@Taurus22 wrote:
Thanks for the chart, I was perfectly fine being oblivious to what I actually spent yearly on this stuff!
Now I have to be actively more conscious about what spend goes where. Problem it that "utilities" category is very rare, so i've yet to aquire the right card for that. if it were a perfect world, i could cover all categories in only 3 cards.
@Taurus22 wrote:@wasCB14
I understand your point regarding the DC 2% catch-all, but Citi never offers bonuses. And the card categories are subject to change, but as in USBank's case, they replaced restaurants with utilities which was equally useful. So they can be beneficial as well. (I'm also considering replacing my DC 2% MC with FNBO 2% Visa so I can use it at Costco without having to bind myself to the Costco Anywhere.)
Fortunately, my expenses are somewhat modest, but this doesn't include misc. purchases either. Things like Healthcare, Home Improve, Vacations, etc all fall under the 2% catch-all for me. But when they do hit, they can be just as expensive (if not more) than my highest spend category. And then there's the toys and impulse buys.
Dining is my largest spend, including lunch @ work. 5% is an obvious goal for me here, minimum 3%.
(Barclay Uber really scorched me on this one, that 4% dining was huge)
Grocery usually falls primarily under Walmart for me. 5% is again my goal here, minimum 3%.
The difference between 2%/3% doesn't seem like much, but it essentially equates to $160 in lost return annually for me. The difference between my current cashback and having 5% across all categories is $540 annually. So the 3% stretch is the progression for now until I can find a way to fill those 5% holes. And cards like BBVA which offer bonuses can be a boost.
As noted in the other threads by many, you ( none of us ) will find 5% cash back across all categories. The closest you can get is with travel rewards cards, but those generally come with AF and do not redeem for straight cash.
And there is the basic reason that the swipe fees are the main source of the rewards. When merchant swipe fees approach 5% then we will see higher CC rewards. Prices merchants charge will also be 5% or more higher, and pigs will fly.
I am a little shocked at the amount of "online shopping" you have listed, given the spend in other categories. Maybe I am just old.
@longtimelurker wrote:
@NRB525 wrote:As noted in the other threads by many, you ( none of us ) will find 5% cash back across all categories. The closest you can get is with travel rewards cards, but those generally come with AF and do not redeem for straight cash.
Probably not, but for that last few months I've been using the 5% everything uncapped Citizen's Bank card. This ends March 31 but made me wonder if there are other similar cards around from time to time!
And the value of the extra earnings, over what you would have gotten in-category on your other cards, whether rotating or selected, is.... how much money?
As we all know, the intent of the categories bonus is to get cardholders to use their cards more, in the non-category spend. The interesting data point will be if Citizen's ever comes back with the 5% Everything offering.
@kdm31091 wrote:
@Taurus22 wrote:@wasCB14
I understand your point regarding the DC 2% catch-all, but Citi never offers bonuses. And the card categories are subject to change, but as in USBank's case, they replaced restaurants with utilities which was equally useful. So they can be beneficial as well. (I'm also considering replacing my DC 2% MC with FNBO 2% Visa so I can use it at Costco without having to bind myself to the Costco Anywhere.)
Fortunately, my expenses are somewhat modest, but this doesn't include misc. purchases either. Things like Healthcare, Home Improve, Vacations, etc all fall under the 2% catch-all for me. But when they do hit, they can be just as expensive (if not more) than my highest spend category. And then there's the toys and impulse buys.
Dining is my largest spend, including lunch @ work. 5% is an obvious goal for me here, minimum 3%.
(Barclay Uber really scorched me on this one, that 4% dining was huge)
Grocery usually falls primarily under Walmart for me. 5% is again my goal here, minimum 3%.
The difference between 2%/3% doesn't seem like much, but it essentially equates to $160 in lost return annually for me. The difference between my current cashback and having 5% across all categories is $540 annually. So the 3% stretch is the progression for now until I can find a way to fill those 5% holes. And cards like BBVA which offer bonuses can be a boost.
Obviously it does make sense to get rewards on spend you're doing anyway, but consider also that maximizing dining spend rewards is never going to save you more money vs packing a lunch for work even once or twice a week. Those savings will far eclipse an extra 1 or 2% on overpriced dining out lunches.
Not to say you cannot do both -- maximize rewards and still try to save sometimes -- but something to note. Just because you get more rewards on dining out doesn't mean you may not save more by changing your habits, too.
Agreed on saving money where possible. Not exactly sure what "toys and impulse buys" cost per year, but that could be worth examining.
At $160/year, even if you find a 3% card for everything, don't get any nerfs, don't hit any caps, get the merchant categories exactly right, and always always end up using the right card...you still end up with about as much in additional rewards as you would from a $500 SUB every three years.
The latter approach just seems so much simpler to me!
