Best Way to Get Credit Card Rebates

Posted On: April 27, 2006

Author: quiznut1
Posted: Tue Oct 18, 2005 9:17 pm
Post subject: Best credit card combination for cash back?

I’m welcome to any thoughts on this, as I am still a newbie when it comes to this stuff. I currently hold the Citi Dividend Platinum Select card, which gives 5% cash back on gas stations, grocery stores and drugstores, and 1% on everything else. I also hold the Chase Cash Plus Rewards, which is the same rebate structure as the Citi card. I also hold the Discover Restaurant card exclusively for restaurant purchases when eating out, which offers 5% on the first $1,500 in annual restaurant purchases (3% for the next $1,500, and 1% thereafter).
I’ve thought of applying for the American Express Blue Cash, and using that for all my “other” purchases besides gas, groceries, drug store, and restaurants. The AMEX blue cash earns 1.5% after you spend $6,500 annually. I figure if I pay all my bills with that American express card, I can easily hit that $6,500 in a years time. No problem at all.
If I spent $7,200 (this is an estimate) in one year on gas and groceries, that would be a $360 rebate at the end of the year combined between my Chase card and Citi card ($300 yearly limit with each).
If I spent (and this is an estimate) around $30,000 in one year on the American Express Blue Cash, at 1.5%, that would be a $450 rebate at the end of the year.
If I spent (this is also an estimate) around $1,500 on my Discover Restaurant card, that would be a $75 rebate at the end of the year…
So in the end, this would be around $885 in cash back in one years’ time.
Do you guys think this is the best combination? Does anyone else have any stories on how much they have actually earned from using credit cards for almost everything in a years’ time? Any other cards I’m not aware of that offer a better cashback rate? Please let me know.

You have to read the terms very carefully. For example, the American Express Blue Cash terms say
Quote:
Your cash reward for a purchase is based upon your prior spend at the time of purchase and the type of purchase
[sic!]
So if you spend $30,000, you don’t get 1.5% on the whole $30,000. You get .5% on the first $6500, and 1.5% on the amount above $6500.00.

I use my Citi Dividend and Chase Cash Plus for groceries and gas and earn a full 5% on those purchases.

I use my Citi MTVU (this credit card is for college students) for bookstore, restaurant and movie theatre purchases and earn a full 5% (in points) on those purchases.

I use my Household bank Gold credit card for other purchases. I earn a full 2% cash back on every purchase made on Household bank credit card.

Using these combinations, I will either get a full 2% or 5% on every purchase I make.