BASICS: Credit Card Cashback

The neurotic (and savvy) shopper has an armatorium of credit cards to choose from. One needs to pick the right credit card for the occasion.

I currently get 5% cashback on most purchases, 3% on most else, and then 2% on everything else.

I sure do have one fat wallet! How am I getting all this cashback?

First let me breakdown my cashback savings

• 5% cashback: gasoline, groceries, cellular plan, cable internet, computers (and related), groceries, office supplies, and utilities.
• 3% cashback: restaurants
• 2% cashback: everything else

These cashback rewards are courtesy of various institutions: American Express, Chase, Advanta, and Orchard Bank. I've kept an eye on the various credit cards throughout the years.

Unfortunately, most great card rewards programs are a thing of the past so you won't be able to duplicate my current rewards. But you can probably improve what you have right now.

Here are the best options currently available

• American Express SimplyCash: Used to be better, but still offers 5% cashback off wireless service (i.e. AT&T wireless) and office supplies (i.e. Staples, OfficeMax, etc). The gasoline cashback has decreased from 5% to 3%
  
• Chase Amazon: Great if you shop at Amazon a lot. Currently has a 3 month promotion.
  
• Discover Card: I find this card pretty useful all around. Runs seasonal 5% cashback promotions.
• Orchard Bank: This gives me 2% cashback on all other purchases. This may have recently been discontinued, but might be available here.
  

TIP: How do you keep straight which credit card to use? Put a little masking tape on the back of the credit card and write what the rewards are.
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Pro: Optimize your cashback savings on purchases
Con: Will decrease your credit score. Adds complexity to your personal financing.
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CREDIT CARD: Discover Card free $100 gift cards

Discover is a nice credit card which runs great promotions every now and then. If you own a Discover card, you can get $20 cashback for every $200 charged at a lot of different malls.

Now how can you get $100 in gift cards without actually spending money?

If you don't mind being a little deceitful, here is what you do.

1. Check here to see if there is a mall nearby which is running the promotion
2. Go to the mall and purchase $1000 worth of products (any stores). I used Sears to buy some expensive electronics.
   
3. Bring your receipts to the customer service counter
4. You will receive $100 in Discover gift cards ($20 x 5)
5. Return your purchases and keep the gift cards.
   

Promotion runs until 1/4/2009.
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CREDIT CARD: Discover 5% cashback & $50 bonus

Although not accepted by as many places as Visa or Mastercard, Discover does offer some attractive cashback promotions which are just as good (if not better) as those other cards.

It is one of the many credit cards which I consistently use for its rewards.

Depending on what time of year, they offer straight 5% cashback on some pretty useful categories

• Oct-Dec 2008: Restaurants, Grocery Stores, Movies
  
• Jan-Mar 2009: Airlines, Hotels, Car Rentals, Cruises
  
• Apr-Jun 2009: Home, Fashion
  
• Jul-Sep 2009: Gas, Hotels, and more
  

For everything else, it's 1% cashback.

You also have the option to redeem your cashback for gift cards (i.e. Staples, Brooks Brothers, Lowes, TJMaxx etc) for which you will receive a premium (i.e. $40 becomes $45 or $50 gift card). This gives you effectively higher than 5% cashback which you won't get with other cards.

Sign up below to get a $50 cashback bonus after your first $500 in purchases.
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CREDIT CARD: Amazon Chase Visa Card Deal

Attention Amazon shoppers only.
If you frequently shop at Amazon.com (as I do) or own the Chase Amazon Visa card, then please read on to save some money.

Current Chase Amazon Visa card are eligible for a great promotion: you get double rewards for the next 3 months. This effectively nets you 6% cashback on Amazon purchases.

Here is how to enroll

1. Call customer service at 1-888-247-4080
2. Say you want to upgrade your card to earn double points for the promotion
3. You are now enrolled!
   

If you don't have a Chase Amazon Visa card, then you really need to sign up. Normally, you get 3 points for every dollar spent at Amazon which effectively nets you 3% cashback. But sign up now and you will also get the double points promotion.

Plus if you sign up now, you will get a $30 credit after your first purchase.
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Pro: Get 6% cashback on Amazon for 3 months
Con: Credit score check. Another credit card to keep track of.

Comment if this was useful!
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FREE MONEY: Credit Card balance credits

If you have certain credit cards (don't we all?), then you are in luck.

You can get your credit company to pay you up to $1.99 each month. If you have multiple credit cards, you can get even more.

Why in the world would they do this?

Well, there comes a point where your credit card balance is just so low that it's no longer worth the hassle/fees in charging you for it. So the bank will go ahead and erase the balance and reset your balance to $0.00.

Every bank sets their limit at a different threshold.

• American Express: $0.49
• Capital One: $0.99
  
• Chase: $0.99
• Discover: $1.99
• Bank of America: doesn't work
• Citi Cards: doesn't work
  

So how do you take advantage?

• Pay (on time) your monthly credit card balance such that a small amount remains (based on list above, i.e if Chase, leave $0.99)
  
• Wait for the next balance to see that the balance (i.e.$0.99) has been erased!
  

I've been doing this for years. With the current economic climate, though, stuff like this may go the way of the dodo.
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Pro: Free money each month
Con: Taking advantage of Chase. Requires some math and some planning. May end at any time.

Please post your experience with this in the comments. Read more!

DEAL: Walmart $20 credit

Deal has Expired

If you have an american express card, you can get a $20 statement credit at Walmart (online or in store) by making 2 separate purchases of at least $40 each.

The great thing is that you can just buy gift cards! Walmart has everything! They should be getting the iPhone in the next month too. So if you are saving up for one, stock up on these gift cards!

Here's what you need to do

1. Register your American Express Card
2. Go to store (will work online, but you'll have to pay some cheap shipping fee unless you use ship-to-store)
3. Go to cashier and buy 1 $40 gift card using the Amex card you registered.
4. Go to another cashier and buy another $40 gift card
5. Wait a couple days for $20 credit to appear

I just did ths couple days ago and already have a statement credit. You can do this for as many amex cards that you have. I have 4 American Express cards and got $80 back!

Stick it to the man!
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Pros: Free $20!
Cons: Tie up $80 of your money in a Walmart gift card

Please post your experience with this in the comments Read more!

DEAL: Amex Wishlist

If you have an american express credit card, you should check out Amex Wishlist. Deal on hiatus

This is something that American Express has been doing the past several years. They offer various items that are VERY discounted, in addition to some nice gift card promotions for different stores. The catch is that there is only a limited number of each item and they are only available at a certain time. It runs for the next week or so.

Some popular items

• Bestbuy: $150 credit with $600 purchase
• Amazon: 25% off purchase (up to $125)
  
• Walmart: $25 credit with $100 purchase
  

Here's how to play:

1. Go to Amex Wishlist website to see what you might be interested in and when it will become available.
2. At designated time, push button on website to indicate you want the item (You can put in your amex number beforehand)
3. If you are picked, you are given a finite amount of time to enter your info to complete the purchase.

I've had mixed results with this. The popular items are VERY hard to get. I want the Amazon gift card but haven't been able to get one. I had better luck the past couple years when less people knew about it.

Who knows, you might get lucky and win the Mercedes Benz GLK350!
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Pros: Great deals & coupons
Cons: Popular items are HARD to get. You need to be watching the time to stay on top of things

Please post your experience with this in the comments Read more!