As you can tell, I’m all for credit cards usage. I can’t remember ever paying a late fee, over the limit fee, cash advance fee, or paying any interest on them. As a matter of fact, I’ve made thousands of dollars in cash back, bonuses, apporama, etc. Currently, my game plan is using the 0% on purchasing strategy with the Discover Business. I get $100 cash back bonus once I make $1000 in purchases. I continue to pay the minimum since they are offering 12-month 0% apr. Instead of paying off my balance at the end of each month, my money is earning interest in a high savings account. At the 11th month, I will pay off my balance and do it all over again with another cash back 0% apr card.
However, the strategy only work for someone who can keep up with the details. Credit card companies hope for people like me to screw up in order to make money. Then there are people who prefer to pay off at the end of each month and get the highest cash back. Nothing wrong with that. I prefer my current strategy since it’s a higher return due to my triple dipping of bonus sign-up, 1% cash back, and 0% apr for 12 months.
Those with the latter choice, here are the absolute best cash back on all purchases:
Citi AmEx Platinum – 5% supermarkets, drug stores, gas, and 3% for everything else in Thank You Points. Best to use the Thank You points toward student loans, flight ticket, or gift cards. The percentage return is only good for two years. No fee first year, and $125 fee for the second year. The second year fee might still be worth it if you buy a lot of stuffs. Also, 15000 bonus thank you points after $300 in purchases.
Charles Schwab Invest First Visa Card – This is a spanking new 2% cash back on all purchases. Get this while it’s available, and there is no annual fee at all. No limit on the cash back you earn. However, you must open a Charles Schwab brokerage account to get unlimited 2% cash back. The cash back will automatically deposited into your Schwab One account.
HSBC Orchard Bank Premium Card – No need to open a brokerage account or any of that sort. Simply get 3% cash back on gas and 2% on everything else. You can only have one HSBC card, hence you must close other HSBC before applying for this one. Also, there are many variations of this card. Once you apply, they will tell you which one you will qualify. The only one worth it is the Platinum no annual fee.
These 2% cash back cards on everything are a must if you want to play the U.S mint game. Imagine you have 4 addresses(self, work, folks, gf) using the 3% Citi AmEx Platinum for ordering $2500 each. That is a profit of $300.
I have the Chase Countrywide Visa 2% cash back which is no longer available. There are people crazy enough to carry around 5 cards for the highest cash back. More power to you. These include the 5% Discover Open Road Card on gas, 5% Citi mtvU Student on restaurants, amazon, bookstores