Cash Back Credit Cards

[lilsaver]

What's your favorite cash back credit card? We're looking to sign up for a new credit card. Not really interested in the travel hacking right now. Most of our expenses are groceries and home improvements stores (not a lot of dining/restaurants).

[Chris @ Saturday Financial]

Citi Double Cash is our “daily driver” card. It’s 2% cash back across all categories. (1% at the time of purchase, and an additional 1% at the time of payment.)

[geekette]

Amex has 2 cards that are good for groceries - Amex Blue Cash Everyday gives 3% back, and the Blue Cash Preferred gives 6% (but charges $95/year).  Right now the Preferred is offering $250 back if you spend $1k in the first 3 months.  The Everyday is $150.

Referral link, if you're interested.

[daverobev]

Bear in mind a lot of sign up bonuses CAN be converted to near-cash even if they 'look like' travel... but also bear in mind you might 'lose value' vs sticker price on travel. So, it isn't quite so clear.

Also bear in mind that Chase have some of the best sign up bonuses and won't issue you cards if you're over their 5 cards in 2 years rule. If you're a "normal person" this shouldn't be an issue.

All that said, the Amex recommendation is a good one, but do do a little research into Chase. Their own rewards program can be cashed out for 1c/point ("heresy!" etc etc, but cash is cash). The Southwest cards can be converted to Amazon gift cards.

And honestly, again if you're a "normal person", applying for a couple of cards a year will probably get you a lot more than a couple of extra percent at the supermarket.

The card in my sig is great but perhaps not in your situation. Quarterly 5% on rotating categories is pretty nice though. Remembering you can buy gift cards...

[Catbert]

If you have a Fidelity account their credit card is a straight 2% back.  No fees, no signing bonus, no hoops, no catches, except it has to be paid into a Fidelity account.

[terran]

If you have a Fidelity account their credit card is a straight 2% back.  No fees, no signing bonus, no hoops, no catches, except it has to be paid into a Fidelity account.

I don't have this card, but have considered it, and have been offered a small signing bonus before ($150 or $200 I think). Sometimes by mail and sometimes after signing out of my account online.

[boridi]

If you have a Fidelity account their credit card is a straight 2% back.  No fees, no signing bonus, no hoops, no catches, except it has to be paid into a Fidelity account.

Minimum redemption amount is $50.

[frugalecon]

If you have a Fidelity account their credit card is a straight 2% back.  No fees, no signing bonus, no hoops, no catches, except it has to be paid into a Fidelity account.

I have this card, and I am using it as a primary card since the value of travel points seems very uncertain at the moment. They have often offered extra point bonuses in the latter part of the year, which have raised the cash back percentage.

[FIREin2018]

If you have a Fidelity account their credit card is a straight 2% back.  No fees, no signing bonus, no hoops, no catches, except it has to be paid into a Fidelity account.

yup, 2% fidelity is my daily driver.
and gambling on the stock market with that cash is fun seeing how much more (or less) above the 2% i'm making.

the 2nd credit card in my wallet is costco's credit card.
besides buying stuff at costco, it's 3% travel/restaurants and 4% gas. it helps that costco gas is the cheapest near me.

anything better than my setup?

[daverobev]

If you have a Fidelity account their credit card is a straight 2% back.  No fees, no signing bonus, no hoops, no catches, except it has to be paid into a Fidelity account.

yup, 2% fidelity is my daily driver.
and gambling on the stock market with that cash is fun seeing how much more (or less) above the 2% i'm making.

the 2nd credit card in my wallet is costco's credit card.
besides buying stuff at costco, it's 3% travel/restaurants and 4% gas. it helps that costco gas is the cheapest near me.

anything better than my setup?

Getting 4+ cards a year with decent sign up bonuses (say $250 on average?).

If you spend $15k, getting whatever normal rewards (say 1%, but it should be higher) plus $1k in sign ups is going to be a lot better than flat let's say average 2.5%

$150 + $1000 is a lot better than $375.

[foghorn]

I also have the Fidelity Visa Card with the 2% back on all purchases.  I use this for most everything.  The only exception is a Sam's Club MasterCard that I use for gas only - as I get 5% back using that.

[rantk81]

I recently just "got under" the Chase "5/24" threshold, and applied for a new "Chase Freedom Unlimited" card.  I was approved and received the card literally a week before the SHTF with the economy.

I get a $200 bonus after an initial $500 spend.

I get 1.5% cash back. (Good, but not the best available.)

But the real valuable thing for me right now: I have 0% APR on purchases for 15 months!  So I have set up auto-pay for the "minimum payment" each month.
I have a lot of "emergency savings" and investments (hell, I was almost starting to feel comfortable about pulling the trigger on FIRE before the SHTF!)  But this extra 15 months of "free float" certainly does a lot to help prevent me from tapping much of my savings or investments at this time.  Especially now because I found that last week that I am being furloughed from my job for (at least) the next 6 weeks... maybe forever.  Who knows.

Thank you Chase!  I've already collected my $200 bonus, and will use this card for my "daily driver" for the next year!


(My previous "Daily Driver" was the Citi Double Cash... although they ticked me off last year when the eliminated nearly all of the card benefits except for the cash back.)