We love our Discover card. The reason that we love our Discover Card is that we are making about $20 a month, with Discover’s Cash Back Bonus, that can be applied almost directly to our debt.
We use the Discover Card, because out of the two cash rewards cards that we have, it has the highest rate of return and occasionally offers even higher percentages on staple items like groceries and gas. The one caveat is the two cycle billing (I would explain what this is, but JLP has aready done a marvelous job with that) that Discover utilizes.
To get around this, we always pay for anything that is charged to the card on a weekly basis. If we had our druthers, we would probably use another car that does not use two cycle billing, but we don’t want another inquiry on our credit report for the next year. So we use what we have.
Every month, if you have more than $20 in Cashback Bonus rewards, you can have that money deposited into your cheching account. We have the money deposited into our checking account and then apply that cash to the credit card that is currently receiving our snowball of debt attention.