Get 5% back on credit card purchases.

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tc101
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Get 5% back on credit card purchases.

Post by tc101 »

Here is a round about way to get 5% back on credit card purchases. It might be more trouble than it is worth

http://creditcardforum.com/rewards/1116 ... ipoff.html
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momar
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Re: Get 5% back on credit card purchases.

Post by momar »

Might as well use Blue Cash Preferred and buy gift cards at the grocery store. 6%.
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Sunny Sarkar
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Re: Get 5% back on credit card purchases.

Post by Sunny Sarkar »

First I pay them, then I make an end run around their rules to get some of it back, then I congratulate myself. :oops:

This is such a twisted game they're forcing us to play. If they can give us 5% back, why can't they charge the merchant 5% less so that the prices can go down?
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tc101
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Re: Get 5% back on credit card purchases.

Post by tc101 »

Might as well use Blue Cash Preferred and buy gift cards at the grocery store. 6%.
Well one positive thing came out of this thread, which is that I learned about the Blue Cash Preferred AmEx card. I didn't know you could get 3% cash back on gas. I just upgraded my old 1% AmEx. I hope I didn't overlook anything like a monthly fee.
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momar
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Re: Get 5% back on credit card purchases.

Post by momar »

tc101 wrote:
Might as well use Blue Cash Preferred and buy gift cards at the grocery store. 6%.
Well one positive thing came out of this thread, which is that I learned about the Blue Cash Preferred AmEx card. I didn't know you could get 3% cash back on gas. I just upgraded my old 1% AmEx. I hope I didn't overlook anything like a monthly fee.
Preferred has a yearly fee after the first year. I think it is $75.
"Index funds have a place in your portfolio, but you'll never beat the index with them." - Words of wisdom from a Fidelity rep
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tc101
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Re: Get 5% back on credit card purchases.

Post by tc101 »

I didn't see that when I switched. I guess I'll cancel after the first year.
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Live Free or Diehard
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Re: Get 5% back on credit card purchases.

Post by Live Free or Diehard »

momar wrote:
tc101 wrote:
Might as well use Blue Cash Preferred and buy gift cards at the grocery store. 6%.
Well one positive thing came out of this thread, which is that I learned about the Blue Cash Preferred AmEx card. I didn't know you could get 3% cash back on gas. I just upgraded my old 1% AmEx. I hope I didn't overlook anything like a monthly fee.
Preferred has a yearly fee after the first year. I think it is $75.
So, since the 6% is limited to the first $6000 spent, then the second year and later you would only be getting 4.75%, right?

(($6000*.06)-$75)/($6000) = .0475 = 4.75%

And that's the maximum % you'd get. If you spend less than $6000 in a year, your % would be even lower.
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TomatoTomahto
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Re: Get 5% back on credit card purchases.

Post by TomatoTomahto »

Live Free or Diehard wrote:
momar wrote:
tc101 wrote:
Might as well use Blue Cash Preferred and buy gift cards at the grocery store. 6%.
Well one positive thing came out of this thread, which is that I learned about the Blue Cash Preferred AmEx card. I didn't know you could get 3% cash back on gas. I just upgraded my old 1% AmEx. I hope I didn't overlook anything like a monthly fee.
Preferred has a yearly fee after the first year. I think it is $75.
So, since the 6% is limited to the first $6000 spent, then the second year and later you would only be getting 4.75%, right?

(($6000*.06)-$75)/($6000) = .0475 = 4.75%

And that's the maximum % you'd get. If you spend less than $6000 in a year, your % would be even lower.
It all depends on your spending level and in which categories you spend, but the Preferred card is probably the better choice for most people who use credit cards for groceries and everyday use. PenFed is still better for gasoline.
I get the FI part but not the RE part of FIRE.
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tc101
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Re: Get 5% back on credit card purchases.

Post by tc101 »

I was able to cancel the preferred card. It had a $75 fee even the first year, but you have right to cancel withing 24 hours of application. I'll study this a little more.
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TomatoTomahto
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Re: Get 5% back on credit card purchases.

Post by TomatoTomahto »

tc101 wrote:I was able to cancel the preferred card. It had a $75 fee even the first year, but you have right to cancel withing 24 hours of application. I'll study this a little more.
There have been threads about this before. I'd find one, but I hate searching on an iPad.
I get the FI part but not the RE part of FIRE.
ossipago
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Re: Get 5% back on credit card purchases.

Post by ossipago »

I miss my 5% grocery/drugstore card. Some of us don't buy gas ...
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momar
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Re: Get 5% back on credit card purchases.

Post by momar »

Live Free or Diehard wrote:
momar wrote:
tc101 wrote:
Might as well use Blue Cash Preferred and buy gift cards at the grocery store. 6%.
Well one positive thing came out of this thread, which is that I learned about the Blue Cash Preferred AmEx card. I didn't know you could get 3% cash back on gas. I just upgraded my old 1% AmEx. I hope I didn't overlook anything like a monthly fee.
Preferred has a yearly fee after the first year. I think it is $75.
So, since the 6% is limited to the first $6000 spent, then the second year and later you would only be getting 4.75%, right?

(($6000*.06)-$75)/($6000) = .0475 = 4.75%

And that's the maximum % you'd get. If you spend less than $6000 in a year, your % would be even lower.
Thanks for that, I didn't realize they had set a limit on it.

I am planning on switching the Fidelity Amex anyways; I have been looking and I come up shy of 2%. Too many recurring bills + Costco, I guess.
"Index funds have a place in your portfolio, but you'll never beat the index with them." - Words of wisdom from a Fidelity rep
ilisira
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Re: Get 5% back on credit card purchases.

Post by ilisira »

tc101 wrote:I was able to cancel the preferred card. It had a $75 fee even the first year, but you have right to cancel withing 24 hours of application. I'll study this a little more.
They gave me $150 (which I was not expecting) which covers the first two years' fee (this was in the email text I got about this credit).
MnD
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Re: Get 5% back on credit card purchases.

Post by MnD »

US Bank Cash+ 5% on restaurants and rental cars - annual fee 0 and you get to pick the 5% categories from a limited list.
Costco Business Amex 4% on gasoline - annual fee 0 (3% if you have the consumer version of the card) and 1% at Costco.
Cap1 Venture 2% back on everything - annual fee $59, partially rebated by ~$30 back per year on average from random retailers

This is my current three card system which IMO strikes a good balance between savings and simplicity. Improvements would be adding the Fido Amex so we got 2% back at Costco instead of 1% on the Costco Amex, and adding a grocery store card that's better than 2% back. My wife would never go for a 5 card system however.
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vesalius
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Re: Get 5% back on credit card purchases.

Post by vesalius »

momar wrote:Might as well use Blue Cash Preferred and buy gift cards at the grocery store. 6%.
People doing this is likely why the Amex blue prefered added a $6000 max on the 6% grocery rebate.
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TomatoTomahto
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Re: Get 5% back on credit card purchases.

Post by TomatoTomahto »

vesalius wrote:
momar wrote:Might as well use Blue Cash Preferred and buy gift cards at the grocery store. 6%.
People doing this is likely why the Amex blue prefered added a $6000 max on the 6% grocery rebate.
Yes, that and the effect my two teenagers had on the grocery bill.
I get the FI part but not the RE part of FIRE.
ark18
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Re: Get 5% back on credit card purchases.

Post by ark18 »

Does the gift cards at grocery stores thing work for Blue Cash Preferred? I thought they excluded cash equivalent purchases.
icefr
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Re: Get 5% back on credit card purchases.

Post by icefr »

ark18 wrote:Does the gift cards at grocery stores thing work for Blue Cash Preferred? I thought they excluded cash equivalent purchases.
If you have a bunch of stuff on your grocery bill, how can Amex know whether you bought gift cards, ice cream, or cheese? Does your local grocery store submit that information to them? I doubt it. They probably just tell Amex the $ amount of the purchase.
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Archie Sinclair
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Re: Get 5% back on credit card purchases.

Post by Archie Sinclair »

icefr wrote:
ark18 wrote:Does the gift cards at grocery stores thing work for Blue Cash Preferred? I thought they excluded cash equivalent purchases.
If you have a bunch of stuff on your grocery bill, how can Amex know whether you bought gift cards, ice cream, or cheese? Does your local grocery store submit that information to them? I doubt it. They probably just tell Amex the $ amount of the purchase.
This sounds like theft. If you are not allowed to use the credit card for gift cards, but you do anyway because no one is watching, how does this differ from shoplifting?
ark18
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Re: Get 5% back on credit card purchases.

Post by ark18 »

Archie Sinclair wrote:
icefr wrote:
ark18 wrote:Does the gift cards at grocery stores thing work for Blue Cash Preferred? I thought they excluded cash equivalent purchases.
If you have a bunch of stuff on your grocery bill, how can Amex know whether you bought gift cards, ice cream, or cheese? Does your local grocery store submit that information to them? I doubt it. They probably just tell Amex the $ amount of the purchase.
This sounds like theft. If you are not allowed to use the credit card for gift cards, but you do anyway because no one is watching, how does this differ from shoplifting?
I don't think it's theft; they don't say that you can't buy cash equivalents with the card, just that they won't give you the 6% on it.

I thought that the grocery store might report it. I vaguely remember thinking alcohol wasn't supposed to be reimbursed at 6% either.
joppy
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Re: Get 5% back on credit card purchases.

Post by joppy »

tc101 wrote:Here is a round about way to get 5% back on credit card purchases. It might be more trouble than it is worth

http://creditcardforum.com/rewards/1116 ... ipoff.html
The article mentions that the Chase Ink cards are "business" cards. One of the differences between business cards and personal cards is that you have a lot less protection for business credit cards than personal credit cards:

http://www.calpirg.org/news/cap/busines ... protection

- Joppy
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