Fidelity Visa vs. Citi Double Cash Mastercard

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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CarefulBuilder14
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Re: Fidelity Visa vs. Citi Double Cash Mastercard

Postby CarefulBuilder14 » Wed Jan 06, 2016 2:10 pm

Do others find my last post confusing? I was trying to illustrate how, in a community where most people have many cards, a no-bonus 2% card can have a fairly low marginal rewards benefit.
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


yfan
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Re: Fidelity Visa vs. Citi Double Cash Mastercard

Postby yfan » Wed Jan 06, 2016 3:10 pm

CarefulBuilder14 wrote:Do others find my last post confusing? I was trying to illustrate how, in a community where most people have many cards, a no-bonus 2% card can have a fairly low marginal rewards benefit.

I don't find it confusing. But we can paint ourselves into a corner comparing marginal benefits only. Just as one can argue that the extra in 2% yields a small marginal benefit on noncatgory spend since category cards give you a 1% on noncategory spend anyway, one can just as easily argue that equally makes the benefit of other rewards cards marginal (over a 2% card) since the non-AF ones with a constant category have at best a 3% return in the given category. 2% over 1% is just as marginal as 3% over 2%.

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CarefulBuilder14
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Re: Fidelity Visa vs. Citi Double Cash Mastercard

Postby CarefulBuilder14 » Wed Jan 06, 2016 4:13 pm

yfan wrote:
CarefulBuilder14 wrote:Do others find my last post confusing? I was trying to illustrate how, in a community where most people have many cards, a no-bonus 2% card can have a fairly low marginal rewards benefit.

I don't find it confusing. But we can paint ourselves into a corner comparing marginal benefits only. Just as one can argue that the extra in 2% yields a small marginal benefit on noncatgory spend since category cards give you a 1% on noncategory spend anyway, one can just as easily argue that equally makes the benefit of other rewards cards marginal (over a 2% card) since the non-AF ones with a constant category have at best a 3% return in the given category. 2% over 1% is just as marginal as 3% over 2%.

I'm not a fan of 3% category cards, either...unless there's a signup bonus, perks, and/or the opportunity to earn more than 3% in certain circumstances.
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

kdm31091
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Re: Fidelity Visa vs. Citi Double Cash Mastercard

Postby kdm31091 » Wed Jan 06, 2016 9:03 pm

yfan wrote:
CarefulBuilder14 wrote:Do others find my last post confusing? I was trying to illustrate how, in a community where most people have many cards, a no-bonus 2% card can have a fairly low marginal rewards benefit.

I don't find it confusing. But we can paint ourselves into a corner comparing marginal benefits only. Just as one can argue that the extra in 2% yields a small marginal benefit on noncatgory spend since category cards give you a 1% on noncategory spend anyway, one can just as easily argue that equally makes the benefit of other rewards cards marginal (over a 2% card) since the non-AF ones with a constant category have at best a 3% return in the given category. 2% over 1% is just as marginal as 3% over 2%.


I do think people get a bit carried away sometimes with chasing the extra 1% here and there. An extra 1% on every single purchase is more significant than 1% on one or two categories, but at the end of the day, likely still not some life changing amount of money. It's important to keep it all in perspective.



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