If you are not getting “cash back”, you are losing money
by Rocket FinanceI 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. . .
5 Responses to “If you are not getting “cash back”, you are losing money”
By plonkee on Dec 19, 2007 | Reply
Great timing. I’m just about to post on this – I’ll add a link to here.
By lulugal11 on Dec 19, 2007 | Reply
I have both of those cards and I am currently working on getting the $200 so I can cash in $250 on my Chase card.
Once I get that I will be switching back to the Amex card for everything because it has a higher credit limit and I can use it for more things instead of having to break down the purchases each time.
Great post by the way.
By rocketc on Dec 19, 2007 | Reply
lulugal,
Thanks for stopping by. It looks like I am going to get the $250 right about the time I file my taxes. . . 🙂