Does it Pay to Discover? My Q2 Credit Card Plan.
After my last post I’m going to try and keep this one short, but still valuable.
Every quarter I go through my credit card categories and I put together a quick cheat sheet on which card to use for what category. I share the plan on a Google Drive with my wife so we stay in sync and maximize cash back.
Today is the start of Q2; here is my Q2 plan:
In case you want to compare this to what I did in Q1, you can view that here:
I could stop now, but there is low hanging fruit out there I need to pick before I call it a night. I want to take a moment and write few things about Discover Card.
On all the points / miles / money hustling web sites I visit, the Discover Card gets no love. The base 1% cash back is below what others offer and it’s made them the red-headed step child of cash back. Everyone wants more than 1%, nobody likes a 1% return, but I do like the 5% cash back categories and the invitation only promotions they send to their cardholders.
Here is a promotion I received last week:
I know $10 isn’t that exciting, but you can triple up if you do the right things.
Take a deal like this, which is active right now:
I own a home, so I shop at Lowe’s all the time. So much in fact, I also have a Lowes credit card that gives 5% off the top of every purchase, but this is a $100 gift card for $90, so that’s better even without the bonus $9 I’ll get on the deal with Discover Card.
I’m at $19 total value, which doesn’t sound like a lot, but I’ll take a $100 UX spin if I get 4.5% EV, and this is more return with lower variance.
I can do even better… No sense in leaving any nickels on the table!
I will buy the gift card though a cash back portal. Looks like https://www.cashbackholic.com/ says Ebates is the winner.
Now I’m up to $20.80 in discounts and cash back on a card that is worth $100. At this point, I’ve made almost a 21% return. When I spend my gift card, I will also do the shopping though one of these portals and get cash back from spending the card too. This time, Befrual is the winner… Lump another $6 on the pile please (27%-ish total).
If you are not a current Discover Card holder, you can earn even more with a new member bonus. Discover’s current new card member promotion is called “Cash Back Match”. It doubles the cash back you earn in your first year as a card member. If you fall into this category, you now have a $100 gift card for only $70 plus you still get the $6 back on the spend side. Let’s hope you don’t have a coupon too or someone won’t be able to keep the lights on.
Here is a snip from Discover’s web site on their new member offer.
If you max out $1,500 per quarter on 5% categories, that new member bonus is worth $600. How many electric bills can you pay with $600?
Because of things like this, I like the Discover Card. They send me offers like this all the time. You can also find savings account bonuses with them too when you are a card member.
The last thing worth mentioning is that Discover has lower credit score requirements than a lot of other cards offering lucrative sign up bonuses. I’m not saying everyone can get a Discover Card, but they are more obtainable than many other cards.
If you want to support this site, you can sign up for the tools / cards /deals I covered with the links below. If you use these links, I will get a small kickback from the transaction.
Discover Card: http://refer.discover.com/s/qqax6c
Lowe’s Gift Card on EBay: https://rover.ebay.com/rover/1/711-53200-19255-0/1?icep_id=114&ipn=icep&toolid=20004&campid=5338505990&mpre=https%3A%2F%2Fwww.ebay.com%2Fitm%2F100-Lowes-Physical-Gift-Card-For-Only-90-FREE-1st-Class-Mail-Delivery%2F303108440757%3F_trkparms%3D5373%253A0%257C5374%253AFeatured