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INSIDER SECRET: Along with a good welcome offer, the 4% cash back you’ll earn on dining and entertainment purchases with the Capital One® Savor® Cash Rewards Credit Card can be a huge win for a lot of people.
Until recently, all of my focus on credit card rewards was directed at accumulating airline miles. A free flight can save you thousands of dollars so there couldn’t be a more valuable reward, it seemed. Plus, my husband and I travel frequently enough that I couldn’t imagine needing any other rewards card outside of an airline or travel card. We had our spending system totally worked out and adding another card to the mix felt like it would only complicate things. But here’s how and why things changed a few weeks ago.
An offer I couldn’t refuse
Again, I hadn’t considered opening a cash-back card or any other credit card. I was totally content accumulating miles on my Chase Sapphire Preferred® Card (which I still use regularly, but my strategy has changed).
Then a friend sent me a note that the Capital One Savor card was offering a $300 cash bonus for all new cardholders who spent $3,000 within the first three months and I jumped at the opportunity. The time was right to expand my rewards benefits and add a cash-back card to the mix.
When opening a new card, it’s important to decide if you’ll be able to make the initial spending requirement. Knowing my current budget and how my husband and I use our other cards, this would have been close, but I had a business trip coming up and knew I’d be charging a lot of reimbursable expenses to a credit card. That meant I could easily meet the requirement of $3,000 in three months on this card. Planning out when to open a new card is an important part of the process.
The #1 reason I love the Capital One® Savor® Cash Rewards Credit Card
There’s one very specific reason that I love using this credit card: It’s so fun to check my statements and see how much credit I’m accumulating. I’m kind of hooked, actually. I love to check every morning to see what my current credit is, and it’s really easy to cash in the credit whenever you want. Everyone has a different strategy, but I like to save my rewards credit for the end of the statement cycle, so I can reduce my monthly bill by as much as possible and all at once.
How to use this card
Since the $95 annual fee is waived for the first year, I’m giving myself just that long to see if the card is worth it. Essentially, the question is: How much money did I earn in cash-back rewards this year and was it significantly more than the $95 annual fee? If so, I’ll keep it. I imagine that this card will easily pay for itself over the next year, but I want to be sure before committing fully. Since I also use my Chase Sapphire Preferred® card, I’ve had to re-assess my spending strategy to maximize rewards between the two cards.
Here’s how the Capital One Savor card rewards break down:
- $300 statement credit after you spend $3,000 within the first three months of opening the card
- 4% cashback on dining and entertainment purchases
- 2% cashback at grocery stores
- 1% cashback on all other purchases
Because the Chase Sapphire Preferred® offers great rewards on travel purchases, I use this card when booking flights, rental cars, hotels, and anything else travel-related. If I want to ramp up my miles, I’ll also use the Chase card for restaurant purchases. Otherwise, I’m using my Capital One Savor card for everything else, especially entertainment like concert tickets, which currently earn 8% cashback when booked through Vivid Seats.
Do you have a cash-back rewards card that you can’t live without? What made you choose this card over all the other options? Or are you considering opening a cash-back card and weighing the pros and cons? Let me know your thoughts in the comments section below.
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