Best Combo?

[Michael]

I have a question. I have the BP Visa, and I was thinking of converting it to the new Chase Freedom card, but I do not know if that is a wise thing to do.

Here are my proposed combos:

Scenario #1:

1) AMEX Blue: for everything, except restaurants and travel. Use for all gas all year, except for Shell when under $6500 tier.

2) BP Visa: for everywhere that AMEX is not accepted (1%) and for dining in restaurants and travel (2%). I use very little BP gas, but the other rewards are not tied in to the BP gas.

3) Shell Mastercard: Use only for Shell gas (5%) and only when the $6500 AMEX Blue tier has not been reached. Use also if something goes wrong with card #2 at the cash register and they don't take AMEX (which is why I'd be using card #2 in the first place).


Scenario #2:

1) AMEX Blue: for everything, including restaurants and travel.

2) Chase Freedom: for all groceries and gas (3%) until AMEX $6500 tier is reached, and as a backup for when AMEX is not accepted, then when the tier is reached, strictly for a backup (1%). We don't eat much fast foods (other 3% category).

3) Shell Mastercard: Use only for Shell gas (5%), and only until the AMEX $6500 tier is reached, and if something goes wrong with card #2. Use to minimize gas purchases on Freedom, because there is a $600 monthly spending limit ($18 at 3%) on this card, and groceries are a big expense for us.


Sorry for being so wordy, but a few other facts.

We spend about $765 monthly on groceries and gas. I also have the Discover gas, which I will use (5%) for car repairs only. We spend about $225 monthly in restaurants.

Finally, after the $6500 tier is reached on AMEX, what then happens with Freedom (if I convert BP) is that it will function solely as a 1% card (backup to AMEX) until my AMEX year starts over again. BP, on the other hand, will give me that 1%, as well as 2% on dining and travel, all year long.

I am not sure how to do the math. Which is a better #2 card for me, Freedom or BP? I do not want to convert unless Freedom actually would be better for me.

[freddyg]

Ok - this is what I think. It looks like you are the type of person who will go all out to max out your cash rebates - so here is what I think.

Keep all your cards and get an extra Chase Freedom or even Citi Dividend.

Blue Cash - you know the drill on this - need to get past the $6,500 quickly.

BP - will keep this. You will be spending over $2700 a year on restaurants - about $54 in cash rebates.

Discover Gas - keep (for your gas)

Shell - Keep it for your gas.

Get either a Citi Dividend or Chase Freedom - Use the Chase Freedom for EDP (excluding gas) before your Amex Blue Cash reaches the $6500 number. You earn 3%. Once your blue cash starts earning full rebate, switch everything to blue cash except for dining and travel (BP).

You migh want to consider the citi dividend even though it pays only 2% on EDP rather than chase freedom card because you can earn 2% on utilities as well - cable, internet, water, gas. This may add up to quite a bit!

But to sum up what I think, keep all your other cards and get either a chase freedom or citi dividend.

[Michael]

Thanks, freedyg. I appreciate your input. However, I do not want to apply for another card since I recently did so for a bank of America card.

What would you do in the above two scenarios?

[freddyg]

I would keep the BP - earning 2% on your restaurant expenses is good.

I would then get the chase freedom or citi dividend after six months.

[greg smith]

If you do not want to get anymore cards, then I would stick to choice number 2 . Keep you BP Visa. It looks like a good card. 5% gas plus 2% on dining and travel.

btw - which BOA card did you get?

[Michael]

Just a plain old Mastercard (no rewards), because I received a 0% balance transfer offer until 12-31-07.

Thanks for your advice, by the way.

[Michael]

P.S. Didn'y you mean choice #1, the one where I do NOT trade BP for Freedom?

[freddyg]

yes, I meant choice 1...

[eugenio]

At the rate you plan to squeeze every drop of rebate from these credit cards, we'll soon have to call you the cash rebate king!

[Michael]

Actually, Eugenio, calculating credit card rebates has become somewhat of an obsession with me. I drive my wife nuts (she couldn't care less about credit cards, which to use, or rebates), but I have always thought that they were 'cool,' even back to my first credit card (Shell gasoline) back in 1973, when I was 22 years old. Plus, I hate cash and checks.

You could say that it is an obsession with me. However, at 55, it keeps my brain cells active. I do, however, devote far too much time to it.

I admit it, I am addicted to credit cards; not to spending on them, but to having them, seeing what's new out there, and calculating rebates down to the penny.

There must be others like me.

But I am not a cash rebate king (maybe cash rebate prince).