's $3000 a year, and even the card's value for that amount would be reduced by the other two "daily drivers," to some extent.

Basically, what I am asking is what you think the minimum monthly spend on a third card would be to make it worthwhile to use it as a third daily driver, and if it is too low, then maybe the other two daily drivers are enough.

AMEX BCP and CITI DC are used heavily, but the third "candidate," Cap One Savor is dining only. Even at 4% I am wondering if $250 monthly is even worth bringing it into the picture. It is simpler to use two cards.

What do others think?

[Anonymous]

It really just depends on the person.

You can sometimes earn a few more bucks having more specialized rewards cards, but to some folks, simplicity is better and controls their spending better in a manner that outweighs those extra savings.

I recently felt like I was spending too much having a few daily drivers and am using just one at a time for a while as to not owe $4,000 across 3/4 cards at the end of the month or whatever.

[simplynoir]

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@Anonymous wrote:

AMEX BCP and CITI DC are used heavily, but the third "candidate," Cap One Savor is dining only. Even at 4% I am wondering if $250 monthly is even worth bringing it into the picture. It is simpler to use two cards.

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For this example it is not worth it. After the first year the $95 AF will almost make it a wash. At the proposed $250/month restaurant spend (presumably) would only net you $25 which is not worth it to me IMO. And to be clear for those that might respond to this I'm not considering the SUB that goes with this card I'm talking strictly the card itself for this purpose. I would get the Barclays Uber if you're looking to get a dining card at 4% with no AF on it and from there see if it's worth the additional $60 you would get using the Citi DC instead.

[Anonymous]

I spend $4k or so on my Citi DC which gets just about all of my non-category spend.  If I throw my mortgage on it through Plastiq that bumps me up to at least $5k-$6k.  My high balance on the card for my heaviest month I think was close to $8k. 

I'm perfectly comfortable with that spend on a single card simply because it's simple.  I'd have to add a bunch of other cards like Walmart, Target, one of utility bills, etc. if I wanted to try and squeeze out more CB, but to me it's not worth the hassle.

[HeavenOhio]

@simplynoir, I would bet that @Anonymous has the Savor without the annual fee.

[simplynoir]

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@HeavenOhio wrote:

@simplynoir, I would bet that @Anonymous has the Savor without the annual fee.

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If that's the case then that card is more than sufficent as a third "daily driver" assuming the OP would like another $60 or so bucks for cashback as opposed to using the DC by default.

[kdm31091]

At the end of the day the more cards you add you generally will have a diminishing return and rewards spread out. Only you can decide if the minor increase in rewards is worth carrying another card. I think there’s a lot to be said for simplicity and fewer bills to keep track of.

[UpperNwGuy]

In 2015 I was using four cards:  one for travel, one for dining, one for groceries, and one for everything else.  It was a lot of work and the redemptions were few and far between. By 2017 I had stopped using all four of those cards.  Now I use one card for travel and dining, and a second card for groceries, gas, and all other.  I feel like I am getting good rewards with easy redemptions from both cards.  The only way I would add a third card is if some lender added the world's most fantastic grocery card.  (And trust me, Amex will not be that lender.)

[Anonymous]

I spend between 300-500 on each of my daily drivers per month.  Even on the low end, 3600 per year, the difference between 2 and 5% is $108.  Worth it imo.  Takes longer to cash out each bonus on the lower spend per card but over the year you get a better return.  Most wallets should handle 5 or 6 cards easy enough.

[Anonymous]

To answer your specific question.

Unless your wallet is one of those super thin style ones (like Magpul DAKA micro) or otherwise very full already (due to carrying many other ID/membership cards?), I honestly don't see much downside in keeping a dining card in it.

Whether you actually remember to use it everytime or not is another story and as you've said yourself the amount is small and not a big deal. 

To summarize, I'd feel worse about having a good card for a situation but left it home, than about having brought an extra and 'useless' card with me.

But of course if you haven't applied for the other card yet then depending on sign up bonus it may or may not be worth the HP.