What is the best 'cash back' credit card?

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3247
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What is the best 'cash back' credit card?

Post by 3247 »

I recently read through a thread on cash back cards (can't find it now) where some were discussing the merits of the AMEX BLUE card as well as others. I have, and consistently use, a Costco Platinum Cash Rewards card for almost all my purchases. I am wondering if I am leaving money on the table by not looking at other alternative cards which may have a better reward tier. I am 70 and rarely fly anywhere anymore, so air miles are of little value to me, but I seem to always be able to find a use for cash.
understandingJH
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Re: What is the best 'cash back' credit card?

Post by understandingJH »

The best place to search for the best cash back cards I've found is at this fat wallet thread:

What Credit Card Should I Get ? FAQ
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slug
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Re: What is the best 'cash back' credit card?

Post by slug »

As that link clearly demonstrates, it's highly unlikely that there is one best card, especially right now where no one is stepping up to the plate win the business. I carry 8 cards, and I know it's overkill, but as long as I can remember which ones to use for each kind of purchase, then I'm in good shape.

FYI that link contains some outdated information and is missing at least one 2% card (Sallie Mae) so don't trust it as the end-all be-all.
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understandingJH
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Re: What is the best 'cash back' credit card?

Post by understandingJH »

slug wrote: FYI that link contains some outdated information and is missing at least one 2% card (Sallie Mae) so don't trust it as the end-all be-all.
The Sallie Mae (2% everything card, and the other one for 5% Gas, Groceries, Bookstores [including amazon]) are listed in the thread, but not the summary.

The "best" way to capture money on the table may lead to having at least 2 cards. Generally one or two 3-5% cards for specific categories like groceries, gas, dinning, travel, etc, and a 2% card for everything else. The downside is having more accounts to manage, pay, and consider the impact on one's credit score.
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prudent
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Re: What is the best 'cash back' credit card?

Post by prudent »

I agree that there is no single "best" cashback card. I'm like the OP and focus on cash (or points that can be redeemed for cash or Visa/MC/Amex gift cards) rewards instead of miles.

RIght now I'm using a combination of:
AmEx Blue Cash Preferred (6% groceries/3% gas and department stores/1% all else)
Fidelity Investment Rewards AmEx (2% on everything)
PenFed Visa Cash Rewards (5% gas/1% everything else)

PenFed is used for gas, BCP for groceries and department stores, and Fidelity for everything else.
In many cases I can buy gift cards at the grocery store to get the 6%, when spending the same amount at the business directly would only be 2% or 3%. For example, we bought Sears gift cards at the grocery store, then used them to get the TV we needed at Sears. That gave us 6% instead of 3%.
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Ice-9
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Re: What is the best 'cash back' credit card?

Post by Ice-9 »

I also have an arsenal of cashback cards.

Chase Professional (statements indicate it's called "ink" now?) - 3% on restaurants, office supply, hardware stores, gas
Chase Amazon - 3% at Amazon, 2% at drugstores
AMEX Blue Cash - 3% on groceries, 2% at department stores

Chase Freedom - 5% on rotating categories, 1% on everything else, can redeem any amount over $25
Discover - 5% on rotating categories that are sometimes different from Chase

A few months ago, I intended to give up on Discover, since it's mostly redundant with Chase Freedom, but they've had some convenient special promotions like 2% on phone/cable bills or $5 cashback on a $50 purchase at Amazon, plus a "secure online account numbers" feature if you ever want to buy something online from a website you're not familiar with.
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interplanetjanet
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Re: What is the best 'cash back' credit card?

Post by interplanetjanet »

I love my Amex Blue Cash Preferred (6% on groceries) but it makes the most sense for a family with a large grocery budget. Maybe if the OP tallies up their spending for a typical month and works out where the biggest expenses are?

There's one I haven't seen mentioned here, my Barclaycard (Juniper) MasterCard - while not being strictly a "cash back" card it gives you a statement credit for points, which comes out to 2.5% back on gas, grocery and utilities. The first two are unexciting but "utilities" covers a lot of ground and includes my power & gas bills (large and don't take Amex), water & sewer, cell phone, ISP, DirecTV subscription and some others as well.

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Re: What is the best 'cash back' credit card?

Post by TRC »

I like my AmEx/Fidelity card. 2% cash back on every purchase into my son's 529. I use it for work expenses, which is usually 5K-10K per month, so it's nice getting a free $100-$200/month.
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Re: What is the best 'cash back' credit card?

Post by TheEternalVortex »

The best single card is probably the 2% cash back Fidelity card (Orchard Bank also has one).

But you can do better with a combination of cards (which is what I do). I probably get more like 3% on average.
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Re: What is the best 'cash back' credit card?

Post by chaz »

I like Chase Freedom.
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jeff1949
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Re: What is the best 'cash back' credit card?

Post by jeff1949 »

My two cards are:

(1) Costco/AmEx Business Card with 4% rebate for gas, 2% for travel and dining, 1% for Costco and elsewhere
(2) Chase Freedom card
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PaddyMac
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Re: What is the best 'cash back' credit card?

Post by PaddyMac »

My cards are
Costco AMEX - groceries etc
Amazon VISA (anything from Amazon (but get the statement credit or cash back - don't use free points as then your new purchases don't earn 3%)
new/Chase Freedom - check for rotating 5% off
gtaylor
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Re: What is the best 'cash back' credit card?

Post by gtaylor »

I've found the SLM Visa to be slightly better than the Fido AMEX. It's the same 2% back, but as a Visa it works in slightly more places, and the list of vendors with bonus points seems to be better than the equivalent list for Fido in the "WorldPoints Mall".

In any case, the other card that works well for us is the Target REDCard. It's just a store credit card, but it's 5% off everything at the register, at a place where we do tend to buy lots of stuff.
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SSSS
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Re: What is the best 'cash back' credit card?

Post by SSSS »

http://www.nerdwallet.com/

Be sure to punch in your monthly spending in the various categories to get the most accurate information.

Also mess with "How long do you plan to hold this card?" -- if you set it low, signing bonuses will have more of an impact, whereas if you set it high, it will diminish the significance of signing bonuses.
wilked
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Re: What is the best 'cash back' credit card?

Post by wilked »

If you have big purchases coming up...Chase AARP (no, you don't need to be old, I am 32) gives 5% cash back for the first 6 months. We are using it for our wedding, and it will pay for the honeymoon
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3247
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Re: What is the best 'cash back' credit card?

Post by 3247 »

Thank You Bogleheads!
You have just reinforced the value of this web site to folks like me (and much faster than websites where you have to wait days for specific replies).

You have given me a broad range of possibilities, many of which I was unaware of, and can now explore before making my choice.

Thanks again for responding to my question.

3247
understandingJH
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Re: What is the best 'cash back' credit card?

Post by understandingJH »

jenny345 wrote:With Discover you can use their site to buy merchandise at their partner sites for 5 - 20% off, plus the 1% cash back you normally get on the card, plus take advantage of sale prices and rewards programs at the partner store sites, and pay for it with discounted gift card bought with your Discover cash back bonus dollars.
I wouldn't choose a card purely based on their online referral (cash back) program, though a nice perk admittedly. Using a site like www.evreward.com is a great way to compare not just discover, but chase ultimate rewards, with sites like ebates, MrRebates, etc, that one can also earn cashback from on top of the card's percentage.
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Dan-in-Virginia
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Re: What is the best 'cash back' credit card?

Post by Dan-in-Virginia »

uPromise Card. Puts the 1% rebate to something important.

You will earn a Contribution of 1% of your Net Purchases made everywhere the card is accepted.

A total Contribution of 3% (consisting of 1% base Contribution and 2% base Contribution) earned on Exxon or Mobil gasoline purchases can be earned only when you: a) use your registered Upromise credit card provided by Bank of America or a Speedpass™ linked to your registered credit card to make a gasoline purchase at any Exxon or Mobil location; and b) buy a total of 20 or more gallons in a calendar month.
cheapedy
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Re: What is the best 'cash back' credit card?

Post by cheapedy »

I also like the upromise Mastercard. I use it mainly for online shopping at Tracfone.com (12% Cash Back), and Walmart.com (5% CB). Requesting a check is easy, you just need to accumulate $10.00 to cash out.
jbk
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Re: What is the best 'cash back' credit card?

Post by jbk »

SSSS wrote:http://www.nerdwallet.com/

Be sure to punch in your monthly spending in the various categories to get the most accurate information.

Also mess with "How long do you plan to hold this card?" -- if you set it low, signing bonuses will have more of an impact, whereas if you set it high, it will diminish the significance of signing bonuses.
And the converse is true for the annual fee (if the card has one). If you set "How long" low, the annual fee will have less of an impact whereas if you set it high, those yearly fees add up.

I used the nerdwallet calculator recently and upgraded to the $75 annual fee Amex Blue Preferred (from the free non-preferred). We spend a lot on groceries and the change is estimated to double our cash reward over the course of a year ($500 to $1,000).
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Re: What is the best 'cash back' credit card?

Post by amitb00 »

prudent wrote:I agree that there is no single "best" cashback card. I'm like the OP and focus on cash (or points that can be redeemed for cash or Visa/MC/Amex gift cards) rewards instead of miles.

RIght now I'm using a combination of:
AmEx Blue Cash Preferred (6% groceries/3% gas and department stores/1% all else)
Fidelity Investment Rewards AmEx (2% on everything)
PenFed Visa Cash Rewards (5% gas/1% everything else)

PenFed is used for gas, BCP for groceries and department stores, and Fidelity for everything else.
In many cases I can buy gift cards at the grocery store to get the 6%, when spending the same amount at the business directly would only be 2% or 3%. For example, we bought Sears gift cards at the grocery store, then used them to get the TV we needed at Sears. That gave us 6% instead of 3%.
Hi, Buying gift card is a smart strategy. Bear in mind that directly buying with credit cards gives you some protection (like purchase price, increased warranty, protection against loss in 90 days etc.) so especially for big purchases, please understand pros and cons,
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