I read Clark team’s article on the 4 best CC to use for gas. It mentioned 9 credit cards. I did not mention the AAA travel advantage card by bread financial. It includes 5% cash back on gas and 3% on groceries. This benefit runs all year and is not a quarterly category. It has no annual fee. Why the omission.
Another article about cash rewards credit cards with no mention of the Bank of America Customized Cash Rewards cards.
They pay 3% on selected categories (Online Shopping, Drug Stores, Gas & EV Charging, Home Improvement & Furnishings, Dining and Travel) which can be changed monthly. 2% on Groceries (excluding Target and Walmart) and 1% on everything else with a $2,500 limit on the 2% and 3% categories.
Ther is also a bonus of up to 75% based on the amount of funds deposited with BoA and Merrill. I have the bulk of my retirement funds at Merrill Edge so I get the 75% bonus which raise my rewards to 5.25%, 3.5% and 1.75%.
I have 3 of the BoA Customized Cash Rewards cards which I normally have set for the Gas, Dining and Online categories. I also have their Unlimited Cash Rewards card which pays 1.5% (2.625% with my bonus) on all purchases with no limit. Last year I $809.16 in rewards on these cards.
I have Chase and Discover cards which pay 5% on rotating categories which I use for groceries since I only get 3% from BoA and a Citi Sears card which sometimes offers 5X, 10X and 15X points on groceries and other categories.
My 2024 cash rewards for all cards was 3.2% ($1,865.46 on purchases of $57,735.13). I’m like the guy Clark mentions who carries multiple cards labeled with the category and have been doing so for many years.
I saved another $595 (30.4%) on gasoline by using Kroger fuel points. I have 2 vehicles (and a golf cart) so I bought 5 gallon cans which allow me to buy the maximum 35 gallons each fill up.
By using coupons to take advantage of 4X points and 200 point bonuses you can sometimes earn 260 fuel points with a $15 gift card purchase. That’s 1/4 of your way to 1,000 points and $1 per gallon savings.
Jim Corley
Peachtree City, GA
Correction to my reply: $1,865.46 in rewards not “I $809.16”. Please excuse this and other typos.
Jim Corley
Hi JC - Thanks for reading that one and bringing the AAA Travel Advantage card to the discussion!
This card has actually been an internal topic of discussion a few times when evaluating for perks like gas and groceries, because it does have a great cash back rate with no annual fee.
The issue we have run into re: including it in our content is that it seems to be targeted to AAA members in some states, but not others. As a result, not everyone qualifies for it.
Ex.: One team member can apply for it in one state, and another team member who lives in another state gets redirected to a different credit card when applying for it in another state.
I spoke with an AAA representative about this a few months ago, and the feedback I was given is basically this: “Although AAA is nationwide, it is comprised of a federation of clubs and its management and offerings in products and services can vary by state, which is likely why you’re getting different results from different states. It can definitely be tricky to navigate sometimes.”
So, given that our readers live all over the country, I opted to leave that card out of mention in the latest update of the article for fear of creating confusion for some readers.
However, based on your feedback, I will make an amended mention of it with the caveat discussed above. That way those who can qualify at least know it’s an option.
Appreciate you!
- Nick
Jim - This is a great strategy for those who are fortunate enough to be able to apply it. The BoA multipliers can really pay off.
We do have an article about the Bank of America Preferred Rewards program that lays everything out for people who are interested in taking advantage. I also spoke with Clark about his opinion on that type of rewards program to include within the article.
Love that this works for you, and your sharing of your experience may inspire others who are able to leverage their investment accounts to consider the same (assuming it’s a fit for them).
Thanks for sharing!
Nick
Hey nick. Thanks for the reply. I think the AAA card we are talking about is for AAA northeast. I don’t currently live in the northeast or belong to AAA northeast. At the time I applied for the card I figured out some sort of work around. I think one of the first pages for the application process asked for a zip code straight away. I may have put in a previous zip code from the northeast and/or used a VPN with my location selected for the northeast. It’s been so long I don’t completely/confidently recall how I did it. but it was something like that. I imagine bread financial doesn’t care too much if people find a work around. It’s just more business for them.
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I suggested a friend create an app, but he declined.
Imagine an app where you could enter in major credit cards you have and it suggests which one to use for gasoline, shopping, etc, based upon cash back or miles, etc. A premium version of the app could see ehere you are located (gas station, grocery store, Costco, etc) and suggest a particular card. It might even know that you are close to the max gasoline savings on a Costco card and suggest an alternative.
I know, it’s a pipe dream but soon, A.I. will be doing that for us.
I like it. I’d use. I don’t know I’d want to pay for it. I can envision banks/credit cards wanting to advertise on it. Then it would make money without charging users. It could suggest the best card you own for the buying situation you are in. Also, It could additionally suggest the best cards you didn’t own yet for the current buying situation.