What’s in Your Wallet?
“What’s in your wallet?” is a familiar refrain from an oft-run credit card commercial.
My answer to that question, “Not the credit card that you’re pushing.”
It’s not because I have anything against that particular bank or its credit cards. Simply put, its cards just don’t fit into my strategy for obtaining free travel.
If you’ve read any of my posts on Miles and Points, you know earning airline miles and hotel points that I can use to obtain outsized value is my goal.
While offsetting travel purchases at roughly one cent per dollar (40,000 points = $400) isn’t bad, it’s going to take a lot of credit card spend to obtain the outsized value I can get using Miles and Points.
And, my favorite Miles and Points earning program, without question, is Chase’s Ultimate Rewards.
The ability to transfer Ultimate Rewards points to a variety of travel partners – many instantaneously – makes Ultimate Rewards, and the credit cards that earn them, my most valued way to achieve free travel.
Thus, when I don’t have a reason to use some other credit card(s), Chase cards are the ones that sit prominently in my wallet.
My Current Credit Card Spending Strategy
I currently have no sign-up bonuses I’m working to achieve, and no other “special” spending bonuses on any of my other cards, so my spending reverts to the default setting: The Chase Trifecta.
Chase Freedom
For the past two and a half months, the Freedom card has been earning 5x Ultimate Rewards points on purchases at grocery stores and wholesale clubs. So, every time my wife or I have made a grocery purchase, it’s the Freedom card that’s gotten swiped.
So much so that we’ve maxed out the $1,500 in combined purchases for this quarter.
Which means for the next 10 days, no more 5x points.
No matter, we’ll likely still use it for groceries, earning 1 Ultimate Rewards point per dollar, for the foreseeable future.
However, beginning July 1st, the 5x categories change, and restaurants will be added in lieu of grocery stores, while purchases at wholesale clubs will remain as a 5x earner.
So, when July rolls around and we decide to eat out rather than cook, the Freedom card will be the one paying the bill.
Chase Sapphire Preferred
The Sapphire Preferred card earns 2x Ultimate Rewards points per dollar spent on dining, so it’s the card that’s been used whenever we’ve gone out to eat.
However, that will change July 1st, when the Freedom card takes over that duty for the following three months.
What will we use the Sapphire Preferred card for? Well, just about anything else.
Like the Freedom, the Sapphire Preferred earns 1 Ultimate Rewards point per dollar spent on all non-bonused purchases. So, either the Sapphire Preferred or the Freedom will now be used on groceries. And really any other purchase that’s outside of dining/wholesale clubs.
Even though it’s only 1 point per dollar, it’s still an extremely valuable 1 Ultimate Rewards point that’s being earned.
The Sapphire Preferred also earns 2x points on travel related purchases – airfare, hotel, parking, etc. – but, with no personal travel plans upcoming, that’s not part of our anticipated spending.
If, however, a spur-of-the-moment trip were to take place, the Sapphire Preferred card would be how we’d pay.
Ink Business Card
The Chase Ink business cards earn 5x Ultimate Rewards points per dollar spent on purchases at office supply stores, on cellular phone, landline, Internet and cable TV services.
So, we have our cell phones, landline/Internet and satellite TV bills all automatically billed to the Ink card, earning 5x Ultimate Rewards points on those expenses each and every month.
And, depending on how motivated I am I’ll sometimes purchase gift cards at Staples/Office Depot for purchases we’re going to make anyway.
Example: We recently needed to make a sizable purchase from Home Depot, so rather than earning 1 point/dollar by putting the purchase directly on the Freedom/Sapphire Preferred/Ink, I used the Ink card to purchase Home Depot gift cards at Office Depot in the amount needed and earned 5x points on that purchase.
The Ink cards also earn 2x Ultimate Rewards points for purchases at gas stations, so when the Freedom doesn’t have gas stations as part of its 5x bonus category, the Ink is what’s used for filling up.
However, if I’m really motivated, I’ll purchase Shell gift cards from Staples and keep them in our cars for gasoline purchases. Again, earning 5x points for what would have been a 2x purchase.
Wrap Up
That pretty much covers all our spending, and my current credit card strategy for maximizing points earning for that spending.
Of course, that can change as new credit cards are acquired, or spending is transitioned to other cards to build up hotel/airline specific balances.
But, for right now, those three Chase cards sit prominently in my wallet, waiting, patiently, for their turn to slide (or insert if it’s a chip reader) when the appropriate spending category calls.
What’s your credit card strategy?
