I have three credit cards that fit my normal spending pretty well. I’m starting to notice some new cards that might pay a little bit better. I know that there are some churners who go after every bonus they can get. I tip my hat to you, but I just don’t see myself keeping up with something like that. My question for more passive reward card users is how long do you guys typically stick with a card before you start to look for greener pastures?
I commit as long as I see value. If a better card comes along with a better value proposition, why not apply? I don’t churn, but I probably apply for a new card every year or two. Really comes down to what works best for you.
@Ezri
This is the answer. As long as there’s value, keep it. For example, in 2009 I got the Penfed 5% at the pump gas card. 15+ years later, still using it.
@Ezri
Have you encountered any friction with changing cards that often? Like declined applications or dings to your credit score?
Wylder said:
@Ezri
Have you encountered any friction with changing cards that often? Like declined applications or dings to your credit score?
Honestly, no issues. I believe the last time I was declined for a card was back in 2015, and that was only because I was maybe a little over a year into starting my credit. As far as my score is concerned, I’ve always hovered around 770 for the past 6 or so years. I pay everything in full each month, so my score has always been healthy.
I strive for 5% back on my major spending categories.
Kellen said:
I strive for 5% back on my major spending categories.
You’re smoking me then. I get 6% on groceries up to a limit with my Amex, but I’m basically at 2% for everything else on my Citi Double Cash. What have you found that gives you 5% consistently?
@Wylder
It’s complicated. I’ve got Citi Custom Cash for 5% groceries, FutureCard (debit) for 5% on utilities, Kroger card for fuel discount and 5% on Apple Pay, Target card (debit) for 5% at Target, Bank of America cash rewards for 3% on online shopping, and Fidelity 2% for catch all.
Plus, Chase Freedom and Discover with 5% rotating categories.
@Kellen
I’ll take a look at the FutureCard and the BoA. In the meantime, you can go from 5% to 6% on groceries by switching to the Amex Blue Cash Preferred.
@Wylder
When you account for the $95 annual fee, the most you can get on groceries is 4.4%. That’s when you spend exactly $6000 in a year. It’s less if you spend less and less if you spend more. That’s why I don’t think there are any cash back cards worth paying an annual fee. It ties you into spending a good amount, but you also shouldn’t spend too much either.
@Daryn
There’s also 3% on gas that offsets that a little bit. As surprised as I am that there is anything better than the Amex for groceries, it may very well be one of the cards where it’s worth considering whether there are better offers which it sounds like there are. I didn’t think it was realistic to get 5% on any appreciable part of my spending without actively keeping up with changing categories every month. Are the custom cards from BoA and Citi what people are going with these days?
@Wylder
The BOA cards are only good if you have a lot of money parked at BOA or Merrill Lynch. If we assume you don’t have a lot of money in BOA, then I think the optimal cash back strategy includes a 2% on everything card and as many 3-5% cards as you can juggle for your biggest spending categories. The rotating categories cards would definitely help. Citi Custom Cash goes well with them because you can change your 5% categories as the other card rotates. Then there’s also the US Bank Cash+ and its sister product, the Elan Max Cash Preferred. Wells Fargo also has some useful cards with Autograph, Attune, and Active Cash that can all fit into a cash back or no annual fee travel setup.
@Wylder
I have the BCP, with the offers that you get (streaming, gas, and groceries) it’s really the only cash back card worth its fee.
@Wylder
AAA Daily Advantage: 5% groceries, 3% gas, $500 cash back cap total then 1%. So $10k if only buy groceries with it.
@Daryn
Supposedly you can game the BCP annual fee pretty easily.
Kipp said:
@Daryn
Supposedly you can game the BCP annual fee pretty easily.
Yes, I’m aware of that. Amex is easy to game, but I think most people would rather not play games, especially when it comes to simple cash back. The points and miles people are usually more willing to lie and cheat if necessary. 
@Daryn
Amex typically has some pretty decent coupon add-ons that offset, at least for me, a decent chunk of the BCP annual fee if not all.
Angie said:
@Daryn
Amex typically has some pretty decent coupon add-ons that offset, at least for me, a decent chunk of the BCP annual fee if not all.
In my opinion, Amex offers aren’t any better than offers from Chase, Citi, Wells Fargo, and US Bank. In fact, Amex offers tend to encourage you to spend more money while the others give you straight coupons. I get more offers from Amex that are something like ‘$25 off when you spend $250’ when I’d rather just get 5-10% off.
Angie said:
@Daryn
Amex typically has some pretty decent coupon add-ons that offset, at least for me, a decent chunk of the BCP annual fee if not all.
I’ve only had the BCP for a month and a half and I’ve already gotten $65 back from offers on things I would have paid for anyway. That’s not even taking the cash back into consideration.