Citi Professional or Chase Freedom or Citi Driver's Edge?

[Michael]

For quite some time, I have been using Freedom as my backup to AMEX Blue. I have my three categories automatically billed to Freedom - Internet, Cell phone, land phone, cable, and pet supplies. So, i use AMEX Blue for everything (incl. gas, groceries, and drugstores, all at 5%) and Freedom for the 3% categories and everywhere that AMEX is not accepted (1%).

Then I applied for the Chase Professional card, only for the 3% on restaurants, since we eat out a lot (1-2 times a week, and not at cheap hot dog places).

I now really only want to carry two cards ( and two bills) to keep things simple (so, why did I apply for Professional, to start with?). My wife could not care less about credit cards. I am the one who figures them out.

I was thinking about which card (Freedom or Professional) would be a better backup to Blue? Blue will always be #1, unless they start messing with the rebate % or tier.

I could carry Freedom, but then I give up the 3% at restaurants from Citi. Or I could carry Professional, get the 3% at restaurants, and keep my 3% categories on Freedom (even in the sockdrawer). Or, I could carry Professional and my wife could carry Freedom, and then each of us would not carry the other card.

Actually, once we are past the 3% categories (3 on Freedom and restaurants on Professional), both cards pay 1% on everything else, so is there much difference? Both pay only 1%. Freedom pays out in $50 increments, and if you wait until you get to $200, then they will send you $250. Professional pays in $50 increments, so you lose the extra $50, but you get 3% (versus 1.5% max on Blue) on restaurants.

Freedom is a much older tradeline, going back to 2002. Citi was just opened this year.

I also have Citi Driver's Edge, which pays 3% gas, groceries, and drugstores, 1% all else. Maybe I should use this. It sits in the sockdrawer.

I am at a loss about how to use the Visa and the two Mastercards. They all come after AMEX Blue, which is my primary card. Sould I use only one as backup, or two? Should I alternate them out? Or not?

I would say we spend over $40,000 annually on credit cards, and dining out is about $3800 annually. Groceries, gas, and drugstores are huge expenses also (probably about $17,000 a year)

Any opinions?

[freddyg]

Michael

it looks to be that the decision will boil down to whether you spend more on

1. restaurants

2. cell phone, land phone, cable and pet supplies

Should be an easy calculation?

[brown]

Michael

why are you considering the drivers edge - that is a reward card vs a cash back card?

[Michael]

Brown: You are right. Driver's Edge is out of the mix.

The trouble is that I have cards in the sockdrawer that I am trying to feed so that they don't go inactive. I even have an ExxonMobil gas card (no rebate) that I put gas on sometimes so that I don't have the card ($1200 limit) closed on me.

My biggest expense after gas, groceries, and supermarkets is restaurants.
So if I use Citi Professional as a backup to AMEX, and also for restaurants, what then do I do with Freedom, sockdrawer it?

[Mr Credit Card]

Michael

You have a complicated situation. Here is how I would break it down.

Solution 1

1. Use Blue Cash for Gas, Supermarket - 5% but with tiers
2. Use Citi Professional for restaurants - 3%
3. Use Freedom for your phone bills etc.

Problem will be how to maximize the tier problem in the Blue Cash. One way is to charge a lump sum for your vacation or something at the beginning of your calendar to get over the $6,500 threshold.

Solution 2

But since you only want to carry 2 cards, then the answer is obvious.

1. Use Blue cash for Gas and Supermarkets - 5%
2. Use your citi professional for restaurants - 3%

Figure a way to get over the Blue cash tier quickly.

Reason for this is you claim that restaurant expenses comes next after gas and supermarket.


Does this make sense?

Truth is, there may never be a truly optimal solution?

[Michael]

Thanks, Mr. Credit Card.

In the second example, what happens to Chase Freedom?

Which solution would you do?