To maximize your cash back rewards, let’s optimize your credit card usage based on your spending habits and the rewards each card offers. Here’s a detailed breakdown of how to use each card strategically:
- Amex Blue Cash Preferred: With 6% cash back on groceries (up to $6,000 per year), you’ll want to use this card exclusively for grocery purchases until you hit the $6,000 cap. After reaching the cap, switch to another card. Assuming you spend $6,000 annually on groceries, you’ll earn $360 in cash back from this category alone.
- Discover It: This card offers 5% cash back on rotating categories, up to $1,500 per quarter. For this quarter, it’s dining, streaming, and home purchases. Make sure to use this card for these categories until you reach the $1,500 cap. If you maximize this each quarter, you’ll earn $75 per quarter or $300 annually.
- Capital One Savor: Use this card for dining, streaming services, and groceries once you’ve hit the cap on the Amex Blue Cash Preferred and Discover It cards. You’ll earn 3% cash back on these categories. If you spend $3,000 on dining and streaming combined, you’ll earn $90.
- Amazon Chase: For all Amazon purchases, use this card to get 5% cash back. If you spend $2,000 annually on Amazon, you’ll earn $100 in cash back.
- Citi Double Cash: This card provides 2% cash back on all purchases. Use it as your catch-all card for purchases that don’t fall into higher reward categories. If you spend $10,000 annually on miscellaneous expenses, you’ll earn $200 in cash back.
Now let’s do the math to see your potential annual earnings:
- Groceries: $360 from Amex Blue Cash Preferred
- Dining & Streaming: $90 from Capital One Savor (after Discover It cap)
- Amazon: $100 from Amazon Chase
- Miscellaneous: $200 from Citi Double Cash
- Rotating Categories: $300 from Discover It
Total Cash Back: $360 + $90 + $100 + $200 + $300 = $1,050
This strategy maximizes your cash back rewards across different spending categories while taking advantage of the unique benefits of each card. Always monitor the rotating categories for Discover It to ensure you’re using the card optimally throughout the year.
Sources:
https://www.americanexpress.com/us/credit-cards/card/blue-cash-preferred/
https://www.capitalone.com/credit-cards/savor-dining-rewards/
https://www.chase.com/personal/credit-cards/amazon-card
https://www.citi.com/credit-cards/citi-double-cash-card
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