Am I "optimized" ?
 

Just wondering how setup I am given the credit options out there. I never carry a balance, so low APRs don't matter to me, and I don't fly one airline enough to get status, so perks I can get through the card are used (e.g. Hilton Gold, Priority Pass for me + people who I travel with).

I'm carrying with me now:

Associated Bank Cash Rebate: use exclusively for food/pharmacy @ 5% back, up to $300, no fee.

PenFed Cash Rebate: use exclusively for gas and all other purchases @ 5% gas, 1.25% everything else, no fee.

Chairman Mastercard: Use for airline purchases, and some web purchases depending on additional TY points from the merchant, love the Priority Pass for me + 3 guests, $395/yr.

Without question, I come out way ahead each year, but could I be doing better on my returns?

Overall looks like you are in very good shape. Instead of the PenFed 1.25% for everything else, have you looked into Citi Platinum Amex--which will earn you 3 TY points for all purchases. See: https://www.citicards.com/cards/wv/c...o?screenID=927

Hadn't seen that card before, but I'm thinking the annual fee + the ever devaluing TY point system might make it hard for 3 TYPs to beat out a straight 1.25% paid as a monthly statement credit.

Annual fee is waived first year and you are given 15k TY points for signing up, so you are only going to starting actually paying the $125/annual fee starting at the beginning of Year 3 (because the Year 2 annual fee is offset by the 15k TY points at signup that are valued at approximately $150). By the time you reach Year 3, you'll need to ditch the card anyway because the 3 TY points per dollar structure disappears.

If you don't fly, don't have a need for gift cards to major retailers, or don't have student loans to pay off, then I agree that you may not be able to quite get the the full 1 penny per TY point but otherwise you should be okay. I would say further devaluation in the near term is unlikely. Just guard yourself against any devaluation by redeeming your TY points on a fairly regular basis. If something changes, you can always switch away from the card immediately.

You could also go for the Schwab Visa for 2% cash back for everything else.

http://www.schwab.com/creditcard

Associated = food/pharmacy
Penfed = Gas
Chairman = Airline ( and i think it is three total, you plus 2 not you plus 3)
Schwab = Everything else

You're probably right, but I have taken me + 3 in before without any charge, etc.

My current usage, in order of preference:

Hilton HHonors AMEX - 3 points/dollar on everything, 6 points/dollar on Hilton, internet, cell phone, and drugstores. I will probably upgrade to the new Surpass card to get Diamond for $40k in spend, though that is a bit of a stretch, since I have other spending on other cards like ...

Citi mtvU (similar to new Citi Forward card) - 5 TYP/dollar on restaurants, movies, and bookstores

Platinum AMEX - 2 MR points/dollar on gas and groceries (I was basically not using this card at all except for lounge access and Fine Hotels and Resorts before this new year-long promo)

Diners Club - 1 point/dollar on rental cars (50% bonus on BA transfers usually offered annually too)

Discover Card - Whatever they give 5% back on up to the limit

I don't use my Platinum AMEX or Diners Club much, but I like being in both programs and keeping points there for top-ups and promotions (i.e., promotions where you need x transactions from different partners, which both US and DL have run recently), they come in very handy.

Thank you, Beckles! Had not heard of the new Forward card. This will replace the Costco AMEX for restaurant purchases. Based on what's been reported elsewhere on FlyerTalk, that's probably better for the struggling restaurant merchants anyway. We've been trying to get into the habit of paying cash at restaurants for the psychological conditioning to spend less but sometimes we forget to grab the cash in advance.

So now our optimized plan is:

PenFed Platinum Rewards -- 5% on gas

Citi Forward -- 5% on restaurants, movies, book/record stores

Chase Freedom Plus -- 3.75% on grocery stores, gym membership, pet stores/vet, telecom (cell phones), Internet access, and drug stores

Discover Card -- for each quarter's 5% promotion

Everything else is split between an always-2% Orchard Bank card and a Southwest rewards card. (WN credits are the only ones I value close to 2%.)

For foreign travel, I start with a Capital One card with no transaction fee (yields 1% cash back) until it's full, then put the excess on the PenFed card (1.25% cash back minus 1% transaction fee = 0.25% cash back).

There are lots of great threads in various places on FT that helped us figure that out. Another ^ benefit of this community. These CC rewards can be a great value, considering we don't carry a balance month-to-month, especially for paying the regular living expenses and bills.

Ooo...lots of cards I hadn't thought of before. I might look to add one of the 2% cards for 'everything else' and one of the cards that gives restaurant bonuses.

This forum has been great, aside from cash back, I walked away with thousands in ticket vouchers that I never would have without info from here.

My optimized rewards plan is very similar to MDtR-Chicago's:


Citi Platinum Amex - 5% gas, grocery, drugstore; 3% everything else

Citi Forward - 5% restaurant, movie theater, book store

Chase Freedom Plus - 3.75% utilities, satellite TV/internet, telecom, pet supply/veterinarian, local transit, department store

Discover More - 5% quarterly bonuses

Capital One NoHassle Rewards - 0% foreign currency exchange

Amex JetBlue Business - OPEN discounts, no expiration for JetBlue frequent flyer points

Ameriprise World Elite - Priority Pass lounge access


I also have a Bank of America USAirways card, but I would like to convert that into something else since I don't fly USAir any more. This card will be on the chopping block if I can't either convert it or downgrade it to a no annual fee version. I'm currently waiting to see if the rumored transition to Barclays pans out.

[QUOTE=RoundtripWHW;11549706]My optimized rewards plan is very similar to MDtR-Chicago's:


Citi Platinum Amex - 5% gas, grocery, drugstore; 3% everything else



Ameriprise World Elite - Priority Pass lounge access


QUOTE]

I may be wrong, but I thought the Citi Plat also gives you priority pass lounge access.

[QUOTE=jamflyer;11554026]Yes, the Citi Platinum Amex also has Priority Pass access. The difference is that the Citi card only includes 3 free visits, while the Ameriprise card gives unlimited free visits. If I used the lounge privilege less than 9 times a year, it would be cheaper to drop the Ameriprise card and just pay an extra $27 for each visit beyond the third.

Rudy: Tell me about the "ticket vouchers" - how does that work?

That gravy train is over as far as I can tell. There are plenty of TY point redemption threads if you want to lament what once was available.

I've since fully cashed out of TY points and replaced my Chairman card w/ the one from Ameriprise. Once again, this forum helps me make/save so much money; annual fee of $150 vs. $400 is HUGE savings to get that Priority Pass.