Another $econd Opinion on Credit Cards

First off, if you’re not paying off your credit card balances every month, please skip this section.  The intention here is to maximize reward money from rotating credit cards based on what you are buying.  This only works if you can pay off your entire balance monthly.  Most credit cards will give you 1% cash back on purchases, with this method you should be able to average 2.5% cash back on purchases.  This may not seem like a lot, but when you’re investing the extra income and letting it compound, it’s a huge difference!


If you’re motivated to maximize your reward money (and have more money to invest) I recommend using 4 credit cards to cover your purchases.  If that is too much to handle, just stick with the Citi Double Cash Back as your sole credit card.  All of these cards have NO annual fee.




Chase Freedom Card ($150 sign-up bonus)

This card offers 5% cash back on categories of their choosing (changes quarterly), but their options are fantastic.   These include; restaurants, gas, grocery stores, movie theaters, holiday purchases.


 Chase Ink Business Cash Card ($300 sign-up bonus)

If you’re a co-owner (or sole owner) of your group, you’re eligible for this card designed for businesses.  They give you 5% cash back on internet, cable, phone and office store purchases.  I have my cell, home phone, internet and cable paid automatically every month through this card.


Citi Double Cash Card

2% cash back on every purchase is about as good as they come.  They also feature a  “price rewind” for 2 months after your purchase so if the item drops in price (at any store), you’ll be credited the difference.


US Bank Cash+ Card

Allows you to choose 2 categories every quarter to give you 5% cash back (don’t worry about the 2% category since you have the Citi Double Cash Card already).  Fast Food and Clothing are popular choices, but it’s up to you to figure out how to get the most back.



Which card to use where?

US Bank- Fast Food, Clothing

Freedom- Rotating categories

Ink Business- Phone, internet, cable

Citi Double Cash- Everything else!


If this is too confusing, here is an app that will tell you which card to use before you make a purchase.


Also, if you are a Costco fan, you should probably get the Citi Costco Card with Executive Membership; this will give you 4% cash back in Costco Credit (2% for the credit card, 2% for the executive membership).  You can always redeem your Costco credit for cash at the register…if you can make it that far without seeing cool things to buy.