Credit Cards

306 readers

1 users here now

A community for discussing any aspect of credit cards. It is important to pay them in full and on time. Please ask questions and contribute to the knowledge surrounding credit cards

Rules

No-thing Nefarious. This applies to any posts where we suspect anything potentially illegal or fraudulent, and may include buying/selling tradelines.
No Referrals. No links; no codes. Don’t post them; don’t hint at offering them; don’t ask for them. Use rankt.com. This includes any behavior that could be deemed fishing for referrals.
No PM’ing Referrals. Spamming other users will get you banned.
No Link Shorteners.
Self-promotional posts must be pre-approved by a mod. Such posts are generally unwelcome. We may make an exception if it’s truly unique and helpful.

Be nice. (Don’t be a dick.)

founded 1 year ago

MODERATORS

PopeG

Favorite daily driver? (self.creditcards)

submitted 1 year 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.

you are viewing a single comment's thread
view the rest of the comments

[–] cjcs 4 points 1 year 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 1 year 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).