How often do you redeem your credit card cash rewards?

Gort · Post by **Gort** » Wed Jun 07, 2017 9:26 pm

Friends,
I was wondering how often do you redeem your credit card cash rewards? Do you save them up for something to splurge on -or- do you redeem them monthly? Just curious.
Thanks,
Gort

Doom&Gloom · Post by **Doom&Gloom** » Wed Jun 07, 2017 9:41 pm

Almost always in $100 increments. Not much trouble and easy to track.

*applies to cash-back only.

Bwise1 · Post by **Bwise1** » Wed Jun 07, 2017 9:42 pm

I don't pay any attention to cc points until they are worth $2000 ish. We put them towards vacation or something my wife has been wanting but won't buy for herself.

I usually make sure she wins.

whodidntante · Post by **whodidntante** » Wed Jun 07, 2017 9:44 pm

The only time I save them is if there is a bonus to doing so, like with Chase Ultimate Rewards. Otherwise, smoke 'em if you got 'em.

kaneohe · Post by **kaneohe** » Wed Jun 07, 2017 9:47 pm

Doom&Gloom wrote:Almost always in $100 increments. Not much trouble and easy to track.

*applies to cash-back only.

same here. For Amazon Store card , I get the 5% monthly (don't think I had a choice?) but it's more of a pain to track.

Rhadamanthus · Post by **Rhadamanthus** » Wed Jun 07, 2017 10:06 pm

I have Capital One mail my Quicksilver cash back check in January, which I then deposit and send off to Vanguard.

rosylenm · Post by **rosylenm** » Wed Jun 07, 2017 10:29 pm

I used to take the cash once I reached the minimum just because it was so new to me and so cool that I was being paid to use the cards. Now, I redeem one whenever my checking account balance gets a little too low.

The other I let accumulate until my SO asks for it.

Sheepdog · Post by **Sheepdog** » Wed Jun 07, 2017 10:34 pm

Usually monthly ($748.67 redeemed year to date).

avalpert · Post by **avalpert** » Wed Jun 07, 2017 10:57 pm

Monetize them as soon as I can (most allow automatic redemption or apply as a credit to the account) - they aren't found money, they are reduction in spending and should be put back into my accounts as quickly as possible.

Gropes & Ray · Post by **Gropes & Ray** » Wed Jun 07, 2017 10:58 pm

Mine are automatically applied to my balance once they hit $25.

bhtomj · Post by **bhtomj** » Wed Jun 07, 2017 11:11 pm

My Fidelity Rewards Visa transfers automatically to my IRA every month.

rosylenm · Post by **rosylenm** » Wed Jun 07, 2017 11:41 pm

avalpert wrote:Monetize them as soon as I can (most allow automatic redemption or apply as a credit to the account) - they aren't found money, they are reduction in spending and should be put back into my accounts as quickly as possible.

I disagree. One would not have the cash back reward if one did not use the card. The credit card will be used to pay bills that have to be paid. And the balance on the credit card will be paid in full at the end of the billing cycle regardless of the cash back reward. So to me, it's my personal bonus for being a responsible adult, which means it will be used for some other responsibility eventually, but I like the idea of free money if only for a few moments.

baughman · Post by **baughman** » Thu Jun 08, 2017 12:00 am

Fidelity 2% automatically pays out monthlyish.

I treat all money received, be it income, bonuses, interest, gifts, the same. Straight to investments. I find it odd that such a trivial amount of money would alter ones spending habits, when it it's trivially small relative to a lifetime of earnings and wealth.

rosylenm · Post by **rosylenm** » Thu Jun 08, 2017 12:26 am

baughman wrote:Fidelity 2% automatically pays out monthlyish.

I treat all money received, be it income, bonuses, interest, gifts, the same. Straight to investments. I find it odd that such a trivial amount of money would alter ones spending habits, when it it's trivially small relative to a lifetime of earnings and wealth.

It's clearly not trivial if they all wind up in your investments.

HIinvestor · Post by **HIinvestor** » Thu Jun 08, 2017 4:07 am

I am highly variable and cash it after it reaches $500 or $1000+, depending on my mood. Thus often happens every quarter or so.

madbrain · Post by **madbrain** » Thu Jun 08, 2017 4:08 am

As soon as possible - the card issuer can always close your account and take the points/rewards for whatever reason. Has happened to me before in the past with Barclay with no recourse.

KSOC · Post by **KSOC** » Thu Jun 08, 2017 4:48 am

As soon as it's available. We charge everything we can. Pay in full. Off the reward money goes to Total Stock Market. Why I like mutual funds, my spare change starts working right away. No waiting until I have enough buy an ETF. This and my emergency fund interest. Part of my investment plan. Patience & discipline.

ulvazell · Post by **ulvazell** » Thu Jun 08, 2017 5:39 am

Every vacation I take. They are used to buy the airline tickets...

F150HD · Post by **F150HD** » Thu Jun 08, 2017 5:50 am

Gropes & Ray wrote:Mine are automatically applied to my balance once they hit $25.

if one does this w/ a Citi Doublecash 2% card, this actually reduces the % you get back as it is reducing your payment.
Was discussed in a different thread months back.

F150HD · Post by **F150HD** » Thu Jun 08, 2017 5:52 am

Gort wrote:Friends,
I was wondering how often do you redeem your credit card cash rewards? Do you save them up for something to splurge on -or- do you redeem them monthly? Just curious.
Thanks,
Gort

Typically let it build up then buy something I've needed/wanted like a new laptop etc. So, no real timeline.

Post by **oldcomputerguy** » Thu Jun 08, 2017 5:59 am

I don't pay much attention. Fidelity redeems them at the end of any month in which the point balance is over 5,000 ($50).

FedGuy · Post by **FedGuy** » Thu Jun 08, 2017 6:08 am

I redeem as soon as possible. They don't do me much good sitting in some "here's how much we owe you, come get them!" account and, as noted above, the card issuer can always change their policies and essentially forfeit your cash back, so as soon as I reach the minimum redemption amount I go ahead and grab it.

ddurrett896 · Post by **ddurrett896** » Thu Jun 08, 2017 6:49 am

Since the days of points expiring, I haven't even checked my cards to see if there is an expiration. Our of habit I redeem asap!

avalpert · Post by **avalpert** » Thu Jun 08, 2017 7:07 am

rosylenm wrote:
avalpert wrote:Monetize them as soon as I can (most allow automatic redemption or apply as a credit to the account) - they aren't found money, they are reduction in spending and should be put back into my accounts as quickly as possible.
I disagree. One would not have the cash back reward if one did not use the card. The credit card will be used to pay bills that have to be paid. And the balance on the credit card will be paid in full at the end of the billing cycle regardless of the cash back reward. So to me, it's my personal bonus for being a responsible adult, which means it will be used for some other responsibility eventually, but I like the idea of free money if only for a few moments.

Right, and I 'saved' 66% by buying at Joseph A Bank, my tax refund is for a special night out and my annual 'bonus' should be spent on a splurge.

This framing is dangerous, which is why the quicker (and quieter) you get the money into your regular pot the less likely you are to spend it foolishly.

EATaxGuy · Post by **EATaxGuy** » Thu Jun 08, 2017 7:09 am

Bwise1 wrote:I usually make sure she wins.

You have lived up to your name, Sir.

cresive · Post by **cresive** » Thu Jun 08, 2017 7:12 am

Gort wrote:Friends,
I was wondering how often do you redeem your credit card cash rewards? Do you save them up for something to splurge on -or- do you redeem them monthly? Just curious.
Thanks,
Gort

I have a fidelity cash reward that goes directly into my Roth account. I used to have travel card and then a bicycle club card, but realized I have enough travel miles and all the bike stuff I want. I then switched to the Fidelity Rewards card and love. I put in about $20-50/month into my retirement account just for using my card. I put as many bills on the card and pay it off at the end of the month. That also reduces the number of monthly bills I have to tend to .

IT is a great way to passively save for retirement

BogleMelon · Post by **BogleMelon** » Thu Jun 08, 2017 7:13 am

Bwise1 wrote:I don't pay any attention to cc points until they are worth $2000 ish. We put them towards vacation or something my wife has been wanting but won't buy for herself.

I usually make sure she wins.

Be aware of "mental accounting"

BogleMelon · Post by **BogleMelon** » Thu Jun 08, 2017 7:15 am

Every time my card company allows me to cash them out, I cash them out ($25 incremental). The money goes into my budget, as if it was regular earned money. $50 reward is treated as regular $50. I don't discriminate dollars based on their source

SmileyFace · Post by **SmileyFace** » Thu Jun 08, 2017 7:20 am

With the citi double cash back card I simply pull the money into my main bank account monthly at the same time I pay the bill.

why3not · Post by **why3not** » Thu Jun 08, 2017 7:24 am

My discretionary spending is highly variable. My income is not. A couple times a year I get hit with a cc bill (usually after a major trip) that would require me to transfer $ out of my "high" yield savings account into my checking to pay off the cc bill. I redeem them to avoid having to do this.

Da5id · Post by **Da5id** » Thu Jun 08, 2017 7:28 am

For my cash only cards, I do it monthly if there is enough to hit the minimum. I pay the cc online anyway, so when logged in to pay the bill I just use the money for a statement credit.

likegarden · Post by **likegarden** » Thu Jun 08, 2017 7:33 am

We have a GM credit card at Capital One, and redeem it when we buy another GM car. So after 13 years we bought another GM car with a $3,700. extra rebate.

spammagnet · Post by **spammagnet** » Thu Jun 08, 2017 7:40 am

Gropes & Ray wrote:Mine are automatically applied to my balance once they hit $25.

+1

mouses · Post by **mouses** » Thu Jun 08, 2017 8:13 am

I charge almost everything, and on one card, as it gives me a good handle on what I am spending monthly. So I keep an eye on the transactions, probably a little too often

My card posts the cash rewards in real time, so if I see a non-zero in there, I do a few clicks to apply it to the balance. There is no minimum to do that.

BolderBoy · Post by **BolderBoy** » Thu Jun 08, 2017 8:17 am

Doom&Gloom wrote:Almost always in $100 increments. Not much trouble and easy to track.

*applies to cash-back only.

Likewise here.

C4NT · Post by **C4NT** » Thu Jun 08, 2017 8:26 am

F150HD wrote:if one does this w/ a Citi Doublecash 2% card, this actually reduces the % you get back as it is reducing your payment.
Was discussed in a different thread months back.

Thanks, I had never thought of that (didn't see the other thread either).

MrNewEngland · Post by **MrNewEngland** » Thu Jun 08, 2017 8:29 am

whodidntante wrote:The only time I save them is if there is a bonus to doing so, like with Chase Ultimate Rewards. Otherwise, smoke 'em if you got 'em.

This is exactly how I feel... but the reason I am replying is to ask why there's a benefit to letting your Chase Ultimate Rewards build up. That's one of the cards I use and I am unaware of any bonuses or add-ons to higher redemption amounts.

Gropes & Ray · Post by **Gropes & Ray** » Thu Jun 08, 2017 8:57 am

F150HD wrote:
Gropes & Ray wrote:Mine are automatically applied to my balance once they hit $25.
if one does this w/ a Citi Doublecash 2% card, this actually reduces the % you get back as it is reducing your payment.
Was discussed in a different thread months back.

Interesting. Until recently I primarily used a Capital One 1% back + additional 1% on gas and groceries card. But my credit union just issued a straight, no-gimmick 2% back card for members who use direct deposit.

High Income Parent · Post by **High Income Parent** » Thu Jun 08, 2017 9:02 am

I redeem them asap. I figure they are funds in a no interest account otherwise.
I could see using them as a bit of a automated forced savings account but it probably isn't going to made a huge difference either way.

I recommend transferring them in some regard away from the credit card companies as quick as possible. You never know when they will mess something up and say they made a mistake and the rewards were clawed back.
In the way of reward miles, they seem to devalue those pretty regularly so it's to our advantage to use those quickly as well.

Da5id · Post by **Da5id** » Thu Jun 08, 2017 11:58 am

Gropes & Ray wrote:
F150HD wrote:
Gropes & Ray wrote:Mine are automatically applied to my balance once they hit $25.
if one does this w/ a Citi Doublecash 2% card, this actually reduces the % you get back as it is reducing your payment.
Was discussed in a different thread months back.
Interesting. Until recently I primarily used a Capital One 1% back + additional 1% on gas and groceries card. But my credit union just issued a straight, no-gimmick 2% back card for members who use direct deposit.

This is a .01% loss, right? You lose 1% on the 1% rebate that is applied to your balance? Not losing sleep on it. $2 per year on $20000 spending?

F150HD · Post by **F150HD** » Thu Jun 08, 2017 12:20 pm

Da5id wrote:
This is a .01% loss, right? You lose 1% on the 1% rebate that is applied to your balance? Not losing sleep on it. $2 per year on $20000 spending?

on that note why worry about a higher expense ratio on a mutual fund? its just a couple bucks, right?

mouses · Post by **mouses** » Thu Jun 08, 2017 12:24 pm

Some people seem to be talking about cards that pay x% on spending and x% on payments. Mine pays 1.5% on spending.

SurfCityBill · Post by **SurfCityBill** » Thu Jun 08, 2017 12:26 pm

We redeem a portion of the accumulated balance for discounted gift cards typically around the holidays.

Also used to buy four $100 gift cards at Lowe's at a 20% discount shortly before making a large purchase.

nolesrule · Post by **nolesrule** » Thu Jun 08, 2017 12:30 pm

Generally once a month as a statement credit for my cash back cards.

Da5id · Post by **Da5id** » Thu Jun 08, 2017 12:32 pm

F150HD wrote:
Da5id wrote:
This is a .01% loss, right? You lose 1% on the 1% rebate that is applied to your balance? Not losing sleep on it. $2 per year on $20000 spending?
on that note why worry about a higher expense ratio on a mutual fund? its just a couple bucks, right?

Where to draw the line is a personal matter, but $2 per year doesn't do it for me here or in investing. At some level costs can matter (my overall expense ratio on my portfolio is currently .056%, and I indeed pay close attention to it), but when deciding that costs are really relevant to a decision converting costs from a percentage to a dollar amount is a good idea. On my investments the differences would be hundreds or thousands of dollars per year -- which in fact (together with my lack of faith in international bonds) got me to drop Vanguard's lifestrategy funds in favor of Admiral versions of 3 fund.

I don't put anywhere near $20K on my Citi card anyway, as 2% is generally a last resort card for me, I was using that as a moderately high spend example for most folks to show that the difference is, to many of us, insignificant.

Texanbybirth · Post by **Texanbybirth** » Thu Jun 08, 2017 12:34 pm

Interesting thread.

I actually struggle with this. We have a Chase Sapphire Reserve that we will keep until the points are sufficiently spent. We use it for travel redemption either through the travel portal or xfer'd to SWA.

Our bread and butter is the AMEX Blue Cash Preferred that racks up $600/yr or so in benefits. I have a really hard time redeeming this balance, and I'm not sure why. Maybe I look at it as a secret savings account - "mental accounting", not secret in the sense that I keep it from my wife or anything - or a little travel account if we want to take a vacation (though with two babies that's not happening any time soon); but we have spent the money on a couple of nice Apple products in previous years.

BogleMelon wrote:Every time my card company allows me to cash them out, I cash them out ($25 incremental). The money goes into my budget, as if it was regular earned money. $50 reward is treated as regular $50. I don't discriminate dollars based on their source

I do, but as I said above not sure why I do.

Steve K · Post by **Steve K** » Thu Jun 08, 2017 12:36 pm

Monthly.

Jack FFR1846 · Post by **Jack FFR1846** » Thu Jun 08, 2017 12:44 pm

I want my money and I want it now! Like the commercial on TV. Cap One allows redemption in any amount. It's not beneath me to redeem 1 cent.

whodidntante · Post by **whodidntante** » Thu Jun 08, 2017 7:19 pm

MrNewEngland wrote:
whodidntante wrote:The only time I save them is if there is a bonus to doing so, like with Chase Ultimate Rewards. Otherwise, smoke 'em if you got 'em.
This is exactly how I feel... but the reason I am replying is to ask why there's a benefit to letting your Chase Ultimate Rewards build up. That's one of the cards I use and I am unaware of any bonuses or add-ons to higher redemption amounts.

The "bonus" I was referring to comes through strategic use of the points. Instead of taking cash back, you redeem through the Chase travel portal or transfer miles/points to airlines or hotels when there is cost advantage to doing that. You will need the Sapphire Preferred/Reserve to be able to do that.

cusetownusa · Post by **cusetownusa** » Thu Jun 08, 2017 8:19 pm

C4NT wrote:
F150HD wrote:if one does this w/ a Citi Doublecash 2% card, this actually reduces the % you get back as it is reducing your payment.
Was discussed in a different thread months back.
Thanks, I had never thought of that (didn't see the other thread either).

Perfect timing. Was just about to redeem my double cash for the first time and would have choosen credit.

Probably makes since to do this with the Amazon Credit card instead of applying it towards your purchase. Not sure if you apply towards the purchase if you lose the 5% cash back on that purchase?