Most Mustachian Credit Cards

[WYOGO]

After much thought and discussion regarding credit cards specifically and financial "mistakes" in general:

http://forum.mrmoneymustache.com/welcome-to-the-forum/biggest-finance-mistakes-in-the-fi-community/

I began to wonder what current credit cards are probably the very best (most rewarding)
for the highly focused, frugal spender and saver.

I nominate my girl Sallie. Highly underrated as relates cashback cards. She is ugly as sin, but delivers and is easily hidden from view. I don't take her out to eat ;)

I may churn others but for this one it really is cheaper to keep er'

https://www.salliemae.com/credit-cards/sallie-mae-card/

5% always on Groceries (+Super Walmart and Target) as well as Gas up to $250 each month, each category and a full 1% after that...
5% on up to $750 each month at Amazon and Book Stores.
No Annual Fee

Cash back credits as statement credit in $25 increments. Want to harness credit rewards while remaining focused? This one is hard to beat.

How about you? What's in your wallet?

[bacchi]

I'm working on the Barclay's card minimum spend but my default card is the Capital One 1.5% cash back. My next card will be one of the following:

IHG Rewards (annual fee but includes one free night at any of their properties)
Fidelity 2% cash back
Sallie Mae (thx for the reminder)

[nanu]

Currently using Citi 2% cash back card. Will probably start to churn in a few months (after renting new apartment)
Will probably get the Sallie Mae card for 5% back on Amazon

[retireatbirth]

Citi Double Cash right now, but will be using Chase Sapphire Preferred and Arrival Plus soon for the travel benefits. I think the best excluding travel would be Citi Double Cash for non-category spending along with a 5% category card that best matches your spending habits.

[MoneyCat]

I really like Discover It: 5% cashback on rotating categories every quarter ($1500 cap); 5-20% cashback through Discover Deals at various online retailers; 1% cashback on everything else

I also frequently use my BankAmericard 123 Cash Rewards card to get 3% cashback on gas whenever I can't get 5% cashback on it from Discover.

[kpd905]

If you want to keep it simple, go with Fidelity Amex or Citi Double Cash for 2% back on everything.  +1 to the Sallie Mae card for getting 5% back on certain categories.

If you are willing to put in a couple minutes more effort per month, you can get 10-75% back on everything by just making all of your spending hit sign up bonuses.

[WYOGO]

...Sallie Mae (thx for the reminder)

Funny this card is designed for "students", maybe it should be updated to say students of mustachianism ;)

It covers virtually all my monthly personal expenditures. For work and travel there are certainly other options and I have many of them. When I FIRE this will become even more useful...

...Arrival Plus soon for the travel benefits. I think the best excluding travel would be Citi Double Cash for non-category spending...

You seem comfortable with fee cards. Are these for churning or does your spending make the fees worth it? Any keepers you would nominate? The Arrival is an attractive card (like the small redemption bonus), not so sure about that annual fee. The Venture is easier to swallow and requires a lower spend to offset with virtually the same benefits.

Lot of Double Cash endorsements. Is this for simplicity sake? Don't you think mustachians can do better?

[retireatbirth]

...Sallie Mae (thx for the reminder)

Funny this card is designed for "students", maybe it should be updated to say students of mustachianism ;)

It covers virtually all my monthly personal expenditures. For work and travel there are certainly other options and I have many of them. When I FIRE this will become even more useful...

...Arrival Plus soon for the travel benefits. I think the best excluding travel would be Citi Double Cash for non-category spending...

You seem comfortable with fee cards. Are these for churning or does your spending make the fees worth it? Any keepers you would nominate? The Arrival is an attractive card (like the small redemption bonus), not so sure about that annual fee. The Venture is easier to swallow and requires a lower spend to offset with virtually the same benefits.

Lot of Double Cash endorsements. Is this for simplicity sake? Don't you think mustachians can do better?

My plan is to churn, but the fees do still make sense due to my side business racking up a good amount of expenses.

I think Arrivals advantage is that you can redeem towards any travel including budget hotels, airbnb, etc. so Sapphire to get the flight, then Arrival to book your hotel.


Is there anything better than Double Cash for non-category spending? I'm new to rewards cards so I'm interested in hearing from more experienced users.

[GueroKC]

I use the American Express Blue Cash Preferred:

6% cash back on groceries
3% cash back on gas
1% on everything else

$75 annual fee

The Sallie Mae might be better. I'd have to crunch the numbers, but doubt any differences would be substantial enough to be worth switching. The wife also does some churning with travel rewards cards.

[WYOGO]

I suspect most of this is dependent on how much you spend. I think most fee based cards held for the long haul are not the best fit for most mustachians.

Double Cash...meh. The problems I have with the Double Cash involve it being an Amex first and a Citi second. Foreign transaction fees really need to be a thing of the past.

 I think one can do better pairing Sallie with an It and the Freedom. I guess it depends on how many out of category purchases one makes I suppose. 2% is below my acceptable threshold ;)...

[nanu]

Double Cash...meh. The problems I have with the Double Cash involve it being an Amex first and a Citi second. Foreign transaction fees really need to be a thing of the past.

I got mine like a week ago and it's Mastercard, not Amex

[WYOGO]

Double Cash...meh. The problems I have with the Double Cash involve it being an Amex first and a Citi second. Foreign transaction fees really need to be a thing of the past.

I got mine like a week ago and it's Mastercard, not Amex

Thanks my apologies for misrepresenting...

[johnny847]

My cards (none of them have an annual fee unless otherwise noted):

• American Express Everyday (10k Membership Rewards points bonus. Aside from Amex offers, I don't use this anymore. But some Amex offers are pretty good)
• American Express Premier Rewards Gold (50k MR points bonus - transferred these and the ones from the Everyday to Delta for my April vacation. Don't use anymore aside from Amex offers and 3x points on flights. Has a $195 annual fee, will cancel after first year)
• Bank of America 3-2-1 Cash Rewards Visa (don't use this anymore, I got it product changed from my secured BoA card. I still want to keep it open though, it's my oldest card at 1.5 years)
• Bank of America Better Balance Rewards Mastercard (if used correctly, you can get $120 in rewards for just a couple dollars of spending per month
• Barclaycard Arrival Plus Mastercard (2.2% cash back, $444.44 signup bonus, will be using up the signup for my trip in April. No forex fees, annual fee waived first year. Will downgrade to non-Plus next year)
  
• Capital One Journey Visa (1.25% cash back. I use this to load my Amex Serve)
• Chase Freedom (5% cash back in rotating categories. DO NOT CASH IN YOUR POINTS FOR STATEMENT CREDITS IF YOU WANT TO TRAVEL. Hold onto them, apply for a Chase Sapphire Preferred, and transfer your Freedom points to the CSP to then transfer to airline partners. You'll usually get much better value this way
• Sallie Mae Mastercard (5% on first $250/$250/$750 on groceries, gas, and bookstores, where Amazon counts as a bookstore. I use this a lot)
• US Airways Mastercard (50k miles, will become AA miles 2nd Quarter this year. I'll these miles to a trip to Peru in the off season for just 30k miles round trip)

I use the American Express Blue Cash Preferred:

6% cash back on groceries
3% cash back on gas
1% on everything else

$75 annual fee

The Sallie Mae might be better. I'd have to crunch the numbers, but doubt any differences would be substantial enough to be worth switching. The wife also does some churning with travel rewards cards.

You don't necessarily have to switch. You could just use the Sallie Mae for gas. And if both you and your wife get one, you've now got a $500 limit for the 5% on groceries and gas.
Then again, it is another credit inquiry.

[GetItRight]

Double Cash...meh. The problems I have with the Double Cash involve it being an Amex first and a Citi second. Foreign transaction fees really need to be a thing of the past.

I got mine like a week ago and it's Mastercard, not Amex

Same here, Mastercard. Got it for more cash back without needing to think about it. Considering another card since some seem to offer more for gas or groceries. Not sure it's worth it for gas though as most places here charge more for credit, and those that don't usually price slightly higher.

[WYOGO]

[/li][li]Capital One Journey Visa (1.25% cash back. I use this to load my Amex Serve)[/li]

[li]Chase Freedom (5% cash back in rotating categories. DO NOT CASH IN YOUR POINTS FOR STATEMENT CREDITS IF YOU WANT TO TRAVEL. Hold onto them, apply for a Chase Sapphire Preferred, and transfer your Freedom points to the CSP to then transfer to airline partners. You'll usually get much better value this way[/li][/list]

You are pretty advanced I see. This is beyond the scope and intent of this thread.  ;)

 I agree on the CSP, great paired with my Freedom.

[johnny847]

[/li][li]Capital One Journey Visa (1.25% cash back. I use this to load my Amex Serve)[/li]

[li]Chase Freedom (5% cash back in rotating categories. DO NOT CASH IN YOUR POINTS FOR STATEMENT CREDITS IF YOU WANT TO TRAVEL. Hold onto them, apply for a Chase Sapphire Preferred, and transfer your Freedom points to the CSP to then transfer to airline partners. You'll usually get much better value this way[/li][/list]

You are pretty advanced I see. This is beyond the scope and intent of this thread.  ;)

 I agree on the CSP, great paired with my Freedom.

Haha you asked what's in my wallet...and I responded in kind =P

Conversation with a friend today:
Friend: Why do I feel like every time I talk to you I wind up getting a new bank account, or a new credit card, or buying a plane ticket
Me: Because you havent taken advantage of everything yet.

[Dexterous]

USAA just began to offer a new reward card with much better rewards than the past, specifically tailored to military customers:

Cashback Rewards Plus American Express with Chip Technology:
No Annual Fee
5% cashback on base purchases (commissaries, BX, shoppette/gas) up to $3,000 per year, then 1% after 3k
2% cashback on groceries at supermarkets up to $3,000 per year, then 1% after 3k
1% all other purchases

A pro-tip for military members:  use the above USAA Amex card to buy yourself an AAFES gift card at the BX (returning you 5%).  Then, use the gift card to buy AAFES food for a 10% discount.  You can also get gift cards for nearly 100 stores/restaurants there.

*Update in 2016:  AAFES stopped providing the 10% discount for using gift cards*

[celticmyst08]

We love the Sallie Mae card. We have a Fred Meyer across the street so we do almost all our grocery/household/misc shopping there. We also buy a lot of our bulk household goods on Amazon.

We got the Discover It for the rotating categories as well as the bonuses for online shopping.

[Cwadda]

Currently have Bank of America Cash Rewards. No annual fee. Spend $500 in the first 3 months and get $100 cash. 3% for groceries, 2% for gas, 1% for everything else. In addition, if you deposit the rewards into a Bank of America account, you get an additional 10% on the claimed rewards. This effectively makes it 3.3% on groceries, 2.2% on gas, and 1.1% on everything else. And the $100 cash becomes $110. I'm a student and got free checking so it's a pretty good deal!

Now I'm churning a Chase Freedom card for the $100 cash. I just don't have as many expenses and can't go for the cards with $4k spending to get the rewards.

This is a great list of cards:
http://www.mrmoneymustache.com/credit-cards/

[Bob W]

Thanks for all the good ideas folks.   I'm wondering if you're fooling yourselves though?    Mcdonalds knows that if you use plastic you spend 25% more.   My guess is that even the most frugal among us will creep up spending by at least 5% when using cards.    It is too easy.  (I know you may be the personal exception)

So my suggestion is to stick strictly with cash.    There have been many studies about which denominations of cash spend faster and there is a very significant difference based on 1s, 10s, 20s,100s.    I can't recall the details but I think for me that 5s would spend the slowest. 

There is just something about giving up those actual cash dollars that slows down the spending like no card can.  IMHO

[Cwadda]

Thanks for all the good ideas folks.   I'm wondering if you're fooling yourselves though?    Mcdonalds knows that if you use plastic you spend 25% more.   My guess is that even the most frugal among us will creep up spending by at least 5% when using cards.    It is too easy.  (I know you may be the personal exception)

So my suggestion is to stick strictly with cash.    There have been many studies about which denominations of cash spend faster and there is a very significant difference based on 1s, 10s, 20s,100s.    I can't recall the details but I think for me that 5s would spend the slowest. 

There is just something about giving up those actual cash dollars that slows down the spending like no card can.  IMHO

I agree with this. My mom has always held fast to the principle of never using a credit card to pay for fast food. Even if it's just a hamburger for $1. I try to stick to this mentality as well.

[aj_yooper]

I am sticking with my Fidelity AE-no fee and 2% to an investment account. 

[jrmrjnck]

I was considering the Fidelity Amex, but backed off after reading tons of reviews about purchases being denied. Apparently, FIA (the company Fidelity partnered with) is way too sensitive on fraud detection. Anyone had this experience?

[aj_yooper]

Only once, last week.  I've had it for 2+years.  It was a new business in town-Casey's.

[WYOGO]

Thanks for all the good ideas folks.   I'm wondering if you're fooling yourselves though?   
There is just something about giving up those actual cash dollars that slows down the spending like no card can.  IMHO

Bob, I do believe it is possible to so have so greatly exited the consumer cycle as to truly benefit from cards. I argued a similar point to yours however in the thread referenced at the beginning of this one. The problem is VERY few will truly optimize credit cards properly and the distraction can delay the FIRE process.

My rewards routinely cover 15-20% of my basic living expenses and there is zero lifestyle inflation. Also when using cards for work as a professional, you are reaping full reimbursements after paying for cars, food, gas, hotels and often flights - so many rewards are virtually free.

My previous position gained me enough airline miles for close to 10 round trip flights.

In a nutshell for credit cards to be optimized you must be immune to the temptation to spend unnecessarily. If spending beyond basic needs is painful for you, credit cards can and will add substantial subsidies that reduce expenses you would have anyway.

[aj_yooper]

I agree that cards often lead to more spending, but, for us using the Fidelity AE, we are good so far.  It is pretty easy if you stay away from most stores or internet shopping and just go to the grocery store and gas station.  The 2% back on all purchases is sweet and when we do Costco, it comes to 4%, without any wondering about categories, as with some cards.  This works well for us.  I've been buying a small cap value index in Fidelity with the savings so I do tilt to the wild side.  Whoo Hoo!

[kpd905]

If you spend 5% more with a credit card, but you get greater than 5% back, then don't worry about it.  Sign up bonuses will beat 5% back all day long.  My best was the United Mileage Explorer card, which got me 75% back.

[johnny847]

I thought I'd mention - for those with enough capital, the Bank of America Travel Rewards card can be the best card out there.

It functions like Barclay's Arrival Plus where if you make a purchase with a merchant whose merchant code fits a travel category, as determined by BoA, you can apply your points to the travel purchase as a statement credit. Their definition of travel is pretty broad - it includes airfare, hotels, rental cars, cruises, taxis, travel agencies, trains, commuter transport, buses, other transportation services, real estate agents and managers??, timeshares, campgrounds, motor home and RV rentals, tourist attractions, art dealers and galleries, amusement parks, aquariums, zoos, boat leases and rentals, and recreation services.

No annual fee
Baseline reward is 1.5 points per dollar spent.
If you reserve travel through their portal, you get 3 points per dollar spent (except the extra 1.5 points per dollar spent on airfare is capped on the first $6000/yr)
When redeemed against travel expenses, the value of a point is 1 cent. If redeemed as strictly cash, the value of a point is 0.6 cents.

If you have at least $20k, $50k, or $100k combined with BoA or Merrill Edge (this part is critical, since it will let you keep that large amount of money invested), then you can get a bonus on your rewards of 25%, 50%, or 75% by enrolling in the Preferred Rewards program (apparently you will need to have an average balance at the thresholds for at least three months before you can enroll). So, your maximum baseline reward now becomes 2.625 points per dollar spent. And if you book through their travel portal, you get 5.25 points per dollar spent. And as long as you always redeem against travel expenses, you've now used your Mustachian habits of saving money to create a 2.625% cash back on everything card (so long as you use points against their broad definition of travel), and 5.25% cash back on travel booked through BoA's portal.

Unlike the Arrival+, where you can only redeem for travel charges that are at least $25, and you only have 120 days to use points against a travel charge, the BoA card gives you one year, and you can redeem for any charge whatsoever so long as you redeem at least $25 at a time.

Incidentally, these 25%, 50%, and 75% bonuses can also apply to the BoA 3-2-1 cash rewards card (gas, groceries, everything else) to get up to 5.25% on gas, 3.5% on groceries, and 1.75% everything else.

[retireatbirth]

I thought I'd mention - for those with enough capital, the Bank of America Travel Rewards card can be the best card out there.

It functions like Barclay's Arrival Plus where if you make a purchase with a merchant whose merchant code fits a travel category, as determined by BoA, you can apply your points to the travel purchase as a statement credit. Their definition of travel is pretty broad - it includes airfare, hotels, rental cars, cruises, taxis, travel agencies, trains, commuter transport, buses, other transportation services, real estate agents and managers??, timeshares, campgrounds, motor home and RV rentals, tourist attractions, art dealers and galleries, amusement parks, aquariums, zoos, boat leases and rentals, and recreation services.

No annual fee
Baseline reward is 1.5 points per dollar spent.
If you reserve travel through their portal, you get 3 points per dollar spent (except the extra 1.5 points per dollar spent on airfare is capped on the first $6000/yr)
When redeemed against travel expenses, the value of a point is 1 cent. If redeemed as strictly cash, the value of a point is 0.6 cents.

If you have at least $20k, $50k, or $100k combined with BoA or Merrill Edge (this part is critical, since it will let you keep that large amount of money invested), then you can get a bonus on your rewards of 25%, 50%, or 75% by enrolling in the Preferred Rewards program (apparently you will need to have an average balance at the thresholds for at least three months before you can enroll). So, your maximum baseline reward now becomes 2.625 points per dollar spent. And if you book through their travel portal, you get 5.25 points per dollar spent. And as long as you always redeem against travel expenses, you've now used your Mustachian habits of saving money to create a 2.625% cash back on everything card (so long as you use points against their broad definition of travel), and 5.25% cash back on travel booked through BoA's portal.

Unlike the Arrival+, where you can only redeem for travel charges that are at least $25, and you only have 120 days to use points against a travel charge, the BoA card gives you one year, and you can redeem for any charge whatsoever so long as you redeem at least $25 at a time.

Incidentally, these 25%, 50%, and 75% bonuses can also apply to the BoA 3-2-1 cash rewards card (gas, groceries, everything else) to get up to 5.25% on gas, 3.5% on groceries, and 1.75% everything else.

Interesting. It looks like the bonus is lacking at 10k though. Arrival Plus offers 40k. I was looking to use Arrival Plus points to redeem something like AirBnB. I'm assuming something like this couldn't be done through a portal so it looks like Arrival Plus would be 40k + 2.2 pts/$ vs. BoA at 10k + 2.65 pts/$ for such an expense.

I think airfare would make sense through a portal, but Chase Sapphire Preferred would give you 40k bonus points + 1.25 pts/$  as well for their portal.

With the low bonus, BoA might just be good if you have a high spend.

I'm just getting used to the credit card game so correct me if I'm wrong.

[johnny847]

I thought I'd mention - for those with enough capital, the Bank of America Travel Rewards card can be the best card out there.

It functions like Barclay's Arrival Plus where if you make a purchase with a merchant whose merchant code fits a travel category, as determined by BoA, you can apply your points to the travel purchase as a statement credit. Their definition of travel is pretty broad - it includes airfare, hotels, rental cars, cruises, taxis, travel agencies, trains, commuter transport, buses, other transportation services, real estate agents and managers??, timeshares, campgrounds, motor home and RV rentals, tourist attractions, art dealers and galleries, amusement parks, aquariums, zoos, boat leases and rentals, and recreation services.

No annual fee
Baseline reward is 1.5 points per dollar spent.
If you reserve travel through their portal, you get 3 points per dollar spent (except the extra 1.5 points per dollar spent on airfare is capped on the first $6000/yr)
When redeemed against travel expenses, the value of a point is 1 cent. If redeemed as strictly cash, the value of a point is 0.6 cents.

If you have at least $20k, $50k, or $100k combined with BoA or Merrill Edge (this part is critical, since it will let you keep that large amount of money invested), then you can get a bonus on your rewards of 25%, 50%, or 75% by enrolling in the Preferred Rewards program (apparently you will need to have an average balance at the thresholds for at least three months before you can enroll). So, your maximum baseline reward now becomes 2.625 points per dollar spent. And if you book through their travel portal, you get 5.25 points per dollar spent. And as long as you always redeem against travel expenses, you've now used your Mustachian habits of saving money to create a 2.625% cash back on everything card (so long as you use points against their broad definition of travel), and 5.25% cash back on travel booked through BoA's portal.

Unlike the Arrival+, where you can only redeem for travel charges that are at least $25, and you only have 120 days to use points against a travel charge, the BoA card gives you one year, and you can redeem for any charge whatsoever so long as you redeem at least $25 at a time.

Incidentally, these 25%, 50%, and 75% bonuses can also apply to the BoA 3-2-1 cash rewards card (gas, groceries, everything else) to get up to 5.25% on gas, 3.5% on groceries, and 1.75% everything else.

Interesting. It looks like the bonus is lacking at 10k though. Arrival Plus offers 40k. I was looking to use Arrival Plus points to redeem something like AirBnB. I'm assuming something like this couldn't be done through a portal so it looks like Arrival Plus would be 40k + 2.2 pts/$ vs. BoA at 10k + 2.65 pts/$ for such an expense.

I think airfare would make sense through a portal, but Chase Sapphire Preferred would give you 40k bonus points + 1.25 pts/$  as well for their portal.

With the low bonus, BoA might just be good if you have a high spend.

I'm just getting used to the credit card game so correct me if I'm wrong.

Yea it is lacking in signup bonus which is kind of a bummer. But there is greater flexibility in spending your points, and no annual fee so you can keep it forever.

If you already have a BoA card that is sitting in a sock drawer though, it may make sense to product change your card to this one (you can call them up and ask for this. Sometimes they won't allow it - I forget the rules exactly on when they'll do this for you).

[WYOGO]

Unlike the Arrival+, where you can only redeem for travel charges that are at least $25, and you only have 120 days to use points against a travel charge, the BoA card gives you one year, and you can redeem for any charge whatsoever so long as you redeem at least $25 at a time.

Good info, did not know this. Does the Venture do this too? I think the time period may even be shorter?

[johnny847]

Unlike the Arrival+, where you can only redeem for travel charges that are at least $25, and you only have 120 days to use points against a travel charge, the BoA card gives you one year, and you can redeem for any charge whatsoever so long as you redeem at least $25 at a time.

Good info, did not know this. Does the Venture do this too? I think the time period may even be shorter?

I actually hadn't looked into the Capital One Venture card all that much. This is because Capital One is a jerk and will always pull your credit report from all three bureaus, whereas every other credit card company that I know of will only pull from one.

But you sparked my interest so I looked into it. There is no mention of a redemption minimum (and that makes sense to me - there's no redemption minimum for any of their standard cash back cards). Travel charges are only eligible for redemption for 90 days (even shorter than the Arrival+ =/ ).

But once you get past the 3 credit inquiries thing, it's a great card for the first year. Signup bonus of 40k points for $3k in spend in 90 days, worth $400 towards travel. It is not worth it to keep this card after the first year unless you spend a lot of money abroad, because it gives 2% back in less flexible travel points while having no forex fee, whereas you could get a Fidelity Amex or Citi Double Cash which just give you straight up 2% cash back which has a 3% forex fee.