Best rewards credit card?

[BlueWeasel]

I've had the Citi Platinum for a few years now and the 5% cash back was great. Then Citi screwed all of us with the reduced rewards.

Are there any other good rewards cards that could replace the Citi?

Reward Cards

The Capital One card (the first one on the page) seems like a better deal with only slightly better rewards. But being able to get rewards back whenever instead of $50 minimum with Citi is nice.

Overall, all of the rewards seem mediocre and nothing really stands out.

Any suggestions or just stick with the Citi card?

 

[MSCoder610]

I also have a Citi card that got bumped down a while back.

I got this one recently: http://www.chasefreedomnow.com/home/
3% on gas / groceries / etc, they have a couple of different categories like that, and it says you get the 3% on the 3 categories you use most a month.

Not 5%, but a little better than the 2% I get with Citi now.

 

[kranky]

Pentagon Federal Credit Union (Penfed) has a Visa Platinum Gas Cash Reward with 5% on gas and 1.25% on everything else. No annual limit on cashback. Rumor is they are adding 2% for groceries to this card in January.

Amex Blue Cash is probably the top choice for big spenders, as the big rebates kick in after spending $6500 a year. Also no annual limit on cashback.

I think Fidelity has a 1.5% across the board card.

There's no one "best" cashback card - it depends on your spending in different categories and total spending over a year.

 

[sciencewhiz]

http://tools.creditcardflyers.com/rewards-wizard.php

 

[Drakkon]

The amex cash back isnt that hard to achieve...charge all my gas + a couple major purchases a year and easily hit that $6500 a year limit. add in to the fact i can charge my rent (pay it off every month ) and I make a good chunk back at the end of every year

 

[Dacalo]

Originally posted by: MSCoder610
I also have a Citi card that got bumped down a while back.

I got this one recently: http://www.chasefreedomnow.com/home/
3% on gas / groceries / etc, they have a couple of different categories like that, and it says you get the 3% on the 3 categories you use most a month.

Not 5%, but a little better than the 2% I get with Citi now.

I was a Citicard user and changed to Chase Freedom when Citibank decreased the incentives. I love the Freedom card, you get $250 when you save $200 cash back. You can cash out starting from $50 too just like Citicard.

 

[Special K]

Originally posted by: Drakkon
The amex cash back isnt that hard to achieve...charge all my gas + a couple major purchases a year and easily hit that $6500 a year limit. add in to the fact i can charge my rent (pay it off every month ) and I make a good chunk back at the end of every year

How do you charge your rent to your CC? Is that entirely dependent on whether or not your landlord will accept a CC for payment?

That would be a decent chunk of reward points each month.

I personally use a Chase Freedom card. It gives you 3% cash back on your top 3 of 15 spending categories each month, and 1% on everything else. As I am not a big spender, this card makes the most sense for me right now.

 

[Reckoner]

Chase Cash Plus Rewards FTW. 5% Gas, Groceries, Drugstores. Then I use my starwood card for everything else.

 

[Special K]

Originally posted by: PaulNEPats
Chase Cash Plus Rewards FTW. 5% Gas, Groceries, Drugstores. Then I use my starwood card for everything else.

That Chase card isn't available to new members anymore, IIRC.

 

[Zugzwang152]

I use two cards:

a Chase Professional MC for 3% cash on gas, restaurants, office supply stores and hardware/home improvement stores.

Citi Dividend MC for 2% at grocery stores, drug stores, and utility bills. This card also offers 2% on gas.

Both offer 1% on everything else. I use the Citi for regular purchases because you can redeem rewards in any amount. The Chase requires you to redeem in increments of $50.

 

[JEDI]

Originally posted by: MSCoder610
I also have a Citi card that got bumped down a while back.

I got this one recently: http://www.chasefreedomnow.com/home/
3% on gas / groceries / etc, they have a couple of different categories like that, and it says you get the 3% on the 3 categories you use most a month.

Not 5%, but a little better than the 2% I get with Citi now.

FreedomSM Cash Visa Signature® Card

Receive $50 after you make your first purchase
3% Cash Back in your top 3 everyday spending categories
1% cash back for every $1 you spend on all other purchases
Receive an extra $50 each time you save and redeem $200 in rewards


What do you mean by top 3 categories ?

top 3 stores?

and 3% plus $50 on top of that if you save $200 of rewards?!?!

 

[dullard]

Originally posted by: JEDI
What do you mean by top 3 categories ?

top 3 stores?

and 3% plus $50 on top of that if you save $200 of rewards?!?!

That Chase card is what I use now. Watch the deal, it changes every couple of weeks. When I signed up about half a year ago, there was a free $200 reward with your first purchase. Then, since I had accumulated $200 in rewards (after my first purchase), I cashed it out for $250. That deal comes and goes. I get an offer from them about twice a month in the mail and the "first purchase" bonus always varies. It has ranged from $50 to $200.

I am disappointed, that card was 5% back on one category when I signed up though and they lowered it to 3% back on three categories.

The 3 categories come from this list. I put my gas groceries and phone bill on that card. That way, I only spend in 3 categories and get the full 3% cash back. I typically get about $12 a month that way. So every 16.5 months, I'll rack up 16.5*$12 ~= $200 and cash it in for $250. I'm nearly halfway there to my second $250 check from them.

Note the fine print: the 3% cash back is capped at $18 of cash back / month ($600 spending * 3% = $18). After that you only get 1% cash back for the rest of that month.

 

[kranky]

Originally posted by: JEDIWhat do you mean by top 3 categories ?

top 3 stores?

and 3% plus $50 on top of that if you save $200 of rewards?!?!

Not stores, categories (as defined by Chase).
Grocery Stores
Gas & Convenience Stores
Department Stores
Drugstores
Beauty Shops/ Salons/Spas
Pet Supply Stores & Veterinarian Offices
Telecommunications - Includes cell phone and landline bills.
Cable/Satellite TV & Internet Service
Fast Food & Quick Service Restaurant
Local Commuting - Includes subway, tolls, parking garages and more.
Gym Memberships
Utilities
Dry Cleaners
Video Rentals - Includes both online and in-store rentals.
Movie Theaters

They look at your spending for the month and in the 3 categories where you spent the most, you get 3% instead of 1% up to $600 in spending per month in the bonus categories.

And if you accumulate $200 in cash back, you can redeem for $250.

 

[Suspicious-Teach8788]

Combine with Costco AMEX FTW! 3% eating out, 2% travel, 1% everything else.

 

[JEDI]

Originally posted by: kranky

Originally posted by: JEDIWhat do you mean by top 3 categories ?

top 3 stores?

and 3% plus $50 on top of that if you save $200 of rewards?!?!

Not stores, categories (as defined by Chase).
Grocery Stores
Gas & Convenience Stores
Department Stores
Drugstores
Beauty Shops/ Salons/Spas
Pet Supply Stores & Veterinarian Offices
Telecommunications - Includes cell phone and landline bills.
Cable/Satellite TV & Internet Service
Fast Food & Quick Service Restaurant
Local Commuting - Includes subway, tolls, parking garages and more.
Gym Memberships
Utilities
Dry Cleaners
Video Rentals - Includes both online and in-store rentals.
Movie Theaters

They look at your spending for the month and in the 3 categories where you spent the most, you get 3% instead of 1% up to $600 in spending per month in the bonus categories.

And if you accumulate $200 in cash back, you can redeem for $250.

is there a sample list of stores in each category?

ie:
last month i shopped at sears, circuit city, walmart, staples, lowes, and amazon to name a few

 

[dullard]

Originally posted by: JEDI
is there a sample list of stores in each category?

ie:
last month i shopped at sears, circuit city, walmart, staples, lowes, and amazon to name a few

No. It would be nearly impossible for a credit card company to properly determine exactly what category every single business in the world should properly belong in. Thus, they rely on the businesses themselves to properly choose the category.

It is up to the store to report what category they are in. For example, if you bought gas at Sam's Club, you might think it would be a gasoline purchase. But, Sam's may report that they are a Department Store. Or maybe, they report that they are a Grocery Store, since they do sell groceries. Or maybe, some idiot reported Sam's Club as a Dry Cleaner. You really don't know what the store has signed up as until you bought something from the store.

From what I've seen, most stores are in the category that you'd expect though.

 

[Pabster]

Chase Freedom.

 

[DT4K]

If you like to stay in nice hotels on vacation, you'll probably get a higher return on hotel rewards cards. I put most of my spending on my Starwood Amex or my Hilton Amex. I estimated the rewards on the starwood to be worth about 4-5%.

 

[kranky]

Originally posted by: DT4K
If you like to stay in nice hotels on vacation, you'll probably get a higher return on hotel rewards cards. I put most of my spending on my Starwood Amex or my Hilton Amex. I estimated the rewards on the starwood to be worth about 4-5%.

Very true, the Starwood AmEx is a good card for people who will be staying at Starwood properties anyway. But I just had a discussion with a co-worker last month on the topic. He got the Starwood card and loves the rebates (as you said, it can reach 4-5%). But before he got the card he was staying at places that were 20-40% cheaper than the Starwood properties. I told him that in his case the rebates were actually costing him money and he would be better off using a different card. He's spending about 25% more to save 5% - doesn't make sense in his case.

I should never have brought up the subject of rebate CCs with him last year as he loved the concept, jumped on it immediately, but doesn't apply it correctly. Now he's looking at the GM card since it has a big cashback rebate... but only if you use it to buy a new GM car, and it has limits. But I guess that's why they market rebate cards, since it gets people to buy things they wouldn't have bought without a small rebate.