Credit Card Spotlight

In All by Brian Imrich

In June I posted “Turn 1 Hour into a 1,000 dollars” which mentioned the Citi Double Cash card.  The feedback and response was awesome! With that in mind I am going to turn the spotlight towards other opportunities that may be worth exploring on a more consistent basis.  Since I have no hobbies and enjoy trolling the internet for new ways to make/save money, this shouldn’t be very difficult.  Today’s spotlight is on the much advertised Capital One Savor Card.

The Savor card is aimed at those who have a very generous budget for dining out and entertainment.  The annual fee ($95 after first year) version of the card provides unlimited 4% cash back on dining and entertainment, 2% at the grocery store (wholesale clubs not included) and 1% on everything else.   Currently, there is also a $300 cash bonus once you spend $3,000 on purchases in the first 3 months of opening the card!  The no annual fee version, Savor One, is 3% on dining and entertainment, 2% grocery, 1% all else and a $150 sign up.

I would use the Savor card and work it into the rotation to be used ONLY for the dining and those events that qualify as entertainment.  However, don’t let the 4% lure you in too quickly.  If you spend $4,000 per year on going out to eat, which is a little more than $300 per month, your rewards would be $160 minus the $95 cost of the card, for a total of $65 dollars.  In this scenario, the $80 earned from the 2% Citi double cash would be far more attractive.

Also, the entertainment fine print is much more exclusive, than inclusive, so do some number crunching on that side as well.  Capital One gives, or the business chooses, a category code which ultimately determines if it qualifies as a dining, entertainment, merchandise etc. establishment.   For all you golf junkies, golf courses and golf/country club dues do not count as an eligible entertainment expense.  When I called Capital One the lady I spoke to repeated on three separate occasions “entertainment like bowling alleys and dance halls qualify.”  I couldn’t help but laugh at the thought of this day age finding, let alone dropping thousands of dollars a year, at a dance hall 🙂

All in all this is a very solid option, but ONLY IF you have substantial dining out costs.

Have a great weekend, and fingers crossed my wife asks me to the Sadie Hawkins this Saturday.

Happy Friday!