Fidelity Unlimited 2% Cash back

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ThisJustIn
Posts: 203
Joined: Sun Mar 11, 2018 10:53 pm

Fidelity Unlimited 2% Cash back

Post by ThisJustIn » Wed Jan 09, 2019 11:10 pm

I got "Fidelity Unlimited 2% Cash back" card offer. with $150 bonus if $1500 spent in 3 months.

I already have Bofa Cash-back (2% becomes 3.5% due to Platinum Honor status), and Bofa Travel Rewards card (1.5% all categories, becomes 2.625% due to Platinum Honor status).

Would open a Fidelity Unlimited 2% Cash back card make sense in this case? Would it be worth opening a new card line which will drop my average credit age?

JBTX
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Joined: Wed Jul 26, 2017 12:46 pm

Re: Fidelity Unlimited 2% Cash back

Post by JBTX » Wed Jan 09, 2019 11:23 pm

We've had fidelity 2% cards for many years. Having said that I'm not sure of the benefit of you can get more on another card.

HEDGEFUNDIE
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Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Wed Jan 09, 2019 11:27 pm

0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Wed Jan 09, 2019 11:29 pm

HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
:oops: :annoyed :confused
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

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whodidntante
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Joined: Thu Jan 21, 2016 11:11 pm

Re: Fidelity Unlimited 2% Cash back

Post by whodidntante » Wed Jan 09, 2019 11:32 pm

One thing I like about the card is I regularly get targeted spending bonuses offered to me for an additional 1% cash back. I agree with HEDGEFUNDIE that a 0% purchase APR offer is nice. I'm currently floating 35k on 0% promos, paying minimums.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Wed Jan 09, 2019 11:34 pm

BUBear29 wrote:
Wed Jan 09, 2019 11:29 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
:oops: :annoyed :confused
The credit card company knows they can’t afford to compete with higher and higher rewards %, so instead they include Backdoor incentives like this to appeal to the financially savvy among us. Feel free to pass on it, more cash for the rest of us.

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Wed Jan 09, 2019 11:35 pm

HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:34 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:29 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
:oops: :annoyed :confused
The credit card company knows they can’t afford to compete with higher and higher rewards %, so instead they include Backdoor incentives like this to appeal to the financially savvy among us. Feel free to pass on it, more cash for the rest of us.
financially savvy would be paying off the debt (and not obtaining any more debt), not floating from promo to promo.

no offense. just surprised to read this on BH.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Wed Jan 09, 2019 11:37 pm

BUBear29 wrote:
Wed Jan 09, 2019 11:35 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:34 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:29 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
:oops: :annoyed :confused
The credit card company knows they can’t afford to compete with higher and higher rewards %, so instead they include Backdoor incentives like this to appeal to the financially savvy among us. Feel free to pass on it, more cash for the rest of us.
fonancially savvy would be paying off the debt (and not obtaining any more debt), not floating from promo to promo.
Debt is just a number on a piece of paper (or on a screen). Why should I let it bother me?

In this case you would pay the whole thing off in 12 months and end up 2% richer, what’s non-BHish about that?
Last edited by HEDGEFUNDIE on Wed Jan 09, 2019 11:41 pm, edited 2 times in total.

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Wed Jan 09, 2019 11:41 pm

HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:37 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:35 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:34 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:29 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
:oops: :annoyed :confused
The credit card company knows they can’t afford to compete with higher and higher rewards %, so instead they include Backdoor incentives like this to appeal to the financially savvy among us. Feel free to pass on it, more cash for the rest of us.
fonancially savvy would be paying off the debt (and not obtaining any more debt), not floating from promo to promo.
Debt is just a number on a piece of paper (or on a screen). Why should I let it bother me?
because you have an obligation to repay said debt. being over-levered can take anyone down. however if you have a formula that works for you (everyone has diff tolerances) then that works too. i dont believe in borrowing money personally.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Wed Jan 09, 2019 11:42 pm

BUBear29 wrote:
Wed Jan 09, 2019 11:41 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:37 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:35 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:34 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:29 pm


:oops: :annoyed :confused
The credit card company knows they can’t afford to compete with higher and higher rewards %, so instead they include Backdoor incentives like this to appeal to the financially savvy among us. Feel free to pass on it, more cash for the rest of us.
fonancially savvy would be paying off the debt (and not obtaining any more debt), not floating from promo to promo.
Debt is just a number on a piece of paper (or on a screen). Why should I let it bother me?
because you have an obligation to repay said debt. being over-levered can take anyone down. however if you have a formula that works for you (everyone has diff tolerances) then that works too. i dont believe in borrowing money personally.
That’s ironic coming from a “Commercial Credit Underwriter”...

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Wed Jan 09, 2019 11:43 pm

HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:42 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:41 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:37 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:35 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:34 pm


The credit card company knows they can’t afford to compete with higher and higher rewards %, so instead they include Backdoor incentives like this to appeal to the financially savvy among us. Feel free to pass on it, more cash for the rest of us.
fonancially savvy would be paying off the debt (and not obtaining any more debt), not floating from promo to promo.
Debt is just a number on a piece of paper (or on a screen). Why should I let it bother me?
because you have an obligation to repay said debt. being over-levered can take anyone down. however if you have a formula that works for you (everyone has diff tolerances) then that works too. i dont believe in borrowing money personally.
That’s ironic coming from a “Commercial Credit Underwriter”...
is it?
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Wed Jan 09, 2019 11:44 pm

BUBear29 wrote:
Wed Jan 09, 2019 11:43 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:42 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:41 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:37 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:35 pm

fonancially savvy would be paying off the debt (and not obtaining any more debt), not floating from promo to promo.
Debt is just a number on a piece of paper (or on a screen). Why should I let it bother me?
because you have an obligation to repay said debt. being over-levered can take anyone down. however if you have a formula that works for you (everyone has diff tolerances) then that works too. i dont believe in borrowing money personally.
That’s ironic coming from a “Commercial Credit Underwriter”...
is it?
Debt is how you put food on the table, and yet you don’t see the usefulness of it. Without debt how fast would the economy crash? We came close in 2008 when the commercial paper markets dried up.

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Wed Jan 09, 2019 11:46 pm

HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:44 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:43 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:42 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:41 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:37 pm


Debt is just a number on a piece of paper (or on a screen). Why should I let it bother me?
because you have an obligation to repay said debt. being over-levered can take anyone down. however if you have a formula that works for you (everyone has diff tolerances) then that works too. i dont believe in borrowing money personally.
That’s ironic coming from a “Commercial Credit Underwriter”...
is it?
Debt is how you put food on the table, and yet you don’t see the usefulness of it. Without debt how fast would the economy crash? We came close in 2008 when the commercial paper markets dried up.
getting repaid is how i put food on the table. not refinancing company debt only hoping to have it refinanced again. banks make no money on lending.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Wed Jan 09, 2019 11:51 pm

BUBear29 wrote:
Wed Jan 09, 2019 11:46 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:44 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:43 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:42 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:41 pm


because you have an obligation to repay said debt. being over-levered can take anyone down. however if you have a formula that works for you (everyone has diff tolerances) then that works too. i dont believe in borrowing money personally.
That’s ironic coming from a “Commercial Credit Underwriter”...
is it?
Debt is how you put food on the table, and yet you don’t see the usefulness of it. Without debt how fast would the economy crash? We came close in 2008 when the commercial paper markets dried up.
getting repaid is how i put food on the table. not refinancing company debt only hoping to have it refinanced again. banks make no money on lending.
:oops: :annoyed :confused

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Wed Jan 09, 2019 11:59 pm

HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:51 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:46 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:44 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:43 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:42 pm


That’s ironic coming from a “Commercial Credit Underwriter”...
is it?
Debt is how you put food on the table, and yet you don’t see the usefulness of it. Without debt how fast would the economy crash? We came close in 2008 when the commercial paper markets dried up.
getting repaid is how i put food on the table. not refinancing company debt only hoping to have it refinanced again. banks make no money on lending.
:oops: :annoyed :confused
commercial banks. obviously a retail bank can make good money charging you 18-22% interest on your credit card once your promo runs out.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Thu Jan 10, 2019 12:04 am

BUBear29 wrote:
Wed Jan 09, 2019 11:59 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:51 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:46 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:44 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:43 pm

is it?
Debt is how you put food on the table, and yet you don’t see the usefulness of it. Without debt how fast would the economy crash? We came close in 2008 when the commercial paper markets dried up.
getting repaid is how i put food on the table. not refinancing company debt only hoping to have it refinanced again. banks make no money on lending.
:oops: :annoyed :confused
commercial banks. obviously a retail bank can make good money charging you 18-22% interest on your credit card once your promo runs out.
Come on. The strategy here is to keep the money in a savings account. So when the 0% loan runs out you pay off the whole thing, yielding a risk free return of 2% + the 2% rewards.

If you don’t have the discipline to keep the cash in savings, buying a 12 month CD works too (and will give you a higher yield, closer to 3%).
Last edited by HEDGEFUNDIE on Thu Jan 10, 2019 12:05 am, edited 1 time in total.

mac808
Posts: 475
Joined: Mon Sep 19, 2011 8:45 pm

Re: Fidelity Unlimited 2% Cash back

Post by mac808 » Thu Jan 10, 2019 12:04 am

Fidelity outsources administration of the actual credit card to a separate firm. I've had a series of terrible (very un-Fidelity-like) customer service experiences as a result. I switched to the BOA cash back card instead.

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Thu Jan 10, 2019 12:08 am

HEDGEFUNDIE wrote:
Thu Jan 10, 2019 12:04 am
BUBear29 wrote:
Wed Jan 09, 2019 11:59 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:51 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:46 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:44 pm


Debt is how you put food on the table, and yet you don’t see the usefulness of it. Without debt how fast would the economy crash? We came close in 2008 when the commercial paper markets dried up.
getting repaid is how i put food on the table. not refinancing company debt only hoping to have it refinanced again. banks make no money on lending.
:oops: :annoyed :confused
commercial banks. obviously a retail bank can make good money charging you 18-22% interest on your credit card once your promo runs out.
Come on. The strategy here is to keep the money in a savings account. So when the 0% loan runs out you pay off the whole thing, yielding a risk free return of 2% + the 2% rewards.

If you don’t have the discipline to keep the cash in savings, buying a 12 month CD works too (and will give you a higher yield, closer to 3%).
i don’t disagree with the logic. it just may not be worth it depending on the size of the debt imo. for many there is a psychological weight debt holds no matter the due date or interest rate. like I said, people have different tolerances.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Thu Jan 10, 2019 12:17 am

BUBear29 wrote:
Thu Jan 10, 2019 12:08 am
for many there is a psychological weight debt holds no matter the due date or interest rate. like I said, people have different tolerances.
Which I genuinely do not understand.

I see young people on here striving to pay off 2-3% mortgages early when they should be investing in the stock market and letting the returns compound. And then in the same breath asking whether they should save 0.1% expense ratio by switching to a cheaper index fund. 🤔

I hold a $1.2M low interest ARM on my house and close to $50k in zero interest loans. By playing the debt game I have grown my net worth by at least six figures. So debt actually helps me sleep better at night, not worse.

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Thu Jan 10, 2019 12:20 am

HEDGEFUNDIE wrote:
Thu Jan 10, 2019 12:17 am
BUBear29 wrote:
Thu Jan 10, 2019 12:08 am
for many there is a psychological weight debt holds no matter the due date or interest rate. like I said, people have different tolerances.
Which I genuinely do not understand.

I see young people on here striving to pay off 2-3% mortgages early when they should be investing in the stock market and letting the returns compound. And then in the same breath asking whether they should save 0.1% expense ratio by switching to a cheaper index fund. 🤔

I hold a $1.2M low interest ARM on my house and close to $50k in zero interest loans. By playing the debt game I have grown my net worth by at least six figures. So debt actually helps me sleep better at night, not worse.
while i don’t agree with your strategy personally it does make sense logically.

different strokes i guess.

the index fund change questions are always a good laugh.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

marcopolo
Posts: 1395
Joined: Sat Dec 03, 2016 10:22 am

Re: Fidelity Unlimited 2% Cash back

Post by marcopolo » Thu Jan 10, 2019 12:21 am

BUBear29 wrote:
Thu Jan 10, 2019 12:08 am
HEDGEFUNDIE wrote:
Thu Jan 10, 2019 12:04 am
BUBear29 wrote:
Wed Jan 09, 2019 11:59 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:51 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:46 pm

getting repaid is how i put food on the table. not refinancing company debt only hoping to have it refinanced again. banks make no money on lending.
:oops: :annoyed :confused
commercial banks. obviously a retail bank can make good money charging you 18-22% interest on your credit card once your promo runs out.
Come on. The strategy here is to keep the money in a savings account. So when the 0% loan runs out you pay off the whole thing, yielding a risk free return of 2% + the 2% rewards.

If you don’t have the discipline to keep the cash in savings, buying a 12 month CD works too (and will give you a higher yield, closer to 3%).
i don’t disagree with the logic. it just may not be worth it depending on the size of the debt imo. for many there is a psychological weight debt holds no matter the due date or interest rate. like I said, people have different tolerances.
People make all sorts of behavioral errors when it comes to money. Avoiding free money because of some irrational fear of debt seems like one of those behavioral errors. If your argument is that it is too small an amount to make it worth the trouble, that might be a reasonable argument. But, it is hard to see how you can argue that AND be so concerned about the "psychological weight" of the debt at the same time.
Once in a while you get shown the light, in the strangest of places if you look at it right.

MotoTrojan
Posts: 2940
Joined: Wed Feb 01, 2017 8:39 pm

Re: Fidelity Unlimited 2% Cash back

Post by MotoTrojan » Thu Jan 10, 2019 12:30 am

There is much better than 2% out there with larger sign up bonuses and several also giving 0% for 12 months. Saphire, Propel, Savor (not 0% APR), etc.

Beatle Boots
Posts: 16
Joined: Mon Nov 12, 2018 11:28 am

Re: Fidelity Unlimited 2% Cash back

Post by Beatle Boots » Thu Jan 10, 2019 1:16 pm

HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
Your post got me thinking: Had this card for awhile and points have slowly been adding up and just sitting there (Lazy Me). Just starting to get enough points that I need to do something to get more $. What low cost Fidelity fund would you recommend rolling my 2% earned rewards into get another 2%. I see this $ as "semi-free money". Not really looking for high risk / high returns. Four percent return on this for "semi-free money" for a possible vacation is fine?

Thanks!

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Thu Jan 10, 2019 1:18 pm

Beatle Boots wrote:
Thu Jan 10, 2019 1:16 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
Your post got me thinking: Had this card for awhile and points have slowly been adding up and just sitting there (Lazy Me). Just starting to get enough points that I need to do something to get more $. What low cost Fidelity fund would you recommend rolling my 2% earned rewards into get another 2%. I see this $ as "semi-free money". Not really looking for high risk / high returns. Four percent return on this for "semi-free money" for a possible vacation is fine?

Thanks!
Invest it according to your asset allocation and IPS. Zero funds in a taxable account should work fine.

arf30
Posts: 377
Joined: Sat Dec 28, 2013 11:55 am

Re: Fidelity Unlimited 2% Cash back

Post by arf30 » Thu Jan 10, 2019 1:26 pm

Beatle Boots wrote:
Thu Jan 10, 2019 1:16 pm
Your post got me thinking: Had this card for awhile and points have slowly been adding up and just sitting there (Lazy Me).
Set up the auto redemption so they send the cash to your Fidelity brokerage automatically, they'll earn 2% there sitting in SPAXX until you decide what to do with the money.

Darth Xanadu
Posts: 525
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Location: Middle Earth

Re: Fidelity Unlimited 2% Cash back

Post by Darth Xanadu » Thu Jan 10, 2019 1:28 pm

arf30 wrote:
Thu Jan 10, 2019 1:26 pm
Beatle Boots wrote:
Thu Jan 10, 2019 1:16 pm
Your post got me thinking: Had this card for awhile and points have slowly been adding up and just sitting there (Lazy Me).
Set up the auto redemption so they send the cash to your Fidelity brokerage automatically, they'll earn 2% there sitting in SPAXX until you decide what to do with the money.
:beer

I do this as well. Note that you need to hit a threshold of points before they transfer. I don't remember what it is.
"A courageous teacher, failure is."

ronako
Posts: 14
Joined: Sat Jul 20, 2013 2:33 am

Re: Fidelity Unlimited 2% Cash back

Post by ronako » Thu Jan 10, 2019 1:49 pm

I'm not sure how the Fidelity card makes sense when you're already getting 2.625% from the BofA card and is already greater than Fidelity's 2% cashback (I have both of the same BofA cards BTW).

Yes, getting a new card will temporarily drop your credit score due to 'Average Age', but will likely increase your score higher over time due to a lower
utilization %. Why not look for a 5% cashback card like the Freedom?

aristotelian
Posts: 5070
Joined: Wed Jan 11, 2017 8:05 pm

Re: Fidelity Unlimited 2% Cash back

Post by aristotelian » Thu Jan 10, 2019 1:56 pm

BUBear29 wrote:
Wed Jan 09, 2019 11:35 pm
financially savvy would be paying off the debt (and not obtaining any more debt), not floating from promo to promo.

no offense. just surprised to read this on BH.
I agree to an extent, some of these things are not worth the effort. However, a different way to look at it is that credit card companies are doing everything they can to nickel and dime vendors with the fees they charge, and then vendors pass those costs to the consumer. We don't see it, but there is probably a 2-3% premium built into every item we buy (even if we pay cash!). Optimizing your rewards is really necessary to offset the charges you are paying (but can't see) every day.

I have not gone to the lengths of debt arbitrage but it's not a bad idea, to be honest.

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aj76er
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Re: Fidelity Unlimited 2% Cash back

Post by aj76er » Thu Jan 10, 2019 2:21 pm

BUBear29 wrote:
Wed Jan 09, 2019 11:29 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
:oops: :annoyed :confused
Are you considering this as part of your fixed income AA? After taxes, you'll probably do about as well as BND total year's return if held in tax sheltered; albeit with some more accounting work and behavioral risk (i.e. forgetting to pay-off, etc...).
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

Beatle Boots
Posts: 16
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Re: Fidelity Unlimited 2% Cash back

Post by Beatle Boots » Thu Jan 10, 2019 2:46 pm

arf30 wrote:
Thu Jan 10, 2019 1:26 pm
Beatle Boots wrote:
Thu Jan 10, 2019 1:16 pm
Your post got me thinking: Had this card for awhile and points have slowly been adding up and just sitting there (Lazy Me).
Set up the auto redemption so they send the cash to your Fidelity brokerage automatically, they'll earn 2% there sitting in SPAXX until you decide what to do with the money.
arf30 and Darth Xanadu,

Thank you for your kind advice!

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Thu Jan 10, 2019 2:52 pm

aj76er wrote:
Thu Jan 10, 2019 2:21 pm
BUBear29 wrote:
Wed Jan 09, 2019 11:29 pm
HEDGEFUNDIE wrote:
Wed Jan 09, 2019 11:27 pm
0% APR for 12 months on purchases is the real deal on this card.

You get 2% back as rewards, pay the minimum balance and then keep the rest in a high yield savings account, which gives you another 2% in the form of an interest free loan. So 4% cash back total.
:oops: :annoyed :confused
Are you considering this as part of your fixed income AA? After taxes, you'll probably do about as well as BND total year's return if held in tax sheltered; albeit with some more accounting work and behavioral risk (i.e. forgetting to pay-off, etc...).
It is not such a big amount that it makes a difference to my AA. Honestly I just consider it some extra spending money.

Jack FFR1846
Posts: 8310
Joined: Tue Dec 31, 2013 7:05 am

Re: Fidelity Unlimited 2% Cash back

Post by Jack FFR1846 » Thu Jan 10, 2019 2:53 pm

It's $150 free dollars. Get the card. Get the bonus by doing the spend. Put the money into a Fidelity account when it all makes its way in your account and then sock drawer the card.

If your credit is really that young and you're looking to buy a house or a car or something soon, when your money is safe in your fidelity account, close the card.
Bogle: Smart Beta is stupid

PeterParker
Posts: 54
Joined: Sun Mar 17, 2013 2:19 pm

Re: Fidelity Unlimited 2% Cash back

Post by PeterParker » Thu Jan 10, 2019 2:59 pm

4% loan scheme
The irony is not only the complication and risk of this "scheme" but that if you're going to "try hard" with credit card rewards, you can easily surpass 4% return on purchases for a year (on average) --- without some crack pot scheme that exposes you to a mountain of interest if there is some kind of payment glitch.

But to each their own.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Thu Jan 10, 2019 3:07 pm

PeterParker wrote:
Thu Jan 10, 2019 2:59 pm
4% loan scheme
The irony is not only the complication and risk of this "scheme" but that if you're going to "try hard" with credit card rewards, you can easily surpass 4% return on purchases for a year (on average) --- without some crack pot scheme that exposes you to a mountain of interest if there is some kind of payment glitch.

But to each their own.
What you call a "crack pot scheme" is literally how banks work.

https://www.simple.com/blog/how-do-banks-work

PeterParker
Posts: 54
Joined: Sun Mar 17, 2013 2:19 pm

Re: Fidelity Unlimited 2% Cash back

Post by PeterParker » Thu Jan 10, 2019 3:12 pm

Well if you're comfortable taking a constant loan of your annual spending (30-60k or whatever it is) that is currently 0% until they notify you otherwise, go for it.

Like I said though, if you're going to "try-hard" might as well just go the churning route where you're probably averaging 10%+ returns and making thousands in various points and miles every year.

Like, the only positive of the Fidelity 2% card is in its simplicity, not its return rate. You seem to be making it not simple to increase returns. Well, might as well just go the churning route at that point.

UpperNwGuy
Posts: 1435
Joined: Sun Oct 08, 2017 7:16 pm

Re: Fidelity Unlimited 2% Cash back

Post by UpperNwGuy » Thu Jan 10, 2019 3:22 pm

HEDGEFUNDIE wrote:
Thu Jan 10, 2019 12:17 am
I see young people on here striving to pay off 2-3% mortgages early when they should be investing in the stock market and letting the returns compound. And then in the same breath asking whether they should save 0.1% expense ratio by switching to a cheaper index fund. 🤔
^^^ I have never understood the fascination some people on this board have for paying off their mortgages early.

BUBear29
Posts: 187
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity Unlimited 2% Cash back

Post by BUBear29 » Thu Jan 10, 2019 3:59 pm

UpperNwGuy wrote:
Thu Jan 10, 2019 3:22 pm
HEDGEFUNDIE wrote:
Thu Jan 10, 2019 12:17 am
I see young people on here striving to pay off 2-3% mortgages early when they should be investing in the stock market and letting the returns compound. And then in the same breath asking whether they should save 0.1% expense ratio by switching to a cheaper index fund. 🤔
^^^ I have never understood the fascination some people on this board have for paying off their mortgages early.
serious question. would you mortgage your paid for house to invest in the market?
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Thu Jan 10, 2019 4:14 pm

BUBear29 wrote:
Thu Jan 10, 2019 3:59 pm
UpperNwGuy wrote:
Thu Jan 10, 2019 3:22 pm
HEDGEFUNDIE wrote:
Thu Jan 10, 2019 12:17 am
I see young people on here striving to pay off 2-3% mortgages early when they should be investing in the stock market and letting the returns compound. And then in the same breath asking whether they should save 0.1% expense ratio by switching to a cheaper index fund. 🤔
^^^ I have never understood the fascination some people on this board have for paying off their mortgages early.
serious question. would you mortgage your paid for house to invest in the market?
When 30 year fixed rates were under 3% post-financial crisis, yes I would have done it.

Every year I pay insurance, maintenance, and property taxes, it totals into the five figures per year. "Owning" a house outright does not eliminate costs, far from it. It's much better to consider the whole thing financially instead of sentimentally or emotionally.
Last edited by HEDGEFUNDIE on Thu Jan 10, 2019 4:51 pm, edited 1 time in total.

HEDGEFUNDIE
Posts: 1549
Joined: Sun Oct 22, 2017 2:06 pm

Re: Fidelity Unlimited 2% Cash back

Post by HEDGEFUNDIE » Thu Jan 10, 2019 4:18 pm

PeterParker wrote:
Thu Jan 10, 2019 3:12 pm
Well if you're comfortable taking a constant loan of your annual spending (30-60k or whatever it is) that is currently 0% until they notify you otherwise, go for it.
I keep that amount in savings so there is literally 0 risk. Are you suggesting a card company will reneg on a 0% offer halfway into the offer? Have never heard of that happening.
Like I said though, if you're going to "try-hard" might as well just go the churning route where you're probably averaging 10%+ returns and making thousands in various points and miles every year.
Don't worry, I do that too. You should see my Chase Ultimate Rewards balance.

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