I have a much more complicated financial life than I need to but I want to optimize the small advantages to make something big. This has required being vigilant about balances, transfers, and due dates. I recently had a negative experience with my primary credit union that prompted me to fire them and reexamine how I have things ordered.
This was home to my primary transactional account and changing things was going to be a pain so I wanted to it once and correctly. In my previous post I had shared how I had put the the cell phone and electric bills on auto-pay to credit cards. This eliminated two monthly payments leaving my checking account which both simplified things some and cut my expenses by about $2 per month through credit card rewards. $24 per year saved simply by changing the payment method! I had read elsewhere of the strategy of depositing all money into a savings account and transferring to checking only to cover expenses and decided to implement this. I had a little used Capital One checking account back from the ING Direct days and found that they also were among the higher savings account rates available without jumping through hoops.
I set my paycheck to deposit to the newly created savings account so it would earn interest from the day of deposit and created a timeline of my known due dates to see how much needed to be transferred to checking and when. I then went into all my biller's websites and configured auto-pay from the checking account. This arrangement will net me 0.10% on the checking balance and 1.00% on the savings account, I am forecasting this will increase my earnings by about $35 per year over the prior arrangement through increased interest and delaying payment to due dates. It will also reduce the time required to keep my financial house in order without sacrificing the use of multiple credit cards to maximize the rewards.
Showing posts with label credit cards. Show all posts
Showing posts with label credit cards. Show all posts
Saturday, July 25, 2020
Friday, July 24, 2020
Better Matters
Yesterday I shared that I had cancelled my Hilton Surpass Amex based on the uncertain future. I was on the fence about this for some time as there was plenty of potential value but a better card came along to sway me to cancelling it.
The Verizon Visa from Synchrony Bank. I am a Verizon customer, after jumping to several competitors I found that only the Verizon network worked for me. Synchrony released their new Verizon card at exactly the time I would have considered it so I now have it and it has quickly found a place in my wallet. Standard offer is $100 in bill credits over 24 months when Verizon bill is paid with this credit card or $4.17 per month. Not a great signup bonus but this is Synchrony and there is no minimum spend requirement. I signed up with an additional launch bonus, at this time that amount remains a mystery.
Breakdown of rewards:
4% of grocery and gas
3% on dining
2% on Verizon
1% everywhere else
This card really had two selling points to me. First 4% on groceries. I don't have a card that has a grocery category so getting this on a no fee card is a big win in my total rebates. The 3% on dining is nice but I have that with the Citi Costco, The Verizon card does allow for redemption each billing cycle rather than just an annual rebate each spring with Costco. The second attraction is the 2% on Verizon. This was one of two bills that I could not pay on a credit card without a penalty. Verizon offers a discount per line with direct ACH debit that far outweighs any credit card rewards. The branded Visa allows that discount to continue as well as earning a 2% rebate on the monthly bill with immediate turnaround on redemption so having the card effectively reduces cellular expenses by 2% ignoring the signup bonus credit. My Verizon bill is about 2% of my monthly spend so 2% of 2% does eventually add up.
The other bill I could not pay via credit card without penalty was my electric bill. I recently discovered that there was a way to do so via Arcadia Power (Referral Link). In deregulated states I believe they act as a electric broker, it regulated states they offer green wind electric for a slight upcharge or 50% wind for free for using their services. They make their money on these customers through the float on your electric bill but I'll take the credit card rewards over the 30 days interest. For this I have my Citi Double Cash registered so am getting 2% back on electric and cell service.
The Verizon Visa from Synchrony Bank. I am a Verizon customer, after jumping to several competitors I found that only the Verizon network worked for me. Synchrony released their new Verizon card at exactly the time I would have considered it so I now have it and it has quickly found a place in my wallet. Standard offer is $100 in bill credits over 24 months when Verizon bill is paid with this credit card or $4.17 per month. Not a great signup bonus but this is Synchrony and there is no minimum spend requirement. I signed up with an additional launch bonus, at this time that amount remains a mystery.
Breakdown of rewards:
4% of grocery and gas
3% on dining
2% on Verizon
1% everywhere else
This card really had two selling points to me. First 4% on groceries. I don't have a card that has a grocery category so getting this on a no fee card is a big win in my total rebates. The 3% on dining is nice but I have that with the Citi Costco, The Verizon card does allow for redemption each billing cycle rather than just an annual rebate each spring with Costco. The second attraction is the 2% on Verizon. This was one of two bills that I could not pay on a credit card without a penalty. Verizon offers a discount per line with direct ACH debit that far outweighs any credit card rewards. The branded Visa allows that discount to continue as well as earning a 2% rebate on the monthly bill with immediate turnaround on redemption so having the card effectively reduces cellular expenses by 2% ignoring the signup bonus credit. My Verizon bill is about 2% of my monthly spend so 2% of 2% does eventually add up.
The other bill I could not pay via credit card without penalty was my electric bill. I recently discovered that there was a way to do so via Arcadia Power (Referral Link). In deregulated states I believe they act as a electric broker, it regulated states they offer green wind electric for a slight upcharge or 50% wind for free for using their services. They make their money on these customers through the float on your electric bill but I'll take the credit card rewards over the 30 days interest. For this I have my Citi Double Cash registered so am getting 2% back on electric and cell service.
Thursday, July 23, 2020
Credit Card Shuffle
Like most of the world's population my travel and even excursions from my home have been greatly curtailed this year. This did not stop the wanderlust but practicalities quickly tampered those thoughts. The grounded version of wanderlust is considering how to travel the most for the least dollars when it is again safe to do so.
At the beginning of the year I held three travel credit cards with annual fees and thought I was getting value above the fee from each. Home for me is MSP, Delta's second largest hub (suck it Detroit!), and nonstops have become increasing valuable to me over the absolute cheapest fare so the Delta and the SkyMiles American Express card made sense for me for the free bags alone. Earlier boarding makes basic economy a more attractive option and this year's revision of refunding the annual fee via Delta gift card if $10,000 was spent made it even sweeter. I generally use this card for purchases that I don't have a higher earnings rate for as I consider one SkyMile to be worth slightly more than one penny.
I have also been a Holiday Inn/IHG points slut for over a decade now. Each year they are by far my most frequented chain due to the lower price points and simple number of locations. I have had an IHG card for several years, last year I opted to upgrade to the Premier as I found the fourth award night free a greater value than the 10% points rebate. The card comes with an annual free night good at most properties, effectively all for my travel patterns. I have yet to stay at an IHG property in 2020 but this card will be a keeper for years to come even though I don't really spend on it outside of my stays. This is a card to have, not to use.
The third travel card I began the year with was the Hilton Surpass American Express. Hilton has become my second hotel chain and the appeal of free breakfast and the limited PriorityPass membership made this card very useful. Hilton has received all of my non work travel to date in 2020. The annual fee came due last month and I decided that it was time for some belt-tighting. The only time I used this card was for Hilton hotel stays and the odd convenience store purchase where the card was at front of wallet during those hotel stays. There was no offer of a retention bonus due to the low spend so I closed out this card. $95 stays in my wallet in exchange for loss of uncertain future perks, I think I will be keeping the gold status the card granted through early 2022 though. Closing a card did give me an excuse to consider a new card to replace it. More on that next time.
At the beginning of the year I held three travel credit cards with annual fees and thought I was getting value above the fee from each. Home for me is MSP, Delta's second largest hub (suck it Detroit!), and nonstops have become increasing valuable to me over the absolute cheapest fare so the Delta and the SkyMiles American Express card made sense for me for the free bags alone. Earlier boarding makes basic economy a more attractive option and this year's revision of refunding the annual fee via Delta gift card if $10,000 was spent made it even sweeter. I generally use this card for purchases that I don't have a higher earnings rate for as I consider one SkyMile to be worth slightly more than one penny.
I have also been a Holiday Inn/IHG points slut for over a decade now. Each year they are by far my most frequented chain due to the lower price points and simple number of locations. I have had an IHG card for several years, last year I opted to upgrade to the Premier as I found the fourth award night free a greater value than the 10% points rebate. The card comes with an annual free night good at most properties, effectively all for my travel patterns. I have yet to stay at an IHG property in 2020 but this card will be a keeper for years to come even though I don't really spend on it outside of my stays. This is a card to have, not to use.
The third travel card I began the year with was the Hilton Surpass American Express. Hilton has become my second hotel chain and the appeal of free breakfast and the limited PriorityPass membership made this card very useful. Hilton has received all of my non work travel to date in 2020. The annual fee came due last month and I decided that it was time for some belt-tighting. The only time I used this card was for Hilton hotel stays and the odd convenience store purchase where the card was at front of wallet during those hotel stays. There was no offer of a retention bonus due to the low spend so I closed out this card. $95 stays in my wallet in exchange for loss of uncertain future perks, I think I will be keeping the gold status the card granted through early 2022 though. Closing a card did give me an excuse to consider a new card to replace it. More on that next time.
Tuesday, July 21, 2020
What's in My Wallet?
What credit cards are in my wallet and why?
Delta SkyMiles Gold American Express Card my link My home airport is MSP, Delta dominates, and I like having the freedom to check a bag without a fee. Until this year I would have said it was a card to have but not to use. New features include 2x miles on dining and groceries as well as $100 Delta gift card when $10,000 is spent in a calendar year.
Chase IHG Rewards Club Premier my link Truthfully, this card isn't often in my wallet. It is very much a card to have but rarely use. I use this on IHG stays and nowhere else. Perks of the card include IHG Platinum status which gets you 50% more points and upgrades such as they are at IHG. This card also rebates the fourth night on award bookings which makes it very valuable to me. Ignoring that benefit there is also an annual free night which alone offsets the $89 fee. The card also offers Global Entry/TSA Pre reimbursement, I have yet to use this benefit but will be making use of it next year at GE renewal.
Citibank Costco Visa I surprisingly love Costco despite not being a fit for Sam's Club, very different product mix. I picked this up initially because at the time I joined Costco my wallet ran on Mastercard. This card gets heavy use for the 4% back in gas and 3% in travel in and dining. My Costco spend also goes on it as I don't have a card that can do better than 2% at Costco and my membership info is printed on the card so one less thing to carry. I would consider this the best no annual fee travel card out there. The downside is cash out only happens annually and must be done at Costco.
Citibank Double Cash This is actually my oldest credit card, it was opened as an AAdvantage card and product changed to avoid the annual fee. Likely due to product changing into this card it is a WorldElite card giving some additional MasterCard sponsored benefits, I have only benefited from the Lyft and Fandango credits. 2% on everything is a nice catch all card when I decide a SkyMile isn't worth that much.
Synchrony Verizon Visa This is the newest card to my lineup, it only makes sense if you intend to be a loyal Verizon Wireless post paid customer. I have the Verizon bill setup to charge to this card as I get the autopay discount and a 2% rebate on that spend. Like the Costco card this also offers 3% on dining and 4% on gas, the main difference being this card allows monthly redemption and only to Verizon Dollars. The benefit that got my attention with this card was 4% on grocery stores, 4% in quasi-cash has more value to me than 2 Delta miles or IHG points.
Chase and American Express links contain referrals, there may be better signup offers available.
Delta SkyMiles Gold American Express Card my link My home airport is MSP, Delta dominates, and I like having the freedom to check a bag without a fee. Until this year I would have said it was a card to have but not to use. New features include 2x miles on dining and groceries as well as $100 Delta gift card when $10,000 is spent in a calendar year.
Chase IHG Rewards Club Premier my link Truthfully, this card isn't often in my wallet. It is very much a card to have but rarely use. I use this on IHG stays and nowhere else. Perks of the card include IHG Platinum status which gets you 50% more points and upgrades such as they are at IHG. This card also rebates the fourth night on award bookings which makes it very valuable to me. Ignoring that benefit there is also an annual free night which alone offsets the $89 fee. The card also offers Global Entry/TSA Pre reimbursement, I have yet to use this benefit but will be making use of it next year at GE renewal.
Citibank Costco Visa I surprisingly love Costco despite not being a fit for Sam's Club, very different product mix. I picked this up initially because at the time I joined Costco my wallet ran on Mastercard. This card gets heavy use for the 4% back in gas and 3% in travel in and dining. My Costco spend also goes on it as I don't have a card that can do better than 2% at Costco and my membership info is printed on the card so one less thing to carry. I would consider this the best no annual fee travel card out there. The downside is cash out only happens annually and must be done at Costco.
Citibank Double Cash This is actually my oldest credit card, it was opened as an AAdvantage card and product changed to avoid the annual fee. Likely due to product changing into this card it is a WorldElite card giving some additional MasterCard sponsored benefits, I have only benefited from the Lyft and Fandango credits. 2% on everything is a nice catch all card when I decide a SkyMile isn't worth that much.
Synchrony Verizon Visa This is the newest card to my lineup, it only makes sense if you intend to be a loyal Verizon Wireless post paid customer. I have the Verizon bill setup to charge to this card as I get the autopay discount and a 2% rebate on that spend. Like the Costco card this also offers 3% on dining and 4% on gas, the main difference being this card allows monthly redemption and only to Verizon Dollars. The benefit that got my attention with this card was 4% on grocery stores, 4% in quasi-cash has more value to me than 2 Delta miles or IHG points.
Chase and American Express links contain referrals, there may be better signup offers available.
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