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Is My Math Right?

November 26th, 2012 at 01:27 am

I've come to the realization that I may have been losing out on cash back rewards by using my MyPoints credit card. For some reason the "2 pts per dollar" translated into my head into "2%." But ... it's not. The least expensive $50 gift card is 6,250 points. So at 2 pts per dollar (assuming that you only earned points through the CC) it would take $3,125 in gas and grocery purchases. 1% of that would be $31.25. 2% would be $62.50. So for the least expensive card, it is about 1.5%. But for the card I get, which is 7,600 points it works out to this: You'd need to spend $3,800.00 on groceries and gas. 1% of that would be $38.00. 2% would be $76.00. So the 2 pts per dollar works out to be about 1.3%.

Hmm... ok. If I'm doing the math right, it isn't actually too bad. Especially since they count Super Walmart as a grocery store, and most other cards don't.

Probably the smartest thing to do is try to spend pretty low during the times that none of the credit cards have the 5% cash back on groceries, and then during the months they have it, use that time to stock up on staples. (Now if I could just get myself to spend UNDER my grocery budget until a 5% promotion period happens ...) But then you also have to figure out if the extra 3.7% cash back is more than the extra you're spending in a normal non-Walmart grocery store. Need a price book for that. Smile

I'm wondering though if I could find a better credit card for gas purchases though? (with no annual fee - I just don't spend enough on either gas or groceries to ever make an annual fee work out to my advantage.)

Well, anyway, just thinking here.

1 Responses to “Is My Math Right?”

  1. rob62521 Says:
    1353977766

    Somehow that doesn't seem like such a good reward, does it?

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