5% categories

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CarefulBuilder14
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Re: 5% categories

Postby CarefulBuilder14 » Wed Aug 19, 2015 5:52 pm

Vattené wrote:I wish a card existed that could be to restaurants what Sallie Mae is to gas/groceries. Something with no AF and a high return on restaurants year-round - even if there was a relatively restrictive monthly or quarterly cap - would be super useful to me.

I read somewhere on here that Discover once had a dining card like that.

US Bank nerfed Cash+, but you can still get 5% on fast food with it. Other restaurants are now just a 2% category.

I don't think there's even a 4% cash back restaurant card - just 3% cards like AARP.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card


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Vattené
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Re: 5% categories

Postby Vattené » Wed Aug 19, 2015 6:43 pm

I would have no confidence at all with the Cash+. It seems like a great card when introduced and anything is open to nerfing, but there have been so many cuts to it and restrictions/narrowings of categories.

I would be interested to know how much the Sallie Mae is used exclusively (or very predominantly) for 5% spending. Freedom and Discover it are flagship, heavily marketed products that are more likely to be one's go-to everyday card, but the Sallie Mae is much less widely known. I'd speculate a larger proportion of its use is for 5% spending. If enough is, that will be unsustainable and it will be getting nerfed, too.
-Vattené
FICO-8: EX - 827 (5/17) | TU - 824 (5/17)
My Cards: Barclay Arrival+ | Discover it | Amex ED
AU:: Discover Miles | BofA BBR | Barclay Commence (SD'd)

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CarefulBuilder14
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Re: 5% categories

Postby CarefulBuilder14 » Wed Aug 19, 2015 7:07 pm

Vattené wrote:I would have no confidence at all with the Cash+. It seems like a great card when introduced and anything is open to nerfing, but there have been so many cuts to it and restrictions/narrowings of categories.

I would be interested to know how much the Sallie Mae is used exclusively (or very predominantly) for 5% spending. Freedom and Discover it are flagship, heavily marketed products that are more likely to be one's go-to everyday card, but the Sallie Mae is much less widely known. I'd speculate a larger proportion of its use is for 5% spending. If enough is, that will be unsustainable and it will be getting nerfed, too.

I've wondered that same thing.

Freedom is pretty mainstream. I even listened, with much amusement, to someone proudly telling me how her Freedom was earning her 5% cash back on groceries. This was an August 2015 discussion about a Q1 2015 category. I said I thought that the 5% category was something else right now, like gas. False uncertainty seemed more polite.

Sallie Mae has fairly high credit standards, so it doesn't get a lot of highly profitable building/rebuilding customers who'd be happy with it as an everyday card.

Even if customers occasionally exceed the $250 caps, at $500 of gas or groceries it would still be a 3% cash card.

Another factor is that the signup bonus is tiny. That may discourage serious bonus-hunters and make the customer pool more desirable.

So I think nerfing is possible, but not guaranteed.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

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Vattené
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Re: 5% categories

Postby Vattené » Wed Aug 19, 2015 8:42 pm

A good tactic, yes. Was she receptive?

I bet the $25 discourages the typical layperson that pays little attention to credit cards as well, though (potentially shifting that pools towards less desirable). A good introductory bonus works well on the average consumer. How many people sign up for a CSP because wow! 40,000 points! That's so many! only to come on here and ask what they're good for and how valuable they are? No special intro purchase or BT APR may be a factor, too, but I'd be surprised if the average consumer pays much attention to that.

Ultimately, nerfing is just a matter of time for everything.
-Vattené
FICO-8: EX - 827 (5/17) | TU - 824 (5/17)
My Cards: Barclay Arrival+ | Discover it | Amex ED
AU:: Discover Miles | BofA BBR | Barclay Commence (SD'd)

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CarefulBuilder14
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Re: 5% categories

Postby CarefulBuilder14 » Wed Aug 19, 2015 9:19 pm

Vattené wrote:A good tactic, yes. Was she receptive?

I bet the $25 discourages the typical layperson that pays little attention to credit cards as well, though (potentially shifting that pools towards less desirable). A good introductory bonus works well on the average consumer. How many people sign up for a CSP because wow! 40,000 points! That's so many! only to come on here and ask what they're good for and how valuable they are? No special intro purchase or BT APR may be a factor, too, but I'd be surprised if the average consumer pays much attention to that.

Ultimately, nerfing is just a matter of time for everything.

She was not receptive.

You're right about the $25 not appealing to the average consumer. The average consumer may prefer cash to miles, but it's not nearly enough to make people who are happy with their primary cards switch.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

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Vattené
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Re: 5% categories

Postby Vattené » Thu Aug 20, 2015 1:35 pm

This is all assuming that average consumer even comes across the card at all. I doubt that happens often without actively looking for it. Unless you already know about it, it can be tough to find. As far as I can tell it isn't marketed at all anymore. I checked if there was an application link on CCF - and then a few other places - before applying myself (I figure I'm going to apply either way so I might as well see if I can give someone a kickback), but couldn't find any.
-Vattené
FICO-8: EX - 827 (5/17) | TU - 824 (5/17)
My Cards: Barclay Arrival+ | Discover it | Amex ED
AU:: Discover Miles | BofA BBR | Barclay Commence (SD'd)

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CarefulBuilder14
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Re: 5% categories

Postby CarefulBuilder14 » Thu Aug 20, 2015 2:02 pm

Vattené wrote:This is all assuming that average consumer even comes across the card at all. I doubt that happens often without actively looking for it. Unless you already know about it, it can be tough to find. As far as I can tell it isn't marketed at all anymore. I checked if there was an application link on CCF - and then a few other places - before applying myself (I figure I'm going to apply either way so I might as well see if I can give someone a kickback), but couldn't find any.

Well, salliemae.com has only two CCs listed (I wouldn't quite use the term "advertised"), so presumably anyone looking for (or paying down) a student loan might stumble upon it. I've never seen Barclaycard advertise it on barclaycardus.com.

And I've never seen a SM signup bonus of anything other than $25.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

russwm
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Re: 5% categories

Postby russwm » Tue Aug 25, 2015 4:21 pm

CarefulBuilder14 wrote:
Vattené wrote:I wish a card existed that could be to restaurants what Sallie Mae is to gas/groceries. Something with no AF and a high return on restaurants year-round - even if there was a relatively restrictive monthly or quarterly cap - would be super useful to me.

I read somewhere on here that Discover once had a dining card like that.

US Bank nerfed Cash+, but you can still get 5% on fast food with it. Other restaurants are now just a 2% category.

I don't think there's even a 4% cash back restaurant card - just 3% cards like AARP.


The Sam's Club MC doesn't seem to get discussed much, although I might have just missed it. If you are a member of Sam's Club, it gives 3% cash back at restaurants and on travel and 5% on gas. I would also love a 5% restaurant card, but at least it is close.

The Bank of America cash back Visa does normally offer 10% cash back at a few restaurants on its BankAmeriDeals. Far from perfect, but for non-picky eaters like me it comes in handy.

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Vattené
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Re: 5% categories

Postby Vattené » Tue Aug 25, 2015 4:46 pm

I agree the Sam's Club MC should get more buzz. It isn't useful for me personally as I am not a member of Sam's Club (anymore), but rewards are good and redemption is like Costco, which gets a ton of attention.
-Vattené
FICO-8: EX - 827 (5/17) | TU - 824 (5/17)
My Cards: Barclay Arrival+ | Discover it | Amex ED
AU:: Discover Miles | BofA BBR | Barclay Commence (SD'd)

Kevin86475391
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Re: 5% categories

Postby Kevin86475391 » Fri Aug 28, 2015 4:41 pm

Definitely I think 5% rotating rewards categories are going to be an incredibly subjective, personal thing in terms of how valuable they are to an individual consumer. Of course that's the case with reward cards in general.

Personally speaking, I virtually never travel, AT ALL, including by car (I drive, but like maybe 5-10 miles a week max, often quite less). So I have no use whatsoever for any cards geared toward hotels, miles, or gas. I also do zero home improvement and never find myself in Home Depot or stores like that. However, I shop on Amazon ALOT, so that's an incredibly valuable category to me and I almost always max it out. Same with dining out. Dining out and shopping online are like my two main recreational activities, lol. So even with Chase and Discover aligning those categories I get value from them because I'd hit the max cap if I had just one. It's annoying and a bit extreme though. Virtually zero benefit from gas and home improvement categories, virtually full benefit from Amazon and restaurants.

Heck, I even find that I'm much more likely to simply be buying stuff from a gas station convenience store than actually purchasing gas. Fortunately that still counts and represents the vast majority of the minimal value I get from gas categories.

Yeah, I think there's naturally going to be a nerfing of value and benefits on cards over time. It's to be expected. I actually feel like Chase and Discover have been really good about keeping the value of their cards/categories.

My strategy is to utilize both Chase and Discover - because again even with coinciding categories I'll get value from them, as well as pure cashback cards like Citi Double Cash (great for pure monthly bills and rent that otherwise would never be a rewards category) and BofA 3,2,1 Signature Visa or whatever they call it (great for groceries and the rare but occasional gas purchase I actually need to make during a time when Chase and Discover aren't doing their gas category).



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