Does a 10% cash back credit card exist?

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glexo
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Does a 10% cash back credit card exist?

Postby glexo » Thu May 05, 2011 6:30 pm

What's the best you can do for cash back. I was reading the credit card reviews that talked about 5% rebates though I would like to know if there are any above that. I'm not dumb enough to think 10% cash back on all purchases would be possible but would like to know if there is a store or gas station card that offers it. Thanks


DarrellEW
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Postby DarrellEW » Fri May 06, 2011 3:30 am

The best I've seen is the new AmEx Blue Cash Preferred that gets you 6% cashback at supermarkets, along with 3% on gas and 1% everywhere else. The possibilites with a 6% supermarkets card are endless. You can usually find giftcards for Amazon, restaurants, gas stations, iTunes, etc at supermarkets, so if you buy them there you can effectively get 6% cashback at all those places too. Not only that, but if you really wanted to maximize rewards you could buy $500 Visa/MC/AmEx pre-paid gift cards (which carry a fee, usually around $5), so you're giving up 1% with the fee, but with your 6% cashback, you are getting an effective 5% discount just about anywhere. You could even see if you could pay utilities, rent, taxes, etc with the gift cards to really maximize your rewards. The only drawback is the $75 annual fee, but most people would probably make up the $75 even if you aren't buying giftcards.

glexo
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Postby glexo » Fri May 06, 2011 1:38 pm

I have never thought of doing that. Are you positive the supermarkets don't charge extra fees for the store gift cards that are sold?

DarrellEW
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Postby DarrellEW » Sat May 07, 2011 12:57 am

glexo wrote:I have never thought of doing that. Are you positive the supermarkets don't charge extra fees for the store gift cards that are sold?


I know that both HEB and Kroger do not charge any extra fee for store gift cards, only Visa/Amex/MC, and from what I've heard most other major supermarket chains do the same.

Some credit card issuers have gotten smart and look for a lot of spending in even denominations ($100, $200, $500, etc), which usually implies gift cards and not legitimate purchases, so if you really want to play it safe then your best bet is to buy the gift cards with your grocery purchase, or at least throw in a pack of gum, candy bar, etc.

glexo
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Postby glexo » Sat May 07, 2011 6:58 pm

You are a pro with this! Once I get my new Amex in the mail I will do it the way you said by combining the gift cards with groceries. I was at my grocery store this morning and noticed they have Shell and BP gift cards for sale in $50 and $100 denomination. If I can buy those and get the discount that would be sweet.

How much per year in gift cards do you buy using this method?

DarrellEW
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Postby DarrellEW » Tue May 10, 2011 2:27 pm

I actually don't even have the AmEx Blue Cash yet. It just came out a couple weeks ago, and right now I'm on a Chase promo for 5% cashback on almost everything for 3 months, so I probably won't apply for it until this one's up.

Some words of caution on using gift cards:
If you're using them on items that you might need to return, it can be a huge pain to process the return, and you might be left with a bunch of merchandise credit to a store you otherwise wouldn't shop at.
Some credit cards will extend warranties on anything you purchase with the card, but you won't be getting that added protection if you use gift cards.
You'll want to cash out your rewards as quickly as possible (I think they let you cash out once you hit $25 rewards), because there's always a chance that the credit card issuer can close your account and you'll lose any rewards you have built up, so don't just sit on $100s of rewards.
In regards to pre-paid Visa/MC/Amex cards, they will sometimes cause problems at pay-at-the-pump gas stations, since the pump has no way of knowing your remaining balance. Likewise, stores can't find out your remaining balance, so you'll need to keep track and process separate payments up to the full balance of the card.
Lastly, you'll need to keep track of what gift cards you have and their current balance. If you lose a $100 gift card or forget about a few cards with low balances on them, you can easily be losing more than you're making in cashback.

The best way to reduce risk would be to only collect cards for places that you go frequently, or for shopping trips you plan on taking in the next week or so. Possibly just start out simple with gas gift cards, since 6% on gas/groceries will add up to quite a bit each year. Then start getting cards for Amazon, department stores, restaurants or anywhere else that you visit frequently.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon May 16, 2011 10:55 pm

Hey DarrelEW a lot of great points there.

This one:

In regards to pre-paid Visa/MC/Amex cards, they will sometimes cause problems at pay-at-the-pump gas stations, since the pump has no way of knowing your remaining balance. Likewise, stores can't find out your remaining balance, so you'll need to keep track and process separate payments up to the full balance of the card.


There have been a couple times I have been given a Visa gift card for a purchase or rebate. Like buying 4 tires and getting a $50 Visa card. That problem is so true about the low balances and I can't help but assume Visa and MasterCard set them up that way on purpose so they can keep a little bit from each account. I was down to something like 27 cents on a card and was having a rough time finding a store that would just let me charge 27 cents and then the rest on a different card. It can be a real pain in the butt to deal with those.

But with stores on the other hand it shouldn't be a problem. Like when I was at Chipotle yesterday using up the remaining balance on my gift card from Discover, the amount was credited to my order and then the cashier told me I still owed $1 and change. That is how most stores work with most gift cards from my experience. It's those pesky Visa, MasterCard and AmEx gift cards that will be the biggest headache.

The best way to reduce risk would be to only collect cards for places that you go frequently, or for shopping trips you plan on taking in the next week or so. Possibly just start out simple with gas gift cards, since 6% on gas/groceries will add up to quite a bit each year. Then start getting cards for Amazon, department stores, restaurants or anywhere else that you visit frequently.


Couldn't agree with you more. Keep the essential gift cards on hand. For me that would be gas, Subway and that's about it. For department stores, Best Buy and places like that, it would probably be best to swing by the grocery store on the day you go to pickup your gift cards rather than buying in advance.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

citizensoldier
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Postby citizensoldier » Sun May 29, 2011 3:45 pm

Why would there be such thing as 10% cash back? There would be no way for the credit card to be profitable!

Rich
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Postby Rich » Mon May 30, 2011 11:57 am

Actually, I am the proud owner of a 10% Gas Discount feature on my USAA American Express Card. I hasten to point out that I was
offered this discount as an incentive to keep the card. I had not used the card in almost a year and when I called USAA to cancel the
card, they offered me the 10% Gas discount for a period of one year. Well, you know the old saying "Money Talks, B.S. Walks!"

I might also add that I called to cancel a Citi Bank Credit Card and believe it or not they offered 5% on EVERYTHING charged for 3 months. So at this point in time I am charging EVERYTHING on my Citi Card, EXCEPT GAS. Life is Good!!!

Rich

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Jun 13, 2011 7:31 pm

I didn't use my Bank of America card for a year and all I was offered was 5% on gas, grocery and travel for 1 month. Getting 10% on gas all year long is one heck of an offer. Was there any cap on how much spending per month or year would qualify for that ten percent?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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