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One of my (many) flaws in this hobby is that I tend to focus a lot of my effort on new and exciting opportunities while often not going back to the basics and making sure I’m maximizing my points on things I do every day.
I use Uber a lot. It’s typically cheaper than a taxi, minus the hassle and frustration usually associated with them. The great thing about Uber is that no cash changes hands, and paying for the rides is effortless. You keep a credit card on file, and then it automatically charges that card after every trip.
So for years I had the Chase Sapphire Preferred® Card linked to my account, which is one of my favorite all around credit cards. It offers double points on travel, which includes Uber. It seemed like a logical option, given that at the time it was the only card I had which offered double points on virtually all travel purchases.
Then yesterday I stopped for a second to look at my credit card usage with Uber, and realized that I really should switch my card on file to the Citi ThankYou® Premier Card. I only recently acquired the card, and it offers triple points on all travel purchases. While I do value Chase Ultimate Rewards points more than Citi ThankYou points, it’s not a difference of 50%. So when I made the switch I figured it was the best option.
Excited about the fact that I’d be earning more points, I told Tiffany, only for her to say “shouldn’t you be using the Amex EveryDay℠ Preferred Credit Card?”
Keep in mind that as of last year you can earn and redeem Membership Rewards points for Uber rides. The redemption value isn’t especially good, since each Membership Rewards point basically gets you one cent towards the cost of an Uber ride. That being said, on the earnings side you earn an extra Membership Rewards point per dollar spent on Uber.
In other words, with the Amex EveryDay℠ Preferred Credit Card I would be earning two Membership Rewards points per dollar spent on Uber, and then if I make 30 transactions during my billing cycle I get a 50% points bonus, which means I’m earning three Membership Rewards points per dollar spent.
And there’s a further hidden benefit. Remember how last month I wrote about how I was struggling with using the EveryDay Preferred Card, because it’s sometimes tough for me to maximize category bonuses on other cards while making 30 transactions per billing cycle on this card?
Well, linking my Amex EveryDay℠ Preferred Credit Card to Uber is a great way to make sure I get those 30 transactions per month, so that I’m both earning three Membership Rewards points per dollar spent on Uber, and also maximizing my spend otherwise.
For example, last night I had the following Uber bill, which I paid for with my Amex EveryDay Preferred (I had a free ride credit — thanks to those who signed up using my Uber link).
Man, if only I could get all 30 of my transactions down to seven cents each. 😀
Anyway, I can’t believe it took so long for me to have this epiphany. Uber is part of the solution to making sure I make my 30 transactions per month on the Amex EveryDay℠ Preferred Credit Card, and also offers me a higher return than I’m getting on the Chase Sapphire Preferred® Card. That seems like a win-win to me.
Add in the fact that I’m earning Starpoints for my Uber rides, and I feel like I’m getting quite nicely rewarded on what’s already a good deal.
I should also note that hands down the best return you’ll get on Uber rides is through Capital One. The Quicksilver Card offers 20% back as a statement credit on every Uber ride paid for in USD through April 30, 2016. So if you have a Quicksilver Card that’s a no brainer, but personally that’s not a reason in and of itself that I’ll apply for a Quicksilver Card, given that I wouldn’t get much value out of the card otherwise.
Which credit card do you use to pay for Uber rides?