Freedom/US Bank+ 5% rotating

All about maximizing your rewards!
Members share tips and tricks for getting the most miles, & points.
50 posts
nishant
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Joined: Wed Dec 19, 2012 10:07 am
Location: Chicago

Postby nishant » Sat Jan 12, 2013 6:53 pm

First of all, the rewards are not net 4.9%. Of 6 % you are getting BCP gives for groceries, 1.2 % goes to Visa / Mastercard activation. Another 1.25% goes for BCP monthly fees so 6% minus 2.45% is net rewards equal to 3.45% .

BCP has yearly cap of $6000. So at 3.45%, you can get only $207 if used only for gift card purchase using full limit.

For all other cards, you get 5% most of which are capped at $500 per month so these will only get 2.45% net.

You mentioned $2500 per year from rewards. To accumulate $2500 rewards out of which 3.45% from BCP and balance from other cards at 2.45%, your credit card expenditure should be at least $ 93,600 per year charged to the cards. Considering mortgage and other loan payments which are outside credit card spending, such rewards are possible for persons with income exceeding $250,000 per year.

I do not fit into that class.


cashback
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Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sat Jan 12, 2013 7:09 pm

Your math is correct for BCP, but not for the other 5% cards. There is no AF for the 5% cards so you get 4.06% on $500 gift cards you buy. Chase/Discover are capped at $1500 per quarter, Citi Dividend is not. Citi Dividend is capped a $6000 per year. So, like right now, you can spend all 6k on gift cards from the drug store to use throughout the year.

I'm not pushing this strategy as use gift cards for everything. They are only there for purchases you cannot get at least 4% on.

As for the $2500 i mentioned, it is not just from BCP and 5% category cards. It's from those plus grocery store rewards programs, befrugal.com, ShopDiscover, and CC signup rewards. I assure you i do not make more than 250k.
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

cashback
Centurion Member
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Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sat Jan 12, 2013 8:21 pm

To further clarify my position on this, MC/Visa gift cards should be your 'last resort' in getting cash back. Merchant gift cards should be your first choice at grocery/drug stores so you can get the full 5 or 6% cash back. They have no fees(ex. Amazon). MC/Visa gift cards should only be used as i said, if you cant get 4%.
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

craigm1
Centurion Member
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Posts: 285
Joined: Wed Dec 01, 2010 8:44 pm
Location: toms river nj

amex blue cash

Postby craigm1 » Sat Jan 12, 2013 9:09 pm

any original amex blue cash holders on here no supermarket cap

last year 5%
$15,821 supermarket
$6408 gas station
$1263 pharmacies

$1174 in 5% categories
$285 in 1% catergories

total spending $52,015
Current Cards: American Express:Grandfathered Blue Cash CL 34k member since 89
Chase Freedom CL 7.5k member since 04
Chase Marriot Rewards Premier CL 20k member since 13
Chase Sapphire Preferred CL 25K member since 13
Bank Americard Cash Rewards Signature Visa CL 14k member since 11
Discover Cashback Bonus $10.5k member since 11
US Bank Cash + Signature Visa 19k member since 12
Citibank Thank You Preffered World Mastercard $16.5k member since 14

nishant
Centurion Member
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Posts: 120
Joined: Wed Dec 19, 2012 10:07 am
Location: Chicago

Postby nishant » Sun Jan 13, 2013 4:14 pm

I prefer to buy deeply discounted gift cards separately from dedicated giftcard websites. For example, I get about 20% discount on AMC, 25% on J C Penny gift cards etc.

Also Chase ultimate rewards often sells many gift cards for discounts varying between 10% and 20%.

I prefer to buy any item for lowest possible cost. With or without cashback.

nishant
Centurion Member
Centurion Member
 
Posts: 120
Joined: Wed Dec 19, 2012 10:07 am
Location: Chicago

Postby nishant » Sun Jan 13, 2013 4:22 pm

This discussion was for mainly for Sams club. I spend about $12,000 on Sams club. I use currently, Capital one world no annual fee which gives me $ 180 in rewards per year.

I was trying to find out what alternatives exist to increase the current reward.

Since Sams club accepts only Mastercard or Discover. However Discover rewards are at 1%. That leaves option for Mastercard gift card or buying Walmart gift card from other locations and using it at Sams Club.

cashback
Centurion Member
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Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sun Jan 13, 2013 4:49 pm

nishant wrote:This discussion was for mainly for Sams club. I spend about $12,000 on Sams club. I use currently, Capital one world no annual fee which gives me $ 180 in rewards per year.

I was trying to find out what alternatives exist to increase the current reward.

Since Sams club accepts only Mastercard or Discover. However Discover rewards are at 1%. That leaves option for Mastercard gift card or buying Walmart gift card from other locations and using it at Sams Club.


Buy MC/Visa gift cards from grocery/drug stores and get the 3.5 - 4% cash back. Then use gift cards to buy Sam's club gift cards online to receive an additional 2 - 3% discount.
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

nishant
Centurion Member
Centurion Member
 
Posts: 120
Joined: Wed Dec 19, 2012 10:07 am
Location: Chicago

Postby nishant » Sun Jan 13, 2013 6:45 pm

Visa gift cards are useless for Sams club.
The only place where you can buy Mastercard gift card is in the link.
MasterCard $200 Gift Card: Gift Cards : Walmart.com

This $200 gift card comes with 3.5% premium and not discount so you lose money rather than saving it.
You donot get additional 2-3% discount with Sams club gift card by buying online.
Achievement Gift Card - Sam's Club

LBJFTW
Green Member
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Posts: 13
Joined: Thu Dec 16, 2010 1:50 pm
Location: Mississippi

Postby LBJFTW » Sun Jan 13, 2013 7:10 pm

nishant wrote:Here is what I do for maximizing cash back
1) Gas- Chase Freedom- 5% cash back on gas for two quarters in a year
2) Gas- PedFed- For 5% cash back at pump for remaining two quarters of the year
3) Online shopping- Q4- Chase Freedom for Amazon.com and Discover it for any online shopping for $1500.
4) Walmart- Priceline visa- 2% cashback on everything- No annual fee
5) Sams Club- Capital one world mastercard- 1.5% cash back on everything- No annual fee
6) Movies and fast food- 5% cashback with Citi Forward
7) Major renovation like basement finishing or electronics purchase- Plan and select category for US bank cash plus
8) Groceries- 6% cashback with Amex Blue cash preferred
9) Gym- 5% cashback - Citi Dividend this Q1
10) Target- Redcard - 5% cash back plus free shipping


Can't you use your Amex BCP at Giant Eagle to buy Amazon gift cards along with your groceries to get 6% off for Amazon purchases? Is there a cap on the Penfed causing you to need to use the Chase freedom the other 2 qtrs based on gas purchase amount?
Active Cards
PenFed Visa Cash Rewards 23.4K
Citi Forward Visa 15K
Chase Amazon Rewards Visa 15K

Non Active
Delta Skymiles 15K
Bank of America Visa Signature 8K
Associated Bank Visa 5K
Chase Freedom Visa 12K

FICOs
Exp - 802
TU - 806
Equ - 806

cashback
Centurion Member
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Posts: 793
Joined: Mon Oct 22, 2012 7:11 pm
Location: NY

Postby cashback » Sun Jan 13, 2013 7:15 pm

You're not getting what I'm saying. Here's an example. Chase Freedom and Citi Dividend are 5% at drugstores right now. Go to drugstore and buy a MC/Visa $500 gift card which nets 4% cash back after fee(504.95*0.05 = 25.25, 25.25-4.95=20.30, 20.3/500 = 4.06%). Use $500 gift card that you just bought to buy Sam's Club/ Wal Mart gift cards online at a 2 -3% discount at Cardpool, Plastic Jungle, etc.

Then you've saved 6-7% at Sam's Club. If you're spending 12K/yr there, then it will add up to quite a bit of savings.
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



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