Strategy for Maxing out Cash Back Categories

[Anonymous]

Been doing some research on adding a few cards to ensure I have the highest cash back %s across as many categories I spend on. LMK everyone's thoughts on below:

Owned:

BCP: 6% back Groceries

Freedom: 5% rotating categories/quarter

Interested in:

Discover It: 5% rotating categories/quarter

US Bank Cash+: Two 5% rotating categories of choice/quarter (will choose 2 categories not actively 5% on Freedom/Discover It)

Costco Citi Visa: 4% gas, 3% restaurants and travel

For the cards above that has a spend limit on the cash back bonuses, I don't believe I will hit those caps with my current spend so that is not an issue in my consideration. With that said, I think these cards will allow me 5% cash back on most of the categories I spend on, and 4% back on gas when it is not available as a 5% cat.

What does everyone think?

[Anonymous]

If you spend a good amount on groceries like I do and even gas, the Amex BCP is a great card. The discover IT is a very good card as well. Between the rotating categories there seems to always be offers in my account for balance transfers which is always good to have just in case.

But it looks like you have everything pretty much covered with your choices.

[Themanwhocan]

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@Anonymous wrote:

Been doing some research on adding a few cards to ensure I have the highest cash back %s across as many categories I spend on. LMK everyone's thoughts on below:

Owned:

BCP: 6% back Groceries

Freedom: 5% rotating categories/quarter

Interested in:

Discover It: 5% rotating categories/quarter

US Bank Cash+: Two 5% rotating categories of choice/quarter (will choose 2 categories not actively 5% on Freedom/Discover It)

Costco Citi Visa: 4% gas, 3% restaurants and travel

For the cards above that has a spend limit on the cash back bonuses, I don't believe I will hit those caps with my current spend so that is not an issue in my consideration. With that said, I think these cards will allow me 5% cash back on most of the categories I spend on, and 4% back on gas when it is not available as a 5% cat.

What does everyone think?

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Make sure you look though this thread, as I do update it occasionally:  http://ficoforums.myfico.com/t5/Credit-Cards/Cash-Back-credit-card-charts/td-p/4004725

Amex BCP is good, but remember the cash back percentage depends on what you use the card for. Absolute best case is 4.75% cash back for groceries assuming you manage to spend exactly $6000 a year in groceries, no more and no less. Its the annual fee combined with the spending cap that alters the actual percentage. But, there isn't really a good alternative at the present time.

If you shop at Costco a lot, and thus already pay the annual membership fee, then the Costco card looks pretty good. There are cards that give 5% on gas purchases, and other cards that give 3% on restaurants. US Bank Cash+ can give 5% at Fast Food restaurants.

You should obtain at least one card that gives 2% or more on any purchase, so you can use that to make sure you are always geting at least that much cash back.

Also, cards with large sign up bonuses will always give you more than pure cash back cards in the short run.

[Anonymous]

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@Themanwhocan wrote:

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@Anonymous wrote:

Been doing some research on adding a few cards to ensure I have the highest cash back %s across as many categories I spend on. LMK everyone's thoughts on below:

Owned:

BCP: 6% back Groceries

Freedom: 5% rotating categories/quarter

Interested in:

Discover It: 5% rotating categories/quarter

US Bank Cash+: Two 5% rotating categories of choice/quarter (will choose 2 categories not actively 5% on Freedom/Discover It)

Costco Citi Visa: 4% gas, 3% restaurants and travel

For the cards above that has a spend limit on the cash back bonuses, I don't believe I will hit those caps with my current spend so that is not an issue in my consideration. With that said, I think these cards will allow me 5% cash back on most of the categories I spend on, and 4% back on gas when it is not available as a 5% cat.

What does everyone think?

---

Make sure you look though this thread, as I do update it occasionally:  http://ficoforums.myfico.com/t5/Credit-Cards/Cash-Back-credit-card-charts/td-p/4004725

Amex BCP is good, but remember the cash back percentage depends on what you use the card for. Absolute best case is 4.75% cash back for groceries assuming you manage to spend exactly $6000 a year in groceries, no more and no less. Its the annual fee combined with the spending cap that alters the actual percentage. But, there isn't really a good alternative at the present time.

If you shop at Costco a lot, and thus already pay the annual membership fee, then the Costco card looks pretty good. There are cards that give 5% on gas purchases, and other cards that give 3% on restaurants. US Bank Cash+ can give 5% at Fast Food restaurants.

You should obtain at least one card that gives 2% or more on any purchase, so you can use that to make sure you are always geting at least that much cash back.

Also, cards with large sign up bonuses will always give you more than pure cash back cards in the short run.

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And the other thing to keep in mind about the BCP (and BCE and BC) is where they can be used.  Some of the cheaper places (some Walmarts for example) don't get counted as groceries) and so getting 6% (or 4.5%) rather than 2% won't make up for things if the prices are much higher.

[Anonymous]

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@Anonymous wrote:

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@Themanwhocan wrote:

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@Anonymous wrote:

Been doing some research on adding a few cards to ensure I have the highest cash back %s across as many categories I spend on. LMK everyone's thoughts on below:

Owned:

BCP: 6% back Groceries

Freedom: 5% rotating categories/quarter

Interested in:

Discover It: 5% rotating categories/quarter

US Bank Cash+: Two 5% rotating categories of choice/quarter (will choose 2 categories not actively 5% on Freedom/Discover It)

Costco Citi Visa: 4% gas, 3% restaurants and travel

For the cards above that has a spend limit on the cash back bonuses, I don't believe I will hit those caps with my current spend so that is not an issue in my consideration. With that said, I think these cards will allow me 5% cash back on most of the categories I spend on, and 4% back on gas when it is not available as a 5% cat.

What does everyone think?

---

Make sure you look though this thread, as I do update it occasionally:  http://ficoforums.myfico.com/t5/Credit-Cards/Cash-Back-credit-card-charts/td-p/4004725

Amex BCP is good, but remember the cash back percentage depends on what you use the card for. Absolute best case is 4.75% cash back for groceries assuming you manage to spend exactly $6000 a year in groceries, no more and no less. Its the annual fee combined with the spending cap that alters the actual percentage. But, there isn't really a good alternative at the present time.

If you shop at Costco a lot, and thus already pay the annual membership fee, then the Costco card looks pretty good. There are cards that give 5% on gas purchases, and other cards that give 3% on restaurants. US Bank Cash+ can give 5% at Fast Food restaurants.

You should obtain at least one card that gives 2% or more on any purchase, so you can use that to make sure you are always geting at least that much cash back.

Also, cards with large sign up bonuses will always give you more than pure cash back cards in the short run.

---

And the other thing to keep in mind about the BCP (and BCE and BC) is where they can be used.  Some of the cheaper places (some Walmarts for example) don't get counted as groceries) and so getting 6% (or 4.5%) rather than 2% won't make up for things if the prices are much higher.

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Good to know... I do my grocery shopping at Trader Joes and Ralphs, so I should be good there. I also shop at Target, but I use my Red Card to get my 5% off

[Anonymous]

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@Themanwhocan wrote:

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@Anonymous wrote:

Been doing some research on adding a few cards to ensure I have the highest cash back %s across as many categories I spend on. LMK everyone's thoughts on below:

Owned:

BCP: 6% back Groceries

Freedom: 5% rotating categories/quarter

Interested in:

Discover It: 5% rotating categories/quarter

US Bank Cash+: Two 5% rotating categories of choice/quarter (will choose 2 categories not actively 5% on Freedom/Discover It)

Costco Citi Visa: 4% gas, 3% restaurants and travel

For the cards above that has a spend limit on the cash back bonuses, I don't believe I will hit those caps with my current spend so that is not an issue in my consideration. With that said, I think these cards will allow me 5% cash back on most of the categories I spend on, and 4% back on gas when it is not available as a 5% cat.

What does everyone think?

---

Make sure you look though this thread, as I do update it occasionally:  http://ficoforums.myfico.com/t5/Credit-Cards/Cash-Back-credit-card-charts/td-p/4004725

Amex BCP is good, but remember the cash back percentage depends on what you use the card for. Absolute best case is 4.75% cash back for groceries assuming you manage to spend exactly $6000 a year in groceries, no more and no less. Its the annual fee combined with the spending cap that alters the actual percentage. But, there isn't really a good alternative at the present time.

If you shop at Costco a lot, and thus already pay the annual membership fee, then the Costco card looks pretty good. There are cards that give 5% on gas purchases, and other cards that give 3% on restaurants. US Bank Cash+ can give 5% at Fast Food restaurants.

You should obtain at least one card that gives 2% or more on any purchase, so you can use that to make sure you are always geting at least that much cash back.

Also, cards with large sign up bonuses will always give you more than pure cash back cards in the short run.

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I took a look and yes, it is extremely insightful! It was a bit much for me to digest as I feel more comfortable analyzing cards based on their cashback %s and effective cashback %s (for cards with AFs). However, this is all good information nonetheless

I do have a few new cards with signup bonuses, so I am working on meeting those spend requirements. This topic is more for cards yielding better cash rewards in the long term.

[Kevin86475391]

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@Themanwhocan wrote:

Make sure you look though this thread, as I do update it occasionally:  http://ficoforums.myfico.com/t5/Credit-Cards/Cash-Back-credit-card-charts/td-p/4004725

Amex BCP is good, but remember the cash back percentage depends on what you use the card for. Absolute best case is 4.75% cash back for groceries assuming you manage to spend exactly $6000 a year in groceries, no more and no less. Its the annual fee combined with the spending cap that alters the actual percentage. But, there isn't really a good alternative at the present time.

If you shop at Costco a lot, and thus already pay the annual membership fee, then the Costco card looks pretty good. There are cards that give 5% on gas purchases, and other cards that give 3% on restaurants. US Bank Cash+ can give 5% at Fast Food restaurants.

You should obtain at least one card that gives 2% or more on any purchase, so you can use that to make sure you are always geting at least that much cash back.

Also, cards with large sign up bonuses will always give you more than pure cash back cards in the short run.

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Such good info, thank you! In particular I want to echo my agreement with the bolded statement. It's impossible to account for every potential category with bonus category cards alone. Having a solid, higher cash back general card is an important part of maximizing rewards, especially long term. My personal card of choice is the Citi Double Cash, which gives 2% on everything.

[kdm31091]

I think a solid everyday spending card for 2%/ 1.5% (depending which lender you prefer etc) is probably the most important for most people. Generally not nearly all of your spend will be either groceries, gas, or dining, so a lot would be only earning 1%. At the same time, having a bunch of specialty cards for one category of spend can cause rewards to add up very slowly and/or be of minimal use/gain.

[wacdenney]

I think you are going to find that the 5% categories on Discover and Freedom overlap more often than not.  I have found holding both cards to be somewhat redundant.  If you are looking for three you could ditch the Discover idea and instead split up the gas and dining.  Gas is available at 5% via PenFed and dining at 3% via Marvel plus you would gain the very broad "entertainment" category.  That's only a 1% gain on gas and 3% on entertainment, but every additional percent adds up and that really is the whole point to a good well rounded rewards strategy like you are putting together.

It might also be worthwhile to consider BlisPay over DC for general spend given the additional 0% for 6 months benefit and the very likely possiblity of it being hidden.

[kdm31091]

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@wacdenney wrote:

I think you are going to find that the 5% categories on Discover and Freedom overlap more often than not.  I have found holding both cards to be somewhat redundant.  If you are looking for three you could ditch the Discover idea and instead split up the gas and dining.  Gas is available at 5% via PenFed and dining at 3% via Marvel plus you would gain the very broad "entertainment" category.  That's only a 1% gain on gas and 3% on entertainment, but every additional percent adds up and that really is the whole point to a good well rounded rewards strategy like you are putting together.

It might also be worthwhile to consider BlisPay over DC for general spend given the additional 0% for 6 months benefit and the very likely possiblity of it being hidden.

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Just depends on your spending habits. For some, even with the broad "entertainment" category, these may not be significant areas of spending (just like how some people don't spend much on gas, etc).

I do agree that holding Discover and Freedom definitely felt redundant when I had both. I chose to keep Discover which has broader, better categories (for me anyway).