Read This: Thoughts on How to Pay for Starwood Stay

With a two-night stay at Le Parker Meridien in New York City coming up this summer, I did some points vs. cash analysis to figure out the best way to pay for the hotel.  I thought I'd share my analysis.

As a Category 6 SPG property, the stay will cost 40,000 SPG points (20k per night) or $715.00 after taxes using a wedding rate.  Based on this, I narrowed my payment choice to three options: Starwood Points redemption, charge to my SPG American Express, or charge to my Barclay Arrival MasterCard.  

A new notes before I get to the chart: 

• I have enough SPG points to last me a couple years based on historical trends.  Likewise, I have enough Arrival points to cover the trip.
• How/Why I calculated "Points per $3.95":  I basically pay for points because I can get more value from using the points vs. buying the points (4/5 of a penny or much less per point).  I do this using Bluebird and Serve accounts and it's a bit complex.  If you want to read more on this, I recommend reading some of the Frequent Miler's posts on the subject.  
• I have SPG Gold status, which provides three points per dollar on hotel stays.  The SPG Amex earns two points per dollar on eligible Starwood hotel charges.  The Arrival card earns two points per dollar on any charge.  
• I didn't include using Chase Sapphire Ultimate Rewards points because the reservation options for this hotel were screwy and I was afraid I'd be stuck with a sub-par room if I used this option.

Here's my chart (it's a little ugly because I wasn't planning on sharing it).

Chart: I'm not sure this will make sense to other people

So, which option do you think I chose...

Answer: I'm going with the Barclay Arrival option.  Here's why:

• Lowest in Overall Cash Cost.
• Earns both good SPG and Arrival points from the charge.
• Finally, while it's not included in the analysis in the chart, I don't like the 1.8 cents per point value from using my SPG points.  I like to get at least 2 cents per point out of using SPG points.  

That's it.  I just though I'd share.  Does this make sense to anyone else? 

Do This: Save Money on Valentine's Day Flowers

First image when googling "flowers"

Flowers, especially on Valentine's Day via a retailer like 1-800-Flowers, are a rip-off.  I know.  However, when it comes to Valentine's Day, birthdays, and other holidays, the cost is a small price to pay to show a loved one that you adore them, appreciate them, etc.  That being said, there's nothing wrong with saving a little money on your flower purchase.  

Below is a quick step-by-step approach to save some money (approximately 36%) on Valentine's Day flowers, in this case from 1800Flowers.com. 

1. American Express: This will only work if you have an AmEx, but log into your account and check your "Offers for You".  You should find a $15 off $50 offer for a purchase from 1800Flowers.   Save the offer to your card.
2. Plink: Make sure the 1800Flowers offer is loaded in your plink account and you'll get 600 plink points for a $50 purchase.  500 points gets you a $5 gift card to merchants like Amazon.  If you have an AmEx and followed Step 1, make sure your AmEx is linked with your Plink account since you'll be paying for your flowers with that card.  If you don't have a plink account, follow this link and you'll get 300 points when you sign up. 
3. Mr Rebates:  Go to MrRebates.com and search for 1800flowers.  You'll see that the site is offering 15% back on your purchase (not including delivery fees), which is the highest rate of the cash back portals.   Follow the link to 1800flowers and choose your flowers.
4. Online Coupon: Before checking out, add the coupon code REBFIVE to take 5% off the cost of the flowers.  This coupon code should stack with the Mr Rebates cash back. 
5. Pay: Be sure to check out with your AmEx with the saved $15 off offer and/or linked plink credit card.  

The Math

To wrap it up, here's the math.  Let's say you buy a $60 arrangement with a $20 delivery fee and no tax.  

1. Take 5% ($3) off the $60 cost of arrangement and you're down to $77 with the $20 delivery.
2. Mr. Rebates will return you 15% of the $57 ($8.55) for the arrangement.  Now you're down to $66.45.
3. AmEx gives you a statement credit of $15 for your purchase with your AmEx card, dropping the cost to $51.45.

Bottom line: You decreased the original cost of $80 to $51.45, a 36% savings!  Plus you scored enough plink points to redeem for a $5 Amazon gift card.  And, of course, you made your significant other a happy lady/gentleman!

Buy This: Bose Quiet Comfort 15 Noise Cancelling Headphones for $179.81

UPDATE: I just received an email from Sharper Image informing me my order was cancelled as the item was out of stock [editor's note: funny because it said it was in stock when I purchased it, otherwise I wouldn't have bought the Living Social gift card].  

As an added touch, the woman I spoke with at Sharper Image hung up on me when I called to question the cancellation.  So, Mr. Our Tips and Tricks is instituting a global boycott of Sharper Image.  Please join me by refusing to do business with this company.  

-------------------
It's late (9:30pm) on December 18.  I'm tired, so this will be relatively quick and dirty.  If you're looking for a last second Christmas gift, I have a good one, especially if the recipient is a traveler.  It's the Bose QuietComfort 15 Acoustic Noise Cancelling Headphones.  They're currently on sale on Amazon for $269.99, but the following step-by-step guide will show you how you can be like me and use MrRebates.com, LivingSocial.com, and American Express to score yourself a pair of these headphones for $179.81.  I don't know how long this will last, so if you're interested, don't dilly dally.  

I have the older model, but it's been showing wear

1. Open two tabs on your browser. Go to MrRebates.com in both tabs.  Make sure you're logged in to your account.
2. In the first tab, search for "Sharper Image".  You'll see MrRebates is offering 10% cash back on SharperImage.com purchases.  Note the coupon code "AFF30" that offers $30 off purchases of $250 or more: You'll be using that code.
   
3. Follow the MrRebates link to SharperImage.com.  Search for "Bose Quiet".  Follow the link to the Bose QuietComfort 15 headphones and add them to your account for $269.95.  Go to Checkout.
4. At checkout, you'll see it's $269.95 for the headphones plus $10.95 for shipping.  Apply promo code "AFF30" and the price will drop to $239.95 plus shipping.  Make sure this works as planned before moving on to the next step.
5. Before checking out from Sharper Image, you're going to buy a $50 Sharper Image gift card for $25 via a LivingSocial.com offer.  So, switch to your other tab that's still at MrRebates.com.   Search for Living Social.  You'll see they're offering 4% cash back for Living Social purchases.  Follow the link to LivingSocial.com and find this offer for a $50 SharperImage.com gift card for $25.  Complete your purchase and the gift card number will be emailed to you right away for immediate use.  You'll earn $1 cash back for this purchase via MrRebates.
6. If you have an American Express, open a new tab and log in to your American Express account at AmericanExpress.com.  In the "Offers for You" on the bottom of your main page you should see an offer for SharperImage.com for a $25 statement credit on any purchase over $125 from SharperImage.com.  Find that offer and save it.  I've been taking advantage of a bunch of these offers via my Starwood AmEx and they've given me statement credits without fail.  
7. Now, go back to your original tab with your Sharper Image purchase.  By now, you've certainly received your gift certificate number from Living Social.  In the Sharper Image checkout screen, click the "Apply a gift certificate" hyperlink and enter your number.  $50 dollars will be subtracted from your total, which should now read $189.95, plus $10.95 for shipping and no sales tax, for a total of $200.90.  
8. Check out with your American Express that has the saved offer for $25 off $125 and make your purchase.
9. Congratulations.  You should get your new headphones in a couple weeks.

The Math

To wrap it up, here's the math.  

1. Original total of $269.95 + $10.95 shipping = 280.90
2. Minus $30 via AFF30 coupon code = $250.90
3. Minus $50 for Living Social gift certificate = $200.90
4. Plus the $25 you paid for the $50 gift certificate = $225.90
5. Minus $1 for the 4% cash back on the Living Social purchase = 224.90
6. Minus $20.09 for the 10% cash back on the Sharper Image purchase = 204.81
7. Minus the $25 statement credit from American Express = 179.81

Total cost of $179.81 for the Bose QuietComfort 15 Acoustic Noise Cancelling Headphones.  Plus, since I used my Starwood AmEx for both the Living Social and Sharper Image purchase, I earned 226 Starwood points, which are probably worth about $5.  That's a great deal if you ask me.   And on that I'm going to bed to get ready for my 4am wake-up call.

Consider This: American Express Starwood Preferred Guest Credit Card

I have the Starwood Preferred Guest American Express Credit Card.  It's consistently ranked as one of the best travel credit cards, but for some reason I'm kind of ashamed that I pay the $65 annual fee every year to keep it.*  However, this month, I've finally accepted that this card is worth keeping and I'm ready to admit it.  Here's why :

• Valuable Starwood Points**: Each dollar charged earns 1 Starwood point, while charges at a Starwood property earn 2 points per dollar.  I just redeemed 36,000 Starwood points for 3 nights at the W French Quarter in New Orleans.  If I paid cash for a discounted room rate there, it would have cost me $1,197.41.  In this case, each Starwood point is worth 3.32 cents.  That's some good value! 
• Starwood Gold Status After Charging $30,000 Per Year: Basically, every year I stop using the card once I hit the $30,000 threshold to earn SPG Gold Status.  This year, after charging enough to reach Gold again, Starwood gave me a bonus gift of either double points for a month or 25% off a rewards stay.  I took the second option and applied it to my upcoming New Orleans stay.  So, that aforementioned stay is now only costing me 27,000 points, upping the value to 4.43 cents per point.
• Special "Offers for You": When you log into your American Express account, there are a bunch of special offers that you can apply to your credit card with a click of the mouse.  I just used a $10 off $50 at Lowes, which I applied to my account about a month ago and forgot about.  About 15 minutes after I placed my Lowes order this morning, American Express sent me an email confirming that I used the offer.  I don't think I'll use the $5 off $25 at Forever 21, but it can't hurt to save the offer to my card just in case.
• Twitter Specials: If you follow me on twitter (@OurTipsAndTrick), you'll know I don't really know how to tweet.  However, even I was able to figure out how to take advantage of an AmEx twitter deal to earn a $5 statement credit each time I charge $25 or over at a BP gas station.  First, go to sync.americanexpress.com/twitter and sync your AmEx with your twitter account.  Second, tweet #AmexBP.  If you receive a reply from @AmexSync, you did it.  Deal expires December 31.  I'll probably save at least $20 with this.  

I Did It!!!

• Small Business Saturday: Each year, American Express sponsors Small Business Saturday, which provides credit card users statement credits for shopping at a small business.  This year, users who register will receive a one-time $10 statement credit after spending $10 or more at a qualifying small business on November 30.  Last year the amount was $25, but free money is free money.  You can register every AmEx you have and will receive one $10 statement credit per card.  Registration starts November 24.  All I know is I'll be getting myself an essentially free Pork and Fries from Earl's.  

If you don't have this card already, I'm not advocating that you rush out and grab it.  Wait until they offer a 30,000 point sign-up bonus, which if memory serves me, happens at least once a year during the late spring / early summer time frame.  Furthermore, I still can't recommend this as a primary credit card, as I continue to prefer the Chase Sapphire Preferred and Barclay Arrival as a principal card to earn travel rewards.  

If you do have this card or another AmEx, be sure to take advantage of some of the benefits posted above, as they're not all unique to the SPG AmEx.  

* First year annual fee was waived, second year they gave me a $40 statement credit to keep the card, and the last couple years they called my bluff and wouldn't waive or decrease the annual fee.

** Until the next devaluation.  You can also turn 20,000 Starwood points  into 25,000 airline miles, but it can take up to a couple weeks for the transfer to go through.  

Do This: Earn Credit Card Rewards That Have Cash Value and/or Are Transferable to Multiple Frequent Traveler Programs

For those that missed it, yesterday United Airlines announced major changes to its frequent flyer program, MileaguePlus.  Essentially, starting in February 2014, United flights will now require more miles to book award flights.*  

Since I'm not interested in using miles to book first class, international travel, I don't find the changes as devastating as some other writers.  Nevertheless, these changes devalue United miles and are another example as to why you should not focus your spending on a credit card tied to a single frequent traveler program (e.g., the MileagePlus Explorer Card by Chase).**  Instead, as the post title states, you should use a credit card that earns rewards that have cash value and/or are transferable to multiple frequent traveler programs to substantially decrease your risk of frequent traveler program devaluations.

Readers of Our Tips and Tricks have already heard this tip in "Do This: Maximize Rewards Credit Card Use," but it warrants repeating.  If you do most of your household spending on a credit card tied to a sole frequent traveler program, go back, read the aforementioned post, and change your credit card.  Two easy recommendations are the Chase Sapphire Preferred and Barclay Arrival.

* The pre-devaluation award chart is here.  The new, much worse chart is here.
** I'm not providing a link to the Chase United card because: A) if you don't have already have it, don't get it, and B) If you already have it, cancel it and get a better credit card.  

Read This: Our Tips and Tricks Power Ranking

To celebrate Our Tips And Tricks' 80th day in existence anniversary, we present a Power Ranking of of our top 10 tips and tricks.  If you haven't read these tips, you should.

1. "Stretching" Your Spending series of articles.  So good we compiled them all in a primer.  Follow these simple tips by signing up for an airline dining program, using cash back portals for online purchases, and maximizing credit card rewards.  A recent study conducted by OurTipsAndTricks.com shows that not following these tips costs American consumers $3.5 billion per year.*
2. Replace Your Incandescent Light Bulbs with LEDs.  Good long-term, home investment tip.  Depending on how many bulbs you replace, the decrease in your energy bill can be noticeable.
3. Hang Ikea Ribba Frames Easily.  Genius, original Our Tips and Tricks fix to a problem.  Gets a lot of love via Google searches.
4. Panasonic FlashXpress Toaster Oven.  Fantastic toaster oven.
5. Target REDcard Debit Card.  Save 5% on all Target purchases without a hard credit inquiry.
6. Let's Dish.  Includes an exclusive, Our Tips and Tricks coupon code for $10 off and free cookies.
7. Tips for Home Improvement Projects.  Some good stuff here.  Learn from my mistakes.
8. Window Blinds from SelectBlinds.com.  A good tip that should have been included in the original top tips for home improvement projects.  
9. Avoid Credit Card Annual Fees.  Too many people I know needlessly pay their credit card annual fees. Don't be another victim.
10. Price Protection and Other Credit Card Benefits.  Knowing your credit card benefits can save you some serious money.  

* Study may have no basis in reality and may be fictional.

Response to Reader: Quick Savings for Marriott Stay

A couple days ago, I received a complaint constructive criticism from a loyal reader who told me I was recently slacking on money saving tips.  While some (e.g., me) may argue that he is just flat wrong, I take my readers' comments seriously.

The following (forced) tips are tailored for this individual, who I know is in the midst of planning a trip, but anyone can/should use them.

Issue:  Individual is booking a trip for two to New Orleans and would probably appreciate saving some money on his airline tickets (US Airways) and the hotel (Marriott property).  Redeeming miles/points for the flight or hotel is not an option.    

Money Saving Tips and Tricks: Big money saving tips on airfare and hotels aren't easy unless you're talking about events like mistake fares or redeeming miles/points for high cost tickets/hotels.  In this case, neither of those avenues are currently available.  Nevertheless, below are some easy tips, most of which are covered in the "Stretch" Your Spending primer, to save some money on travel costs for your trip.

Fancy Graphic: How Saving and "Stretching" Will Add Up

• US Airways Tickets: As I mentioned, there's not much you can do to save on a plane ticket, especially when you know exactly what flights you want. All I can recommend is:
• Be sure you're signed up for USAirways Dividend Miles or a Star Alliance partner program to earn some miles.
• If you have one, pay for your ticket with a credit card that offers increased rewards for US Airways flights or travel in general.  Examples include the US Airways Dividend Miles Mastercard, Chase Sapphire Preferred Visa, and Barclay Arrival Mastercard.
• Furthermore, the aforementioned US Airways Dividend Miles Mastercard provides cardholders an annual companion certificate good for roundtrip, domestic travel for up to two guests for $99 each.  If you have the card, use the companion pass.  If you don't have the card, you could apply for it if you have enough time.  I previously had this card and used the companion pass to travel with two buddies to Las Vegas.  It can really cut the per ticket cost.
• Marriott Hotel Stay: There are some easy money saving options for hotels, which are:
• Use a cash back portal when you book your room.  Mr. Rebates links will earn you 3% cash back on Marriott reservations.  Log-in, search for Marriott, follow their links to Marriott.com, and make your reservation. After your stay, you'll see 3% of the total charge deposited in your Mr. Rebates account.*  Theoretically, you could use a cash back portal to book your flight on a site like Travelocity or Priceline, but I can't recommend it because I'm not sure/don't think you'll earn frequent flyer miles for your flight.
• If you're a member of AAA, Marriott often offers a nightly discount.  Use it if you have it.  I believe this discount is combinable with the Mr. Rebates cash back, but I'm not 100% positive.  It can't hurt to try.
• See credit card point above.  There's also the the Marriott Premier Rewards Visa, which earns 5x points on Marriott spending
• Make sure you're signed up for Marriott Rewards.

Anyone have any other money saving tips or tricks for this gentleman's upcoming trip?  Leave a comment.

* Not all Marriott properties are included in the cash back offer and specially negotiated rates don't apply.  Check the restrictions.

Do This: Avoid Credit Card Annual Fees

When applying for my first credit card fifteen years ago, my only requirement was no annual fee.  If I remember correctly, I got a free Boston Celtics t-shirt for applying for this no fee, no frills card.*

Since then, I've learned to use credit cards to stretch my spending and reap valuable sign-up bonuses and other rewards.  Yes, rewards even more valuable than a Celtics t-shirt.    However, I've also learned that, most often, the best credit cards come with annual fees.  

Typically ranging from $65 (Starwood Amex) to $450 (Platinum American Express), credit card annual fees can make a significant dent in your wallet and negate a card's benefits.  That being said, they can also be worth it if the provided benefits are valued more than the annual fee.

Regardless, I hate paying annual fees on my credit cards.  Therefore, I always try to have them waived and I advise you to do the same.  A quick phone call to a credit card issuer with a request to cancel a card (or a complete bluff) will often save you the cost of an annual fee.

My Advice Regarding Credit Card Annual Fees
In the event you have a credit card with an annual fee, you should always call your issuer (American Express, Chase, etc.) to "cancel" your card right before or immediately after the annual fee comes due.  Even if you want to keep the card, call and bluff.  Often (although your results may vary) credit card companies will offer to waive or lower the annual fee or provide you an opportunity to earn bonus points in order to keep your business.

If your credit card issuer will not make you an annual fee offer, you still have options.  These include:

1. The issuer may allow you to switch your line of credit to another one of their no-annual fee cards.  I've taken advantage of this many times, as I want to keep my available credit high for my credit report.  Even if I have no plans to use the new card, this is usually my option.
2. Keep the card if you think the card's benefits outweigh the annual fee's expense.  I'm not telling you to cancel or downgrade all cards with an annual fee.  I usually have at least two cards that I'm paying an annual fee on because, in these cases, the card benefits are worth it.
3. Follow through and cancel the card.  However, before you do this, try calling back a couple times to try your luck with different representatives.  Also, if you have another credit card with the issuer, ask to transfer your available credit to your other card before closing the account.  Closing your card will affect your credit score.  Consider how this decision will affect your credit rating, especially if you plan to refinance a mortgage, apply for a new loan, etc.

My Experience 
Whenever one of my credit cards with an annual fee comes due, I always try and get out of the annual fee...even when I fully plan to keep the card.  Here's a snapshot of my experience with some cards, all of which had annual fees that were waived for the first year as part of the original sign-up offer.

• Marriott Rewards Premier with Chase ($85):  I've had this card for years and paid the annual fee many times before learning this tip.  Last year, upon my call, they gave me an offer of 10,000 bonus Marriott points if I spent $1,000 in three months.  Sold.  This year, they gave me a night certificate for a Category 1-4 hotel if I charged $1,000 in three months.  Sold again.  Even without these retention offers, this card offers one free night at a Category 1-5 Marriott on each account anniversary, so this is a case where the card benefits outweigh the annual fee.
• Starwood with American Express ($65 annual fee): When my first year with the waived annual fee passed, they gave me a $40 statement credit.  The following year, AmEx would not offer me a statement credit or similar enticement, but they gave me the option to transfer my account to one of their products without an annual fee.
• Every Citi Credit Card I've Ever Had ($ varies): I've essentially had the same experience with every one of my Citi credit cards.  The first year I call, they waive the annual fee for another year.  The second year, they don't budge and I downgrade to a card without an annual fee.  However, this year, I got Citi to waive the annual fee on my AAdvantage Visa for a second year in a row.  My call and reason for cancelling (confusion regarding proposed merger with US Airways) bought me a third, annual fee-free year.
• United Signature with Chase ($95): This card was replaced about a year and a half ago by the new United MileagePlus Explorer, but it was one of my greatest success stories.  When I called to cancel, they not only gave me a $100 statement credit (keep in mind the annual fee was only $95), but I also still received the 10,000 annual bonus miles.  Cha-ching!  The following year, they offered me nothing and I cancelled it to make room for a different Chase card.
• Chase Sapphire Preferred ($95): After my first year, I called Chase with a complete bluff because this is one of my favorite cards and there was no way I was going to cancel it.  My bluff was called, and I kept the card.  Speaking with friends, it seems Chase will not make any annual fee deals with this card. 

Tips

• Be friendly and pleasant on the phone.  Ask how their day is going.  Most often, your first customer service representative will pass you on to a specialist to "close the account."  However, those specialists want you to keep your card open.  Engage them in conversation.  Listen.  And if all else fails, openly ask if they have any customer retention options.
• As I mentioned earlier: If your first call is unsuccessful, wait a day and try again.

* For the record, t-shirt enticements no longer work on me.

Use This: CreditKarma.com

If you truly want to be in control of your finances, you need to monitor your credit.  Credit reporting agencies (e.g., Equifax, Experian) and credit providers (e.g., Chase, Bank of America) will offer you monthly credit monitoring services, typically for a fee between $10-20 per month.  The Fair Credit Reporting Act (FCRA) also provides everyone access to a free credit report once per year via annualcreditreport.com. 

Personally, I've been using CreditKarma.com to monitor my (and Mrs. Ourtipsandtricks') credit for the past few years and recommend you do the same.  The benefits are:

• It's completely free.  You never provide credit card information. 
• It pulls all your financial information that impact your credit (e.g., mortgages, student loans, credit cards, etc.).  Signing up for and using the site does not affect your credit score.  All pulls are soft inquiries.*  
• It regularly refreshes your credit information about once a week, notifying you of changes.
• It gives you a free estimated credit score.
• It's educational and will provide you a greater understanding of credit score calculations and what you can do to increase your credit score.

Logo: Every Article Needs an Image to Look Professional

How I Use Credit Karma

I check my Credit Karma account about once a week to do the following:

• Fraud Monitoring: The site will display any new applications for credit under my name, which will alert me to any fraudulent credit applications.  Thankfully, I've never experienced this.
• Monitor Credit Score: The site provides two different types of free credit scores provided by Transunion, which give me a good idea of my overall credit score.  It also provides an "auto insurance" and "home insurance" score, but, to me, they are worthless.  Just this month, it alerted me that a two-year-old hard credit inquiry was removed from my credit report.  The removal of this hard inquiry lowered the number of hard inquiries on my credit report (obviously), slightly increased my credit score, and provided a tempting opening to apply for a new credit card.   
• Simulate Credit Score: The site offers a handy "Credit Score Simulator" that calculates how financial activities will impact my credit score.  For instance, before I apply for a new credit card, I'll simulate that activity to determine how my credit score will be affected.
• Monitor My Accounts: The site displays all of my accounts and balances in one place, allowing me to keep an eye on them.  You can also use the site to track all of your financial transactions (e.g., credit card charges and payments, checks, transfers, etc.), but I personally prefer Mint.com for that.

Finally, over the years, Credit Karma has made me smarter about credit scores and reporting, which in turn has allowed me to maintain a very high credit score and access to good loan rates and credit card offers.  More importantly perhaps, this education has increased my ability to provide knowledgeable, unsolicited advice to friends, family, and you.  

* more information on soft vs. hard inquiries here

Get This: U.S. Bank Cash+ Card

A couple weeks ago, I discussed the credit cards I keep in my wallet during Part IV of my "Stretch" Your Spending primer.  Today, I'm going to focus on my advice for you to obtain U.S. Bank's Cash+ Visa.  

Cash+ Visa Lets You Choose Two 5% Cash Back Categories

The reason I'm thinking about the Cash+ card is that I just selected my 5% cash back categories for the final quarter of 2013 (October-December).  Again, I'm going with Restaurants and Fast Food as my 5% cash back categories and drug stores for my 2% category.  All other purchases will earn 1%, which means I won't use this card for anything other than dining, since I earn 2.22% back on every purchase with my Barclay Arrival card.  Once/if I max out the $2,000 spending on dining during the quarter, I'll mothball the card until January and the new quarter rolls around.

My Selected Categories

Why I Recommend the Card

• No annual fee.  
• I choose my own 5% categories (unlike the Chase Freedom that has a set calendar), earning 5% cash back on the first $2,000 of spending in my selected categories.
• I choose among gas stations, grocery stores, or pharmacies as my 2% cash back category, with no maximum (although I don't take advantage of this benefit, others may).
• I earn a $25 cash back bonus when I redeem $100 or more in a single redemption, but that is limited to one time per calendar year.
• It's a Visa Signature card, so it offers Visa Signature benefits.

The Catch

The only perceived downside of this card is that, according to U.S. Bank's website, you can only apply for this card in-person at a U.S. Bank branch.  That could be a problem for some since U.S. Bank does not have a nationwide presence (e.g., there are no U.S. Bank locations within 100 miles of Washington, DC).  However, I got the card without applying in-person.  Here's how...

Do This: Maximize Rewards Credit Card Use

To wrap up this week's "Stretch" Your Spending series, I'm going to focus on maximizing cash back returns on day-to-day spending via reward credit cards.  Please note, this tip is only for those that pay off credit cards each month, do not carry balances, and use credit responsibly.*

My two key points for using reward credit cards are:

1. Charge everything!  Unless there's a fee or surcharge for using a credit card, use a reward credit card for all purchases.  The U.S. Treasury does not have a rewards program where they'll rebate you a penny for every dollar bill you keep in circulation, but reward credit cards will essentially pay you to use them.  Most rewards credit cards will give you back at least 1% of your charge in rewards, which brings me to my next point...
2. A 1% return for a rewards card is not good enough!  By using the right credit card on the right purchase, you should be able to get 2% or more in rewards on every one of your purchases.  

Before I go into details, I must first acknowledge that valuing credit card rewards is a complex topic.  Each person can value rewards programs differently, with some believing United miles or Starwood points are worth the most while others prefer cash back or another one of countless hotel or airline programs.  To keep it simple, in my discussion below, I will categorize all earned rewards as points and, unless I say otherwise, each point is worth one penny.**  Furthermore, I will not examine any reward cards tied to a single frequent traveler program, as I see them having less and less value as their points are consistently being devalued (see recent Hilton, Starwood, and Marriott points devaluations).  

Easiest Way to Earn 2% on Every Purchase

• Fidelity American Express: This card offers 2% cash back on all purchases when you deposit your rewards directly into an eligible Fidelity account.  Personally, I do not have this account, but it may be intriguing for a lot of people because it has no annual fee and your reward is cash.
• Barclay Arrival: This card gives you 2 points per dollar, which is essentially worth 2.22% cash back, on every purchase.  However, you can only use your points as statement credits on travel-related charges.  For example, let's say you charge a $212.20 hotel room on your Arrival card.  You could then turn around and apply 21,220 of your points as a statement credit to remove the hotel charge.  On the plus side, Barclay will then turn around and return 10% of the points you just redeemed, redepositing 2,122 points back into your account for future use.  That extra 10% rebate on redeemed points is how I came up with 2.22% back on every purchase.  This card carries an $89 annual fee, which is waived the first year, and currently offers a 40,000 bonus points opportunity for new cardholders.  I've had this card for a few months and can confidently recommend it, at least for the first year with the waived annual fee.  

Let's Get Crazy - My Wallet

Stretching 2% out of my purchases via credit cards isn't good enough for me.  Below, I'll tell you about the credit cards I carry in my wallet, which will hopefully provide you some ideas as to how you can stretch even more value from credit cards.***

• Chase Freedom (no annual fee): 5% cash back at gas stations (current bonus category), with merchant categories changing quarterly based on the Freedom Calendar.  From October-December, the 5% rewards apply to Amazon and select department store purchases.  5% rewards are capped on $1500 in purchases ($75 in rewards) per quarter and all other spending receives 1% cash back, which means I only use this card for the quarterly bonus categories.  Offers a $100 sign-up bonus for new customers.

2013 Chase Freedom Calendar

• US Bank Cash+ (no annual fee): 5% cash back at all restaurants (my selected two categories for the quarter), with merchant categories changing quarterly.  Unlike the Freedom card, Cash+ cardholders get to choose two classes of merchants from among approximately ten categories for the 5% bonus and purchases are capped at $2000 per quarter.  This quarter, I chose restaurants and fast food dining as my two categories to ensure I had full coverage when eating out.  You can also choose one category from among gas stations, pharmacies, or grocery stores to earn unlimited 2% cash back. Like the Freedom, all other purchases earn 1% cash back (blech). You can supposedly only apply for this card in-person at a US Bank Branch, but someday I'll share the story of how I got this card over the phone.  

• Chase Amazon (no annual fee): 3% back on Amazon purchases.  I use this card on all my Amazon purchases.  Points (each point is worth a penny) can only be redeemed for future Amazon purchases, but it's seamlessly integrated with your Amazon account so that you can easily use your available points as payment at checkout.  The card also gives 2 points (2%) per dollar spent at gas stations, restaurants, and drug stores.  Offers a $30 instant gift card for new customers upon signing up.

Amazon 3% and 2% Rewards Accrual

• Chase Sapphire Preferred ($95 annual fee): At least 2% back on all travel-related and restaurant charges.  This is one of the best reward credit cards because not only can you redeem your points for cash (1 point = 1 penny), you can also use your points to book travel through Chase at an increased rate (1 point = 1.25 cents) or transfer points to Chase travel partners that include United, Southwest, Hyatt, and more.  When you transfer your points to travel partners (at a 1-to-1 ratio), you can get incredible value from your points, especially through United and Hyatt.  There are many other benefits with this card, so I recommend reading up on it.  I highly recommend it and have no qualms about paying the annual fee every year.  There is currently an offer of a waived first-year annual fee and 40,000 bonus points opportunity for new customers. 

• Barclay Arrival ($89 annual fee): 2.22% back on all purchases.  Finally, I'll use this card for all of the outlier purchases that aren't covered by the aforementioned cards and rotating categories.  When I'm ready to use my Arrival points towards a travel charge, I'll of course make that payment on this card.  I'll revisit keeping this card in the rotation when the annual fee kicks in next year.

Wrapping it Up

Through targeted use of the credit cards above, I always stretch my credit card spending by 2-5%.  This turns into a very significant amount of money every year.  A few additional notes:

• I've accrued these credit cards over a few years.  Don't try to get all of them at once (see *** below).
• My summaries above only include the highlights of each card.  Most of the cards have additional benefits I didn't detail.  Likewise, this is only a snapshot of available consumer credit cards. 
• Factor in the annual fee on the Chase Sapphire Preferred and Barclay Arrival when determining if the cards are right for you.  A benefit of the Sapphire Preferred card is that it pays cardholders a 7% dividend on points accrued at the end of the year.  I redeem that dividend as cash to "reduce" the cost of the annual fee.
• I have other rewards credit cards, but those detailed above are the only ones I regularly use.  I'll probably revisit other credit card topics, like why I keep but rarely use my Marriott Rewards Premier Visa, in the future.
• If you have any questions, leave a comment below and I'll answer it.

*This is because rewards credit cards typically have higher APRs, which means you'll be paying more in interest, negating the value of the rewards.  
** Before getting a new credit card, understand what each point is worth.  Some credit card issuers will offer points that have a lesser value than 1 cent each.
***If you decide to apply for any of these credit cards, please keep in mind that credit inquiries can negatively affect your credit score.  If you are going to be soon applying for a mortgage or car loan, I do not recommend applying for a new credit card.  Research and understand how credit inquiries affect your credit score.  Someday I'll learn how to do footnotes.