Credit cards- change my mind

[Tailgate]

Looking for advice. We have 4 credit cards plus a debit card. Currently we have 47 accounts/services on autopay paying full balance every month, or in some cases annual. Lots of subscriptions like streaming, computer software, music, news along with utilities , household bills gym, tanning etc. Very convenient. I write only 2 checks a month.


Annual review of credit cards make me think of moving every payment possible to Amazon Prime Store Card for their rewards. We buy a lot of things on Amazon and 5% is attractive, along with their other smaller rewards. Right now bills are spread at AMEX, Apple Card, Amazon and the vast majority are through CITI. The rewards are nothing to shout about. I can probably take 90% of the bills to Amazon's card.



Am I missing out on something? Thanks...



Cards:
Amex Cash Preferred for groceries and gas, CITI Double Cash along with a little with APPLE and Amazon Prime Store Card. We do use PayPal but not their card. They are just a 3rd party that flows to the CITI card.

 

[Sojourner]

I might be missing something, but what is the advantage of moving all payments/bills to the AMZN Prime card? It doesn't pay 5% on everything, just on Amazon purchases, right? So why not continue to put most of your spending on a 2% cash back card like Citi DC?

 

[bloom2708]

I think targeting the expense to the right card makes sense. Apple card for apple purchases. Recurring utilities to Amazon. Lumpy bigger purchases to the card that offers the rewards you want. etc.

 

[Aerides]

The 5% is only on amazon and whole foods. It's not much on the rest (1%?) I use Amex Blue for most stuff, with a good boost on grocery rewards, and Citi for Costco 2%, Fido 2% for the rest.

 

[Tailgate]

We're on track to spend 9k this year with Amazon. At 5%= $450. I think I can easily move another 15k through their card. At 5%=750 for a total $1,100 in rewards. If I have the same number run through CITI at 2% my rewards would be $480. We do use Amex for the 6% on groceries but it caps at 6k and then reduces to 1% so the 5% actually is a better deal.



The key is our Amazon purchases...and, yes, it is probably much higher than most households spend. I will mention that we do support local businesses.. I just looked at our budget and we spend over 13k with local service businesses for home and utilities. I'm not thrilled about helping expand the Bezos empire but it is what it is.


There are a lot of much smarter folks than me on this forum, thus the ask. At the end of the day this is not a critical decision to save a buck , but it's something I've been pondering.

 

[Dtail]

Just work out all the math and you will arrive at the conclusion.
Do you have any monies at Merrill Lynch? (100k)
If so, the credit cards at BOA can work out better than the Fido/Citi 2% deals.

 

[Kerfuffle]

I personally spread our credit card activities over 4 different cards and will continue to do so, because why give up free money? I can't seem to do any more than 4 without getting totally confused about what to use where though. I love the amazon card, but I ONLY charge WF and Amazon purchases on it because the other cashback categories with them aren't as good.

 

[PaunchyPirate]

We're on track to spend 9k this year with Amazon. At 5%= $450. I think I can easily move another 15k through their card. At 5%=750 for a total $1,100 in rewards. If I have the same number run through CITI at 2% my rewards would be $480. We do use Amex for the 6% on groceries but it caps at 6k and then reduces to 1% so the 5% actually is a better deal.



The key is our Amazon purchases...and, yes, it is probably much higher than most households spend. I will mention that we do support local businesses.. I just looked at our budget and we spend over 13k with local service businesses for home and utilities. I'm not thrilled about helping expand the Bezos empire but it is what it is.


There are a lot of much smarter folks than me on this forum, thus the ask. At the end of the day this is not a critical decision to save a buck , but it's something I've been pondering.

I’m still confused. That added 15k you move to the Amazon card doesn’t earn 5% does it? Only Amazon purchases do. So it’s not really an addition $750.

To your overall strategy, I use 1 card for gas and dining and one card for all the rest. I keep 4 cards just in case. I also OCCASIONALLY open a new card to chase a particularly good bonus. Then I usually cancel something to get back to 4 cards.

 

[Tailgate]

I should have been clearer. We're already getting 5% in Amazon credit on the 9k goods bought at Amazon. The additional 15k is just run through the Amazon card. The bills are just paid with their card to get the additional credit. Gas, groceries, lawn care, pest control, Netflix, Hulu, Consumer Cellular, electricity and so on.


If we continued to get $450 in credits based on 9k in future purchases plus $750 in new credit at Amazon based on the additional 15k we run through their card that gives us $1,100 total credit on future purchases. Is my math correct in saying that's 12.2% savings?

 

[calmloki]

Just work out all the math and you will arrive at the conclusion.
Do you have any monies at Merrill Lynch? (100k)
If so, the credit cards at BOA can work out better than the Fido/Citi 2% deals.

S'plain this to me please. I've been trying to get my BofA business platinum all qualified to get the 2.59% rewards - moved $200k of VTI to Merrill in March, have a BofA savings or checking ac't with $5k sitting in it to avoid monthly maintenance charges. Have a letter that says I'm all qualified to get the upgraded point rate.

So. two things - we don't have much for travel expenses, so I'd just like to trade points for cash or goods - best I see is Amazon, at .7 cents/point. Doesn't that mean that after discounting the points the 2.59points/dollar spend end up being tradable for 1.813 in actual value vs 2 for Fidelity with no problems?
I'm just about all done trying to have a relationship with BofA. I've given it a good shot, but just not seeing the point so far. Maybe this works really well for jet setting world travelers or maybe I'm missing the better way to use the reward points. Can someone enlighten me?

 

[euro]

I should have been clearer. We're already getting 5% in Amazon credit on the 9k goods bought at Amazon. The additional 15k is just run through the Amazon card. The bills are just paid with their card to get the additional credit. Gas, groceries, lawn care, pest control, Netflix, Hulu, Consumer Cellular, electricity and so on.


If we continued to get $450 in credits based on 9k in future purchases plus $750 in new credit at Amazon based on the additional 15k we run through their card that gives us $1,100 total credit on future purchases. Is my math correct in saying that's 12.2% savings?

I think what PaunchyPirate is saying (and I believe he is right) is that you do NOT get 5% back on your Netflix, just because you run it through Amazon Pay. You only get 5% on actual purchases from Amazon.com (or WF).
I believe at most, you will get 1% cashback for "other" purchases, but I'm not even sure it is that much

 

[cathy63]

... plus $750 in new credit at Amazon based on the additional 15k we run through their card ...

Your Amazon card does not give you 5% on most of the items you listed.
https://www.amazon.com/Amazon-Rewards-Visa-Signature-Card/dp/B007URFTYI

5% back at Amazon and Whole Foods Market with an eligible Prime membership*

2% back at restaurants, gas stations, and drugstores*

1% back on utilities, rideshare, and all other purchases*

10% back or more on select products.**
**Limited time offer. See terms.

 

[RetiredHappy]

We have been getting 3.5% cash back on dining and travel and 2.6% cash back on all other spending on BOA premium rewards credit card. This year alone, I have cashed out $4K. More spending = more savings!

Like the others who pointed out, all non-Amazon and Whole Food charges only get you 1% cash back on Amazon credit card.

 

[Sunset]

S'plain this to me please. I've been trying to get my BofA business platinum all qualified to get the 2.59% rewards - moved $200k of VTI to Merrill in March, have a BofA savings or checking ac't with $5k sitting in it to avoid monthly maintenance charges. Have a letter that says I'm all qualified to get the upgraded point rate.

So. two things - we don't have much for travel expenses, so I'd just like to trade points for cash or goods - best I see is Amazon, at .7 cents/point. Doesn't that mean that after discounting the points the 2.59points/dollar spend end up being tradable for 1.813 in actual value vs 2 for Fidelity with no problems?
I'm just about all done trying to have a relationship with BofA. I've given it a good shot, but just not seeing the point so far. Maybe this works really well for jet setting world travelers or maybe I'm missing the better way to use the reward points. Can someone enlighten me?

I'd add the BOA cash credit card, it pays 3% on your category that you choose and stays there until you change it to another category. With the Preferred rewards that is 5.25% reward.
I have mine set for online spending, so Amazon, and other online stores all count.
I redeem the points for cash credit to the card so no loss in value.

I also have the Travel Rewards card, it does allow redeeming point value for restaurants on the credit card statement, without the loss in value.

 

[Dtail]

S'plain this to me please. I've been trying to get my BofA business platinum all qualified to get the 2.59% rewards - moved $200k of VTI to Merrill in March, have a BofA savings or checking ac't with $5k sitting in it to avoid monthly maintenance charges. Have a letter that says I'm all qualified to get the upgraded point rate.

So. two things - we don't have much for travel expenses, so I'd just like to trade points for cash or goods - best I see is Amazon, at .7 cents/point. Doesn't that mean that after discounting the points the 2.59points/dollar spend end up being tradable for 1.813 in actual value vs 2 for Fidelity with no problems?
I'm just about all done trying to have a relationship with BofA. I've given it a good shot, but just not seeing the point so far. Maybe this works really well for jet setting world travelers or maybe I'm missing the better way to use the reward points. Can someone enlighten me?

So you have at least 100k in ML.
BOA has Cash Rewards credit cards in which you can pick a category once a month whereby due to your Platinum status, you will receive 5.25% on the selected category. There is a limit of $2,500 spending per quarter. There are no fees.
The major categories include Online purchases, Dining, Drug Store, Gas, etc.
I use 3 of these cash rewards cards.

Additionally they have a Premium Rewards card in which all purchases irrespective of the category earn 2.625%. This card has no quarterly limits, but does have a $95 yearly fee.
It also has a $100 travel baggage reimbursement. If you do just a little travelling and/or have enough expenses, the yearly fee is more than covered.
I have one of these cards.
Finally, I have a Travel Rewards card which works similar with the same rates to the Premium card, but with no yearly fee. I transfer my points on that card to the Premium card, then reimburse for cash.
I have one of this card and only use it for my recurring autopays.

So 5 cards in total.
There is some work involved to keep track of reaching the quarterly limits and then switching categories.
Worth it to me, as it generates between 3.5k and 4k in yearly rewards. That is over 100k of spending, as I pay my brothers' and many of my parents expenses.

 

[Tailgate]

OP here...being the dummy that I can occasionally be, I have mixed up the Amazon Prime Store card with their Visa card, thus my play falls apart.
As has been pointed out:


The Amazon Credit Card can be used anywhere Visa is accepted, which is virtually anywhere domestically and in over 150 countries around the world.
The Amazon Store Card can only be used to make purchases on Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more and through select “Pay with Amazon” merchants.





Their regular credit card is much like all the others out there and nothing special. My whole premise is screwed. Oh well, that's why I came here with the question.. back to your regular programming.... Cheers

 

[Sunset]

...
I use 3 of these cash rewards cards.

.....

That is a great idea, as I could set the categories differently.

How do I get 2 more of these cards, I had assumed they would only give me one ?

 

[Jenna]

I've found the best card for people who like to travel is sapphire preffered. The points are very flexible and I usually transfer to Southwest. I haven't paid real money for flights since 2011 and we travel often...probably 12-25 trips a year. Find the card that is best for you-not only where you spend the most money but how you like to redeem. I always thought it was just a scam but Im a believer now. We even flew to Spain and Italy-2 separate trips in lie flat business class....very spoiled.

 

[Dtail]

That is a great idea, as I could set the categories differently.

How do I get 2 more of these cards, I had assumed they would only give me one ?

I just applied at different times, perhaps 1 year apart and received approval.
I talked through it first with a BOA rep in person who is involved with credit cards to make sure there wasn't any hindrance in receiving additional cards.

If your credit is over 800, there should not be an issue.
Plus IIRC, I lowered the max credit on one card and effectively transferred it to obtain a new card.

 

[Jenna]

I just applied at different times, perhaps 1 year apart and received approval.
I talked through it first with a BOA rep in person who is involved with credit cards to make sure there wasn't any hindrance in receiving additional cards.

If your credit is over 800, there should not be an issue.
Plus IIRC, I lowered the max credit on one card and effectively transferred it to obtain a new card.

Also each spouse can get their own card. Do not apply for joint cards. You can be the authorized user on each other's cards but do not joint apply. that way you are both eligible for the sign on bonus. Add them later as an authorized user if you need them to help meet your spend requirements for the bonus

 

[Jerry1]

You had the wrong card, but the right idea. We run as much as we can through our Fidelity Visa. We use our Costco card only when it gives us 2% or better which means we use it for Costco purchases and restaurants.

 

[retire-early]

1. Citi Custom Cash up to $500 in one category (grocery for me) gets 5%
2. US Bank Cash+ 5% for Comcast cable+internet , 5% electric
3. Citi Double Cash 2%

4. American Express Blue Cash Everyday for their offers which range up to 15%.
Until 12/31/2021 I get 3% statement credit on top of their original 2% for gas.

5. Chase Freedom Flex for Q4 2021 : 8% after fees at CVS using Paypal app. I am buying two $500 VISA gift cards

6. Chase Freedom Q4 : I am using for Paypal 5% for year-end charitable donations

I am getting ready to buy three $250 VISA eGift cards with promo code which will net me 8% after fees at GiftCards.com
+ 2% if I pay with the Citi Double Cash

I will be using VISA gift cards to pay insurance premiums and co-pays and anything else that falls into the "other" category.

 

[Markola]

I am mentally stuck and could use advice. I have both:

1) Delta Amex Platinum, with a $250 annual fee. The free annual companion ticket and avoidance of baggage fees recoups the large fee. I fly Delta the most and it usually lets me board a bit earlier. I fly Southwest second most and, really, nothing else.

2) I recently got the Chase Sapphire Preferred Visa only for the 100k points bonus, and have found that I like using it. I think it’s a $95 annual fee. The app is great and the superior rental car insurance is a comfort. The Ultimate Rewards points are the best in the industry and transfer to airlines and hotels very simply through the app.

It seems a waste to have two travel cards. But maybe not? I also use the Citi Double Cash Back MasterCard for non-travel expenses. How should I evaluate and optimize this situation? Maybe only use the Amex card for Delta purchases and the Chase one for all other travel purchases? Or ditch one? Thanks for any advice!

 

[SecondCor521]

It seems a waste to have two travel cards. But maybe not? I also use the Citi Double Cash Back MasterCard for non-travel expenses. How should I evaluate and optimize this situation? Maybe only use the Amex card for Delta purchases and the Chase one for all other travel purchases? Or ditch one? Thanks for any advice!

If you find value in both cards and don't mind the very slight added complexity of more cards, then I'd keep both.

By added complexity, I mean receiving the statements, paying the bill, deciding which card to use, etc. Most people find this a barely noticeable effort, especially if they're set up in Quicken/Mint and on auto pay.

 

[Chuckanut]

5. Chase Freedom Flex for Q4 2021 : 8% after fees at CVS using Paypal app. I am buying two $500 VISA gift cards

I will be using VISA gift cards to pay insurance premiums and co-pays and anything else that falls into the "other" category.

Can you explain that? I thought general use gift cards were usually off-limits for bonuses.