American Express and Chase Win Again

Here's yet another article from MSN that lists the Blue Cash from American Express card as the top cash back credit card and the Chase Freedom Cash Visa Card as number two. The details:

American Express Blue Cash leads the pack with its 5% rebate on "everyday purchases" at supermarkets, gas stations and drugstores, and its 1.5% rebate everywhere else. Unlike many other cash-back cards, there is no cap on the rebates you can earn. The trick is that you have to spend at least $6,500 annually to get this rate of return; until you hit that magic level, your rebate is 1% on "everyday" purchases and 0.5% on everything else.

If you don't regularly spend at least $2,500 a month on your card, check out the Chase Freedom Card, which allows you to automatically earn 3% back on purchases in the three categories where you spend the most each month, plus 1% everywhere else.

This is why the Amex card works best for high chargers and the Chase card works best for lower chargers. Of course, if you combine the two of them together, you can earn a cash back rebate of up to 2.6%!!! Now that's what I'm talking about!!!!!!

Is anyone seeing a trend here? These two cards have been consistently among the top cash back credit cards for the past couple of years (for the Amex, the Chase card is newer than that and has "only" been highly rated since it came out.) Are the banks listening out there? Come up with a single card that pays 2.5% to 3% on everything and we'll be all over it. Otherwise, don't bother.

Comments

[No Debt Plan]

We use AMEX Blue Cash and love it. We earned $432.xx in our first year, and so far about 1/2 through our 2nd year we've earned over $100. We don't buy anything we wouldn't normally buy either. Free money.

[MMJ]

Once we get our credit card situation straightened out, I plan on using our Amex Blue Card as the primary. Currenty, it hold a low balance transfer rate.

[MonkeyMonk]

Isn't $2,500 a month a really large amount to put on your credit card each month? I put nearly everything I can think of on my credit card (automated bills, expenses, etc.) and I only barely break $2000 on the absolute worst of months.

I got a Chase Freedom a few months ago and have definitely seen a rise in my rebate amounts but I wish they did a better job of breaking down the rebate categories. I suspect that one of the supermarkets I frequent (Trader Joe's) isn't being properly classified for the 3% rebate but there's no real way to check for sure on the billing statements.

[KC Josh]

I'm a new reader of this blog and loving it! Slurping it all up like drinking through a firehose.... great stuff!

Just got myself an AMEX Blue Cash Card and have already started using it for all my daily purchases. Was about to apply also for the Chase Freedom card as you suggest in your strategy. But then I noticed that travel (flights, hotels, rental cars, etc.) is not one of the categories. And that is one that my wife racks up charges on consistently for her job. Any recommendations for a cash back card that works well for this category?

[FMF]

Josh --

Sorry, I don't travel that much, and don't hassle with points programs. Anyone else out there have a suggestion?

[PlasticRewards]

Josh,

Capital One just introduced several new "miles" credit cards that you are able to earn additional miles on specific categories of purchases; one of them being travel. The miles can then be redeemed for cash back and other rewards, not just for airline miles. You do have to have excellent credit to be approved for one and I don't know the details for redeeming miles for cash. Good luck!