I just applied for the Citi Driver’s Edge Platinum MasterCard that I wrote more about previously. I’m driving a lot more this summer and therefore also spending a lot more on gas, so the 6% cash back on gas and groceries will come in handy. I’m also getting close to the $300 annual cap on my Dividend card this year, so I need another card anyways to fill that gap.
Also, I’ll also be able to rack up those Drive Rebates that give me cash for driving miles. If you drive enough, it effectively doubles your cash back percentage as the drive rebates match the cashback rebates. So in this case, you could get up to 12% back in the first year, and 6% back in subsequent years. I figured out that I can pay for my complete next set of 4 tires with this card:
Now, I can get decent tires fully installed at Costco for about $100 each. Here’s how I estimate I’ll cover that:
I’ll probably drive 10,000 miles in a year = $100 in drive rebates.
Buy $450/month of gas & groceries x 12 months x 6% back = $324
Total expected rebates = $424 = free set of tires!
Getting $424 cash back based on $5,400 of spending is an effective 7.85% cash back. Not bad for necessities.
Added: You can also convert your rebates into ThankYou points. $100 in rebates = 10,000 ThankYou points = $100 gift card towards Gas, Target, Gap, Home Depot, etc. So it’s almost like cash back toward car expenses and gas too. Good credit needed.