Best Rewards Credit Card

First, I despise a credit card. I only use a CC for three things: gas, occasional on line purchase, and hotel reservations. I am 95% a cash spender. I always pay my CC off immediately. I pay it on line before statement is even issued.

With that being said I got quite a few friends and even my CPA who advise I'm missing out many awards that CC offer. My wife wants me to get one to take advantage of these awards (basically she has a friend who flies all over the place on CC flyer miles).

So want to hear what you all thing are the best CCs out there as far as cash back or awards.

My advice is to keep doing what you are doing. If it ain't broke, don't fix it. The rewards are just a hook. Don't fall for it.

redbow said:

My advice is to keep doing what you are doing. If it ain't broke, don't fix it. The rewards are just a hook. Don't fall for it.

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Best advice you'll get right there. The only way you accrue points is to use that CC a lot. So you are likely to spend more than you would have without the card to get the points. As Dave Ramsey has said before, of all the wealthy people he's interviewed not one of them ever got rich by accruing CC points.

You just described me to a T up until about 6 months ago. I was always a cash buyer, if I couldn't pay for it right then and there I did without it. No credit cards, only a debit card and I never financed anything besides real-estate. During a meeting with my accountant she pretty much told me in a very nice, professional type of way I was stupid for not having a company credit card and taking advantage of their rewards programs. I believe in following the advise of good lawyers and good CPA's so I did what she said. I broke down and got a Capital One Business card. I've put every single business expense I could on it. Its a 2% cash back reward card, the flyer miles don't really interest me but I could have opted for a business card with all different kind of rewards but felt this particular card was best suited for me right now. I pay it off monthly of course. Aside from the rewards adding up each month it is also an easy way to track expenses for my business. After having the card for a couple of months I'm extremely glad I got it, at first I thought ah, its just another bill but in the end it has simplified things and is building rewards.

My wife recently got an Amazon credit card. Don't hold me to this but I think its something like 2% back on Amazon purchases and 1% back on all other purchases. You can defiantly make credit cards work to your advantage if you use them responsibly.

fowlplay'n said:

Best advice you'll get right there. The only way you accrue points is to use that CC a lot. So you are likely to spend more than you would have without the card to get the points. As Dave Ramsey has said before, of all the wealthy people he's interviewed not one of them ever got rich by accruing CC points.

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I did the Dave Ramsey program through our church. Ramsey gives a lot of good advice and some very questionable advice. Remember he makes his wealth getting people to buy into his advise.

I know many very wealthy business men that do all their spending on cards just for rewards.

I know the best advice is probably just to do things the way I do now. Why when my CPA suggested this 5 years ago I still do not do it.

I was just asking for those that do what is the best card. Just in case I decide to go that route.

thanks

wildcat3 said:

You just described me to a T up until about 6 months ago. I was always a cash buyer, if I couldn't pay for it right then and there I did without it. No credit cards, only a debit card and I never financed anything besides real-estate. During a meeting with my accountant she pretty much told me in a very nice, professional type of way I was stupid for not having a company credit card and taking advantage of their rewards programs. I believe in following the advise of good lawyers and good CPA's so I did what she said. I broke down and got a Capital One Business card. I've put every single business expense I could on it. Its a 2% cash back reward card, the flyer miles don't really interest me but I could have opted for a business card with all different kind of rewards but felt this particular card was best suited for me right now. I pay it off monthly of course. Aside from the rewards adding up each month it is also an easy way to track expenses for my business. After having the card for a couple of months I'm extremely glad I got it, at first I thought ah, its just another bill but in the end it has simplified things and is building rewards.

My wife recently got an Amazon credit card. Don't hold me to this but I think its something like 2% back on Amazon purchases and 1% back on all other purchases. You can defiantly make credit cards work to your advantage if you use them responsibly.

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I also own my business. My friend has this card and gets quite a bit back every year. He is one of them that suggested I look into one.

The biggest question isn't what is the best rewards card, but what rewards will you most benefit from? If you've only ever flown twice in your entire life, then there's no point focusing on a frequent flyer rewards card. Would you benefit more from cash back, groceries, gas rewards, etc...?

I got a Cabela's card earlier this year. It pays 2% cash back on Cabela's purchases, and 1% everywhere else. I travel a lot for work, and I've been using it for my travel expenses (which are reimbursed by my company). I put about $4000 per month on the card, and pay it back as soon as I'm reimbursed. It translates to about $40 to spend at Cabela's every month. So I can pick up a box of shells, a spool of Power Pro, etc., and the wife can't raise her eyebrows, since it's "free". To me, it's better than free hotel rooms or airplane tickets.

I have a chase business card that I make almost all the business purchases on. I pay the full balance every month and never accrue any interest. I usually use the points for restaurant gift cards and I used them once for a rental car for a Disney vacation. I understand what others are saying about not using the credit card but if you intend on paying it off the points are like free money.

I bank at BOA, and use their card. My wife and I buy pretty much everything on it. The rewards card give 1,2,3% back according to purchase.
I always pay off in full every month. We ended up with ~500$ cash back from the card a year, which we put towards vacation.

We also did the Dave Ramsey thing; went to his tour, and I've even called into the show!! (Also on Clark Howard)
But, I don't quite agree with him on the credit cards... As long as you buy what you can afford.

Hook,line and sinker. Actually quite surprised.

I have a AAA rewards card through BOA

I kinda wish I woulda gone with cabelas cause i would have gotten more use outta the rewards i.e. Buy stuff for myself

We use the cc like a debit card and pay it off every month.

You can see on your statement at the end of every year how much interest you pay....when that equals 0 and your rewards come out to be 4-500 bucks I don't see how that can be a bad thing but others mileage may vary

one that gives you cash back on your few purchases imho. No better return.

Credit cards are a great way to keep track of business expenses. IRS accepts them, to my knowledge.

I only use cash when I go out..If I dont have it I dont go out. I also used to use my debit card alot, and then one day the credit union called me and said "Hey, you just used your card in Raleigh, and then 15 minutes later we see its being used in a small town called Newark, NY (not NJ) which is just outside of Canada, at a walmart to buy 1.75 pepsi." Obviously somewhere who knows where, my card got skimmed. Since then, I hardly use it for anything, and pay cash when ever I eat out.

As for Credit cards...I have a few, with zero balance on them, that every once in a while I will buy something like groceries just to keep them active and pay it off right away. I suppose, I keep them for an emergency, and I am disciplined enough so as to not use it "just this time".

Recently I was booking a long hotel stay for a trip, and I used a Bank of America offer, that was zero APR for 18 months, and 100 dollar credit after spending 500 in the first 3 months. I easily did that with an 8 day stay in Nashville between the hotel and gas. Still havent figured out what the catch is, that I got 100 dollars free from them??

The only thing I use beside cash is the Walmart MoneyCard
-it's prepaid so you can only spend as much as you have in the account
-acts as a debit/credit card
-phone app for monitoring account
-acts as a bank account. You can direct deposit checks from work and pay bills with it
-cash back on all Walmart purchases and Walmart gas.
-savings program that makes you eligible for prizes and giveaways

My best credit card is my Costco Visa. I get 4% cash back on Costco gasoline, 3% on travel and restaurants, 2% on Costco purchases and 1% on everything else. I put everything I can on the card. Just learned today that I can pay my car and house insurance on it without a fee so I'll be paying another bill with the card. If I could pay my mortgage with it, I would.

We have been using credit cards to our advantage for years. We charge all gas and lots of other items. Love getting money back for something we would have bought any way. I pay off the charges every month so we never pay any interest. We charge at Costco and Sams for every thing we purchase and we get a check back each spring. I wouldn't do it any other way. Its free money.

chase business ink.

$300 cash back if you put $3000 on it in the first 3 months
5% cash back from office supply stores, phone bill, internet and cable bills (up to 25k)
2% cash back from gas, travel and restaurants (up to 25k)
1% on everything else (unlimited)

bonus tip: if your business doesn't use office supplies a ton, go to staples, office max etc and buy gift cards to other stores. it counts as the 5%! the sell amazon, lowes, etc gift cards

second big bonus tip:
if you are really looking to add in the miles get one of the chase premium cards. the business ink preferred card or sapphire personal card come with a yearly fee of $95. but, you can use the points as airline or hotel points at 1.4 to 1.6x points.

google "the points guy"

just make sure you pay them off. the second you start paying interest, you completely defeat the purpose.

KTMan said:

First, I despise a credit card. I only use a CC for three things: gas, occasional on line purchase, and hotel reservations. I am 95% a cash spender. I always pay my CC off immediately. I pay it on line before statement is even issued.

With that being said I got quite a few friends and even my CPA who advise I'm missing out many awards that CC offer. My wife wants me to get one to take advantage of these awards (basically she has a friend who flies all over the place on CC flyer miles).

So want to hear what you all thing are the best CCs out there as far as cash back or awards.

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It depends...what do you want from it? Airline miles? Cabela's bucks? Cruises? Hotel Points?

My FIL does the Royal Carribbean card, but my in-laws love to Cruise. I did it once and I'll only get on a boat that big again if I get drafted into the Navy.

I have the AA Mastercard. I have netted one free flight a year off of it, but that's a combination of three things: when I heard that USAir and American were merging, I went out and got the USAir card and got the initial mileage during the teaser period for both, then when they merged I had a bunch more miles at the outset. I travel a little bit for work so get a few miles there. I also pay cash for a two or three trips home, using the card for that for 2x or 3x the miles.

A friend of mine works in consulting and he uses a Marriot card to great advantage, only staying in Marriot family hotels and since he probably spends 20 nights a month on the road, they add up.

My uncle bankrolls his whole veterinary practice on his Cabela's Card, paying it off every month. He gets a freaking Kayak or Gun every year from that, probably more.

I will say this though, if you don't have a lot of expenses, its hard to get tons of utility and gain out of it. Everyone I know that does has a ton of business expenses (TRAVEL) they get reimbursed for. If you fly out on short notice you might spend $780 for a flight that costs $300 when you plan it 8 weeks in advance. That gets them the flight cost+flyer miles+hotel reward all on the same bill, and it gets reimbursed by the company.

My better half's mom and dad used their Cabelas Card to buy their pontoon from Cabelas. Then paid it off immediately with cash. Talk about racking up points.

I have made it over 65 years without their rewards. I know if you play them there are good points but they are just playing the odds knowing the majority are not going to win. And they don't or they wouldn't do it. I have one credit card from my CU, it doesn't pay rewards. But it doesn't have different interest rates depending on where I buy anything. I haven't had a balance on it at the actual due date since I have actually had it. I would hope they would call me if I did. In fact usually I get a text from them when I use it out of town just to make sure it is me. And I like that just fine.

I use it for motels and the occasional flights. Yep I am a troglodyte.

In my prior life as a home builder, I used to spend about $300,000-$500,000 per month on various credit cards. I had a bunch of business cards with $30,000-$40,000 limits. i would rotate the cards to pay for Lumber, Drywall, concrete anything that would go into building a house. Before I sold the company I had millions of points. I didn't pay for an airline ticket, hotel room, car rentals etc for the better part of a decade. Now I still put all my personal spending on a card and Im lucky if I charge $40,000 in a year.
Its one of the few things I miss about that business and time in my life.
I say the real juice is in the signup bonus. Find a card with a benefit you want. Last year I got 100,000 reward points from Amex if I spent 5k in 3 months. That was easy enough. otherwise it would have taken me years to get to a redemption worthwhile.
I would also point out, no one is preventing you from paying ASAP. Monday I bought 2k worth of suspension upgrades for a truck and paid it after lunch today.

I use CC everywhere I go. If u can and will pay it off monthly you come out ahead with CC like Nckeith said. Make sure it's a no annual fee card. Sometime s u can get a fee card and they will waive it first year. After a year cancel. Look at Cap 1 or Ally and make sure u get an up front $100-500 bonus if u spend a certain amount over 3 months.

Whatever is best for you like others have said.

I had to travel a lot for work so I got a Delta Amex. It made sense to get a credit card for all business expenses as I got reimbursed. Racked up enough sky miles so as to fly my family to Grand Tetons/Yellowstone this summer. Free flight made the trip affordable.

No one has mentioned the people that can't or don't pay them off. Do they still get the "rewards"?

redbow said:

No one has mentioned the people that can't or don't pay them off. Do they still get the "rewards"?

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Yes, they still get the rewards. It's just that the costs (interest) exceed the rewards (cash back, miles, other).