Rotating bonus credit cards are a great way to easily earn points and cashback, especially
on things you would normally purchase in your daily life.
They do require a bit more work to remember the categories every quarter.
However, the rewards are worth the effort.
Hey, how’s it going everyone?
It’s Ernest from Trip Astute.
In this video, we’re covering the 2020 second quarter bonus categories for the Chase Freedom,
Discover It, US Bank Cash Plus, and Citi Dividend card, and sharing some free tools that you
can use to help you remember the new categories.
First off, I know this is an anxious time for many of you because of the recent outbreak.
Our normal lives have been disrupted, and will likely to continue to be different until
things settle down.
I know a lot of you have been affected by the situation in a variety of ways.
Whether it’s your own health or those of your loved ones, your business, or even your
travel plans.
I encourage you all to stay safe.
And if you have questions or need advice on travel, we’re here to help out in any way
possible.
Since we are quickly approaching quarter two, I wanted to make sure to review our new rotating
bonus categories for some of our favorite cash back 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.
For the Chase Freedom card, we’re ending the first quarter bonus categories of gas
stations, internet, cable, phone services, and streaming services.
Starting this quarter, you’ll earn 5% on gym memberships, fitness clubs, and grocery
stores.
Given that a lot of you are practicing social distancing, you may not find much value in
the gym membership and fitness club reward categories.
Though if you’re still taking workout classes or even going to the gym during this time,
this could be an easy way to earn some additional points.
Also, I didn’t see Peloton or other at home fitness services on the list, so keep that
in mind if that’s your preferred workout.
It may or may not earn the bonus, but it might be worth reviewing your card statements to
see how those charges are coded.
I also checked on AwardWallet’s Merchant Category Lookup Tool, and it seems to be coded
as “Sporting Goods.”
Grocery stores, on the other hand, is always a useful category.
I would argue that it’s probably even more useful now that a lot of us are working from
home and not traveling.
Plus, you can often get other items at the grocery store like stamps or gift cards which
can help you maximize the category.
With the grocery store bonus category, you’ll want to be careful with the type of stores
that qualify.
Standalone grocery stores are generally included, but convenience stores, gas stations, warehouse
clubs, discount stores, and supercenters are not eligible.
Since these places are not standalone grocery stores, the charges are encoded differently,
which means that they typically do not earn the bonus.
Also, some delivery service merchants might not code properly, so you’ll want to test
it out just to be safe.
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 first quarter with the bonus categories of
grocery stores, Walgreens, and CVS.
Starting this quarter, you’ll earn 5% on purchases from gas stations, Uber, Lyft, and
wholesale clubs.
Like the Chase Freedom card, the bonus is valid for up to $1500 of qualified spending.
Discover defines gas stations as places that sell automotive gasoline that can be paid
for either at the pump or inside the station.
The fine print also says that gas stations affiliated with supermarkets and supercenters
may not be eligible for the bonus.
So if you happen to use a gas station at your local supermarket or Walmart, you might want
to keep an eye out on whether you earn the extra bonus.
For Uber and Lyft charges, the bonus only applies for rides in the US.
Given that international travel is restricted at the moment, that probably won’t be an
issue.
But just keep it in mind if you are traveling at the moment.
And if you are, please stay safe.
For wholesale clubs, you’ll want to be careful of purchases from merchants within the store.
For example, if you were to purchase mobile phone service or new glasses, it might not
actually code correctly for the bonus.
That’s because wholesale clubs will often allow third-party vendors for these specific
services.
Overall, I don’t think I’ll be using the Discover card much this quarter.
That’s mostly because I’ll probably be spending more time at home due to the outbreak.
Also, when I purchase fuel, I typically go to Costco, which also doesn’t accept Discover
cards.
If I had a Sam’s Club membership, I would be a bit more excited about the category.
But due to the circumstances, I don’t think I’ll maximizing the bonus on my Discover
card this quarter.
That being said, the Discover It is a solid cash back card.
I’ve had mine since 2009.
While I 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 are 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.
The card also includes some unique and rare bonus categories like home utilities.
In my opinion, it’s an underrated credit card and one that can help capture more bonuses
with your everyday spend.
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.
I got this card in 2018, and I’ve used it as a backup for spending categories that aren’t
covered by my Chase Freedom or Discover It card.
I typically select gyms and home utilities as my two 5% categories every quarter.
For this quarter, I’ll probably select home utilities and furniture.
We have a little one on it’s way, so I suspect that I’ll be making several more trips to
Ikea in the next few months.
Lastly, Citi Dividend users are ending the first quarter bonus category of fitness clubs
and supermarkets, and for the second quarter of 2020, will be receiving 5% at drugstores
and Amazon.com.
I doubt Citi anticipated the outbreak, but these bonus categories should be useful this
quarter.
I especially like the Amazon.com category, which usually makes an appearance on other
cards during the fourth quarter.
Having it earlier in the year is very convenient.
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.
The Citi Dividend card is not available for new applicants.
It used to be available through a product change from another Citi card, but that no
longer seems to be the case since late 2019.
That may change in the future, but for now, there is no way to get the card.
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 June 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.
Since these cards do not have an annual fee, there are a great way to augment your current
set-up and earn additional cashback or points.
As of March 2020, the Chase Freedom and US Bank Cash Plus are offering a welcome offer
for new applications.
The Chase Freedom also had some new benefits recently added to the card, including a three
month complimentary membership to DashPass, which is DoorDash’s subscription service.
The card also earns 5% on Lyft rides.
And if you’re interested, Discover is offering a cashback match for an entire year, so it’s
fairly lucrative.
Lastly, I wanted to do a quick plug for our free card consultation service.
As of this video, we’ve done more than 200 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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I hope you all are staying healthy and safe right now.
Until next time.
Travel safe and travel smart.