I can’t believe already passed 2 years since my last post about the cards I use each quarter to maximize the amount of cash back I get. Having other hobbies and jobs sure take most of my time. With this post I start a compromise with you to talk more about credit cards, building history in the USA and other perks of having different credit cards.
As I mentioned before (and in several places in this website), real saving is not getting more cash back but to really only buy what we need every week/month. Everyone knows that if I buy a gallon of milk at $3.68 with a 5% cash back credit card or if I buy the same milk for $3.28 with a 1% cash back credit card, the later is a better deal. There are several studies that explain that using a credit card (even a debit card) instead of cash, will make the average person expend 10-15% more in average. What I’m trying to say, is: our goal is to be debt free (“Libre sin Deudas“) so we have to be sure that we need something before using our credit cards, and even if we are using them, choose the better deals to save some money.
This time I’m just going to put the cards that have $0 AF (Annual Fee). This is because I think that, most of the time, having several credit cards with no AF is better to have a little extra cash back in only some of the purchases. I may be missing a general 2% cash back card, but as today I’m not in the market to apply for anything.
The cards that will have a place in my wallet from July 1st and September 30th are:
This quarter (July-September 2018) Discover IT card gives 5% (10% if you are a new credit card holder and for the first year, the ‘match’ cash back will be credited after the 12th month) back in all purchases at restaurants only (sometimes they pair restaurants with movies, but not this year). With the prices at some restaurants every little bonus helps. This is a category that use maybe once every couple of weeks or once a month, so there is no way that I can get near the limit of $1,500 per quarter.
I’m very happy with Discover. If you don’t have the Discover IT, you can get a $50 statement credit* by applying with the following link: https://refer.discover.com/s/uwua4
When I don’t have a card with 5% back in restaurants, I use the Chase AARP for 3% all year long.
Chase Freedom this quarter has a multiple category, it includes: a) gas stations, b) Lyft service and c) Walgreens. I always search the best price for gas on those gas stations near me (thanks to GasBuddy). I don’t use Lyft and sometimes I go to Walgreens. I also have a Fuel Rewards card that gives me a discount of $0.06 per gallon, so I do compare the price with this discount, whatever place is cheaper, that’s where I will fill my tank.
When there is no quarter with gas I use the Bank of America Cash Rewards card for 3% plus customer bonus (making this card at least 3.3% cash back on gas). Other card that gives 3% (no bonus) is the Chase AARP.
Bank of America Cash Rewards
The Bank of America Cash Rewards cars has a 2% cash back on groceries but it also includes wholesale clubs like Costco and Sam’s Club. Because I’m a Bank of America customer I get a bonus of 10% cash back (from the 2%), making this card a 2.2% cash back on those clubs.
Capital One Quicksilver/Chase Unlimited
Both, the Capital One Quicksilver and the Chase Freedom Unlimited card, have 1.5% cash back on everything. Because I don’t have a general 2% card (yet), I have to use one of those. The great think about the Chase Freedom Unlimited is that I got it with a special welcome bonus of $300 cash (normally is only $150 bonus after you spend $500 on purchases in your first 3 months from account opening). There is a popular 2% card that doesn’t have a welcome bonus.
What do you think about my card selection? Do you have any of these cards? Any recommendations?