rocket finance

If you are not getting “cash back”, you are losing money

I just checked out the cash back rewards balance for our Chase Freedom Card. We have been using the card regularly since June and have since earned close to $115. (only $85 to go and we can redeem our award for a $250 check!) Once we cash that check, we are then going to start using our Blue Cash card from American Express because it offers 5% back on all purchases – the catch is that you only make 1% until you have purchased at least $6,500 in a year. I have been reading FMF’s strategy and I think we can figure out a way to achieve the 5% level and increase the amount of our cash from using the Freedom Card alone. Of course, we always pay our balance in full every month.

If you want simplicity, the 3% cash back from the Freedom Card is the way to go. You will earn the 3% on your major spending areas without having to achieve a particular level of spending. This is good for people who spend less than $1000 a month using their credit card. If you are a big spender, the 5% back from Amex Blue Cash is the way to go. If you are a “tinkerer” and don’t mind hustling a little bit, go for the hybrid strategy outlined at FMF.

Credit cards that offer rewards as incentive have been around for quite a while, but I have never really been into earning points or miles or gift cards from stores that I don’t patronize. However, straight cash quickly got my attention. I don’t know how much longer credit card companies and businesses can afford to give so much cash back, but I am going to earn as much as possible. If you can discipline your credit card use and only purchase items that fall within your budget, you had better get a cash back card as soon as possible. I hope to be cashing a $250 check by the end of April – a check that did not require much time or effort at all.

Now if only they would bring back the Subway sticker/coupon promotion. . .