Best Use of Discover card rewards

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If I have enough, I'll redeem statement credit/check.

If not, I'll just take the discounted Regal movie tickets.

I so seldomly use my discover card that it doesn't make sense to hang on to the CashBack for a year until the next time the dining category comes up.

icecube said:   TooManyCards said:   I just get the statement credit. It might not be the most cost-efficient, but it saves me the time and hassle of coming up with anything better or getting stuck with a gift card I don't really want or need and then have to figure out what to do with. It takes a matter of seconds to click on the option to get a statement credit, and then I save myself some cash on my next statement. It works for me.

elist said:   

Unless they've changed the terms, you're hurting your own CashBack with statement credits.

In the past (and I'm assuming now) when they calculate the CashBack for that month they do it like this:



Assumptions-$1000 spent that statement period, $100 statement credit, 2% CashBack rate

We would normally think it works like this:

$1000(balance) x 2% (CashBack rate)=$20 (CashBack earned) THEN $1000 (balance)-$100(statement credit)=$900 due

When in fact it works like this:

$1000(balance)-$100 (statement credit) x 2% (CashBack rate)=$18 (CashBack earned) THEN $900 due

In this example you're cheating yourself out of two dollars.

So for many of us, it is worth getting the gift card with maybe 10% more value, plus not cannibalizing our own CashBack. Anyone please correct me if I'm wrong.

edit:fixed a label


Seriously...!?! WTF. Thank you. Direct Deposit from now on.

DD is better than statement credit, but $40 (or even $45) towards a $50 gift card to somewhere you're shopping anyway is really the greatest value!


MADWAD said:   

Seriously...!?! WTF. Thank you. Direct Deposit from now on.

When do you folks cash in your discover rewards? I have $362 in rewards right now, Just not sure what I want to do with them. I have seen deals in the past, But doesn't seem so much anymore.



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