Why the need for Rotating Category Cards?

[Beast26]

I was sitting here thinking how popular Discover it card is and was thinking I could get it and get the cashback match.  But after the first year it would become just a rotating 5% card.  The thing is I already have plans of getting a card for all categories in the future.  The only reason I could think of getting it is to earn extra cash along the way of acquiring all of the cards that I want.  Once I have all those cards I would literally keep it just for the credit limit and history.  

Should I start with discover or go straight to getting the PayPal MasterCard?  My profile is good enough for either one but I'm just weighing the pros and cons of getting the discover it.

[wasCB14]

There are some popular categories like dining, groceries, mobile payments, etc. where it's hard or impossible to get 5% year-round without paying an annual fee or having some other banking relationship.

[Anonymous]

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@wasCB14 wrote:

There are some popular categories like dining, groceries, mobile payments, etc. where it's hard or impossible to get 5% year-round without paying an annual fee or having some other banking relationship.

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Yes, but the rotators don't give it year round either.  Now for groceries and dining, you can probably use it in which ever quarter it appears (but possibly not max it out), some of the other categories that appear are more problematic.

Also, if you are in the UR system, the 5x given by the Freedom are URs, and thus can be worth more than 5%

IF you can get all the categories you need handled at a high enough reward level, rotating cards might be not worth the effort.   3% everywhere cards like AOD and USAlliance raise the bar somewhat.   If your category spend in the quarter (chosen by them, not you!) is low, the extra 2% may not justify having an extra card.    

[Anonymous]

Except for until the last year Discover had been unlikely to close your accounts on you.

While Synchrony cards have value do not want all your eggs in that basket.

[Credit12Fico]

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@Anonymous wrote:

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@wasCB14 wrote:

There are some popular categories like dining, groceries, mobile payments, etc. where it's hard or impossible to get 5% year-round without paying an annual fee or having some other banking relationship.

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Yes, but the rotators don't give it year round either.  Now for groceries and dining, you can probably use it in which ever quarter it appears (but possibly not max it out), some of the other categories that appear are more problematic.

Also, if you are in the UR system, the 5x given by the Freedom are URs, and thus can be worth more than 5%

IF you can get all the categories you need handled at a high enough reward level, rotating cards might be not worth the effort.   3% everywhere cards like AOD and USAlliance raise the bar somewhat.   If your category spend in the quarter (chosen by them, not you!) is low, the extra 2% may not justify having an extra card.    

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Well the Chase Freedom, Discover It combo more or less gets you half the year at 5%. Discover and Chase hardly ever overlap their quarters.

If you are looking for simplicity, then the rotating category is not for you perhaps? There isn't a general "need" for rotating categories that is applicable to everyone. You either have a lot of cards, including every rotating type to optimize every basis point on every dollar you spend year round, or you just get a simple doublecash/paypal card, and a travel card and call it a day.

If you are not chasing that last 1-2%, then you don't have a need for a card like this. If you are, then you do. You are the only one who can make that decision and it depends precisely on how much you spend in these categories, to determine if rotating card brings value to your wallet. That math is different for everyone. There isn't a general consensus. Not everyone needs a rotating category card.

[TSlop]

I think it just depends if you want 5% cashback or not. I don't think there is anything above 2-3% on general spend that is no AF. So for the cashback maxers, 5% with Chase/Discover will get you the greatest amount back. But it is up to you if it is worth the effort to get the extra 2-3% cashback.

[Beast26]

I will have:

PayPal MasterCard

Walmart MC

Amazon Visa Signature

US Bank Cash+

PNC Cash Rewards

These cards will cover everything the discover does.  Would I be wasting my time getting discover?

[Credit12Fico]

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@Beast26 wrote:

I will have:

PayPal MasterCard

Walmart MC

Amazon Visa Signature

US Bank Cash+

PNC Cash Rewards

These cards will cover everything the discover does.  Would I be wasting my time getting discover?

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Unless you are HEAVY gas spender, then yes it's a waste.

[wasCB14]

If I was keeping a minimal number of cards while trying to maximize rewards, I wouldn't bother with rotators. 3% cards and the like are better. I'm just saying they can add at least a little extra cash back over what someone can earn a no-AF, no-relationship-perk "permanent" set of card. Some cards like Uber and Cash+ with year-round or customizable categories can still be nerfed heavily!

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@Credit12Fico wrote:

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@Beast26 wrote:

I will have:

PayPal MasterCard

Walmart MC

Amazon Visa Signature

US Bank Cash+

PNC Cash Rewards

These cards will cover everything the discover does.  Would I be wasting my time getting discover?

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Unless you are HEAVY gas spender, then yes it's a waste.

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Depends a bit on your spend...

Do you do online shopping at places other than Amazon?

Do you buy groceries at places other than Walmart?

Do you eat at restaurants that aren't fast food?

(I know I sound like a snob, but these are important category considerations!)

[Credit12Fico]

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@wasCB14 wrote:

If I was keeping a minimal number of cards while trying to maximize rewards, I wouldn't bother with rotators. 3% cards and the like are better. I'm just saying they can add at least a little extra cash back over what someone can earn a no-AF, no-relationship-perk "permanent" set of card. Some cards like Uber and Cash+ with year-round or customizable categories can still be nerfed heavily!

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@Credit12Fico wrote:

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@Beast26 wrote:

I will have:

PayPal MasterCard

Walmart MC

Amazon Visa Signature

US Bank Cash+

PNC Cash Rewards

These cards will cover everything the discover does.  Would I be wasting my time getting discover?

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Unless you are HEAVY gas spender, then yes it's a waste.

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Depends a bit on your spend...

Do you do online shopping at places other than Amazon?

Do you buy groceries at places other than Walmart?

Do you eat at restaurants that aren't fast food?

(I know I sound like a snob, but these are important category considerations!)

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I agree, my understanding, is the OP doesn't have any of the cards he put above, but rather they are "goal cards" so he's already worked out that those cards are profitable to him based on his buying patters, but he'll need to clarify. I only see Discover and Fingerhut in his sig.