Rotating bonus category cards are a great way to earn points or cash back.
They do require some work since you have to remember the new categories every quarter.
However, the payoff can be lucrative.
Hey, how’s it going everyone?
It’s Ernest from Trip Astute.
In this video, we’re covering the 2019 third quarter bonus categories for the Chase Freedom,
Discover It, US Bank Cash Plus, and Citi Dividend card.
I know I say it every quarter, but the year is flying by!
This has been an important year for me as well.
I started a new job in May, turned 40 years old last week, am getting married in September.
So, with the new quarter comes time to review our new rotating bonus categories for some
of our favorite cards.
Also, as always, I’ve got some free tools on our website that you can use to help you
remember the new bonus categories.
But first, if you’re new here, welcome to our channel.
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and more enjoyable.
Traveling can be stressful and expensive, so we’re looking for ways to help you maximize
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For the Chase Freedom card, we’re ending the second quarter bonus categories of grocery
stores and home improvement stores.
Starting in July, you’ll earn 5% on gas stations and streaming services.
The 5% bonus applies for up to $1500 of qualified spending.
For gas stations, Chase defines it as places that sell automotive gasoline that can be
paid for either at the pump or inside the station.
In the past, they have excluded places like Costco and Sam’s Club.
However, as long as it codes as gas, you should be ok.
I’ve noticed that Costco Gas does earn a bonus on my Ink Business Cash card, so I’m
assuming that it will work for the Freedom card too.
For streaming services, you are limited to Netflix, Hulu, Sling, Vudu, Fubo TV, Apple
Music, SiriusXM, Pandora, and Spotify.
That’s still a great list.
Though, I was hoping that HBO Now would be included as well.
Maybe next time!
While I’m going to miss the grocery bonus category from quarter two, the Chase Freedom
remains one of my favorite cards.
I’ve had this card since 2012, and I consider it a workhorse in my wallet.
It might look like any other 5% rotating bonus card, but if you value Chase Ultimate Reward
points at more than one cent, as I do, you’ll be earning a lot of value with this card.
In fact, I would argue that I earn an adjusted rate of 7.5% with this card since I value
Chase UR points at 1.5 cents.
For more information on how I measure point values and adjusted earning rates, check out
our video on the topic.
For the Discover It card, we’re ending the second quarter with the bonus category of
gas stations and ride-sharing services.
Starting in July, you’ll earn 5% on purchases at restaurants and on PayPal.
Like the Chase Freedom card, the bonus is valid for up to $1500 of qualified spending.
Restaurants is a great category and one that will be useful for a lot of people.
The PayPal category is an interesting one too.
I wasn’t sure if there were strict conditions on it, but when I look at the fine print,
it says that sending money to friends and family members count toward the bonus.
Since PayPal seems to charge 2.9% on peer-to-peer transfers, it might be worthwhile to use.
Though, when I tested it, I was getting inconsistent rates higher than 3%, so just be careful of
the fees.
You’ll probably still be ahead since you’re earning 5% on the card, but make sure you’re
reviewing the fees before you make the payment to be safe.
The Discover It is a solid cash back card.
I’ve had mine since 2009.
While I still use it regularly, I still prefer my Chase Freedom.
This is mostly due to the fact that I prefer to earn points over cash back.
With points, I’m generally able to redeem them for even more value.
Though depending on your credit card set-up and strategy, you might find more value in
earning cash back.
For the US Bank Cash Plus card, there no new categories or changes this quarter.
If you’re not familiar with the card, US Bank allows you to pick your rotating 5% categories
every quarter and also has 2% categories where you can earn unlimited cashback.
They even let you earn the 5% bonus on up to $2000 of spend per quarter on the combined
selected bonus categories, which is even better than the Chase Freedom.
I got this card late last year, and I’ve used it as a backup for spending categories
that aren’t covered by my Chase Freedom or Discover It card.
I also like that I can put my gym membership on it and earn 5%.
For this quarter, I’ve selected the same categories as before which is gyms and department
stores.
Since I try to capture a bonus category on as much of my spending as possible, this card
helps me to get closer to that goal.
Lastly, Citi Dividend users are ending the second quarter bonus category on purchases
at drug stores and fitness clubs, and for the third quarter of 2019, will be receiving
5% on airlines and car rentals.
While these are lucrative bonus categories, it might still be worth charging your airline
or rental purchases to a premium travel card if you have one.
That’s because you’re sacrificing some of the travel protections and coverages found
in premium travel cards in order to earn the bonus.
For example, I still would prefer to use my Sapphire Reserve or Ink Business Preferred
to book a rental car since I get primary car rental coverage.
In fact, the money that I would save from opting out of the car rental insurance would
likely offset the cash back I would earn from the Citi Dividend card.
And if I were to get into an accident, that value proposition of the travel benefit becomes
even more apparent.
Keep in mind that the Citi Dividend card has a yearly award bonus cap of $300 per calendar
year, which means that you’re not as restricted by a specific quarter’s bonus.
You just need to track how much bonus you earn over the entire calendar year.
While the Citi Dividend card is not available for new applicants, it is available through
a product change from another Citi card.
This is important to note since Citi seems to have a more liberal policy when it comes
to downgrading cards.
For example, I’ve seen people report online that they’ve been able to product change
from co-branded Citi cards like the ones associated with American Airlines and also their Thank
You Rewards program cards.
This means that if you have a Citi card that you want to cancel, it might be worthwhile
seeing if you can product change to the Citi Dividend.
It doesn’t have an annual fee, and you’ll likely find a few categories every year that
can earn you a bonus.
Plus, you’ll eliminate the credit score impact that would occur if you canceled the
card.
For example, I converted my Citi Double Cash to it last year since I prefer to put my non-bonus
spending on my Freedom Unlimited or Ink Business Unlimited.
Again, you might be wondering why I would prefer to do that when those cards only earn
1.5% instead of 2% on the Double Cash.
However, my adjusted earning rate is actually higher using my Chase cards since I’m able
to redeem at a higher value.
I’ll include a link to the video in case it’s quite clear why I earn more with my
Chase cards.
As always, we’ve put together some free tools that you can download to help you remember
these categories.
We have our popular wallet-sized cheat sheet and our smartphone lock screens.
I’ve got a few variations of the lock screen too in case you only want information for
only one of the cards and not the others.
And if you have any ideas for things that might be helpful for you to remember, let
me know.
I’m always trying to find new ways to help and provide some extra value.
I know that it takes me a while before the new categories get set in my brain.
So if you’re like me and need a little reminder, I’m hoping these tools come in handy.
Just head over to our website and click on Credit Cards, and then Free Credit Card Tools.
I’ll also include a link in the video description too.
As a reminder, make sure you log-in and activate the bonus for these cards.
While you can wait until September 14th to activate your Chase Freedom bonus category
since Chase will award the points retroactively, you’re better off doing it now before you
forget.
Unfortunately, Discover, US Bank, and Citi won’t award you a bonus until you activate
it, so do it now to avoid missing out.
And in case you’re interested in applying for any of these cards, I’ve included a
link to our Credit Card offers page.
Any sign-ups that go through our site or link helps to support the channel, especially when
it comes to buying new equipment and storage for these videos.
As of June 2019, the Chase Freedom and US Bank Cash Plus are offering a $150 welcome
bonus and Discover is offering a cashback match for an entire year, so it’s pretty
lucrative.
Lastly, I wanted to do a quick plug for our free card consultation service.
As of this video, we’ve done more than 100 consultations.
I really appreciate everyone signing up and taking the time to fill out the questionnaire.
I’ve enjoyed the sessions, and it’s helped me to not only refine my recommendations but
also inspired new topics for videos.
If you’re interested in signing up, just head over to our website or click on the link
in the video description.
You’ll get a 15-minute call with me and a personalized report with my recommendation.
What do you all think of the new quarterly bonus categories?
Are you excited or disappointed by them?
Let me know in the comment section below.
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It really helps us to grow the channel and our community.
Until next time.
Travel safe and travel smart.