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Rewards for spending

January 17th, 2008 at 06:38 pm

Yesterday, I received my new AMEX Blue Cash card. Since I have no consumer debt and very disciplined in keeping a budget and paying on time, I decided to maximize my rewards! Here is a run down on this card's benefits:

Spend up to $6500 in a year, and receive:
- 1% back on grocery, drugstores and gas
- .5% on everything else

Anything over $6500:
- 5% on grocery, drug, gas
-1.5% everything else

Up until now, I have been using my Nordstrom VISA, which earns 1 point for every dollar charged, except 2 points per dollar at Nordstrom. Once you accumulate 2000 points, you receive a $20 Nordstrom GC. During the big sales you can double your points earned. This is all great, as I love Nordstrom, but guess what I realized: I hardly ever shop there, except to redeem the GC's! So I'm really only earning 1% by using this card.

I went through my 2007 credit card bills and compared my actual Nordstrom reward with what I would have received with the AMEX. It was $180 vs. $320. That is a difference of 78%!

What I love about this is that instead of working more and being taxed on the earnings, I am "earning" a credit on my credit card that is not taxed!

I also take advantage of two online reward sites: Mypoints and Mr.Rebates.

Mypoints works on a point system. You can earn anywhere from 2-10 points per dollar on purchases, or some companies give you a set amount... like 500 points on any purchase over $25. Points are available after 30 days and you can redeem them for gift cards. The gift cards have different point costs, so I go with the companies I shop at that have the best ratio of dollar value to points. They also send emails that you click on and earn 5 points just by going to the sponsor's site, so you can get rewards even if you don't shop online (although it takes much longer that way.) Generally when you order the gift card, it arrives within a week.

Mr.Rebates rewards you with cash. It's measured as a percentage... anywhere from 2-20%. It takes 90 days for the rebate to become available and you have to wait until you accumulate $25 in rebates. Once you request the check, it comes in a few days.

I am very excited to take full advantage of these programs this year, and will be keeping track of how much $$$ I will be earning.

4 Responses to “Rewards for spending”

  1. Ima saver Says:
    1200596769

    I used the GM visa last year and got $550 taken off the price of the new vette.
    Now, we have switched to a Chase visa and we get 3% back everytime dh shops at Home depot. I got a check last month and will apply for another one this month.

  2. Nic Says:
    1200607168

    Ima,did you know that with an AARP membership,you could get a discount on Home Depot Gift Cards? A $100.00 card is just $96.00. You could use your Chase card,get 3% back and save an additional $4.00 to boot.

  3. disneysteve Says:
    1200624612

    I love credit card rewards. In 2007, we got 11 free nights at Marriotts with points earned on our Marriott Visa. We also got $40 cashback from Discover and earned points on our AOL Visa. For the next 3 months, the AOL card is giving 5 times reward points on gas, groceries, restaurants and hotels so we'll be using that card a lot more and will probably redeem points for cash by the end of that promotion.

  4. luxliving Says:
    1200664627

    Now I have to go check my cash rewards...thanks for the reminder!

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