I once wrote a column in which I mentioned my method of using masking tape affixed on credit cards to keep track of the various cash back percentages I receive when I use a particular card in a particular spending category. I couldn't keep track of which one offered 3 percent back on groceries and which one had the deal on gas.
Then I applied for a Fidelity Retirement Rewards American Express card, which offers 2 percent back all the time, no caps, and is automatically deposited into a Roth IRA, and I left that cumbersome accounting behind.
But as I was pumping gas this morning, I had a nagging feeling that July started a month of 5 percent cash back on gas for both my Discover Card and the Chase Freedom Visa Card. You know what they say about old habits dying hard.
Indeed, I was right. Both Chase Freedom and Discover More offer higher tier rewards in certain categories during certain months. And gas is currently one of them. Here's a rundown of the perks that began July 1.
For Discover: From July through Sept., receive 5 percent cash back on up to $300 in gas, movies, hotels and theme park purchases. As always, plenty of fine print. Gas bonus applies only at stand alone gas stations. Hotel reservations have to be made with the hotel, not through a travel site. Yada yada yada. Fine print here.
The Chase Freedom card is offering 5 percent cash back on gas, hotels and airline purchases through September. This card has a more generous maximum, paying out as much as $60 in bonus money for $1,500 in purchases.
Remember, you have to make the effort to sign up for these bonuses. Discover doesn't apply bonuses to spending in qualifying categories prior to sign up date. Chase does.
These are the only major credit cards that I know of with rotating spending categories. If you can think of others for me to add to this post, comment below.
