I mentioned that I always keep a Discover Card in my wallet for the 5% cash back promotions they do.
Lucky for me, Discover is doing a 5% Cash Back promotion on Home Improvement Stores, Furniture Stores and Bed Bath & Beyond on up to $1,500 in purchases from April through June 2014.
You can sign up for this promotion starting March 1st through your Discover account.
If you don’t have a Discover it® Card, you may want to consider signing up because there are situations where it makes sense to forgo the miles & points earning cards to rely on a cash back card… when there’s a great opportunity.
I don’t normally ditch my Chase Sapphire Card to earn with a cash back card. Most of the time, the Chase Sapphire earns me more back for the buck. But when there are special promotions with cash back cards, I try to max out that particular type of spend. And this case, I know I’ll max out home improvement for sure.
The Discover it® Card features categories every few months with 5% cash back. The 5% cash back is usually good for up to $1,500 in spending each quarter, so I tend to max that out (if I am spending in those categories), and then move back to my usual spending on my usual card.
This quarter was 5% cash back on restaurants and movies, ending in March. I’ve already pretty much maxed this out thanks to work events.
I wouldn’t suggest replacing a points & miles earning cards for cash back in general. You might feel like you are making more money since you see it in the form of cash.
But if you are a frequent traveler, what you would really be doing is moving more of your travel to cash (vs. points), and at a loss. You’ll be earning more overall by using a 2 points per dollar cards to maximize your spend.
Either way, whether you travel a lot or not, I recommend applying the Discover it® Card, especially if you shop at places that you can get gift cards for through their program. (For example, Macys, Sears, Chilis, Outback, Starbucks, Banana Republic, etc. will give you a $5 bonus when you redeem $45 for a $50 gift card) But primarily use it for its 5% cash back bonus.
There’s no annual fee, so you won’t be trapped by that. Plus, you can use the Discover Mall which sometimes has bonuses up to 25% cash back on some purchases (which can be combined with the 5% cash back).
Also, first check your other options out before assuming the 5% cash back bonus is the best bonus, Chase Freedom and Discover both had 5% promotions that applied to Amazon.com, and I went with Chase Freedom on that one. (I love my Ultimate Reward points).
Please note if you use my links, I receive an affiliate credit which usually goes towards helping me travel even more. This one may go towards a dishwasher. Or a clothes dryer. Or whatever else decides to break in the next few days too