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I Can't Decide!

March 28th, 2014 at 06:24 am

I can't decide how to redeem our first Discover reward of $150. Cash is what I was planning and expecting when I applied for the card. However, there are options to redeem for gift cards. One example of why this is a good deal: a $100 Lowe's gift card for $80 of our rewards.

The Lowe's card is one we would definitely use with summer coming. We plan to do some painting, fertilize the lawn, and plant a few bushes.

The other gift cards aren't overly appealing. Lots of restaurants and places we don't shop. Of course, I'm sure I could find something! I also know our only choice for redeeming our $500+ in rewards on the Southwest Visa, besides an airline ticket, is gift cards. That is a lot of gift cards!

What would you do? Is the cash better, or is getting the most value better?

10 Responses to “I Can't Decide!”

  1. Retired To Win Says:

    I would definitely go for the $100 Lowes card in exchange for 80 cashback bucks. That kind of leveraged redemption is what I always do with my DiscoverCard cashback rewards. I even wrote a post on it! Smile

    Leveraging Up Cashback Rewards:

  2. Nika Says:

    If it is a gift card that I know I will definitely use, than gaining extra 5%, 10%, 20% on it is a way to stretch money further.

    However, if you can't decide, there is nothing that says you should. You can just leave cashback in there until you know what would be the best use.

  3. CB in the City Says:

    Getting extra value out of the reward is a good plan, as long as it's a real value to you. The down side of putting the money into a card is that the options for spending it are so strictly limited, whereas cash is quite useful for anything!

    I personally like to get Amazon credit, because gift-buying is an important part of my budget.

  4. beawealthywarrior Says:

    I split mine between cash and gift cards that I will use for Christmas. Remember if you have a small amount left over you can use it towards Amazon purchases. I have $17 left so that's what I will be doing Smile

  5. creditcardfree Says:

    Yes, I will have a small amount left over regardless of which option I choose and I will be using it on Amazon when the opportunity presents itself. I appreciate all your thoughts and willing to hear more!

  6. My English Castle Says:

    I hate being locked in, so I understand your dilemma. I think I still have $5 rattling around on an unused Lowes balance and the ones closest to us have all closed.

  7. just a thought Says:

    I would take this reward in cash because of the later gift card rewards on the horizon.

  8. snafu Says:

    With the exception of the Lowe's gift card whose purchases are already planned, I'd go for cash because that was the plan. These CC rewards were chosen to give cash for extra mortgage payments. I like your idea so much I've copy-catted to add the 2% rebate on CC to home maintenance fund. [Our rigid banking system doesn't allow cash back spending encouragement] In order to pay off the mortgage I'd convert the sum saved to Lowes back to the mortgage. I dislike how the amotorization table works so saving interest costs is important to me.

  9. creditcardfree Says:

    Thanks snafu, I think that is part of my issue. I know the rewards are to pay down our mortgage balance, so it complicates things when I need to spend..so I can then send the money we would have spent to the mortgage. I'm glad you found a way to make your rewards work towards your home expenses!!

  10. FrugalTexan75 Says:

    If you know for sure that you'll be spending at least $100 at Lowe's this summer, I would go for the Lowe's gift card, and then the $70 balance in cash.

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