Money Tips: Credit Card Cash Back Rewards Depend on Spending Profile

Posted On: October 4, 2006

Guest: joelmeu
Post subject: Credit Card Cash Back Rewards Depend on Spending Profile
Posted: Wed Oct 04, 2006 1:31 am

This question comes up all the time and there is no single, simple answer.

The cash back reward you can earn from credit cards depends on your particular spending profile — especially how much you spend in various categories (e.g. gas, grocery, restaurants, utilities, etc.)

The free calculator tool at CreditCardTuneUp.com makes choosing the best cash back card (or mix of cards) pretty easy. Given your spending pattern, it calculates your expected annual rewards for each of the leading cash back credit cards and even for your best mixes of cards.

{Edited by Board Monitor}

Guest: Ducky95
Posted: Wed Oct 04, 2006 11:44 am

It looks like Discover is not recommended here– any specifics on why? I thought they were the cash back guys, but it sounds like others may be better?
_________________
Ducky95

Guest: stevejk
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Oct 05, 2006 9:29 am

Discover may not be mentioned, despite being an early adopter of cash back, because they are falling behind the curve. They only pay “up to” 1%, but only 0.25% at Wal-Mart, Sams Club, Costco, BJ’s, and other discount stores. They to have their Get More program where they offer 5% cash back at selected merchants or categories, but these change every three months so they can’t be counted on for more than that.

BTW, the Get More for October through December is 5% cash back at restaurants, movie theaters, and purchases (in-store or on-line) at Amazon.com, Barnes & Noble (bn.com), Borders, Circuit City, Crutchfield, Napster, and Waldenbooks. Note that Discover Gasoline cardholders are ineligible for this offer. Note that it is only valid on the first $1000 in combined purchases from the aforementioned merchants.

Guest: LustfortheMoment
Posted: Sun Oct 08, 2006 1:49 pm

I think that you need a combined strategy for the best cash rebates.

You need a card like HSBC to obtain 5% on gas, supermarkets, and drugstores.

You need another card like AMEX Blue Cash or Fidelity Mastercard to get 1 1/2 to 2% for all other purchases.