How many credit cards should I carry?

Guest: EasyRhino
Post subject: How many credit cards should I carry?
Posted: Sat Jun 03, 2006 12:32 pm

Here is what we know about you:

You like costco. You don't like Sam's. You spend at least $600 a year on gas and groceries. You spend about $18,000 a year on non-business purchases. You need to keep the Costco Amex card. I'm assuming you don't usually carry balances (because APRs suddenly become more important than any cash back)

Well, the Costco Amex card seems like a good one, so it's handy that you have to carry it.

Discover Gas should probably replace your regular Discover completely. (However, if you were ever going to drop a card, I'd drop Discover first, because a) a few places don't accept it, and b) you don't get a full 1% back on your initial spending each year.)

I'd recommend shifting your main spending to a card that gets you at least a full 1% on your initial spending, reserving a Discover gas card for just gas.

So... if you bought your gas on Discover (up to $6k a year), then bought groceries and everything else, on the Citi Dividend card... would you still max out on the $300/yr bonus?

If so, you may want to consider a general purpose card with fewer or no spending limits, like an Amex Blue Cash, MBNA Fidelity card (if you have or want a Fidelity account), or the BofA Power Rewards (2% cashback when you redeem $50,000 of spending at once)

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Guest: morebate
Posted: Mon Jun 05, 2006 9:51 pm

Thanks Rhino!!


Sorry, I forgot about this thread momentarily........(well, more like a few days)..........

I'm thinkin' along the same lines!! I don't think I'll go over on the "grocery" side so long as I leave the Citi card *strictly* for groceries.

When we travel or eat out, we use the Amex card 'cuz it gives 3% & 2% respectively for that. Then we could also always use it for a regular 1% on other stuff too, I suppose. But since the Amex reward is tied every February to your statement & HAS to be used at Costco (even if you only just cash it out) I'd say I'll probably use either of the 2 Discover cards for the regular 1% stuff.

Then, I'd just need to make exceptions with the wife so we understand that there'd be rules like..........Discover is *not* to be used at Wal Mart.

Any other places that give less than 1% from Discover???? (Might make a little list just to be safe).

And you are correct..............we do not carry balances. Every once in a blue moon we'll be late on a payment but I can usually call & get the fees erased, but if I don't the sting is enough of a blow to my ego to make me not do it again for several years........

And, yes........I squeak when I walk.........LOL!!!!!!

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Guest: morebate
Posted: Tue Jun 06, 2006 6:07 pm

OK, I'm an idiot!!!

I just realized that I'm gonna come up short on the Discover Gas Card.

Only the first $1,200 are at 5% rebate, then the balance is appropriate to whatever my "other" purchases are.........25% first $1,500, then .50% next $1,500, then 1% thereafter! Grrrrrrrrrrrr!!!

So NOW what do I do???

$1,200 worth of gas is about 4 months for me. That leaves another 8 months in the calendar year. If I leave the Citi Dividends card for groceries, I may have a little bit left to use for gas to get to the $300 max rebate per year, but not much.

Also........looks like I *might* be best off using my Amex card MINIMUM 1%!!!

Man.......I remember when I had Discover "Private Issue" in the 90's and used to get 2% on everything. Discover's kinda' pissin' me off now!!!

Any other card suggestions???? TIA

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Guest: EasyRhino
Posted: Tue Jun 06, 2006 9:45 pm

Yep, that initial spending thing will cost you... a few bucks.

Using Discover Gas just for gas, Citi for Gas and groceries, then Amex for everything else wouldn't be horrible. Or you could increase your rotation with yet another gas card.

Or, you know, good ol' BofA Power Rewards.

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