kdm31091 wrote:I think it's entirely possible that the 5% amazon store card could make someone overspend. Just like 3% on dining or 5% on gas, it makes you think "well I may as well buy this, I get _% off anyway!" even though the percentage is likely to add up to pennies or a few bucks. Rewards cards in general can cause overspending, so it's important to be mindful.
I actually think flat rate cash back is a good way to remove the incentive to overspend (at least on specific categories). You get the same 1.5 or 2% no matter where you spend, so there's no incentive to overspend anywhere. So that's what I lean towards if you know someone who overspends because of their special dining, gas, whatever card.
Even 1% would be enough in my case. My Spending on gas and groceries usually goes on one of my two main cards (Discover or Chase) despite them not being in 5% most months (as it happens this quarter is 5% gas on both). My next biggest category, dining out, would be helped by the 2x points on CSP, and the occasional 5% category on Freedom.