Credit Card Rewards for CY20

[f35phixer]

Quote:

Originally Posted by corn18 we only use the Fidelity 2% cash back. Got $4,216 back in 2020.

Good lord CORN, DW IS buying LOTS of nice dresses.

Its to much work for me. Primary is Marriott Bonvoy, just passed 1,000,000 points, that will be nice retirement trip when this dust settles.

[audreyh1]

Quote:

Originally Posted by corn18 we only use the Fidelity 2% cash back. Got $4,216 back in 2020.

You spent $210,800 on your Fidelity VISA in 2020?

Congratulations!

[Amethyst]

Citi Mastercard 2%
Chase 5% categories, when I can bother to keep track of them
Amazon 3%
BJs Mastercard 3% on BJs store and gas station. We drive less now, so it's almost possible to wait a full month to fill up down at the BJs (and pay member price - usually $.25 less per gallon).
I stopped playing the "sign-up bonus" game after it got too cumbersome swapping direct deposits around, etc. etc. Plus, taxes eat a quarter of the bonus.

[sengsational]

Quote:

Originally Posted by audreyh1 You spent $210,800 on your Fidelity VISA in 2020?

I thought I remembered something like this!

Quote:

Originally Posted by corn18 My expenses are $118k / year.

They taught me one important thing, way back when... when interpreting finances, the most interesting things are found in the footnotes!

[ExFlyBoy5]

Quote:

Originally Posted by sengsational ... When interpreting finances anything, the most interesting things are found in the footnotes!

fify.

[NNNN]

You get 2.6 using travel reward card. Then you transfer 2.6 points from travel to premier reward card and still retain 2.6 when cashing out right from premier card’s end correct? Thank you

Quote:

Originally Posted by Dtail Good question. Let me explain further as how I use the cards. I originally got the Travel card for maximizing the travel rewards % by booking through the BOA site, which I think uses Orbitz. The deals were worse using the BOA site, even after subtracting the rewards value. IIRC, the rewards rate was between 4 and 5%. So I now effectively use the card for automatic bill paying at 2.625% rewards, so hoping the card is better protected from fraud. The types of bill paying are not the 5.25% choices that one has on the Cash reward cards. Next step is I transfer the points to my Premier card and redeem for cash. The Premier card I use as my default card, except for the Groceries/Special categories that I use on the cash cards. This rate is 2.625%. Lastly, I use my 3 different Cash cards for the categories mentioned above. I maximize the quarterly 2500 maximum dollars/points usage each quarter, so I can't use these cards for travel.

[Dtail]

Quote:

Originally Posted by NNNN You get 2.6 using travel reward card. Then you transfer 2.6 points from travel to premier reward card and still retain 2.6 when cashing out right from premier card’s end correct? Thank you

Yes that is effectively correct. This way I effectively receive the Premier card 2.625% cash rewards for Travel card points instead of a lesser rate on the Travel card if I had cashed it out on that card.
Thus if one doesn't take the travel statement credit on the Travel card and instead would take the cash reward on the Travel card, then the value of the Travel card reward goes down.
Kind of a discovered good quirk.

[foxcreek9]

For those who have the Amex Blue Pref (6% Grocery) for Wal-mart pick up it codes as grocery (not sure about delivery). Of course if you use it in the store it does not. This applies to BOA Cash Reward cards too.

Earned 15k in CC and bank bonuses last year. The bottom line is no one should be earning less than 2% cash back on every purchase.

[sengsational]

Good info foxcreek! We had the 6% grocery at $95 per year but my analysis was sans Walmart grocery because it was pre-curbside. I'm thinking my choice to drop Amex might have not been as much of a slam-dunk if curbside was coded as grocery.

[beowulf]

Quote:

Originally Posted by foxcreek9 Earned 15k in CC and bank bonuses last year. The bottom line is no one should be earning less than 2% cash back on every purchase.

If you just received 2% back in cash, you would have to spend $750K on credit cards in a year. I just have a hard time imagining that. Even with rotating higher cash back and bank bonuses, I don't see how anyone can do this on a regular basis. Our best year ever was because we had a new roof, new windows and new siding paid for by insurance (severe hail/ice storm) and the contractor accepted our credit card. We also made the final payment on a fairly expensive Asian cruise that year (actual cruise was the following year). Plus other charges, we ran about $3,000 cash back that year. When we open new airline credit cards, we receive a significant number of points - are you counting the fare value of those in your calculations? One year we did get to fly RT business class to Paris with points. That was worth a few grand. But that doesn't happen often.

[Alex The Great]

Quote:

Originally Posted by NNNN You get 2.6 using travel reward card. Then you transfer 2.6 points from travel to premier reward card and still retain 2.6 when cashing out right from premier card’s end correct?

This is what I suspected. Then, it looks like I don't need this setup as my current situation is actually better at least for groceries: two rotating quarters with 5% cash back (Chase or Discover), remaining two quarters with permanent 3% cash back (Andrews) which in average would be 4%.

[Dtail]

Quote:

Originally Posted by Alex The Great This is what I suspected. Then, it looks like I don't need this setup as my current situation is actually better at least for groceries: two rotating quarters with 5% cash back (Chase or Discover), remaining two quarters with permanent 3% cash back (Andrews) which in average would be 4%.

Sounds correct. I assume you have no yearly fees on your cards.

As best as possible, I try to use my 3 rewards cards to maximize the 5.25% aspect of the cards, with of course groceries filling in the 3.5% blanks.

The 2.625% is not used for groceries. I get 3.5%, which of course is still less than your 4% average.

[audreyh1]

Quote:

Originally Posted by foxcreek9 For those who have the Amex Blue Pref (6% Grocery) for Wal-mart pick up it codes as grocery (not sure about delivery). Of course if you use it in the store it does not. This applies to BOA Cash Reward cards too. Earned 15k in CC and bank bonuses last year. The bottom line is no one should be earning less than 2% cash back on every purchase.

That’s interesting!

I knew that in store did not count.

I may try curbside pick up some time. The Walmart near DF’s place finally started offering it.

[Dtail]

Quote:

Originally Posted by foxcreek9 For those who have the Amex Blue Pref (6% Grocery) for Wal-mart pick up it codes as grocery (not sure about delivery). Of course if you use it in the store it does not. This applies to BOA Cash Reward cards too. Earned 15k in CC and bank bonuses last year. The bottom line is no one should be earning less than 2% cash back on every purchase.

Don't have AMEX, but kind of surprised as BOA codes "Grocery" for Walmart and all the superstores irrespective of what is purchased.

[ExFlyBoy5]

Quote:

Originally Posted by Dtail Don't have AMEX, but kind of surprised as BOA codes "Grocery" for Walmart and all the superstores irrespective of what is purchased.

They might be gracious with the points because a majority of card holders will ultimately pay $2,823 for $250 of groceries.

[Lakedog]

Quote:

Originally Posted by Dtail Don't have AMEX, but kind of surprised as BOA codes "Grocery" for Walmart and all the superstores irrespective of what is purchased.

My Penfed Visa also codes all Walmart purchases as grocery. I still have the old platinum signature reward card (5% gas, 3% grocery, 1% all other).

[foxcreek9]

Quote:

Originally Posted by beowulf If you just received 2% back in cash, you would have to spend $750K on credit cards in a year. I just have a hard time imagining that. Even with rotating higher cash back and bank bonuses, I don't see how anyone can do this on a regular basis. Our best year ever was because we had a new roof, new windows and new siding paid for by insurance (severe hail/ice storm) and the contractor accepted our credit card. We also made the final payment on a fairly expensive Asian cruise that year (actual cruise was the following year). Plus other charges, we ran about $3,000 cash back that year. When we open new airline credit cards, we receive a significant number of points - are you counting the fare value of those in your calculations? One year we did get to fly RT business class to Paris with points. That was worth a few grand. But that doesn't happen often.

Didn't say I only earned 2%, I said if you don't earn at least 2% you are doing it wrong. I churn CC and bank accounts plus some manufactured spending (although that has become harder to do) and I would say I earn, on average, about 3.5% cash back on every dollar spent.

[beowulf]

Quote:

Originally Posted by foxcreek9 Didn't say I only earned 2%, I said if you don't earn at least 2% you are doing it wrong. I churn CC and bank accounts plus some manufactured spending (although that has become harder to do) and I would say I earn, on average, about 3.5% cash back on every dollar spent.

I understood that your percentage was over 2%. However, even 3.5% would mean that you charged about $425K during the past year. Unless you are doing business spending, which is not an option for most people, it still appears unlikely. Churning and bank bonuses don't make that much of a difference.

[audreyh1]

Quote:

Originally Posted by Dtail Don't have AMEX, but kind of surprised as BOA codes "Grocery" for Walmart and all the superstores irrespective of what is purchased.

Interesting! I didn’t know that.

[GTFan]

Quote:

Originally Posted by beowulf I understood that your percentage was over 2%. However, even 3.5% would mean that you charged about $425K during the past year. Unless you are doing business spending, which is not an option for most people, it still appears unlikely. Churning and bank bonuses don't make that much of a difference.

You'd be surprised how much money you can make off CC bonuses alone, you don't have to charge near as much as you're saying to make a good chunk (points can be resold in the grey market, for example). Not to mention bank bonuses which only require money deposited for a period of time in most cases. And manufactured spending is not real spending, it's just legwork (sometimes pajama work) with some fees to get CC rewards that exceed your costs. Charging $50k or more a month can be done with MS in your spare time if you have the right methods, some people go way higher and make a living off of it.

I wouldn't recommend most of this to folks in this thread who just want to maximize everyday spend rewards, just saying that it's not hard to make a lot of money every year off of CCs and banks.