What's Your Credit Card Rewards Strategy?

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drjd
Posts: 40
Joined: Tue Jan 10, 2017 5:26 pm

Re: What's Your Credit Card Rewards Strategy?

Post by drjd »

LoveAllDogs wrote: Fri Feb 03, 2023 1:00 am Fidelity - 2.25% main card when not a specific category, our preschool doesn't charge a fee for using credit cards surprisingly
Citi Double cash - 2% used for a few bills
Citi Costco - We are executive members so we get an extra 2% back on top of 4% gas, etc
Bank of America - We were platinum preferred, but I lost track of how much we were dumping into 4 week Treasuries so we will be downgraded to gold for a few months. Two cards. One is dining and one is online shopping. Platinum preferred pays 5.25%. Gold drops it to 4.5%.
Amazon - 3% cash back since we cancelled Amazon Prime
Target - 5%
Chase Sapphire Reserve - we are new to this, got the 80000 point bonus then will decide if we keep it, we will travel more starting this year since the pandemic started
That's great! How do you get 2.25% with Fidelity?? I thought their's was only 2%, if they have a 2.25% I'd consider making it my primary card again!
jco
Posts: 370
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Re: What's Your Credit Card Rewards Strategy?

Post by jco »

drjd wrote: Fri Feb 03, 2023 5:28 am That's great! How do you get 2.25% with Fidelity?? I thought their's was only 2%, if they have a 2.25% I'd consider making it my primary card again!
They likely have enough money at Fidelity managed as a Wealth Management Client. It's not a popular choice among Bogleheads because it has an advisor fee.

https://www.fidelity.com/rewards/overview
ZinCO
Posts: 359
Joined: Thu Nov 05, 2015 8:42 pm

Re: What's Your Credit Card Rewards Strategy?

Post by ZinCO »

unmesh wrote: Fri Feb 03, 2023 12:35 am
atdharris wrote: Tue Jan 31, 2023 3:33 pm The normal Plat gives you 5x points. Amex only lets you redeem points for 0.6 points per dollar. The Schwab version let you redeem points for 1.1 points per dollar. So yeah, if you have Schwab's version, you are getting 5.5% back on flights if you redeem into a Schwab account.
I have had a Schwab Amex Platinum for several years and did not know about the 1.1 redemption rate option!

Thanks!
Then you probably also didn't know that until September 1 2021, it was 1.25. Nothing you can do about that now though.
LoveAllDogs
Posts: 26
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Re: What's Your Credit Card Rewards Strategy?

Post by LoveAllDogs »

jco wrote: Fri Feb 03, 2023 7:42 am
drjd wrote: Fri Feb 03, 2023 5:28 am That's great! How do you get 2.25% with Fidelity?? I thought their's was only 2%, if they have a 2.25% I'd consider making it my primary card again!
They likely have enough money at Fidelity managed as a Wealth Management Client. It's not a popular choice among Bogleheads because it has an advisor fee.

https://www.fidelity.com/rewards/overview
Yes, they took my accounts and my parents accounts and combined their value to get me this rate. This also reduced the advisor fee. I manage half myself and half with the advisors. They are doing okay.
TravelGeek
Posts: 4902
Joined: Sat Oct 25, 2014 3:23 pm

Re: What's Your Credit Card Rewards Strategy?

Post by TravelGeek »

unmesh wrote: Fri Feb 03, 2023 12:35 am I have had a Schwab Amex Platinum for several years and did not know about the 1.1 redemption rate option!

Thanks!
I have bad news: it actually was 1.25 before Sept 2021.

Edit: oops, about two hours late :)
Last edited by TravelGeek on Fri Feb 03, 2023 10:50 am, edited 2 times in total.
unmesh
Posts: 101
Joined: Sun Feb 23, 2014 3:28 pm

Re: What's Your Credit Card Rewards Strategy?

Post by unmesh »

1.1 is still good since I'm likely going to cancel the Schwab Platinum Card and this gives me a clean exit
spammagnet
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Re: What's Your Credit Card Rewards Strategy?

Post by spammagnet »

LoveAllDogs wrote: Fri Feb 03, 2023 1:00 amChase Sapphire Reserve - we are new to this, got the 80000 point bonus then will decide if we keep it, we will travel more starting this year since the pandemic started
Sapphire Preferred and Reserve have added value in that you can transfer UR points to their travel partners at a 1:1 ratio. That may not be as good as the redemption rate on Expedia (Chase Travel) but the actual value depends on the cost on Expedia vs purchase directly from the travel partner for points.
EnjoyIt
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Re: What's Your Credit Card Rewards Strategy?

Post by EnjoyIt »

spammagnet wrote: Sun Feb 05, 2023 8:54 am
LoveAllDogs wrote: Fri Feb 03, 2023 1:00 amChase Sapphire Reserve - we are new to this, got the 80000 point bonus then will decide if we keep it, we will travel more starting this year since the pandemic started
Sapphire Preferred and Reserve have added value in that you can transfer UR points to their travel partners at a 1:1 ratio. That may not be as good as the redemption rate on Expedia (Chase Travel) but the actual value depends on the cost on Expedia vs purchase directly from the travel partner for points.
One of the benefits of buying airfare through chase travel via UR points is that you still get the miles for the travel which can be beneficial when looking for status. I value the status because it provides free luggage and usually free extended legroom. Sometimes even gives me a first class flight upgrade. last year I was upgraded to first class probably on 1/3 of my flights.
A time to EVALUATE your jitters: | viewtopic.php?p=1139732#p1139732
spammagnet
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Re: What's Your Credit Card Rewards Strategy?

Post by spammagnet »

EnjoyIt wrote: Mon Feb 06, 2023 8:39 am last year I was upgraded to first class probably on 1/3 of my flights.
I wish ...
EnjoyIt
Posts: 8272
Joined: Sun Dec 29, 2013 7:06 pm

Re: What's Your Credit Card Rewards Strategy?

Post by EnjoyIt »

spammagnet wrote: Mon Feb 06, 2023 8:57 am
EnjoyIt wrote: Mon Feb 06, 2023 8:39 am last year I was upgraded to first class probably on 1/3 of my flights.
I wish ...
Honestly, it really isn't all that when flying domestic. International is a whole other story. Yes I am more comfortable in the wider seat with more legroom. But the food still sucks so even flying first I bring my own food. Having a few drinks is nice and makes the flight go better but you can purchase drinks and do I really want to be drunk every time I fly? No. My point being, without a doubt paying cash for first class just isn't worth it to me. But I would gladly take it when upgraded :D.
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Harmanic
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Re: What's Your Credit Card Rewards Strategy?

Post by Harmanic »

I keep hearing from folks that one should have a 2% cash back credit card to get the best rewards, but I don't see what the big deal is.
I already have several cards that give bonus rewards on certain categories up to 6% and anything that is not in those categories I put on a basic visa credit card that gets 1% on everything. I basically use it for car repairs, utilities, insurance, etc. Last year I put around $10k on that card, but a 2% card would only net me an extra $100 in cash back per year. So I am wondering what the fuss is all about.
The question isn't at what age I want to retire, it's at what income. | - George Foreman
Leesbro63
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Re: What's Your Credit Card Rewards Strategy?

Post by Leesbro63 »

Harmanic wrote: Wed Feb 08, 2023 4:07 pm I keep hearing from folks that one should have a 2% cash back credit card to get the best rewards, but I don't see what the big deal is.
I already have several cards that give bonus rewards on certain categories up to 6% and anything that is not in those categories I put on a basic visa credit card that gets 1% on everything. I basically use it for car repairs, utilities, insurance, etc. Last year I put around $10k on that card, but a 2% card would only net me an extra $100 in cash back per year. So I am wondering what the fuss is all about.
I agree with your larger point: People can get too carried away with all of this...too much work for too few additional dollars. For many, the 2% card (or the BofA 2.625% card if you have $100K at Merrill) is a good "all around" card to use without having to play the game with multiple cards. It sounds like you've found an "all around card" that works well for the way you shop, even if it's not 2% or 2.625%.
Allixi
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Re: What's Your Credit Card Rewards Strategy?

Post by Allixi »

Harmanic wrote: Wed Feb 08, 2023 4:07 pm I keep hearing from folks that one should have a 2% cash back credit card to get the best rewards, but I don't see what the big deal is.
I already have several cards that give bonus rewards on certain categories up to 6% and anything that is not in those categories I put on a basic visa credit card that gets 1% on everything. I basically use it for car repairs, utilities, insurance, etc. Last year I put around $10k on that card, but a 2% card would only net me an extra $100 in cash back per year. So I am wondering what the fuss is all about.
Then why not put your non-bonus spending on a 2% card?

The other reason is so that you don’t have to waste brainpower worrying about categories with a 2% cashback card. Just like how most Bogleheads don’t waste brainpower thinking about active trading.

If you’re willing to play these games then you can certainly earn more points/dollar spent. You can even go further with Shopping Networks and Gift Cards. Most people would not find it worth their time.
EnjoyIt
Posts: 8272
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Re: What's Your Credit Card Rewards Strategy?

Post by EnjoyIt »

Harmanic wrote: Wed Feb 08, 2023 4:07 pm I keep hearing from folks that one should have a 2% cash back credit card to get the best rewards, but I don't see what the big deal is.
I already have several cards that give bonus rewards on certain categories up to 6% and anything that is not in those categories I put on a basic visa credit card that gets 1% on everything. I basically use it for car repairs, utilities, insurance, etc. Last year I put around $10k on that card, but a 2% card would only net me an extra $100 in cash back per year. So I am wondering what the fuss is all about.
Here is the way I see it. I spend tens of thousands a year on credit. Even a 1% difference in return is worth a few hundred dollars. If I can go from 2% to 5.25% or 7.5% return that can be a few hundred more. It is not that difficult to come up with scenarios in my own life that make playing the game worth well over $1k a year and that doesn't t include credit card sign up bonuses. Is $1k worth it? I think it is. I have the free time, I enjoy it and therefor I play the game. To each their own.

Another way to put it. How much effort do you need to do to get a citi 2% cash back card? Five minutes to fill out the form. Another 2 minutes to activate the card when it arrives. Then maybe another minute to trash your 1% card and put the 2% card into your wallet. In less than 10 minutes you made $100 based on your example. And not just this year. You made $100 for every year to come. Sounds like a great use of your time.
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jnw
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Re: What's Your Credit Card Rewards Strategy?

Post by jnw »

My latest strategy, besides sign up bonuses/churning is to get cards with 15 months 0% APR on purchases. Instead of paying off the balance each month in full, I pay the bare minimum payment .. say $50 to $100 per month. By doing this, I instead deposit the cash I would of used to pay off the balance, into a money market account yielding 4.4%. Say the credit card limit is $8000.. I might keep the card close $8000 for 12 months or more since it's 0% interest.. so I'd instead be getting 4.4% income on $8000 for a year for free. Then I pay off the credit card in full -- from the money market account -- just before the 15 month APR intro offer expires.

Let me know if anyone thinks this is a bad idea. I just started doing it this month. Instead of paying down a 0% credit card I currently by $1000, I instead put it in my money market account at vangaurd earning close to 4.5%. The introductory offer ends July 22, 2023.. so early july I'll take out the $4500 or so from the money market to pay it off, meantime I've earned a little cash on the interest.
Last edited by jnw on Wed Feb 08, 2023 9:57 pm, edited 1 time in total.
tj
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Re: What's Your Credit Card Rewards Strategy?

Post by tj »

JenniferW wrote: Wed Feb 08, 2023 9:55 pm My latest strategy, besides sign up bonuses/churning is to get cards with 15 months 0% APR on purchases. Instead of paying off the balance each month in full, I pay the bare minimum payment .. say $50 to $100 per month. By doing this, I instead deposit the cash I would of used to pay off the balance, into a money market account yielding 4.4%. Say the credit card limit is $8000.. I might keep the card close $8000 for 12 months or more since it's 0% interest.. so I'd instead be getting 4.4% income on $8000 for a year for free. Then I pay off the credit card in full just before the 15 month APR intro offer expires.
I'm assuming this lowers your credit score?
jnw
Posts: 567
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Re: What's Your Credit Card Rewards Strategy?

Post by jnw »

tj wrote: Wed Feb 08, 2023 9:56 pm I'm assuming this lowers your credit score?
Well I have like 8 cards or so with high credit limits.. I currently only utilizing 7% of my available credit. Current score is 786.

I am not quite sure at what percentage credit utilization makes it harder to get new cards or how it affects score.
boston10
Posts: 164
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Re: What's Your Credit Card Rewards Strategy?

Post by boston10 »

JenniferW wrote: Wed Feb 08, 2023 9:55 pm My latest strategy, besides sign up bonuses/churning is to get cards with 15 months 0% APR on purchases. Instead of paying off the balance each month in full, I pay the bare minimum payment .. say $50 to $100 per month. By doing this, I instead deposit the cash I would of used to pay off the balance, into a money market account yielding 4.4%. Say the credit card limit is $8000.. I might keep the card close $8000 for 12 months or more since it's 0% interest.. so I'd instead be getting 4.4% income on $8000 for a year for free. Then I pay off the credit card in full -- from the money market account -- just before the 15 month APR intro offer expires.

Let me know if anyone thinks this is a bad idea. I just started doing it this month. Instead of paying down a 0% credit card I currently by $1000, I instead put it in my money market account at vangaurd earning close to 4.5%. The introductory offer ends July 22, 2023.. so early july I'll take out the $4500 or so from the money market to pay it off, meantime I've earned a little cash on the interest.
I started doing this last year when interest rates started to rise and money markets started paying interest again. I selected cards that I wanted anyway for rewards purposes (2x BoA CCR and a U.S. Bank Cash+) and which also paid sign-up bonuses to kill three birds with one stone. I staggered the sign-up dates as well so that the expiration of the promo rate happens at different times. I have $14k outstanding across all 3 cards on a limit of $28.5k on the three cards. Like you, my total credit limit across all my cards is much higher (I have 12 cards total) so my utilization is fine.

First promo period expires in August. When it does, I'll evaluate whether a balance transfer to another card makes financial sense in the promotional and interest rate environment that exists at that point. For now, all utilities (Cash+), restaurants and dining (CCR1), and online purchases (CCR2) are on these cards. The promo period for the other two cards doesn't expire till early 2024.

I have ~$20k in a money market to cover these liabilities that's earning a similar interest rate to yours, with additional automatic transfers every pay period to keep myself honest. I plan to apply for a BoA UCR over the summer once I obtain Platinum Honors status with BoA, which will hopefully still have an 18-month promo + sign-up bonus.

It's a profitable game to play right now. We are still in a loose money environment despite rising interest rates.
MrJedi
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Re: What's Your Credit Card Rewards Strategy?

Post by MrJedi »

I take it a step further and buy some treasuries that mature shortly before the 0% ends.
jnw
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Re: What's Your Credit Card Rewards Strategy?

Post by jnw »

MrJedi wrote: Thu Feb 09, 2023 5:26 am I take it a step further and buy some treasuries that mature shortly before the 0% ends.
The money market funds are almost as hill as t bills.. about the same and the money market rate will proably keep increasing steadily to 5%+ I was going to do the tbill thing but the mature date was 45 days before the promotion end date.. so I just went with money market so I could interest on all the days. I would of had to wait 4 days for auction then a week for the issue date.. so 11 lost days there plus the 45 days I mentioned.
MrJedi
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Re: What's Your Credit Card Rewards Strategy?

Post by MrJedi »

JenniferW wrote: Thu Feb 09, 2023 9:42 am
MrJedi wrote: Thu Feb 09, 2023 5:26 am I take it a step further and buy some treasuries that mature shortly before the 0% ends.
The money market funds are almost as hill as t bills.. about the same and the money market rate will proably keep increasing steadily to 5%+ I was going to do the tbill thing but the mature date was 45 days before the promotion end date.. so I just went with money market so I could interest on all the days. I would of had to wait 4 days for auction then a week for the issue date.. so 11 lost days there plus the 45 days I mentioned.
Ya, there is not a crazy spread or anything to take advantage of. But I do find it helps me bucket/match known liabilities to my funds so that I'm not commingling cash set aside to pay off the debt with my "actual" cash. I'm floating about $40k worth of 0% APR so it's not insignificant for me.
jnw
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Re: What's Your Credit Card Rewards Strategy?

Post by jnw »

MrJedi wrote: Thu Feb 09, 2023 9:51 am
JenniferW wrote: Thu Feb 09, 2023 9:42 am
MrJedi wrote: Thu Feb 09, 2023 5:26 am I take it a step further and buy some treasuries that mature shortly before the 0% ends.
The money market funds are almost as hill as t bills.. about the same and the money market rate will proably keep increasing steadily to 5%+ I was going to do the tbill thing but the mature date was 45 days before the promotion end date.. so I just went with money market so I could interest on all the days. I would of had to wait 4 days for auction then a week for the issue date.. so 11 lost days there plus the 45 days I mentioned.
Ya, there is not a crazy spread or anything to take advantage of. But I do find it helps me bucket/match known liabilities to my funds so that I'm not commingling cash set aside to pay off the debt with my "actual" cash. I'm floating about $40k worth of 0% APR so it's not insignificant for me.
My credit limit on the card is $5k. I know that by July 22 (promotion end date), my credit card balance will be between $4500 and $4800 dollars, because I am going to let it get that high from $3500 it's at now. So I just mentally subtract like $4800k from my money market account when I see it. The MM will grow fast because that $1300 I normally use to pay off card will go into the MM each month. I also put $2k of my $3k emergency fund from checking into the Vanguard MM since it only takes 3 days to ACH it back to bank from Vanguard. So I am now trying out $1k emergency fund in checking instead of $3k.. i dunno maybe idea.

I do use gnucash double entry accounting software to track all my personal finances, it's great.. I know where every penny is and what it belongs to really. I can generate a lot of useful reports. I even track unrealized gains in my retirement accounts, using equity account.. I just update it like once per month to see my current net worth. I used to use Personal Capital web site for tracking net worth but like gnucash much better.. all local data and I have control over each entry and categorical/account structure. Only thing the gnucash lacks is I have to manually adjust unrealized gains in my retirement accounts every so often to see what current net worth is but that takes like 1 or 2 minutes each time.
EnjoyIt
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Re: What's Your Credit Card Rewards Strategy?

Post by EnjoyIt »

JenniferW wrote: Thu Feb 09, 2023 9:58 am
MrJedi wrote: Thu Feb 09, 2023 9:51 am
JenniferW wrote: Thu Feb 09, 2023 9:42 am
MrJedi wrote: Thu Feb 09, 2023 5:26 am I take it a step further and buy some treasuries that mature shortly before the 0% ends.
The money market funds are almost as hill as t bills.. about the same and the money market rate will proably keep increasing steadily to 5%+ I was going to do the tbill thing but the mature date was 45 days before the promotion end date.. so I just went with money market so I could interest on all the days. I would of had to wait 4 days for auction then a week for the issue date.. so 11 lost days there plus the 45 days I mentioned.
Ya, there is not a crazy spread or anything to take advantage of. But I do find it helps me bucket/match known liabilities to my funds so that I'm not commingling cash set aside to pay off the debt with my "actual" cash. I'm floating about $40k worth of 0% APR so it's not insignificant for me.
My credit limit on the card is $5k. I know that by July 22 (promotion end date), my credit card balance will be between $4500 and $4800 dollars, because I am going to let it get that high from $3500 it's at now. So I just mentally subtract like $4800k from my money market account when I see it. The MM will grow fast because that $1300 I normally use to pay off card will go into the MM each month. I also put $2k of my $3k emergency fund from checking into the Vanguard MM since it only takes 3 days to ACH it back to bank from Vanguard. So I am now trying out $1k emergency fund in checking instead of $3k.. i dunno maybe idea.

I do use gnucash double entry accounting software to track all my personal finances, it's great.. I know where every penny is and what it belongs to really. I can generate a lot of useful reports. I even track unrealized gains in my retirement accounts, using equity account.. I just update it like once per month to see my current net worth. I used to use Personal Capital web site for tracking net worth but like gnucash much better.. all local data and I have control over each entry and categorical/account structure. Only thing the gnucash lacks is I have to manually adjust unrealized gains in my retirement accounts every so often to see what current net worth is but that takes like 1 or 2 minutes each time.
Just an FYI. Many banks offer brokerage accounts as well. Chase as an example has a free “you invest” brokerage account. They offer vanguard money market funds such as VFMXX free of charge and the transfer time to get your money into your checking is very fast. Basically you sell how much you need, after closing around 6p (don’t know exact time) same day cash is in the brokerage account and can be instantly transferred into checking. Basically same day.
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jnw
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Re: What's Your Credit Card Rewards Strategy?

Post by jnw »

EnjoyIt wrote: Thu Feb 09, 2023 10:12 am
Just an FYI. Many banks offer brokerage accounts as well. Chase as an example has a free “you invest” brokerage account. They offer vanguard money market funds such as VFMXX free of charge and the transfer time to get your money into your checking is very fast. Basically you sell how much you need, after closing around 6p (don’t know exact time) same day cash is in the brokerage account and can be instantly transferred into checking. Basically same day.
Chase has local branches in most cities as well if you needed cash? Say you wanted to withdraw $2500 in cash on a particular day. Sounds good.
lakpr
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Re: What's Your Credit Card Rewards Strategy?

Post by lakpr »

EnjoyIt wrote: Thu Feb 09, 2023 10:12 am Just an FYI. Many banks offer brokerage accounts as well. Chase as an example has a free “you invest” brokerage account. They offer vanguard money market funds such as VFMXX free of charge and the transfer time to get your money into your checking is very fast. Basically you sell how much you need, after closing around 6p (don’t know exact time) same day cash is in the brokerage account and can be instantly transferred into checking. Basically same day.
Add-on comment to the FYI above. My understanding is the Chase YouInvest brokerage does NOT have access to Admiral shares from Vanguard, only to Investor class shares. I am not a YouInvest customer, so I cannot verify this (I work in the Financial Industry, so I cannot have a brokerage account not authorized by our Compliance team, and Chase is definitely not on the authorized brokers list); but passing on the hearsay.
EnjoyIt
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Re: What's Your Credit Card Rewards Strategy?

Post by EnjoyIt »

lakpr wrote: Thu Feb 09, 2023 11:52 am
EnjoyIt wrote: Thu Feb 09, 2023 10:12 am Just an FYI. Many banks offer brokerage accounts as well. Chase as an example has a free “you invest” brokerage account. They offer vanguard money market funds such as VFMXX free of charge and the transfer time to get your money into your checking is very fast. Basically you sell how much you need, after closing around 6p (don’t know exact time) same day cash is in the brokerage account and can be instantly transferred into checking. Basically same day.
Add-on comment to the FYI above. My understanding is the Chase YouInvest brokerage does NOT have access to Admiral shares from Vanguard, only to Investor class shares. I am not a YouInvest customer, so I cannot verify this (I work in the Financial Industry, so I cannot have a brokerage account not authorized by our Compliance team, and Chase is definitely not on the authorized brokers list); but passing on the hearsay.
I currently hold vtsax at chase which is an admiral share. I believe Vanguard eliminated many of the investor share classes. Also you can purchase the equivalent ETF such as VTI.
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awg75
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Re: What's Your Credit Card Rewards Strategy?

Post by awg75 »

Big fan of the GM Rewards Card. While Goldman's customer service has been consistently mediocre, its rewards return rate is stellar - 4%. While you are locked in to buying a GM vehicle, few cards out there offer a flat 4% return rate on all purchases. It also offers a great way to save up for a car without thinking about it. I'm surprised the card isn't more popular.
gurusw
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Re: What's Your Credit Card Rewards Strategy?

Post by gurusw »

awg75 wrote: Fri Feb 24, 2023 10:55 pm Big fan of the GM Rewards Card. While Goldman's customer service has been consistently mediocre, its rewards return rate is stellar - 4%. While you are locked in to buying a GM vehicle, few cards out there offer a flat 4% return rate on all purchases. It also offers a great way to save up for a car without thinking about it. I'm surprised the card isn't more popular.
What's GM? Is it Goldman, or General Motors?
CletusCaddy
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Re: What's Your Credit Card Rewards Strategy?

Post by CletusCaddy »

awg75 wrote: Fri Feb 24, 2023 10:55 pm Big fan of the GM Rewards Card. While Goldman's customer service has been consistently mediocre, its rewards return rate is stellar - 4%. While you are locked in to buying a GM vehicle, few cards out there offer a flat 4% return rate on all purchases. It also offers a great way to save up for a car without thinking about it. I'm surprised the card isn't more popular.
That’s exactly why it’s not more popular- you’re locked into buying a GM car. I put a deposit down for a Cadillac Lyriq in last May and as of today I still have heard nothing back.
arsenal_fan
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Re: What's Your Credit Card Rewards Strategy?

Post by arsenal_fan »

awg75 wrote: Fri Feb 24, 2023 10:55 pm Big fan of the GM Rewards Card. While Goldman's customer service has been consistently mediocre, its rewards return rate is stellar - 4%. While you are locked in to buying a GM vehicle, few cards out there offer a flat 4% return rate on all purchases. It also offers a great way to save up for a car without thinking about it. I'm surprised the card isn't more popular.
How long will you be sitting on the rewards? Credit card programs change all the time, and what happens if this does and you're locked into buying a GM vehicle?
index245
Posts: 239
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Re: What's Your Credit Card Rewards Strategy?

Post by index245 »

tj wrote: Wed Feb 08, 2023 9:56 pm
JenniferW wrote: Wed Feb 08, 2023 9:55 pm My latest strategy, besides sign up bonuses/churning is to get cards with 15 months 0% APR on purchases. Instead of paying off the balance each month in full, I pay the bare minimum payment .. say $50 to $100 per month. By doing this, I instead deposit the cash I would of used to pay off the balance, into a money market account yielding 4.4%. Say the credit card limit is $8000.. I might keep the card close $8000 for 12 months or more since it's 0% interest.. so I'd instead be getting 4.4% income on $8000 for a year for free. Then I pay off the credit card in full just before the 15 month APR intro offer expires.
I'm assuming this lowers your credit score?
It certainly would. That said, it doesn't matter unless you're applying for a mortgage. If a credit card declines you, no big deal.
CletusCaddy
Posts: 2678
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Re: What's Your Credit Card Rewards Strategy?

Post by CletusCaddy »

JenniferW wrote: Wed Feb 08, 2023 9:59 pm
tj wrote: Wed Feb 08, 2023 9:56 pm I'm assuming this lowers your credit score?
Well I have like 8 cards or so with high credit limits.. I currently only utilizing 7% of my available credit. Current score is 786.

I am not quite sure at what percentage credit utilization makes it harder to get new cards or how it affects score.
Your credit score will take a hit because it also looks at the utilization within cards. How much credit limit is the card you are doing this on?
Wannaretireearly
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Re: What's Your Credit Card Rewards Strategy?

Post by Wannaretireearly »

DW and I just got approved for Alaska airlines cards. 70k miles 👍

Had so much rejection recently :(
“At some point you are trading time you will never get back for money you will never spend.“ | “How do you want to spend the best remaining year of your life?“
Farmerberg
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Re: What's Your Credit Card Rewards Strategy?

Post by Farmerberg »

EnjoyIt wrote: Mon Feb 06, 2023 8:39 am

One of the benefits of buying airfare through chase travel via UR points is that you still get the miles for the travel which can be beneficial when looking for status. I value the status because it provides free luggage and usually free extended legroom. Sometimes even gives me a first class flight upgrade. last year I was upgraded to first class probably on 1/3 of my flights.
What is UR?
How do you obtain free luggage, legroom upgrade, and first class flight upgrades? Are these automatically offered to you or is there something you need to do?

(My wife is INSISTING that we travel business class or better. It’s so not worth it to me, so if I can get that for free or a discount that would be a win-win). That said, we don’t travel often; typically once or twice annually of late.
Jags4186
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Re: What's Your Credit Card Rewards Strategy?

Post by Jags4186 »

Farmerberg wrote: Sat Feb 25, 2023 5:46 am
EnjoyIt wrote: Mon Feb 06, 2023 8:39 am

One of the benefits of buying airfare through chase travel via UR points is that you still get the miles for the travel which can be beneficial when looking for status. I value the status because it provides free luggage and usually free extended legroom. Sometimes even gives me a first class flight upgrade. last year I was upgraded to first class probably on 1/3 of my flights.
What is UR?
How do you obtain free luggage, legroom upgrade, and first class flight upgrades? Are these automatically offered to you or is there something you need to do?

(My wife is INSISTING that we travel business class or better. It’s so not worth it to me, so if I can get that for free or a discount that would be a win-win). That said, we don’t travel often; typically once or twice annually of late.
You will not get upgraded if you travel once or twice annually. You need airline status—at least 3rd level or better—to have a chance on the upgrade list for leisure travel. If it’s midweek commuter travel I can tell you I’m usually about 60 or so on the upgrade list as a UA Gold.
Farmerberg
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Re: What's Your Credit Card Rewards Strategy?

Post by Farmerberg »

Jags4186 wrote: Sat Feb 25, 2023 5:51 am
Farmerberg wrote: Sat Feb 25, 2023 5:46 am
EnjoyIt wrote: Mon Feb 06, 2023 8:39 am

One of the benefits of buying airfare through chase travel via UR points is that you still get the miles for the travel which can be beneficial when looking for status. I value the status because it provides free luggage and usually free extended legroom. Sometimes even gives me a first class flight upgrade. last year I was upgraded to first class probably on 1/3 of my flights.
What is UR?
How do you obtain free luggage, legroom upgrade, and first class flight upgrades? Are these automatically offered to you or is there something you need to do?

(My wife is INSISTING that we travel business class or better. It’s so not worth it to me, so if I can get that for free or a discount that would be a win-win). That said, we don’t travel often; typically once or twice annually of late.
You will not get upgraded if you travel once or twice annually. You need airline status—at least 3rd level or better—to have a chance on the upgrade list for leisure travel. If it’s midweek commuter travel I can tell you I’m usually about 60 or so on the upgrade list as a UA Gold.
Thank you
Wannaretireearly
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Re: What's Your Credit Card Rewards Strategy?

Post by Wannaretireearly »

Wannaretireearly wrote: Sat Feb 25, 2023 2:35 am DW and I just got approved for Alaska airlines cards. 70k miles 👍

Had so much rejection recently :(
I am also tempted to again play the 0% carry game. Did this last year and it worked out. Took the credit score hit. Recently paid off the balance so I’m again debt free. Glad I’m able to get credit cards again! Although that may be cos of other reasons. Who knows??
“At some point you are trading time you will never get back for money you will never spend.“ | “How do you want to spend the best remaining year of your life?“
TravelGeek
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Re: What's Your Credit Card Rewards Strategy?

Post by TravelGeek »

gurusw wrote: Sat Feb 25, 2023 12:26 am
awg75 wrote: Fri Feb 24, 2023 10:55 pm Big fan of the GM Rewards Card. While Goldman's customer service has been consistently mediocre, its rewards return rate is stellar - 4%. While you are locked in to buying a GM vehicle, few cards out there offer a flat 4% return rate on all purchases. It also offers a great way to save up for a car without thinking about it. I'm surprised the card isn't more popular.
What's GM? Is it Goldman, or General Motors?
GM is General Motors. A card issued by GS (Goldman Sachs).
Farmerberg wrote: Sat Feb 25, 2023 5:46 am
What is UR?
How do you obtain free luggage, legroom upgrade, and first class flight upgrades? Are these automatically offered to you or is there something you need to do?

(My wife is INSISTING that we travel business class or better. It’s so not worth it to me, so if I can get that for free or a discount that would be a win-win). That said, we don’t travel often; typically once or twice annually of late.
UR = Ultimate Rewards, the proprietary and flexible rewards currency of various Chase cards.

If you travel once or twice (domestic?), you will have to pay for premium class seating (first class or business class or even extended legroom seating). You can only hope for freebie upgrades if you fly a lot and thus have high enough status.
Farmerberg
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Re: What's Your Credit Card Rewards Strategy?

Post by Farmerberg »

TravelGeek wrote: Sat Feb 25, 2023 4:14 pm
Farmerberg wrote: Sat Feb 25, 2023 5:46 am
(My wife is INSISTING that we travel business class or better. It’s so not worth it to me, so if I can get that for free or a discount that would be a win-win). That said, we don’t travel often; typically once or twice annually of late.
UR = Ultimate Rewards, the proprietary and flexible rewards currency of various Chase cards.

If you travel once or twice (domestic?), you will have to pay for premium class seating (first class or business class or even extended legroom seating). You can only hope for freebie upgrades if you fly a lot and thus have high enough status.

Yes, is primarily domestic travel. In December we travelled across the country. Changed planes in CLT. Purchased full fare tix and my wife was unhappy that were couldn’t get into the club since we only purchased domestic tix. Her comment to the receptionist there was “I paid full fare and there are people in there who are here on credit card comps and I can’t get in?”
TravelGeek
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Re: What's Your Credit Card Rewards Strategy?

Post by TravelGeek »

Farmerberg wrote: Sat Feb 25, 2023 5:47 pm
Yes, is primarily domestic travel. In December we travelled across the country. Changed planes in CLT. Purchased full fare tix and my wife was unhappy that were couldn’t get into the club since we only purchased domestic tix. Her comment to the receptionist there was “I paid full fare and there are people in there who are here on credit card comps and I can’t get in?”
Alaska is, I think, the only domestic airline that offers lounge access to First Class passengers. And even they recently restricted that to long haul travel of 2100+ miles. Lounges are suffering from overcrowding. To expect club access with a full fare ticket is unrealistic. Hopefully it wasn’t the reason for choosing that fare class.
Farmerberg
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Re: What's Your Credit Card Rewards Strategy?

Post by Farmerberg »

TravelGeek wrote: Sat Feb 25, 2023 8:05 pm

Alaska is, I think, the only domestic airline that offers lounge access to First Class passengers. And even they recently restricted that to long haul travel of 2100+ miles. Lounges are suffering from overcrowding. To expect club access with a full fare ticket is unrealistic. Hopefully it wasn’t the reason for choosing that fare class.
Nope, not at all the reason. My wife is just tired of cattle class
FIPreferred
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Re: What's Your Credit Card Rewards Strategy?

Post by FIPreferred »

Hey all - have done a bunch of searching but didn't see any prior threads with my similar question, so here goes...

The 2nd biggest line item in our household budget is travel (~$35K). It is a mixture of lots of business travel (I'm self employed) and personal. While the points thing is great, much of our family trips involve renting houses via Airbnb/VRBO, rental cars, tours & excursions, etc... and booking airfare for dates where we have little flexibility. This tends to make it hard for us to get lots of value from points, although we have a significant amount via Chase UR and Bonvoy. 

Given the above, I'm wondering what is the best cashback option to utilize for travel expenses? So far my research has led me to the BOA CCR with Platinum Honors, which has 3% category for travel + 75% bonus for platinum honors = 5.25% CB. Only problem is it is capped at $2500/quarter, and our spend tends to bunch up in 1-2 quarters of the year.

Any other thoughts on how to approach? I'm sure someone else out there has tackled similar issues in the past... 
mageedge
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Re: What's Your Credit Card Rewards Strategy?

Post by mageedge »

FIPreferred wrote: Sun Feb 26, 2023 9:26 am Hey all - have done a bunch of searching but didn't see any prior threads with my similar question, so here goes...

The 2nd biggest line item in our household budget is travel (~$35K). It is a mixture of lots of business travel (I'm self employed) and personal. While the points thing is great, much of our family trips involve renting houses via Airbnb/VRBO, rental cars, tours & excursions, etc... and booking airfare for dates where we have little flexibility. This tends to make it hard for us to get lots of value from points, although we have a significant amount via Chase UR and Bonvoy. 

Given the above, I'm wondering what is the best cashback option to utilize for travel expenses? So far my research has led me to the BOA CCR with Platinum Honors, which has 3% category for travel + 75% bonus for platinum honors = 5.25% CB. Only problem is it is capped at $2500/quarter, and our spend tends to bunch up in 1-2 quarters of the year.

Any other thoughts on how to approach? I'm sure someone else out there has tackled similar issues in the past... 
For pure cash back options I think your platinum honors idea may be the best. CCR has the $2500 limitation which is reasonable to max out. Beyond that the BOA Premium Rewards card gives you 3.5% platinum honors cash back on travel and has pretty good travel insurance coverage. Effective annual fee $0 if you maximize the incidental travel $100 benefit.
Sapphire Reserve is my primary travel card but I'll compare it annually with the PR 3.5% to see if the additional fee is justified
TravelGeek
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Re: What's Your Credit Card Rewards Strategy?

Post by TravelGeek »

Farmerberg wrote: Sat Feb 25, 2023 8:07 pm
Nope, not at all the reason. My wife is just tired of cattle class
Totally understandable. Avoiding cattle class as much as possible is a hobby and (since we are in a credit card thread) credit card rewards and deep(er) understanding of loyalty programs has allowed me to significantly improve our travel experiences.

That said, given the travel profile you described, I would probably focus on maximizing cashback and use those “free” funds to buy more comfortable seats outright.
Farmerberg
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Re: What's Your Credit Card Rewards Strategy?

Post by Farmerberg »

TravelGeek wrote: Sun Feb 26, 2023 10:41 am

That said, given the travel profile you described, I would probably focus on maximizing cashback and use those “free” funds to buy more comfortable seats outright.

Yup. All our cards are cash back

BofA card: restaurants, supermarkets, Costco, Walmart (in store)
Amazon card: Amazon and Walmart
Walmart card: Walmart.com
Costco citi: travel and gas
Fido: everything else
Pu239
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Re: What's Your Credit Card Rewards Strategy?

Post by Pu239 »

FIPreferred wrote: Sun Feb 26, 2023 9:26 am
Any other thoughts on how to approach? I'm sure someone else out there has tackled similar issues in the past... 
Huntington Voice Business MC has a travel category giving 4% cash back with a $7000/quarterly cap and no annual fee. Not sure if AirBnB and tours are included but wouldn't hurt to call and ask.
Between the idea And the reality...Between the motion And the act...Falls the Shadow - T. S. Eliot
WapelloHawk
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Re: What's Your Credit Card Rewards Strategy?

Post by WapelloHawk »

FIPreferred wrote: Sun Feb 26, 2023 9:26 am Hey all - have done a bunch of searching but didn't see any prior threads with my similar question, so here goes...

The 2nd biggest line item in our household budget is travel (~$35K). It is a mixture of lots of business travel (I'm self employed) and personal. While the points thing is great, much of our family trips involve renting houses via Airbnb/VRBO, rental cars, tours & excursions, etc... and booking airfare for dates where we have little flexibility. This tends to make it hard for us to get lots of value from points, although we have a significant amount via Chase UR and Bonvoy. 

Given the above, I'm wondering what is the best cashback option to utilize for travel expenses? So far my research has led me to the BOA CCR with Platinum Honors, which has 3% category for travel + 75% bonus for platinum honors = 5.25% CB. Only problem is it is capped at $2500/quarter, and our spend tends to bunch up in 1-2 quarters of the year.

Any other thoughts on how to approach? I'm sure someone else out there has tackled similar issues in the past... 
The BOA CCR card has international transaction fees, if you travel much internationally.

Cap One Venture X offers free Priority Pass for cardholder and two guests at their airport lounges. If you fly much, this is a terrific benefit. Free drinks, food, snacks. Love it. Also, it is a Visa Infinite card with many extra benefits. The card has a $395 annual fee, which truly becomes zero because they give you $100 in points annually and also reimburse the first $300 of travel you book through Cap One. In my experience, the airline prices are the same whether you book direct or through Cap One (Venture X gives 5% cash back for airline tickets). Priority Pass is just a valuable and free extra benefit.

We also have BOA Premium and CCR cards at Platinum Honors level. But we book airline tickets with Cap One so we can keep the card and its many benefits. I view the annual fee as $0, so the benefits are all upside.
FIPreferred
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Re: What's Your Credit Card Rewards Strategy?

Post by FIPreferred »

Thanks all, really good insights!

@Pu239 - Never heard of the Huntington Voice Business MC, I will definitely check that out. $7K quarterly cap is really good.

@WapelloHawk - We have priority pass already via Chase Sapphire Preferred, debating whether to keep it. Cap One X seems pretty interesting as a way to keep access though if we cancel (which we are definitely considering).
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VictoriaF
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Re: What's Your Credit Card Rewards Strategy?

Post by VictoriaF »

A couple years ago I opened a Choice Privileges Visa card with Barclays Bank. Now, Choice Hotels is transferring their credit card business to a Wells Fargo Mastercard. I am reluctant dealing with another bank and considering cancelling this card all together. But before I do, I'd like to know what the others who have this card are planning to do.

Thank you,
Victoria
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anon_investor
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Re: What's Your Credit Card Rewards Strategy?

Post by anon_investor »

VictoriaF wrote: Sun Mar 12, 2023 6:50 pm A couple years ago I opened a Choice Privileges Visa card with Barclays Bank. Now, Choice Hotels is transferring their credit card business to a Wells Fargo Mastercard. I am reluctant dealing with another bank and considering cancelling this card all together. But before I do, I'd like to know what the others who have this card are planning to do.

Thank you,
Victoria
Can you product change to another Barclays credit card (if there are any that interest you)?
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