[Benedict1957]

Originally Posted by Hawkeye

I use AMEX Blue Preferred for 6% groceries, 3% Gas and Department stores. ($75 annual fee but I buy gift cards at the grocery store for gas so effectively get 6% cash back on gas too)

I use Citi Forward for 5% cash back on Amazon and Restaurants/Bars
I have Capital One cards because they have been open for the longest and I don't want to reduce my "account history" and take a hit on my credit score.

I wish I could do this but we have a sales tax here in Texas that's 8.25%. If I were to buy a $100 gift card at a grocery store with my AMEX Blue Preferred I'd be losing money.

Cost of $100 gift card pre-tax: -$100
Cash back on AMEX: +$6
Sales tax on $100 gift card: -$8.25

Net loss after purchasing gift card: -$2.25

I'd be paying $100 to get back a card that's worth $97.75 in value.

Where do you live and what's the sales tax situation? As long as it's less than 6% you can derive some benefit from playing this game. I'm assuming you live in a state that has 0% sales tax since you claim to be getting back all 6% from gift card purchases at the grocery store. Either that or you're purchasing all of your gift cards tax free somehow.

[PoorLurker]

I thought gift cards were tax free?

[Benedict1957]

Originally Posted by PoorLurker

I thought gift cards were tax free?

Wow! I had no idea! I looked it up and you are correct. I purchased a gift card (for a friend) at an HEB in Austin Texas several years ago and paid sales tax on it thinking nothing of it. I had no idea that was against the law (even in Texas).

I'm glad I'll know this moving forward.

[mbanks21]

Originally Posted by Benedict1957

Wow! I had no idea! I looked it up and you are correct. I purchased a gift card (for a friend) at an HEB in Austin Texas several years ago and paid sales tax on it thinking nothing of it. I had no idea that was against the law (even in Texas).

I'm glad I'll know this moving forward.

The issue isn't sales tax it's the fee to activate the card, typically $4.95. That eats away any benefits otherwise I'd do it all the time.

$100 gift card less cash back = $94 plus $5 = $99. Not worth my time for a dollar

[smackdownM]

Applied for this, couldn't resist the promo. Got the dreaded "We need to review your request a little longer. We will let you know of our decision by U.S. mail. This could take up to 30 days." Thought it was instant decline, but when I called up the status line a few days later, rep said it was an instant approval.

https://creditcards.chase.com/credit...ness-preferred

[Hawkeye]

Originally Posted by mbanks21

The issue isn't sales tax it's the fee to activate the card, typically $4.95. That eats away any benefits otherwise I'd do it all the time.

$100 gift card less cash back = $94 plus $5 = $99. Not worth my time for a dollar

This is only if you are buying a cash "gift card" like an AMEX or VISA card. If you buy a normal store gift card there are no activation fees (at least in my experience).

The grocery store I shop at has it's own gas station so I can buy their gift cards (no fees, no tax) and use it for gas.

[mbanks21]

Originally Posted by Hawkeye

This is only if you are buying a cash "gift card" like an AMEX or VISA card. If you buy a normal store gift card there are no activation fees (at least in my experience).

The grocery store I shop at has it's own gas station so I can buy their gift cards (no fees, no tax) and use it for gas.

OK I was thinking about the Amex/Visa cards. I use E85 and we only have one gas station that sells it near me, I'll have to check and see if they have a "free" Thornton's giftcard.

[David70]

Originally Posted by Hawkeye

This is only if you are buying a cash "gift card" like an AMEX or VISA card. If you buy a normal store gift card there are no activation fees (at least in my experience).

The grocery store I shop at has it's own gas station so I can buy their gift cards (no fees, no tax) and use it for gas.

Not following. Use the credit card to get the gift card, get 3%. Use the gift card to buy gas and get a further discount how? Not seeing another discount for using the gift card to buy gas. Maybe you get points and then use the points to get a discount on gas?

[mbanks21]

Originally Posted by David70

Not following. Use the credit card to get the gift card, get 3%. Use the gift card to buy gas and get a further discount how? Not seeing another discount for using the gift card to buy gas. Maybe you get points and then use the points to get a discount on gas?

You get 6% back with the Amex card by buying the gas card at the grocery store

[IllSic_Design]

Originally Posted by Rich150001

Missed the 100k sign up bonus. Unfortunately they reduced it to 50k...

According to another member in another thread, if you go in person to a local branch the promo is still going, just not online. I got lucky and applied/got approved the last online day.

[Rich150001]

Originally Posted by IllSic_Design

According to another member in another thread, if you go in person to a local branch the promo is still going, just not online. I got lucky and applied/got approved the last online day.

Great news! I'll try to go into a branch by the end of this week and update everyone if it still works!

[itrsteve]

AmEx Delta Reserve, only worth it if you fly a ton. $450 a year but the companion pass always covers that one. Once I'm done traveling I want to move to something lower, has anybody had any luck doing that?

[Hawkeye]

Originally Posted by IllSic_Design

According to another member in another thread, if you go in person to a local branch the promo is still going, just not online. I got lucky and applied/got approved the last online day.

Originally Posted by Rich150001

Great news! I'll try to go into a branch by the end of this week and update everyone if it still works!

Yes, I called in to a local branch and they said in person it would work until February 17th I believe. They wouldn't do it over the phone for me. Closest branch is ~3 hours away... worth it? Probably not.

[Rich150001]

Originally Posted by Hawkeye

Yes, I called in to a local branch and they said in person it would work until February 17th I believe. They wouldn't do it over the phone for me. Closest branch is ~3 hours away... worth it? Probably not.

What a buzzkill! Closest branch is also 3 hours away too!

[Hawkeye]

Originally Posted by Rich150001

What a buzzkill! Closest branch is also 3 hours away too!

I ended up just doing it. Thought I would let you know it is good in person until the second week of March, I was wrong on my date above.

[kprocivic]

Originally Posted by Hawkeye

I ended up just doing it. Thought I would let you know it is good in person until the second week of March, I was wrong on my date above.

March 12.