Now would be the time to give background on Pat’s and my financial history, the path we’ve followed, struggles we’ve gone through, lessons we’ve learned. But, I’ve only got 10 minutes, so for now I just want to bring up this, the American Express Blue Cash Preferred card.
According to Consumer Reports‘ November 2012 issue, this is the best card for earning cash rewards. Pat and I put almost everything on our Discover card, pay the balance in full every month, and earn a nice little sum in cash back. So, perhaps this Amex would be a good fit for us. I like the idea of earning more cash back because it’s the closest you get to earning something for nothing.
Dave Ramsey would say this is a warning sign. It isn’t something for nothing because you spend more when you use plastic.
I know I know Dave, but . . . I really hate using cash. Also, my dad is the most frugal and debt-averse person I know (Hi Dad!) and he has used credit cards for personal and business expenses for years, earning a lot of cash back and never going in to debt from it.
However, this AmEx has a $75
monthly annual fee. There’s also a no-fee version but it has lower rewards. I hate the idea of paying a fee for something I can get for free. I would be obsessive about figuring out whether the additional cash rewards make up for the annual fee. Also, this card’s best cash back comes from stand-alone supermarkets whereas we grocery shop mainly at WalMart (one of the many distinctions between us and the typical AmEx cardholder). Hmmm. We shall see.