TLDR
1. There are many credit cards out there, and it isn't always clear what the best choice is.
2. On average, people own 3-4 credit cards but use just 1-2, which is a massive loss in how much you could use.
3. Eclipse pairs your location with our recommendation services, and voila, you know what card to use. Best yet, we recommend what card you should get based on your spending habits and goals.
Our services can save you around $91 / month. Thats about $1086 / year. To translate, that could be:
- Extra flights! (depending on how bougie you are)
- Investing in your education!
- Pay off your debt!
- DO SOMETHING, ANYTHING ELSE!
If we sold you on that, use Eclipse now for free. If not, keep reading.
The challenge with managing multiple credit cards
Credit cards have become a cornerstone of financial independence in North America, with millions relying on them for everyday expenses. However, with the growing affordability crisis and rising prices, finding opportunities to mitigate the economic impact has become crucial.
Here’s the reality. There are hundreds of Credit Card Issuers, various card options provided by each, and eight different categories of Merchants. At a minimum, that’s 3200 combinations of cards. If you add on other companies now issuing their cards, for example, the popular CIBC x Costco card, you are in the tens of thousands of options. And you are supposed to pick the best one?
A simple solution means ensuring you are paying with the best card at every merchant. With the average American owning 3-4 credit cards and most using just 1-2, there's a vast potential for that loss. This potential translates to money, and last we checked NO ONE LIKES LOSING MONEY.
Maximizing credit card rewards presents a promising avenue for reducing the burden. However, deciphering the intricacies of credit card rewards can be time-consuming and overwhelming, making the need for automated software solutions more desirable.
Our approach to saving through maximization
To accurately assess the average amount saved by maximizing credit card rewards, examining the most common rewards programs is essential. We'll focus on widely accessible credit cards without annual fees. Chase, one of the prominent credit card issuers, has over 149 million cards in circulation. Their Chase Freedom Unlimited® credit card, offering 3% cash back on dining, drugstore purchases, takeout, 5% on travel booked through Chase Ultimate Rewards, and 1.5% on all other purchases, emerges as a popular choice. Chances are, if you have 1 or 2 Chase cards in your wallet, you are using them for most of your transactions.
Let's delve into the average American monthly budget and explore selected expense categories to calculate the potential benefits of maximizing credit card cash back. Based on the data, the average monthly credit card balance is $5,910. We can analyze the potential cash-back opportunities by categorizing expenses such as gas, groceries, utilities, travel, impulse purchases, e-commerce, automotive repairs, health and fitness, house repairs, and fast food.
Next, we'll consider various cash-back credit cards to determine the average benefits of maximizing credit card rewards. This sample wallet we constructed demonstrates what a diversified wallet and unparalleled knowledge can save you.
For instance, the U.S. Bank Cash+® Visa Signature® Card offers 5% cash back on the first $2,000 spent per quarter in two chosen categories. Similarly, the Discover it® Cash Back Credit Card provides 5% cash back on the first $1,500 spent per quarter on grocery stores, restaurants, and gas stations. These examples demonstrate the potential rewards available across different spending categories.
Location matters, more than ever before, for how much you save.
What it means for you
To put it briefly, Eclipse can help you unlock savings and enhance financial management. By strategically leveraging credit card cashback programs, consumers can reduce their monthly expenses significantly. Let's consider a sample wallet scenario where we optimize credit card usage for specific expense categories:
- U.S. Bank Cash+® Visa Signature® Card for utility purchases and gas ($666.67 per month)
- Discover it® Cash Back Credit Card for additional gas and online purchases ($500 per month)
- American Express Blue Cash Everyday® credit card for groceries and remaining gas payments ($500.00 per month)
- CITI Custom CashSM Card for groceries ($373.50 per month)
- Upgrade Triple Cash Rewards for automotive repairs, health, and fitness ($875.50 per month)
- Bank of America® Customized Cash Rewards Credit Card for fast-food purchases ($100 per month)
- Wells Fargo Active Cash® Card for remaining expenses ($2,894.33 per month)
By optimizing card usage, the potential cash back with the Chase Freedom Unlimited® credit card amounts to approximately $88.65 monthly. However, with the optimized card selection, the cashback increases significantly. Therefore, calculating the rewards based on the outlined expenses, we estimate a conservative savings of $90.51 per month, or $1086.12 per year.
This estimate only accounts for cashback cards and doesn't consider additional rewards points or cards with higher cash back and rewards which means, in theory, you could save even more.
