Are you looking to maximize your returns on streaming services? We've got the scoop on which credit card offers the best bang for your buck-Discover's it Cash Back and a couple of Chase options. Let’s break down the numbers so you can decide what works best for you.
Discover it Cash Back: A No-Fuss Winner
First up is the Discover it Cash Back. This card doesn't have an annual fee and offers 5% cash back on a rotating quarterly category, which could be streaming services if you're lucky. The catch? You need to remember to activate the categories every quarter.
Who It's For: If you’re building or rebuilding credit and can handle remembering your categories.
Why We Think It’s Great: If you consistently spend enough in the 5% category, it pays off big time. Plus, the first-year cashback match is an absolute no-brainer-double everything for a year.
Real Scenario:
If you spend $1,200 on streaming services over three months, that’s $60 in rewards with this card. Over twelve months, you could earn up to $240, assuming the category remains active and you consistently hit your spending goals.
Chase Sapphire Preferred: Reliable Rewards
Next is the Chase Sapphire Preferred. This card offers 5% on dining, streaming, online groceries, and other travel categories. The annual fee of $95 might seem steep but it’s a bargain considering the rewards.
Who It's For: Frequent spenders who enjoy dining out and traveling frequently.
Why We Think It’s Great: The 5x points on dining, streaming, and online grocery spending make this card shine for those with high monthly expenses. Plus, the $4,000 signup bonus alone can cover a domestic round-trip ticket.
Real Scenario:
If you spend $120 per month on streaming services, that’s $1,440 in one year. With 3x points at 5% (or 1.5% cash back), you’d earn $216 in rewards over twelve months.
Chase Sapphire Reserve: The High-End Option
For the luxury travel enthusiast, there's the Chase Sapphire Reserve. With a hefty annual fee of $550, this card offers 10% on hotels and cars via Chase, 3x dining globally, and 3x other travel.
Who It's For: Business travelers or luxury tourists with excellent credit scores.
Why We Think It’s Great: While the high annual fee might seem daunting, it only pays off if you spend over $4,250 a year on travel-related expenses. The benefits like Priority Pass and Capital One Lounge access are real.
Real Scenario:
If you spend $1,750 per month on airfare, hotels, and dining in other travel categories, that’s $21,000 over twelve months. With 10% points on those purchases, you’d earn $2,100 in rewards-a clear win.
Conclusion
So which card is the best for streaming spending? If you’re a heavy user of streaming services and can remember to activate your categories, the Discover it Cash Back might be your top choice. For broader travel and dining expenses, the Chase Sapphire Preferred offers solid value with its more predictable earning rates. The Chase Sapphire Reserve provides an even higher return but at a premium.
No matter which card you choose, make sure to review the spend categories and understand any fees involved before signing up. Happy spending-and earning!