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Favorite daily driver? (self.creditcards)

submitted 2 years ago by danhasnolife to c/creditcards

28 comments fedilink hide all child comments

I am using a Savor One as my daily driver. It's an excellent card and the 3% in groceries and dining covers two of my largest spend categories so it's a great fit.

However, I still feel as though I'm leaving a lot on the table for everything else that only gets 1%. I am currently using a secondary Venmo Visa -- mainly because I needed VISA exposure for costco. It's an aesthetically pretty card but the lack of authorized users and only being able to manage the account inside the app are pretty big hindrances for me. I don't think I'm going to stick with it.

Any recommendations for a complementary daily driver? I know I should just consider the WF Autograph but I REALLY hesitate to work with them just on principle.

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[–] cjcs 4 points 2 years ago (1 children)

It's good, but after crunching some numbers I find it to be less of the unicorn some folks make it out to be.

The Alliant checking account earns 0.25% interest, and right now SPAXX is paying out 4.75%, so there's a delta of 4.5%.

So now there's $45 in interest a year you give up, closer to $32 after taxes.

$32/0.005 = $6,400 <- This is the breakeven point versus a 2% card with no deposit requirement (WF ActiveCash, Fidelity Visa, Citi DC, PayPal MC, etc.).

That amount might be chump change to you if you have a lot of uncategorized spend, but it's worth taking into account when choosing the best card. This was kind of my wake-up call where I realized that churning will do much more for you than optimizing spend every will. Even if you spend the $6,400 to break even, and then spend another $20,000/year, you're netting an extra $100/year. It'd take you seven years to catch up to the sign up bonus for the Chase Sapphire Preferred.

[–] CupDock 2 points 2 years ago

Yes but Chase Sapphire Preferred has a $95 annual fee, so after 7 years you've spent $665 on the fee which pretty much negates the $750 bonus (if redeemed on travel).