Looking to supplement my Discover Card

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Eddie Money
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Looking to supplement my Discover Card

Postby Eddie Money » Thu Oct 16, 2014 11:48 am

Currently have a Discover Card and I love it. It fits most of my shopping habits. However, there are aspects of my shopping habits that could be covered better by other cards.

Having analyzed my purchases over the past few years, the largest areas where Discover seems to be deficient are subway travel, groceries, Amazon, and eBay. Another shortcoming that I run into sometimes is that Discover isn't taken by some smaller/local restaurants.

With that said, I think I've narrowed it down to the following options:

AmEx Blue Cash Preferred

Has an annual fee which I don't like, but 6% back on groceries would be huge considering the sheer amount of money my family spends on groceries. The only downside is that its limited to $6k in groceries per year, but I shouldn't go over that by much.

It's nice that you can get 3% back on gas and department stores, but I primarily take subway travel and the only department store on their list I ever really go to is Sears and my wife already has a Sears card.

Other issues with this card is that it doesn't help me with online purchases at Amazon or eBay. Also, I would prefer to have a Visa in case a retailer/restaurant doesn't take Discover. Though it seems like most places here take AmEx because they want to cash in on the business lunch crowd, so it shouldn't be too much of an issue.


Amazon.com Rewards Visa Card from Chase

It would be nice to have a Visa card and get 3% cash back from Amazon. Not really good for much else though.

Chase Ink Cash

Got this idea from the Amazon card review here. Could use it to purchase Amazon gift cards at Staples and get 5% cash back.


What do you guys think? I think I'm SOL on subway travel and eBay purchases (which bums me out because I buy and sell a lot on eBay). Perhaps get the Chase Ink for gift cards and the Amex BCP for groceries?

Any other cards you guys would suggest?


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Vattené
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Postby Vattené » Thu Oct 16, 2014 2:45 pm

Based on that information I would go for the BCP. If the cap is a DRAWBACK for you, then you are spending at least $6K annually at merchants categorized as supermakets. That would make the BCP worthwhile for ONLY using on groceries as you would net at least $285 annually ($6,000 spending times 6% is $360, less $75 AF). If you are spending a TON on Amazon this may change things, but I think this may be your best bet. I'm not seeing an AF from Chase on the Amazon card, so when you factor in 2% on restaurants you may want to go for both. If you only want one new card though, the fact that Discover gets 5% online 1/4 of the year would be enough to nudge me personally towards the BCP.

I use Discover for everything I can and the acceptance hasn't been an issue at all for me (and the same would go for Amex). There have been a very small handful of times where I haven't been able to use it, but I would rather use a debit card extremely infrequently and keep a card with better rewards for me. Just my personal experience and preference. I am not aware of anything off the top of my head that would be good for subway or eBay (doesn't mean it's not out there).

I would also consider the Amex EDP. You have a strong cash back card in Discover, so getting MR points could be a good complement. It does have a higher AF of $95, but it gets 3X MR on groceries. If you can use it for 30 swipes a month to get the 50% bonus on everything, you will be getting 4.5X just on groceries.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Eddie Money
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Location: USA/Southeast

Postby Eddie Money » Thu Oct 16, 2014 3:49 pm

I agree with your analysis. I just applied for the BCP and was approved ($11k). You are correct in that the Chase and Amazon cards referenced in my first post do not have an AF. I may consider adding one of them (or some other card) in the future.

After some additional researching, I'm considering having my wife pick up a Sallie Mae MC. She's had a CapOne for a while now, and I keep telling her to get rid of it in favor of something better. She actually drives to work so the 5% on gas would be nice for her, plus it sounds like Amazon qualifies (some purchases at least) for the 5% cash back on bookstores. Finally, we could use the 5% grocery cash back to cover anything over the $6k cap on the BCP.

As an aside - thanks to this forum, I called Discover today to have my Discover More card converted to a Discover It card. I really wish I had known about that a lot sooner.... this forum rocks.

TheSwarm
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Postby TheSwarm » Thu Oct 16, 2014 5:04 pm

Now, I really see no reason why anyone should be getting any less than 2% back on all purchases.

I made that my goal and with the release of the Citi Double Cash, there is no excuse. I would definitely keep your category spend on the 5% ones if possible and then fill in everything else with something like the Citi Double Cash.

Sallie Mae
Discover It
AMEX BCP
Citi Double Cash

I think that would be a pretty sweet lineup. Plus you'd have a card from almost all the big lenders. You could always throw a Freedom in the mix for extra 5% if you desired.

Eddie Money
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Location: USA/Southeast

Postby Eddie Money » Thu Oct 16, 2014 6:10 pm

That does sound like a pretty sweet lineup. I like the features of the Citi card. Especially considering that I've never carried a balance on a credit card ever. I may have to have my wife drop the CapOne and pickup the Sallie Mae add I'll pickup the Citi sometime. That would give us:

2x Discover It
Sallie Mae
Citi DC
AMEX BCP
Sears card

I've toyed around with the idea of trading in one of our Discover cards for a Chase Freedom, but honestly the Chase 5% categories don't really interest me as much as the Discover 5% categories.

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Vattené
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Postby Vattené » Thu Oct 16, 2014 8:27 pm

Now you tell him!

The Citi Double Cash is tempting. The only thing that has kept me from going for it is the concern that it is too good to be true. I would be too worried they couldn't sustain that. I realize it doesn't necessarily mean anything, but I have read too many accounts of Citi nerfing rewards. I can't blame anyone for jumping on the card and I wouldn't discourage Eddie Money from apping - 2% in cash back is outstanding. Maybe I am a fool for not at least getting one and using it while it DOES last, but I would personally rather not enter into a relationship with a lender when I am not confident in them as a company.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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