NFCU credit card 10 percent discount of redemption

[Anonymous]

Hi good people of myFICO

I have a question about a 10% feature for NFCU credit cards. Right now the only NFCU credit card I have is GoRewards https://www.navyfederal.org/products-services/cards/creditcards/gorewards.php

This credit card allows you to redeem you rewards points as cash where 1 point equals $.01

There is this cool incentive in the redemption portal where each point above 50000 gives you a 10% discount.

For example if I had 49000 points I could redeem them for $490 dollars.

However, let’s say I had 60000 points. The first 50k would be redeemed at 1 point equals $.01, for $500. The remaining 10k points could be redeemed for an additional $100 cash back. However, I would only be charged 9000 points.

I want to apply the NFCU cash Rewards card: https://www.navyfederal.org/products-services/cards/creditcards/cashrewards.php

I also want to apply for the NFCU more Rewards: https://www.navyfederal.org/products-services/cards/creditcards/more-rewards.php

If you have any of those credits cards, can you tell me if either the of these have a similar 10% of feature after accumulating 50000 points?

[UpperNwGuy]

Please tell us how many months of using the Go Rewards card it takes you to accumulate 50,000 points?  In my case, if I used the Go Rewards for 100% of my credit card spending, it would take about 18 months to earn 50,000 points.  I could easily earn far more cash rewards with a 2% cash back card such as Citi Double Cash or PenFed Power Cash Rewards.  I don’t think this 10% discount is significant.

[Anonymous]

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@UpperNwGuywrote:

Please tell us how many months of using the Go Rewards card it takes you to accumulate 50,000 points?  In my case, if I used the Go Rewards for 100% of my credit card spending, it would take about 18 months to earn 50,000 points.  I could easily earn far more cash rewards with a 2% cash back card such as Citi Double Cash or PenFed Power Cash Rewards.  I don’t think this 10% discount is significant.

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Well I just started paying attention to credit cards and MS (manufactured spending) for the last few months. It would take me about 5 years at my current spending levels with no MS. However, I am researching moves to make in order to both maximize cash back and possibly reach the 50k point tier sooner rather later.

I is not so straight forward which of these cards will always earned the most cash back. The NFCU GoRewards gives you per dollar spent: 3pts restaurants, 2pts gas stations, and 1pt for everything else.

Each point can be redeemed as cash back at $.01 per 1pt. In addition, you can earn more points through the NFCU Go rewards shopping portal. Full disclosure, I dislike using the shopping portal, however it can increase your cash back significantly. For example: Walmart 2pts, Best Buy 1pt, Kohl’s 3pts, CVS 2pts, Office Max 3pts, Sam’s Club 2pts. There are a ton of opportunities to get even more points.

If we both bought something for $100 you would get $2.00 with your 2% cash back card and I would get $1. However, if I were to use the shopping portal then my cash back in this case would be 1pt plus whatever the shopping portal offered. In this case it would be:

Walmart: 1pt + 2pts = 3pts/$ = 3% * $100 = $3.00

Best Buy: 1pt + 1pt = 2pts/$ = 2% * $100 = $2.00

Kohl’s: 1pt + 3pts = 4pts/$ = 4% * $100 = $4.00

CVS: 1pt + 2pts = 3pts/$ = 3% * $100 = $3.00

Office Max: 1pt + 3pts = 4pts/$ = 4% * $100 = $4.00

Sam’s Club: 1pt + 2pts = 3pts/$ = 3% * $100 = $3.00

It is just deciding how much time you want put towards maximizing your points.

[Anonymous]

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@UpperNwGuywrote:

Please tell us how many months of using the Go Rewards card it takes you to accumulate 50,000 points?  In my case, if I used the Go Rewards for 100% of my credit card spending, it would take about 18 months to earn 50,000 points.  I could easily earn far more cash rewards with a 2% cash back card such as Citi Double Cash or PenFed Power Cash Rewards.  I don’t think this 10% discount is significant.

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Go Rewards does offer 3 percent back on restaurants.  So that is more than your Citi Double Cash would give you. I do think waiting that long to redeem points is silly though.  They are probably wishing that you never redeem the points. 

[Jetboy]

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@Anonymouswrote:

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@UpperNwGuywrote:

Please tell us how many months of using the Go Rewards card it takes you to accumulate 50,000 points?  In my case, if I used the Go Rewards for 100% of my credit card spending, it would take about 18 months to earn 50,000 points.  I could easily earn far more cash rewards with a 2% cash back card such as Citi Double Cash or PenFed Power Cash Rewards.  I don’t think this 10% discount is significant.

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Well I just started paying attention to credit cards and MS (manufactured spending) for the last few months. It would take me about 5 years at my current spending levels with no MS.

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• Don't forget Go Rewards Expires 4 years from month earned, as long as account is open.

[UpperNwGuy]

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@Anonymouswrote:

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@UpperNwGuywrote:

Please tell us how many months of using the Go Rewards card it takes you to accumulate 50,000 points?  In my case, if I used the Go Rewards for 100% of my credit card spending, it would take about 18 months to earn 50,000 points.  I could easily earn far more cash rewards with a 2% cash back card such as Citi Double Cash or PenFed Power Cash Rewards.  I don’t think this 10% discount is significant.

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Go Rewards does offer 3 percent back on restaurants.  So that is more than your Citi Double Cash would give you. I do think waiting that long to redeem points is silly though.  They are probably wishing that you never redeem the points. 

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Correct.  My 18 month estimate assumed that a portion of each month's spending would earn 3% at restaurants and another portion would earn 2% for gas.

[Anonymous]

My problem is I rarely go out to eat, but I buy alot of gas. It would be way better for me to get NFCU credit card that offered 3pts gorceries, 3pts gas, 1pt every thing else.