5% cc vs 2% Fidelity?

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batsy
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5% cc vs 2% Fidelity?

Postby batsy » Sun Dec 02, 2012 1:50 pm

I have been noticing this site and many users here going gaga over the seasonal 5% cc offered by discover, chase etc. My primary cc is the fidelity amex 2% cash back

If you do the math to compare then lets take a particular quarterly category say grocery

5% cash back card gives us 5% for 3 months and 1% for 9 months in an year so u get (5*3 + 1*9) / 12 avg cash back per month which is equal to 2% avg cash back on groceries per year

for 2% cash back u get 2% cash back avg on groceries all year.... so I think the 5% quarterly cash back cc's are not as much of a big deal as they are hyped to be.


jeffysdad
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Postby jeffysdad » Sun Dec 02, 2012 2:19 pm

True, that, Batsy. However, if you only use the 5% cards for the 5% categories and then use Fidelity Amex for everything else, you'll be ahead of everybody.

I was content with Fidelity Amex. The simplicity of it was great. However, I couldn't ignore the 5% offered by USB Cash+ and the 6% on groceries offered by Amex BCP. Adding these cards to the Fidelity Amex is increasing my annual cash back total by several hundred dollars.

If I had to use only one card for everything, though, it would probably be Fidelity Amex. Simple, great website and customer service, and the 2% is a not unreasonable compromise.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

batsy
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Postby batsy » Sun Dec 02, 2012 2:28 pm

jeffysdad. i never said amex fidelity was my only cc :D
heres how i max out my cash back
1) amex blu cash 3% for groceries (im not a heavy shopper)
2) penfed platinum 5% for gas
3) ink chase 5% on telefone and internet bills and 2% on restaurants that wont take my amex fidelity
4) aarp chase 3% on all forms of travel like flights, hotels, car rentals etc
5) fidelity amex 2% for everything else

I think with this formula I am sucking out the max I could using cash back cc's and I dont see how a 5% 3-month window improves this any further...besides i find it a bit cumbersome to keep synchronising dates and reminding myself which card to take out at what part of the year....

I think I have left out one card which is the citi platinum which gives 5% on restaurants but those guys whont give hard cash back they give back gift cards and all and that again restricts my freedom on how I spent that cash, so I have kept away from it...

I do have one question for the pro's here:--

1) the US bank cc gives the user to set quarterly categories. so what if I got 4 us bank ccs all under my name and set the categories such that the entire year atleast one cc is getting me 5% cash back on each category? Has any one tried that trick?

DavidNY
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Postby DavidNY » Sun Dec 02, 2012 3:04 pm

I like the FIdelity Amex but the Priceline card has the advantage of being a Visa.

Vermonster
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Postby Vermonster » Sun Dec 02, 2012 3:24 pm

I don't think anyone would argue that a 5% rotating card is better than a 2% Fidelity. One card will never match the rewards that 2, 3, 4, ect can.

Remember the Fidelity is Amex so you may find a few places that don't take it. For those rare times pretty much any card will offer a better deal than cash.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

FutureBillionaire
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Postby FutureBillionaire » Sun Dec 02, 2012 4:14 pm

I think that the trick is to maximize your credit worthiness to acquire cards that get you the most cash back overall. The 5% cash back that I get during those quarters is on items that I spend a good amount of money on. I would rather have the 5% card because I'm getting great cash back greater than half the year when I combine the benefits with shopdiscover or other rewards programs.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

silver6054
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Postby silver6054 » Sun Dec 02, 2012 7:33 pm

batsy wrote:jeffysdad.

I do have one question for the pro's here:--

1) the US bank cc gives the user to set quarterly categories. so what if I got 4 us bank ccs all under my name and set the categories such that the entire year atleast one cc is getting me 5% cash back on each category? Has any one tried that trick?


Technical quibble:There are 12 5% categories at present, each card allows 2, so you would need 6 rather than 4.

US Bank might have a problem allowing you that many cards in your name. But for partners, room mates or friend group, you could certainly imagine it working (using the correct card and paying that part of the bill, and getting some credit when the reward comes).

But despite the excitement, rewards tend to be small in the scheme of things, especially on the capped 5% cards, where 300 a year is the maximum on those categories. Cash Plus is (for now) uncapped, but I don't know how much cash back the average user will really get.

cashback
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Postby cashback » Sun Dec 02, 2012 9:10 pm

With a combination of BCP, Gift cards, PenFed, Dicover IT, Cash+, Ebates, Befrugal, ShopDiscover, topcashback, and my grocery store gas savings program I'm at about 6.5% cash back for all credit card purchases, maybe more. The 2% card would definitely be less of a hassle to manage but getting $3500+ in cash back and free gas a year is worth it to me.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

FutureBillionaire
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Postby FutureBillionaire » Sun Dec 02, 2012 9:27 pm

cashback wrote:With a combination of BCP, Gift cards, PenFed, Dicover IT, Cash+, Ebates, Befrugal, ShopDiscover, topcashback, and my grocery store gas savings program I'm at about 6.5% cash back for all credit card purchases, maybe more. The 2% card would definitely be less of a hassle to manage but getting $3500+ in cash back and free gas a year is worth it to me.


Ditto. I enjoy finding deals and ways to maximize my cash.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

chookshook
 
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Postby chookshook » Mon Dec 03, 2012 11:20 pm

Are there any benefits for the Fidelity Amex over the Priceline Visa? Visa is accepted everywhere while Amex can be hit or miss, so why go with the Amex card?



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