Author Topic: suggest better credit card than 2% back for long term use  (Read 567 times)

Kevin Aster Tin Obin

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suggest better credit card than 2% back for long term use
« on: September 08, 2022, 07:50:05 AM »
Not looking for credit card to grab the one time sign on bonuses unless really worth the time, but something to replace our current one.

For last ~10 years using capital 1 venture with 2% cash back (refunds travel purchases) spending 100,000 a year on that card for personal and business purchases.

I call every year after the annual $59 fee and ask them to waive it, and they credit me back..

Any suggestions of something better going forward?  Looking to maximize savings on Credit Card purchases (greater than 2%) long term? 

PS - Dining or entertainment 5% teasers isn't going to help when its 10% of my spending and the other 90% doesn't get the 5% back..

thanks mustachians!



RWD

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Re: suggest better credit card than 2% back for long term use
« Reply #1 on: September 08, 2022, 08:33:29 AM »
2% is about as good as you can expect from a no-fee card.
https://www.nerdwallet.com/best/credit-cards/cash-back

Dicey

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Re: suggest better credit card than 2% back for long term use
« Reply #2 on: September 08, 2022, 09:14:19 AM »
How much do you spend at Costco?

GardenBaker

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Re: suggest better credit card than 2% back for long term use
« Reply #3 on: September 08, 2022, 10:08:04 AM »
I got the AMEX Blue Cash Preferred because it gave the most cash back in my highest spending categories. I get 6% on groceries, 3% on streaming services, 3% on transit (rideshare, tolls, taxi, etc), 3% at gas stations. I'm pretty boring and don't travel a ton so those higher gas back everyday spending categories are where it's at for me when choosing a card. https://americanexpress.com/en-us/referral/STACIHhQOG?xl=cp15&mpt=v0 That's my referral link.

secondcor521

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Re: suggest better credit card than 2% back for long term use
« Reply #4 on: September 08, 2022, 11:32:54 AM »
Two suggestions:

1.  Figure out which categories your biggest CC spend is in, then find a card that caters to those categories.  I'd check Doctor of Credit's cash back card page at https://www.doctorofcredit.com/credit-cards/best-credit-cards/#Best_Credit_Cards_For_Ongoing_Spending

2.  I use the Fidelity 2% cash back Visa.  You only get the full 2% if you deposit the cash back into a Fidelity account.  Luckily, I have a Fidelity HSA also and they auto deposit my cash back there, which count as HSA contributions and are deductible on my tax return.  I can Roth convert an equivalent amount at 0% taxes, probably saving myself 33% on later IRA RMDs that I won't have to take on that money because I already converted it.  With all that mental accounting and justification, I consider the card to be a 2.66% card for my situation.

ETA:  My spending is low enough that my cash back -> HSA contributions won't exceed the annual cap.

dividendman

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Re: suggest better credit card than 2% back for long term use
« Reply #5 on: September 08, 2022, 11:40:05 AM »
If you have enough assets at Bank of America (> $100k) and have the premium rewards credit card ($95 yearly fee, but you can get $100 travel incidentals credit), then you can get:

3.5% back on travel and dining
2.625% on all other purchases

Link: https://www.bankofamerica.com/credit-cards/products/premium-rewards-credit-card/

FLBiker

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Re: suggest better credit card than 2% back for long term use
« Reply #6 on: September 08, 2022, 11:49:27 AM »
Personally, I find the signup bonuses worth it.  I've fallen a bit out of the game recently (since moving to Canada) but I'm dipping my toe back in.  Basically, we'd sign up for cards (typically with the first year annual fee waived), get the bonus after a couple of months, and repeat.  With a spouse, we'd go through maybe 5 or 6 cards a year.  Some of our favorites were SouthWest, Chase Ultimate Rewards and IHG.

And, rather than cancel cards, we'd typically just downgrade them to something with no annual fee.

It's a bit of time, but not very much.  Maybe a couple of hours a year?