Money Tips: Searching for Cashback or Miles Rewards Credit Card Offers

Posted On: August 23, 2006

Guest: jasno999
Post subject: Searching for Cashback or Miles Rewards Credit Card Offers
Posted: Wed Aug 23, 2006 11:06 am

Ok I may be lazzy and I know I can do some mroe research which I will but I am hoping you all can help point me in the right direction. YOu may have been asked this question before but please I need advice.

I have excellet credit. I shoudl have no issue gettign any type of credit card that I want. Also I always pay all of my credit card bills on time and never carry over a balance.

RIght now I have a points card that gets me spoints for specific purchases but in the end it does little in terms of rewards.

SO basically I am looking for a credit card that will give me the most in return for what I spend. I think a airline miles card would be great but I could also go for a cashback card if it is better and gives me more in return. I jsut need to knwo which credit cards are the best type of cards for this.

Again I don’t care about APR and all that cause I always pay it off. I just need the card that is the best value. I am willing to look at cards that have anual fees but it needs to be a card that has such good savings and return in terms of cash or miles that the anual fee is offset and makes the card worth it.

Please let me know what you all think.

Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Aug 23, 2006 11:14 am

How much do you spend each year using your credit cards?

There’s no way I could tell you if a card is going to be worth looking at unless I know that information. I can’t even tell if a card will give you a return enough to cover the membership fee (if any) if I don’t know how much you’ll use the card!
_________________
Polonius
“Neither a borrower, nor a lender be; For loan oft loses both itself and friend”

Guest: jasno999
Posted: Wed Aug 23, 2006 11:36 am

Ok I would estimate my yearly credit card spending at $10,000. I have room to improve that if I start to purchase all groceries, and other items that can be paid for on a credit card with my credit card. SO at the max I might spend $15,000 a year on the card but probably closer to the $10,000 range.

I do nto travel much. We take one trip a year to the carribian and typically fly US Air. Other than that I might have a work trip here and there but the only other time I woudl fly is that about every 2 years I will take a trip out to Vegas. I woudl do it more if I could use my card to earn miles or cashback to pay for these trips.

But I jsut want to save as much money as possiable and use it for vacations or jsut to put back into the bank or torwards paying off future credit card bills.

Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Aug 23, 2006 11:51 am

Figure it out. Rewards programs in general run about 1%-1.5%; airline mileage programs are roughly equivalent. On $10,000 in spending each year, you’re looking at $100-$150 in benefits. Hardly worth talking about or fussing about, is it, especially if you’re paying a fee.
_________________
Polonius
“Neither a borrower, nor a lender be; For loan oft loses both itself and friend”

Guest: dolmar
Posted: Wed Aug 23, 2006 1:51 pm

Polonius wrote:
Figure it out. Rewards programs in general run about 1%-1.5%; airline mileage programs are roughly equivalent. On $10,000 in spending each year, you’re looking at $100-$150 in benefits. Hardly worth talking about or fussing about, is it, especially if you’re paying a fee.

I dont know. where you get your information form. Lets do some simple math for starters. Unless your a total moron and redeming your airlines miles for short haul flights you going to get much bigger bang for your buck than 1-1.5% coach domestic tickets on average cost $500+ so that is 2.5%+. And if you redem your airline miles for premium international tickets ie. First Class or Bussiness Class tickets your getting even a bigger bang for your buck closer to 10-12% return.

And as far as Cash back/reward or airline miles. There are credit cards that give you between 2-5X points for Markets, Drug stores and Gas stations.

For example my household spends $500-800 a month in supermarket and gas stations. On a 5% card like either Chase or Citibank you could earn a free flight in as little as $5K spent a year. Yes I know Citi discounted there 5% cashback card and it only 2% now. But ATT universial card is still 5X thank you points in every day spending. Citibank Women & Company credit card is also. Yes I know Women and Company membership is $149.99 but if you spend enough in Everyday Spending could be worthwhile paying membership to get 5X cards.

So lets do the math if you spent $5K a year between gas, Supermarkets and drugs stores on an average ticket of $500 dollar say like SFC-Mia or SFC-JFK or LAX-Mia or LAX-JFK. That is like getting a 10% rebate.Btw Citibank 25K point award has $750 limit on ticket price and Chase has $650 price on ticket.

So yes there are way to make it worthwhile using rewards card. And if you spend a lot in Everyday spending catagories can be very rewarding honestly. And Airline miles also can be very reading if you spend enough a year to make them worthwhile ie 30-40K a year. Reason I say Airlines card require you to spend a lot a year to make them worthwhile is they have annual fee between $65 plus so if you spend 8-10K a year would take you 3 years to get 25K miles to get a free $500 airlines ticket makes no sense as banks point program have no annual fee.