Discover No Longer Sucks. Also, Get 50 Bucks.

Remember when the Discover Card was only accepted at 1 place in town and people were openly mocked for owning one?  The much maligned Discover Card brand has come up with something actually worth using. Traditional Discover cash-back programs paid dismally “up to 1%” which you could only achieve after somewhere around $3,000 in annual spending. Whoopie. Combined with the fact that, historically at least, the Discover card was only accepted at three-out-of-a-million businesses, this made the orange circle generally worthless. Thanks to the Discover More Card, that has changed.

The Discover More Card is THE best cash rewards credit card to use in the enhanced“5% Cash Back Bonus Program” category.  Qualifying merchant categories change each quarter. They include my “core categories” about half the time and are other times very narrow and sometimes merchant-specific.

REWARDS PROGRAM BY THE NUMBERS

• Tier I CashBack: 0.25% up to $3,000 in annual purchases (one of the WORST)
• Tier II CashBack: 1% after $3,000 in annual purchases
• Enhanced CashBack: 5% in select categories up to $1,500 in purchases each Quarter
• CashBack Multiplier: CashBack can purchase GiftCards with bonuses from $5-100
• Redemption Threshold: Varies By Type
• Statement Credit: $50
• Direct Deposit $50
• Discover Gift Card: $20
• Partner Gift Cards: $20
• Pay @ Amazon.com: $0!
• Charitable Donations, “Exclusives”, Merchandise: Varies 

“Purchases made at select warehouse clubs, discount stores, and their affiliates also earn .25%. We do not include warehouse purchases or 5% category purchases in calculating your total annual purchases.”

The limit on 5% CashBack purchases recently jumped from a dismal $300 to $1,500 in purchases per quarter due, I speculate, to similar program offerings from Chase Freedom and other banks. We will see if that increased limit continues past Q1 2012.

I call it “THE card to use for 5% category purchases" because Cashback can be used to purchase “Partner Gift Cards” to a wide variety of merchants with bonuses ranging from $0 to $100+ depending on the merchant. I saw big discounts for Celebrity Cruises, Kalamazoo Outoor, and similar companies at the $100 for $200 and $200 for $400 levels but those were few and far between. Other more useful discounts include $40 for $50 at Sam’s Club (my favorite) and similar discounts for car rentals, web merchants, department stores, etc. So essentially, in the case of Sam’s Club for instance, you are getting a 25% bonus for a total of 6.25% CashBack! With much wider acceptance (I have only found ONE place that does not take Discover since applying in November) the Discover More Card, when used properly, is the clear CashBack 5% Category winner.

There is also ShopDiscover which offers between (mostly 5) and 20% CashBack to shop though the Discover website. 1800Flowers @ 20%, Barnes & Noble @ 15%, JCPenny @ 10%, and Walgreens @ 10% (all online) are a few merchants I found. Also, did you know there is a 1800baskets.com? Who'd a thunk it?

Of irrelevant note, the program occasionally offers various “Double Cash Back” promotions that are just about as worthless as the regular CashBack program. Well…exactly half as worthless actually…. Right now it is Double CashBack, a smashing 0.5% CashBack at Amazon.com and on TV/Cable/Internet recurring utility payments. …Just use your 1% or 2% card.

OTHER CARD DETAILS

• Intro Purchase APR: 0% for 15 months
• Intro Transfer APR: 0% for 15 months (3% fee)
• Annual Fee: $0
• Usual Trimmings: Website, App, Other Basic Card Services 
• "More from Discover Card": Payment Protection, Wallet Protection, Identity Theft Protection, Credit ScoreTracker, Extended Warranty, Financial Planning Tools, DirectPay, Send Money with Money Messenger, ShopDiscover, Cash Access, Paperless Statements, Gift Cards, Secure Online Account Numbers

And also, they pay me $50 AND YOU $50 if you apply through this link. You could buy 500 pieces of SuperBubble for that. You’d still only have about thirty minutes worth of gum flavor though.

CLCIK HERE:



Click It.... You know you want to.

REMEMBER: AS ALWAYS, REWARDS PROGRAMS DO MORE HARM THAN GOOD IF YOU HAVE TO PAY INTEREST, SO DON’T CARRY A BALANCE.


Respectfully Submitted.


QUOTE OF THE POST:
That Guy: "Fry, I'm an 80s guy. Friendship to me means that for 2 bucks I'd beat you with a pool cue until you got detached retinas."

GET RICH SLOW, FOR FREE!

GET RICH SLOW!

If you live in our modern world, you are going to spend money.  You might as well earn and save as much as you possibly can while doing so.  My goal is to maximize our (DW & my) use of rewards credit cards, cash-back shopping sites, and OCD-level price comparison shopping to earn as much as we can.

We began adding this income to what I have dubbed the “incremental fund” in October of 2011.  So far, we have almost $200!  While it does not sound like much, it gives my OCD an outlet and we are earning more as I get better at it.  I expect to make about $100/month when we get fully rolling.  I will endeavor to keep you updated as to how we do.

Here are the Rules of Incremental Earning that we currently live by:

RULE #1: STRENGTH, RESPECT, AND DISCIPLINE

My ideas are only good ideas if you conduct your personal finances, first, in the traditionally prudent way.  Don’t spend more than you earn, have an emergency fund, blah blah.  Also, don’t damn yourself to hell.

• Rule 1(a): Don’t Game The System.  Neither your personal self-worth nor eternal soul is worth $0.97 for buying something with a rewards credit card and returning it for cash.  Just play by the rules both in spirit and letter.
• Rule 1(b): Never Pay Credit Card Interest, EVER.  Don’t carry a balance!
• Rule 1(c): Never Pay More to Earn More.  Spending less is always better.  A lower price wins over higher rewards, all the time, every time.

RULE#2: OCD COMPARISON SHOP

Use the “InterWeb” as DW would say.  Amazon (PRIME) is a good place to start.  Then just GoogleIt.  Google Shopping will generally show you the price everywhere else.  Online auctions are also a very good place to look for very good deals.  Just as important is buying a product that is good quality for a good price.

• Rule 2(a): Do your homework.  Balance factors such as price, durability, quality, and what features you really and truly NEED.
• Rule 2(b): FREE SHIPPING.
• Rule 2(c): Buying at Brick&Mortar stores will add sales tax of 6-9%.  An equivalent online price is typically a better deal, particularly with FREE SHIPPING.
• Rule 2(d): If It’s Not a Gift, Consumable, or Underwear, You Don’t NEED it New.  I go by the rule of thumb that if I can get it 10% cheaper, I’ll get it used.

RULE 3: MAXIMIZE CREDIT CARD REWARDS EARNINGS.

With a little forethought, and a laminated card that DW keeps in her wallet, you can really earn a nice take from credit card rewards programs.

• Rule 3(a): Good Credit is a Powerful Tool.  Don’t Screw It Up.
• Rule 3(b): Use the Right Card at the Right Time at the Right Merchant to Maximize Rewards.
• Rule 3(c): Redeem Wisely.  Every Card is different, but most have redemption options that will get you less overall value (usually buying merchandise) than other options.
• Rule 3(d): Annual Fees are for Chumps.
• Rule 3(e): Know the Rules.  Not knowing the nitty-gritty of each particular program can cost you big. 

RULE 4: BUY DISCOUNT GIFT CARDS ONLINE

You can save 1-10%+ when you buy gift cards from reputable online gift card merchants.

• Rule 4(a): Find a few trustwroty websites and stick with them.
• Rule 4(b): Plan Ahead.  Spend $300 a month at Walmart?  Then order enough cards sufficiently in advance to maximize your savings/earnings.
• Rule 4(c): Do The Math.  Occasionally, your rewards cards will do you better at a particular merchant (category) than buying discount gift cards will.  Beware.

RULE 5: BETTER BANKING

It is time to abandon traditional banks that make money for them and not for you.  You can do better than that.

• Rule 5(a): Earn Maximum Interest on Every Balance, All the Time.
• Rule 5(b): Never Ever Never Ever Pay a Fee for Anything.

RULE 6: MERCHANT PROGRAMS PAY

There are merchant and web based programs that pay you to shop through a particular website or portal.  Wherever you find the lowest price, check to see if you can earn a bit more by shopping through and/or with one of these programs.

In the ensuing posts I will review rewards credit cards, banks, products I buy, gift card merchants, and other incremental programs.  I will also shamelessly promote those products I believe to be the best choice and relentlessly blast the worst.  If I stand to profit from your patronage of one of the products or services about which I write, you will know it.  Be assured I will only promote such personally profitable products if I truly believe they are worthwhile.  You may also see “Up Yours” and “Bully for” posts in which I verbally destroy or laud companies based on my experiences.  I will also continue to hate Matthew McConaughey.

Respectfully Submitted.

Quote of the Post:
     Homer: This is it Marge! Our financial future is secure!
     Marge: With cans of grease?
     Homer: No, from savings and wise investing. OF COURSE with cans of grease!