Credit Card Rewards for CY20

[beowulf]

My main credit cards are with Navy Federal. Their Amex gives 3 points for every dollar spent on groceries or in restaurants. As our eating out cratered in 2020, our grocery bills more than doubled. In 2020, I was able to redeem 100,000 points for $1,000 cash. That would come to about $33,333 spent. I also have a Navy Federal Visa that provides 2 points per dollar spent on anything we buy with it. That netted $500 in cash, or $50K spent on anything and everything. For gas purchases, I use the Penfed Visa card, which nets us 5 points per dollar. 2020 did not involve as much travel by car as in the past. Can't redeem for cash, but can exchange points for Amazon credit. They are not as generous as Navy - a $100 credit will cost 11,760 points, but I have done $400 worth in 2020.

Not counting any small cards, that comes to $1,900 in cash back. I remember in the old days when we clipped rebate coupons and then mailed them in with proof of purchase. For a few years I kept a log of the dozens and dozens of $1, $2, $3 and other small denomination rebates I put in for. Each cost a postage stamp, which was probably about 15 cents then, with rates going up every year. I think our highest yearly total was about $200, which, 40 years ago wasn't bad for the level of effort.

Now, when my wife gets contact lenses, not only do we get credit card points, but a rebate from the company for as much as $30 - no stamp required - online rebate form.

Forgot about our annual Costco rebate (don't have their credit card), but we do spend enough there (mostly delivered products these days) to easily cover our membership.

 

[ExFlyBoy5]

Doesn’t Instacart charge so much extra that it blows away any CC rewards?

Personally, I don't equate the two; 6% cash back is better than 2%, no matter the charge.

I have only used Insta a couple of times to avoid the masses of people at Costco but certainly wouldn't use it as my primary way of getting groceries.

 

[beowulf]

Doesn’t Instacart charge so much extra that it blows away any CC rewards?

It does where we live - we do curbside pickup at no charge. We have no cards that provide 6% cash back.

 

[Dtail]

Doesn’t Instacart charge so much extra that it blows away any CC rewards?

We only use it very infrequently, but otherwise yes the charges are way too much to justify for us.

 

[Sunset]

..

Forgot about our annual Costco rebate (don't have their credit card), but we do spend enough there (mostly delivered products these days) to easily cover our membership.

I have Costco and Sam's membership.
For delivery items I've noticed Costco charges extra on each item and then sometimes wants a delivery fee.

Sam's charges the store price and free delivery on lots of things for the plus members, and free delivery on a few things for regular membership.

 

[beowulf]

Costco is a PITA with their same day, 2 day and regular delivery categories. Items that include delivery are more expensive than buying them instore. They are one category. The next is items that don't include delivery and there is a $75 minimum for those. Then we have 2 day, which has items that might or might not need delivery in two days - but they have a separate $75 minimum, which is separate from all other categories. And last comes same day delivery, which is generally for perishables and has both a minimum and delivery charges. What bothers me most, is that many of the items in 2 day make absolutely no sense - such as non perishables and copier paper, but not toilet paper. Oh, well.

 

[jazz4cash]

Doesn’t Instacart charge so much extra that it blows away any CC rewards?

When we were using Instacart the upcharges were tiny for deliveries from Aldi. The service charges were very reasonable also.....I don't think their business model is viable unless they jack up the service charges. I dropped the $10/mo subscription but they keep sending $60 free grocery coupons.

 

[jazz4cash]

$1250 ish
Our credit card rewards were around $1050 in 2020 and that includes some pretty aggressive usage. 50% of that is Fidelity Visa ($530)and the rest is Amazon/Chase($168), Paypal Mastercard ($203, Penfed for gas ($72), Target Redcard ($48), and Lowes (?)

I got $200 bonus for opening a Penfed checking account.

 

[Markola]

We have used Instacart and it is classified as "Groceries" on our BOA rewards card.

Thanks. I see that my Amex Delta card does the same now that I checked. Double points for groceries.

 

[grasshopper]

Ms G and I make a game of CC rewards, but rarely open a new card for bonuses. We ended up with $1580 this year, Citi Costco did most of the heavy lifting.

 

[f35phixer]

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]

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]

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

I thought I remembered something like this!

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]

... 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

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]

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]

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]

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]

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]

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]

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]

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.