Credit Card Hacking – The Art of Receiving Cash Back

It’s been a long time since I’ve blogged about anything.  I mentioned to a friend (via text) that we had recently started to credit card hack.  When she asked what it was, I advised that it’s too long to explain in a text.  So I thought what a great way to attempt getting into my blog again, here is my explanation.  

I will start off by saying regardless of the name, Credit Card Hacking, it’s nothing illegal.  What is it, you ask?  It’s about getting the most out of that plastic (or metal in some cases) in your wallet.  Before we go much further though I want to add a few notes:

• Stop reading this now if you follow Dave Ramsey, this goes against everything he teaches and I would hate to derail you.        
• I do not promote getting or using credit cards if you are not financially responsible. 
• You need to keep organized to be successful 
• Don’t apply for cards with annual fees, although some would disagree with me on this.  However I believe active Military gets these fees waived.
• Finally and the most important note, this will only work if you do not carry a balance on your credit card.  So make sure you pay off your balance in full at the end of each billing cycle.  Otherwise the interest charges will eat up all your profit.

Credit card hacking or the art of receiving cash back as I like to call it, is essentially having a variety of cards that offer cash back on purchases along with applying for different credit cards that give sign up bonuses.  The trick is knowing when to use the each individual card you have and when to apply for new cards.  In this post we are going to discuss the credit card points.

Our first card credit card that offered rewards was many years ago and offered 1% back.  We then got our Citi Double Cash MasterCard which is still known as being one of the best cards out there to get.  It offer’s 1% when use it and another 1% when you pay if off (2% total).  Followed by the Costco Anywhere Visa card by Citi.  Using these two cards is the first step into card hacking.

The Costco Anywhere card offers the following:

•  4% on eligible gas, including gas at Costco for the first $7,000 per year and then 1% thereafter
•  3% on restaurants and eligible travel purchase worldwide
•  2% on all other purchases from Costco and Costco.com
•  1% on all other purchases

A Costco membership is required to apply for the Costco Anywhere Visa card.  

With these two cards in our wallet:

•  We used the Costco Anywhere Visa card at all gas stations, travel, restaurants and Costco purchases
•  For everything else used the Citi Double Cash MasterCard.  So the minimum we would earn on all purchases would be 2% cash back.

Cashing in on the rewards:

Costco Anywhere Visa card The Costco Cash Rewards from Citi are distributed annually with your February credit card billing statement. If you’ve signed up for paperless statements, you’ll receive it via email instead.  You can use it towards your next purchase at Costco.  Please note that reward coupons can’t be redeemed at our gas stations or online at Costco.com.  However here is how you can make it even more profitable.   You pay for your cheapest item with your rewards in store and they will give you cash back on for the rest of the credit.  Then pay for the rest of your items (if you have any) with your Costco Anywhere Visa card.  That way you are earning 2% on that purchase instead of 0% with the store credit.  Take the cash received and deposit it into your bank to pay off your card.

Citi Double Cash card you have the option to use the money earned as a statement credit on your card or to take the cash.  My suggestion, take the cash….why?  Well remember with the double cash card, they pay you the remaining 1% when you pay your statement.

Since then we have recently added the following:

• Chase Freedom Flex MasterCard earns up to 5% cash back
• Discover It earns up to 5% cash back
• Amazon Prime Rewards Visa Card earn 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership
• Target Redcard 5% off your purchases at Target.  
• Apple MasterCard 3% cash back at the Apple store

Now this is when you need to start keeping notes.  The Chase Freedom Flex and Discover it both have rotating quarterly categories that earn 5% however you also have to remember to activate these offers.  For example currently for the year of 2021 they have the following offers:

Jan – March

• Chase Freedom Flex
  Wholesale clubs, cable, internet, phone services and select streaming services
• Discover It
  Grocery Stores, Walgreens and CVS

April – June

• Chase Freedom Flex
  Gas Stations and Home Improvement Stores
• Discover It
  Gas Stations, Wholesale Clubs and Select Streaming Services

July – Sept 

• Chase Freedom Flex
  Grocery Stores (excluding Target® & Walmart®) and Select Streaming Service
• Discover It

  Restaurants and PayPal 

Oct – Dec 

• Chase Freedom Flex
  Pending
• Discover It
  Amazon, Walmart, Target

Because it is July 1st today we have made changes to our streaming accounts to charge our Freedom Flex card.  For any of our restaurant apps such Chipotle we have changed that to our Discover card.  For the next 3 months we will be using the Freedom Flex card for our grocery shopping, and the Discover card for dining instead of our Costco Anywhere Visa card.  Then come October 1st we will switch the cards on our accounts back to the cards that pay the most.  Otherwise we will only earn 1-1.5%.

I know there is a few other cards out there that also offer up to 5% cash back on select categories.  Some of these you are able to choose which categories for either the billing cycle or quarter.  However I am spacing out my cards to make the most of our signup bonuses and referrals.  More on that here.