Credit Card Question

[frayne]

My son is a salesman for a local company that has recently been purchased by a larger company from another state. One of the perks with the old company was a company vehicle and free gasoline. With the new owners they have to either buy or lease thier vehicles and pay for their own gas, which will be reimbursed via expense account.

The question my son ask me is, are some credit cards better that others as far as offering cash back or a percentage off of purchases, etc. He does plan to pay off the card each month. Told him I didn't know but would pose the question to some of the sage forum members here. So thanks in advance and I sincerely appreciate any and all replies. BTW he thinks he will be spend about $800 or so a month for gas, customer lunches, etc. during an average monthly period, if that helps.

Again thanks.

[OAG]

PFCU at www.penfed.com has one that pays 5% on Gas purchases and 1.25% on all other purchases. You can join Pentagon FCU for $20. BTW they also have some very good rates on CD's if he is so inclined.

[maddythebeagle]

good note on penfed......also try http://www.creditcardtuneup.com/

I have a bp chase visa that might work...5% on bp gas and 2% for dining and travel out and 1% on everything else...

[mickeyd]

Both of the cards that I use (Discover and MC) have periods of time that they offer 5% rebates on when you purchase various items. Occasionallly gasoline is one of them. The window for this extra 5% is about a quarter or so then they may announce a new rebate plan that gives you 5% back on Home Depot, Lowes etc. I do not know if this is how all cards work or not, but I suspect that it is not unusual.

The bottom line is that a CC company can change it's offers for rebates at any time that suits their marketing plan.

[d]

there are several cards that offer 5% on gas, and several that offer 3% on meals ...

[Alan]

Amex Blue Cash is what I use these days. 5% on most purchases, 2 % on rest. Pays back once a year. I just received my first refund - $390. I spent $20111 during the course of the year making total of 1.95% for my spend pattern in 2006, but I live 3 miles from work and DW is RE'd so gas spend is low.

For the first $6,500 of annual purchases, the rebate is 1% for Everyday Purchases and 0.50% for all other Eligible purchases; for Eligible purchases of $6500.01 or more, the rebate is 5% for Everyday Purchases and 1.5% for all other eligible purchases. "Everyday Purchases" are Eligible Purchases made at U.S. supermarkets, gas stations and drugstores, in each case that are not departments of superstores or warehouse clubs. "Eligible Purchases" are charges to your account for goods or services that have not been returned or otherwise credited to your account. Eligible Purchases do not include Finance Charges, fees, Cash Advances or other means of accessing your account, convenience checks, Balance Transfers, or the purchase of American Express® Travelers Cheques and American Express® Gift Cheques or other cash equivalents. Additional terms and conditions apply.

[d]

Quote:

making total of 1.95% for my spend pattern

the problem with Amex Blue is the tiered rebate structure. i too spend about 20k on credit cards, but received rebates averaging 3.5%. i use a straight 5% rebate card for gas, groceries and drug stores and a straight 2% card for everything else.

[Alan]

d,

I agree with you, if I filled up my Corolla more than once every 3-4 weeks I would consider a gas rebate card. I have just completed my first year with Blue Cash so this is the first time to see real results which is why I posted them. I'm not selling the card as a particularly good deal

Just don't like carrying too many cards around but if I spent a reasonable sum on gas then I would consider a gas card.

[d]

since you received 1.95%, about 30% of your spending must have been in the "everyday" category. carrying a straight 5% and a second straight 2% could get you about 2.9% combined ... carrying a 2nd card is a small price to pay for an additional $190 in rebates.

that said, i've used amex blue in the past ... but find the additional rebates worth the hassle ... about 1/2 my purchases are in the 5% categories.

[Alan]

Quote:

Originally Posted by d since you received 1.95%, about 30% of your spending must have been in the "everyday" category. carrying a straight 5% and a second straight 2% could get you about 2.9% combined ... carrying a 2nd card is a small price to pay for an additional $190 in rebates. that said, i've used amex blue in the past ... but find the additional rebates worth the hassle ... about 1/2 my purchases are in the 5% categories.

You've convinced me Do you mind sharing which cards you use?

[d]

i'm using chase & direct(hsbc) for 5% (previously used citi) and fidelity for 2%. i believe the 2% fidelity is no longer available for new accounts, but you can find 1.5% cards without the tier structure. the point it not necessarily to beat the basic rebate %s from Amex, but to avoid the tier structure. (of course, if you can really ramp up your cc expenditures, the tier structure diminishes in importance.)

[Alan]

Quote:

Originally Posted by d i'm using chase & direct(hsbc) for 5% (previously used citi) and fidelity for 2%. i believe the 2% fidelity is no longer available for new accounts, but you can find 1.5% cards without the tier structure. the point it not necessarily to beat the basic rebate %s from Amex, but to avoid the tier structure. (of course, if you can really ramp up your cc expenditures, the tier structure diminishes in importance.)

Thanks d - I'll investigate. If my company didn't insist I use their Corporate card I'd really do well - almost $57k on the Corporate card in 2006 :P

Wherever I can, I use a card and pay off every month to get those savings.

[samclem]

I, too have been using the AMEX Blue Cash card. I'll check my spending to see if I mught do better with separate cards.
AMEX does a good job with their year-end recap statements, and it was simple to get a "business" card and a "personal" card, plus a card for DW. All have distinct card numbers, but the totals from all of them are consolidated in computing the annual rebate. Having a separate card for business expenses is a help at tax time.

[d]

see http://www.fatwallet.com/t/52/564358/ to assist in your search

[maddythebeagle]

There arent many straight 2% cards out there anymore so I wouldnt bother with that...hsbc apparently has one but it is by invitation and reported to give small limits....as noted fidelity is gone for new users and as I recall that was tied to a college savings account that the avg. person probably doesnt want to hassle with...