Which Card for Katherine?

Recently, my friend Katherine asked me what cash back card would be best for her if most of her spending is at restaurants. Currently, Katherine has the Chase Freedom, which gets 1% cash back at restaurants for 9 months in 2016, and 5% cash back for the remaining three months. If we assume that she spends $300 a month, we can guess that with her Chase Freedom, she’ll earn the following:

($300 x 9 x .01) + ($300 x 3 x 0.05) = $27.00 + $45.00 = $72.00 cash back by using her current credit card.

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Chase Freedom 2016 Cash Back Calendar

Using that as a baseline, what other cards might she be interested in? Well, her options include:

Again, we’ll assume Katherine spends $300 a month on dining, which would earn the following for each card:

  • American Express Blue Cash Everyday – $36.00
  • BankAmericard Cash Rewards – $36.00
  • BarclayCard CashForward – $54.00
  • Citi DoubleCash – $72.00
  • Discover it – $144.00 the first year, $72.00 every year after that
  • TD Bank Cash – $72.00

Clearly, we have some winners and some losers. The big winner, of course, is the Discover it card, which will net Katherine a whopping $144.00 the first year. After that, she’ll earn $72.00 every following year.

Screen Shot 2016-02-27 at 5.26.10 PM.png
Discover it doubles all the cash back you earn in the first year

Our middle of the road cards are the Citi DoubleCash and the TD Bank Cash, which would earn her $72.00 a year, which is on par with the it card after year one.

Finally our losers:  the American Express Blue Cash Everyday, the BankAmericard Cash Rewards, and the BarclayCard CashForward, which would earn her $36.00-$54.00. Hard pass.


So there you have it, Katherine! Go for the Discover it, and you’ll be on your way to taking me out for a nice dinner (for the cash back, of course 😉 )!


2 thoughts on “Which Card for Katherine?

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