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Best of, Pay Down My Debt, Personal Loans

Best Debt Consolidation Personal Loans

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Best Debt Consolidation Personal Loans

Are you stuck under an overwhelming pile of consumer debt? Do you feel like it might be impossible to get out? Fortunately there are tools that can help you get out of debt faster.

A debt consolidation personal loan could be a good answer. With a personal loan, you would use the loan proceeds to pay off credit card debt, medical debt or any other form of debt. You would then have a loan at a fixed interest rate and a fixed term.

Debt consolidation provides three benefits:

  1. Make payments simple: If you owe a lot of lenders and are having a tough time keeping track of all the payments, then consolidating will make your life easier. You’ll only owe one lender and have to keep track of one due date. There’s less of a chance of anything falling through the tracks.
  2. Lower your interest rate: This is where you have to run the numbers to see if debt consolidation makes sense for you. What’s the average interest rate you’re paying on your debt? If it’s quite high (which is likely if you have a lot of consumer debt), you may benefit from consolidating under better terms. Just remember to only use a personal loan if the interest rate is lower than the one you are already paying.
  3. Improve your credit score: If your credit cards are currently maxed out, your credit score will suffer. When you pay off your credit card debt with a personal loan, you will often receive a boost to your credit score, so long as you don't start using your cards again. LendingClub did a study and determined that there is an average score increase of 21 points within three months for people who use loans to eliminate credit card debt.

If you think debt consolidation makes sense for your situation, we have a list of the best debt consolidation loans you can use to refinance your consumer debt. Read on for our recommendations.

Personal Loans to Consolidate Credit Card Debt

Start Shopping Here - LendingTree

At LendingTree, you can make dozens of personal loan companies compete for your business with a single online form. When you fill out the form, LendingTree will do a soft credit pull - which means your score will not be negatively impacted. Dozens of lenders will compete and you may be matched with lenders who want your business. You may be able to compare and save in just a few minutes. We recommend starting here. You can always apply directly to other lenders - but many of the lenders we recommend already participate in the LendingTree personal loan application tool. (Note: LendingTree owns MagnifyMoney)

LendingTree

LEARN MORE

Below are some leading lenders you could also consider:

SoFi - Excellent Credit Required

You can borrow between $5,000 and $100,000, which is the most out of the personal loans recommended here. The fixed APR ranges from 5.49% - 14.24% if enrolled in autopay. You can choose a term of up to 7 years. Variable interest rates range from 5.21% - 11.67% APR. Although SoFi does not use FICO, you need to be "prime" or "super-prime" to qualify. That means you must be current on all of your obligations and must never have filed for bankruptcy. There is no origination fee or prepayment penalty associated with a personal loan from SoFi.

SoFi

APPLY NOW Secured

on SoFi’s secure website

Some of the leading lenders for people with less than perfect credit include:

LendingClub - Minimum FICO of 600

This is a peer-to-peer platform, which means individual investors are contributing to your loan. You can borrow between $1,000 and $40,000 with LendingClub, and its APR ranges from 5.99% - 35.89%, depending on the type of loan grade you’re eligible for. Be aware there are origination fees (ranging from 1% - 6%) associated with this personal loan, but there are no prepayment penalties. You can borrow on terms up to 5 years. The minimum credit score needed is 600. LendingClub is not available in Iowa or West Virginia.

Lending Club

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on Lending Club’s secure website

Prosper - Minimum FICO of 640

Prosper offers loans from $2,000 to $35,000, and APR ranges from 5.99% to 35.99%. It offers loans terms of either 36 or 60 months. Your APR is determined during the application process, and is based on a credit rating score created by Prosper. Your score is then shown with your loan listing to give potential lenders an idea of your creditworthiness. Origination fees range from 1% to 5% and are based on your Prosper score. In order to qualify, you must:

Prosper is a flexible alternative with a low-end APR that usually beats a credit card.

[Check out other Personal Loans on Our Comparison Table Here]

A Loan or a Credit Card to Consolidate Debt?

Personal loans can be an excellent way to consolidate your debt. Personal loans are best when you have a lot of debt or your credit score isn't perfect. However, if you have a smaller amount of debt and a great credit score, you can get rates as low as 0% with a balance transfer. If you do have a good credit score, you should apply for a 0% interest balance transfer credit card.

Wait: I Have Student Loan Debt

If you’re thinking about refinancing or consolidating your student loans, there are a couple of things to know.

First, what’s the difference between refinancing and consolidating?

  • Private Loan Consolidation: This involves combining all your loans into one loan so you only owe one lender and have to make one simple payment.
  • Federal Loan Consolidation (Direct Consolidation Loan): Only have Federal student loans? You can combine them through a Direct Consolidation Loan with the government. According to studentaid.ed.gov, “The fixed rate is based on the weighted average of the interest rates on the loans being consolidated.” This doesn’t save you much money, but your payments will be more manageable. For a complete list of Federal loans that can be consolidated, check here.
  • Refinancing: This is when you apply to a completely new lender for new terms – you’ll have a new loan, and your new lender will pay off your old loan.

The difference isn’t all that big – when you consolidate private (or private and Federal) student loans, you’re essentially going through the refinancing process.

If you currently have Federal loans, you need to be aware refinancing or consolidating means giving up certain benefits that come with federal student loans.

That means income based repayment, deferment, forgiveness, and forbearance options disappear. A few of these benefits are forfeited even with the Direct Consolidation Loan. These benefits could get you through an otherwise rough time, so make sure refinancing makes sense beforehand.

If you do have federal student loans, and you’re thinking of refinancing or consolidating, first see if you’re eligible for deferment or forbearance. There’s no reason to go through the process of having your credit checked if you can lessen your student loan burden another way.

If you have private student loans, you can also check with your lender to see if it offers payment assistance. Many lenders are making improvements to their student loan refinance programs and including forbearance and deferment options.

Also, once you consolidate or refinance your student loans, there’s no going back. This applies to the Direct Consolidation Loan as well.

Okay, still think refinancing or consolidating is right for you? You can shop for the best lender to refinance your student loans here.

Shopping Around is a Must When Consolidating or Refinancing

The goal of refinancing or consolidating is to ultimately make your debt less of a burden on you. That means getting the best rates and terms offered. The easiest way to accomplish this is to shop around with different lenders. If you do so within a 45-day window, FICO will not punish you for shopping around. All of your student loan inquiries in the 45-day period will only count as one inquiry. Plus, there are many lenders out there who will give you rates with just a soft credit inquiry (though a hard inquiry is required to move forward with a loan). Always put yourself first, as you’re never obligated to sign for a loan you’re approved for.

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Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Erin Millard
Erin Millard |

Erin Millard is a writer at MagnifyMoney. You can email Erin at erinm@magnifymoney.com

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Best of

7 Low Interest Rate Credit Cards – February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Carrying a balance on your credit card is never ideal, but sometimes it’s unavoidable. And with credit card interest charges that can be upward of 25.00% APR, it can be hard to get out of debt because a large portion of your payment goes to interest.

Currently, you may find yourself struggling to pay off your balance, but worry not — there are low interest cards that have APRs starting at around 6%.

Low-interest cards are a great way to save money on interest when you find yourself carrying a balance. The APRs on these cards max out around 18% on average. Some low-interest cards mentioned here even have 0% APR intro periods that are helpful if you have an existing balance on a credit card and want to transfer it, or if you plan on making purchases that you need several months to pay off.

The seven main cards in this post are from credit unions, which often have lower rates than large banks. But they require memberships, which are sometimes restricted to certain states. In this post, we’ll explain the seven lowest interest-rate credit cards and what’s required to qualify. These cards are based on a usage period of around 24 months or more, which is typically not long enough for most intro 0% APR cards.

7 low interest rate credit cards

Visa® Titanium Signature Rewards Card from Andrews Federal Credit Union

Visa® Titanium Signature Rewards Card from Andrews Federal CU

Annual fee

$0 For First Year

$0 Ongoing

Regular Purchase APR

6.99%-18.00%

Variable

APPLY NOW Secured

on Andrews Federal Credit Union’s secure website

The Visa® Titanium Signature Rewards Card from Andrews Federal Credit Union has the lowest ongoing APR on our list. If you qualify for the lowest rate and end up carrying a balance, you may be charged little interest (compared with higher APR cards). This card is a good option if you have existing debt on a credit card, because you can transfer it during the balance transfer intro period.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 12 months on purchases
  • Intro balance transfer APR: 0% for 12 months on balance transfers processed within 90 days of account opening
  • Balance transfer fee: 1.5% of the transfer amount or $50; whichever is greater

How to qualify: Anyone can apply for this card, regardless of residence. If you don’t meet one of the several eligibility requirements, you can join the American Consumer Council for a one-time $5 donation if you have used a major consumer product or service in the past 12 months, such as a motor vehicle, insurance, or housing.

TruWest Visa Platinum Card

TruWest Visa Platinum Card

Annual fee

$0 For First Year

$0 Ongoing

Regular Purchase APR

7.20%-21.20%

Variable

APPLY NOW Secured

on TruWest Credit Union’s secure website

The regular purchase APR on the TruWest Visa Platinum Card has a wider range than the other cards on this list. However, this card has the longest 0% intro APR period from a credit union at 0% for 18 billing cycles on purchases and balance transfers. This is a large amount of time for you to carry a balance interest-free.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 18 billing cycles
  • Intro balance transfer APR: 0% for 18 billing cycles
  • Balance transfer fee: 3%

How to qualify: Unfortunately, not everyone can apply for this card. It is restricted to people who live, work, own a business, or go to school in select Arizona and Texas communities or who work for select employers. You can read more about membership eligibility on TruWest’s website.

Visa® Platinum Card from Trustmark Bank

Visa® Platinum Card from Trustmark Bank

Annual fee

$0 For First Year

$0 Ongoing

Regular Purchase APR

7.40%-12.40%

Variable

APPLY NOW Secured

on Trustmark Bank’s secure website

The Visa® Platinum Card from Trustmark bank has a great low APR range. This is the best range on the list when considering both the minimum and maximum APR, and it benefits people who may not have the best credit because the highest interest rate is still lower than most credit cards. So what’s the catch? Unfortunately, this card has restricted membership (see below for details) and the 0% APR intro periods are very low compared to other cards.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for the first 6 billing cycles
  • Intro balance transfer APR: 0% for the first 6 billing cycles
  • Balance transfer fee: None

How to qualify: Anyone can apply, however you can’t apply online. You either have to go to one of their locations or call and have an application mailed to you.

BECU Visa® Card from Boeing Employees CU

BECU Visa<sup>®</sup> Credit Card from Boeing Employees CU

Annual fee

$0 For First Year

$0 Ongoing

Regular Purchase APR

8.15%-19.15%

Variable

APPLY NOW Secured

on Boeing Employees Credit Union’s secure website

The BECU Visa® Card from Boeing Employees CU is an overall standout card with a reasonable APR and great additional perks. For example, there is a Reprice Program where BECU will lower your rates as your credit score improves. This is a great feature, especially for people who don’t qualify for the lowest rate. Additionally, there are limited fees, such as no balance transfer fee — allowing you to maximize savings when you transfer debt from another card.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 12 months
  • Intro balance transfer APR: 0% for 12 months
  • Balance transfer fee: None

How to qualify: This card has restricted membership with several ways to qualify: you need to live in Washington State or select counties in Oregon, have a relationship with select employers or associations, or have a business or organization that meets certain requirements. Find out more about membership here.

Visa® Advantage Card from NEFCU

Visa® Advantage Card from NEFCU

Annual fee

$0 For First Year

$0 Ongoing

Regular Purchase APR

8.74%-17.99%

Variable

APPLY NOW Secured

on NEFCU’s secure website

The Visa® Advantage Card from NEFCU can be a decent option for Long Islanders who may carry a balance at some point. Note that the APR range is higher than other cards on this list, but your best option depends on cards’ membership criteria. The intro period for this card is sub par compared to others because the APR is greater than 0%.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 1.99% for 12 months (as low as 9.24% thereafter)
  • Intro balance transfer APR: None
  • Balance transfer fee: None

How to qualify: This card is open to all Long Islanders. That means if you live, work, or attend school in Nassau or Suffolk counties in New York, you may qualify. You can also gain membership through a family member. Click here for more info on eligibility.

TruWest Platinum Points Visa Rewards Card

TruWest Platinum Points Visa Rewards Card

Annual fee

$0 For First Year

$0 Ongoing

Regular Purchase APR

9.15%-16.15%

Variable

APPLY NOW Secured

on TruWest Credit Union’s secure website

The starting APR for the TruWest Platinum Points Visa Rewards Card is a bit higher than other low interest cards, but the max APR is fairly low. Similar to the TruWest Visa Platinum Card, the TruWest Platinum Points Visa Rewards Card has a long 0% APR intro period of 18 months. This card also comes with a rewards program where you can automatically earn up to one point per dollar spent, though we recommend using this card to pay down debt and not earn rewards.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 18 months
  • Intro balance transfer APR: 0% for 18 months
  • Balance transfer fee: 3%

How to qualify: Like the other TruWest card, this card is restricted to people who live, work, own a business or go to school in select Arizona and Texas communities or who work for select employers. You can read more about membership eligibility on TruWest’s website.

Visa® Platinum Credit Card from NIHFCU

Visa® Platinum Card from nih FCU

Annual fee

$0 For First Year

$0 Ongoing

Regular Purchase APR

9.24%-18.00%

Variable

APPLY NOW Secured

on Nih FCU’s secure website

The Visa® Platinum Credit Card from NIHFCU has the highest starting APR of all the cards on this list. However, there is a decent 0% APR intro period of 12 months, and the balance transfer fee is lower than average.

Here are features to know about when using this card to pay off debt:

  • Intro purchase APR: 0% for 12 months
  • Intro balance transfer APR: 0% for 12 months
  • Balance transfer fee: $10 or 2% of the amount of each balance transfer, whichever is greater

How to qualify: This card restricts membership to people in the biomedical and healthcare industries in Md., N.C., Va., W.Va., or Washington D.C. You can also qualify if a family member is a current NIHFCU member. Visit NIHFCU’s site for more details.

Other options

Below, we’ve compiled a few options if you want a 0% APR intro card or if you want to consider a balance transfer card. All of these cards come from major banks, so anyone can apply.

Cards with a 0% APR intro period

Citi® Diamond Preferred® Card– 21 Month Balance Transfer Offer

Citi<sup>®</sup> Diamond Preferred<sup>®</sup> Card– 21 Month Balance Transfer Offer

Intro BT APR

0%

Promotional rate

Balance Transfer Fee

$5 or 3% of the amount of the transfer, whichever is greater

Regular Purchase APR

14.24%-24.24%

Variable

Duration

21 months

APPLY NOW Secured

on Citibank’s secure website

The Citi® Diamond Preferred® Card– 21 Month Balance Transfer Offer has one of the longest intro 0% periods for balance transfers on the market, at intro 0%* for 21 months on Balance Transfers*.  This is over a year and a half for you to rid yourself of debt. Note that there is a balance transfer fee of 3% of each balance transfer; $5 minimum. There is also an intro 0%* for 12 months on purchases*.

Cards with a 0% APR balance transfer intro period

Sphere® Credit Card from Santander

Sphere<sup>®</sup> Credit Card from Santander

Intro BT APR

0%

Promotional rate

Balance Transfer Fee

$10 or 4% of the amount of the transfer, whichever is greater

Regular Purchase APR

13.74%-23.74%

Variable

Duration

18 months

APPLY NOW Secured

on Santander’s secure website

The Sphere® Credit Card from Santander has one of the longest balance transfer intro periods in our database at 0% APR for the first 18 billing cycles your account is open. Although this is a great amount of time for you to pay off transferred debt, it comes with a hefty balance transfer fee at either 4% or $10, whichever is greater. This is something to consider before choosing a card, but the balance transfer fee may be worth it if you’re saving money from high-interest payments with your current card. Transfers must be made within the first 90 days of account opening to qualify for the intro 0% APR. Purchases can also benefit from an intro 0% APR for 18 billing cycles. There is also a rewards program: Earn one reward point for every dollar spent, with no limits. However, we recommend using this card to pay off debt and not just to earn rewards.

How to qualify: This card is only available to people who live in: Conn., Washington D.C., Del., Maine, Md., Mass., N.H., N.J., N.Y., Pa., R.I., or Vt.

Chase Slate®

Chase Slate<sup>®</sup>

Intro BT APR

0%

Introductory rate

Balance Transfer Fee

$0 intro balance transfer fee when you transfer a balance during the first 60 days your account is open. After 5% of the amount transferred, with a minimum of $5.

Regular Purchase APR

16.24%-24.99%

Variable

Duration

15 months

APPLY NOW Secured

on Chase’s secure website

The Chase Slate® is one of our favorite balance transfer cards. It offers 0% Intro APR on purchases for 15 months and 0% Intro APR on Balance Transfers for 15 months. This isn’t the longest intro period, but this card comes with a standout feature of an intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater. This can save you on the typical 2-5% balance transfer fee many other cards charge.

The bottom line

If your goal is to reduce the amount of interest you pay on your credit card debt, look at cards with low APRs and membership requirements you can meet. Remember that your credit score will be a significant factor in the APR you receive, so be sure to look at both ends of the APR ranges when comparing cards since you may not receive the lowest rate.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Alexandria White
Alexandria White |

Alexandria White is a writer at MagnifyMoney. You can email Alexandria at alexandria@magnifymoney.com

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Best of, Credit Cards

Longest 0% Purchase Credit Card Offers From Banks & Credit Unions – Februarysn 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

0% purchase credit card

If you're about to make a big purchase that you need time to pay off, using a 0% introductory purchase offer on a credit card could be the cheapest way to spread the payment out over time.

  • You can currently find 0% deals for as long as 21 months with no fees, but since rates after the intro period are high, only use these deals if you're sure you can handle paying off the debt before the period is up.
  • When searching for 0% purchase cards, make sure you select a card that waives interest. Far too many cards, especially those offered by retailers only defer the interest which means you can get get a nasty surprise when the intro period is up.

Below we list the longest 0% purchase credit cards broken up by length of 0% intro period from our database of over 3,000 credit card products from banks and credit unions:

18 Months 0% Intro APR

Citi Simplicity® Card - No Late Fees Ever

Citi Simplicity<sup>®</sup> Card - No Late Fees Ever

APPLY NOW Secured

on Citibank’s secure website


The Citi Simplicity® Card - No Late Fees Ever offers a long 0% APR for 18 months on purchases. This provides you well over a year to pay off any purchases without accruing interest, and you receive great perks such as no late fees, no penalty rate and no annual fee. After the intro period ends, the standard APR applies. It’s 15.24%-24.24% variable, depending on your creditworthiness.

Wells Fargo Platinum Visa® Card

Wells Fargo Platinum Visa® Card

APPLY NOW Secured

on Wells Fargo Bank’s secure website


The Wells Fargo Platinum Visa® Card has a long period for you to pay off debt with a 0% intro APR for 18 months on purchases and balance transfers. Following the intro period, the variable APR on purchases will be 16.40%-26.24%. Besides the promotional APR, this card is fairly basic. It does have one other notable perk: You can receive up to $600 of cellphone protection (subject to $25 deductible) against eligible reasons when you pay your monthly cellphone bill with your card.*

TruWest Visa® Signature Card

TruWest Visa® Signature Card

APPLY NOW Secured

on TruWest Credit Union’s secure website


At 18 months, the 0% intro APR on purchases and balance transfers for the TruWest Visa® Signature Card is one of the highest for a credit union. It also has a very low ongoing variable APR (after the intro period ends): 9.15%-10.15%. This card is restricted to people who live, work, own a business or go to school in select Arizona and Texas communities or who work for select employers. You can read more about membership eligibility on TruWest’s website. You can earn 1 point per dollar spent, and up to 10 extra points per dollar spent by taking advantage of bonus point offers with the Get Extra Points Rewards Program. You can also earn up to 1.5% cash back by redeeming rewards through the TruRewards program.

TruWest Visa® Platinum Card

TruWest Visa Platinum Card

APPLY NOW Secured

on TruWest Credit Union’s secure website


Another card from TruWest that offers a long intro period is the TruWest Visa® Platinum Card, with 0% intro APR for 18 months on purchases. Again, this card is only available to TruWest Credit Union members. This card has one of the lowest starting variable APR ranges at 7.20%-21.20% variable, which is beneficial for anyone who qualifies for the low rate and may carry a balance after the intro period ends (though we recommend paying off debt beforehand).

TruWest Platinum Points Visa Rewards Credit Card

TruWest Platinum Points Visa Rewards Card

APPLY NOW Secured

on TruWest Credit Union’s secure website


The TruWest Platinum Points Visa Rewards Credit Card has a competitive 0% intro period at 18 months on all purchases and balance transfers. After the intro period, the purchase APR is    9.15%-16.15% variable. As with the other TruWest cards, this one is only available to members. You can benefit from a rewards program where you automatically earn up to 1 point for every $1 you spend, and earn up to 10 extra points per dollar spent. However, this is a low rewards rate compared to other 0% intro purchase cards on this list.

U.S. Bank Visa® Platinum Card

U.S. Bank Visa<sup>®</sup> Platinum Card

APPLY NOW Secured

on U.S. Bank’s secure website


The U.S. Bank Visa® Platinum Card offers a long 0% intro period at 18 months for purchases and balance transfers (variable APR is 11.24%-23.24% when the promotional period ends); however, this card offers few other benefits. There is no rewards program, but there is cellphone protection that can reimburse you for damage or theft up to $600 (with a $25 deductible), for up to two claims ($1,200) per 12-month period when you pay your cellphone bill with your card.

Bank of Hawaii Visa Signature® Card with MyBankoh Rewards

Bank of Hawaii Visa Signature<sup>®</sup> Card with MyBankoh Rewards

APPLY NOW Secured

on Bank Of Hawaii’s secure website


Similar to the other myBankoh Rewards card, the Bank of Hawaii Visa Signature® Card with MyBankoh Rewards offers 18 months 0% intro APR on purchases and balance transfers. Afterward, the ongoing APR is 15.23% or 18.23% variable. This card is open to most U.S. residents (details above), and cardholders earn one point per dollar spent, as well as a 10% annual year-end bonus of the points earned on purchases.* If you’re not a resident of Hawaii, Guam or the Northern Mariana Islands, you must also have a deposit relationship with Bank of Hawaii to apply for this card. All U.S. residents (except those of Iowa and Puerto Rico) can apply.*

15 Months 0% Intro APR

Chase Freedom Unlimited®

Chase Freedom Unlimited<sup>®</sup>

The Chase Freedom Unlimited® provides a 0% intro APR for 15 months on purchases and balance transfers — that is shorter than other flat-rate cash back cards. After those 15 months, purchases are subject to a standard APR of 16.24%-24.99% variable. With the cash back program, you can earn unlimited 1.5% cash back on every purchase – it’s automatic.

Chase Freedom®

Chase Freedom<sup>®</sup>

APPLY NOW Secured

on Chase’s secure website


The 15 month 0% intro APR on purchases and balance transfers that the Chase Freedom® offers is complemented with a cash back program that is great for those looking to maximize cash back in bonus categories. You can earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate and unlimited 1% cash back on all other purchases – it's automatic. After the promotional period, the purchase APR is 16.24%-24.99% variable.

Chase Slate®

Chase Slate<sup>®</sup>

APPLY NOW Secured

on Chase’s secure website


The Chase Slate® has a decent 0% intro period for purchases (15 months, after which the purchase APR is 16.24%-24.99% variable), but you can find other cards with longer periods, and/or rewards. This card is predominantly known for its balance transfer offer where you get 0% intro APR for 15 months and an intro $0 balance transfer fee when you transfer a balance during the first 60 days your account is open. After that, the fee for future balance transfers is 5% of the amount transferred with a minimum of $5, whichever is greater.

BankAmericard® Credit Card

BankAmericard® Credit Card

APPLY NOW Secured

on Bank Of America’s secure website


The BankAmericard® Credit Card has an average intro period for purchases at 0% intro APR for 15 billing cycles (after that, the purchase APR is 13.24%-23.24% variable). There are no rewards; however, this card shines with its balance transfer period of 0% intro APR for 15 months and $0 intro balance transfer fee for transfers made within 60 days of account opening. After that, the fee for future balance transfers is 3% with a minimum of $10.

Blue Cash Everyday® Card from American Express

Blue Cash Everyday® Card from American Express

APPLY NOW Secured

on American Express’s secure website

Terms Apply

Rates & Fees


The Blue Cash Everyday® Card from American Express offers an introductory 0% for 15 months on purchases and balance transfers. After that, your APR will be 14.24%-25.24% Variable. There is also a cash back program — earn 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 2% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases..

Citi® ThankYou® Preferred Card

Citi<sup>®</sup> ThankYou<sup>®</sup> Preferred Card

APPLY NOW Secured

on Citibank’s secure website


At 15 months, the Citi® ThankYou® Preferred Card offers a competitive 0% intro APR period on purchases when compared to other dining rewards cards. (After the intro period, the APR will be a variable 14.74%-24.74%, based on your creditworthiness.) The rewards program benefits frequent diners and those who enjoy entertainment — earn two points per dollar spent on dining out and entertainment, and one point per dollar on all other purchases.

PNC Core® Visa® Credit Card

PNC Core<sup>®</sup> Visa<sup>®</sup> Credit Card

APPLY NOW Secured

on PNC Bank’s secure website


The PNC Core® Visa® Credit Card is a basic card that offers 0% intro APR for 15 billing cycles on purchases for the first 15 billing cycles, then 11.24% to 21.24% variable APR, based on your credit. There is no rewards program or noteable perks. However, there is U.S.-based customer service available 7 days a week.

Truly Simple® Credit Card from Fifth Third Bank

Truly Simple® credit card from Fifth Third Bank

APPLY NOW Secured

on Fifth Third Bank’s secure website


This card offers a decent intro period at 0% APR for 15 billing cycles, however this card is restricted to residents of Ohio, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Tennessee and West Virginia. There is also no penalty APR if you miss a payment. The standard APR of 13.24%-24.24% variable applies after the intro period ends.

BB&T Bright Card

BB&T Bright Card

APPLY NOW Secured

on BB&T’s secure website


The BB&T Bright Card offers a good intro period from a community bank at 0% intro APR for 15 months on purchases and balance transfers (variable 12.40%-21.40% variable APR after). Note that this card is restricted to residents of Alabama, Florida, Georgia, Indiana, Kentucky, Maryland, North Carolina, New Jersey, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, D.C., and West Virginia.

APGFCU Visa® Platinum Preferred Rewards Credit Card

Visa Platinum Preferred Rewards from APG FCU

APPLY NOW Secured

on Aberdeen Proving Ground FCU’s secure website


This card offers a competitive 0% intro APR on purchases and qualified balance transfers compared to other credit unions at 0% intro for 15 months (11.74%-17.99% variable after). To qualify for this card you need to live, work, worship, attend school, or volunteer in Harford or Cecil County or certain areas in Middle River, Maryland. There is a subpar rewards program where you can earn one point for every dollar spent on purchases.

KeyBank Latitude® Credit Card

KeyBank Latitude® Credit Card

APPLY NOW Secured

on KeyBank’s secure website


The KeyBank Latitude® Credit Card has a decent intro period at 0% on purchases and balance transfers for the first 15 billing cycles (11.24%-21.24% variable APR after, based on creditworthiness). This card is restricted to people who live in Alaska, Colorado, Connecticut, Florida, Idaho, Indiana, Maine, Massachusetts, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont and Washington. There is no rewards program.

Deferred versus Waived Interest

Not all 0% offers are created equally. Some credit card companies offer "deferred" interest, whereas others off "waived" interest.

Let's take a simple example. You spend $1,000 on a credit card with an APR of 18%. You will make payments of $75 every month. There is a special offer that gives you 0% interest for 12 months. On "Credit Card A" interest is deferred. On "Credit Card B" it is waived. After making 12 payments of $75, the remaining balance in month 13 would be $100.

Credit Card A: Deferred Interest

With a "deferred" interest offer, the bank does not forgive the monthly interest accrual. Instead, the bank just keeps track of the interest that would have accrued. If you do not pay the balance in full during the promotional period, you will get retroactively charged the interest at a high interest rate. In the example above, you would be charged approximately $117 in month 13. (I use "approximately" because credit card companies have slightly different ways of calculating and charging interest. But it is safe to assume that you would be charged more than $100 of interest on your remaining $100 balance.)

Credit Card B: Waived Interest

Waived interest is very different. For every month of the promotional period, the credit card company actually forgives the interest. There will never be a retroactive catch up after the promotional period ends. In our example, you would only be charged $3.26 of interest in month 13, compared to more than $100 in the deferred example.

Deferred interest products are surprisingly common. If you are being offered 0% financing by a retailer, you are probably being offered a deferred interest product.

How To Qualify For A 0% Purchase Credit Card

In order to qualify for a 0% intro purchase credit card, you will need to have good credit. If your credit score is above 700, you are highly likely to be approved by one of the issuers. If your score is between 650 and 700, you still have a good chance.

With a credit score below 650, it is highly unlikely that you would be approved, though you may want to check to see if you are pre-qualified for a card before applying. Many of the banks let you check to see what deals they are specifically targeting to you, and you can see a list of them here. Checking what you're pre-qualified for won't show up on your credit report or score.

In addition to your credit score, the credit card company will want to ensure that you are employed. And most credit card companies will look at your debt burden.

If your debt burden is more than 50%, it is unlikely that you will be approved.

The lower your debt burden, the better your chances. You calculate your debt burden by dividing the monthly payments on your credit report (which would include your mortgage, auto loans, student loans, personal loans and credit cards) by your monthly paycheck before taxes are taken out.

When Is A Personal Loan Better?

There is no lower interest rate than 0%. So, if you are able to use a 0% credit card to make a purchase, that is your best bet. However, there are a few circumstances where a personal loan might be a better option:

  • Your credit score is too low for a 0% offer. Personal loan companies are offering increasingly competitive interest rates, especially for people with lower credit scores.
  • You need to borrow money for a big cash expense. For example, you might need to pay a contractor who does not accept credit cards. If you need cash, a personal loan is always a better deal than a credit card.
  • You don't trust yourself with credit cards. Some people feel nervous with credit cards. You might be tempted to spend more than you want. Or, you might be tempted to only pay the minimum due, extending the repayment term. A personal loan can be an easy way to borrow a set amount of money for a set period of time.

If you want to consider a personal loan, you can compare and apply using our personal loan comparison tool. You can check your interest rate and see if you are approved without hurting your credit score at most lenders.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

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Best of

Best Secured Credit Cards with Low Deposit Requirements – February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

secured credit cards
iStock

Secured credit cards are used as a tool to build credit history from scratch or put positive information on a credit report after negative incidents such as bankruptcy, missed debt payments or accounts in collections. By feeding positive information into a credit report, you can improve a credit score, which is essential for getting the best financial products on the market.

In order to be eligible for a secured credit card, you must provide a minimum deposit. This deposit typically serves as your line of available credit, but in some cases your line of credit may be higher. Plenty of secured cards require rather hefty minimum deposits of $300 or more, which may be prohibitive for many Americans living paycheck-to-paycheck.

Fortunately, alternatives to the high deposits exist. We’ve pulled together a list of the best secured cards that require a deposit and/or credit union membership fee of $200 or less.

$200 minimum deposit - Discover it® Secured Card - No Annual Fee

Discover it<sup>®</sup> Secured Card - No Annual Fee The Discover it® Secured Card - No Annual Fee has a minimum deposit of $200. This is our favorite secured credit card for a number of reasons including: no annual fee, the ability to earn cash back, and our favorite feature — automatic monthly reviews of your account that start at month eight. However, the one downfall of this card is the high ongoing APR, but you should always pay your bill on time and in full so you avoid interest charges. Here are the benefits of the Discover it® Secured Card - No Annual Fee in more detail:

Automatic monthly reviews starting at month 8: Discover will start automatic monthly reviews of your account at month 8. If you qualify, you could be transitioned to an account with no security deposit. Even better, you could potentially be eligible for a bigger credit limit. This feature really sets Discover apart from the competition – and your goal should be to get back your deposit as quickly as possible through responsible credit behavior.

No annual fee: There is no annual fee for this card.

Bankruptcy? No problem: If you have filed Chapter 7 bankruptcy in the past, you can still qualify for this card. It is a great way for people to rehabilitate their credit.

Earn cash back: Most secured credit cards do not offer any rewards. With the Discover it® Secured Card - No Annual Fee, you have the opportunity to earn cash back while earning rewards. You can earn 2% at restaurants and gas stations (on up to $1,000 of spend each quarter). Plus, get 1% cash back on all your other purchases. Earning cash back is not the primary reason to select a secured credit card, but it is a nice option to have available.

Free FICO® Credit Score: Discover will provide you with a copy of your official FICO® credit score. A good step in proper credit behavior is to monitor your score each month.

Read our review for more information on the Discover it® Secured Card - No Annual Fee.

How to go from a secured card to unsecured card: Discover will automatically review your account starting at month eight to see if you can be transitioned to a card without a security deposit. If you qualify, you can receive an unsecured card and your security deposit will be refunded. Note that the reviews are based on various factors, including responsible credit management across all of your credit cards and loans.

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

 

$49, $99, or $200 minimum deposit - Capital One® Secured Mastercard®

Capital One® Secured Mastercard®

Annual fee

$0

Minimum Deposit

$49

Regular Purchase APR

24.99%

Variable

APPLY NOW Secured

on Capital One’s secure website

The Capital One® Secured Mastercard® offers a minimum deposit as low as $49, depending on credit worthiness. If you don't receive the $49 minimum deposit, you may receive a deposit of $99 or $200. This may be a good option if you don't have $200 to deposit, just remember that the $49 deposit is not guaranteed. If approved for the card, once you make your minimum required security deposit, you will receive a credit line of $200.

How to go from a secured card to unsecured card: Capital One has a new feature where they will automatically review your account for on time payments and will inform you if you’re eligible for an upgrade. If eligible, you will be refunded your security deposit and will receive an unsecured card. The catch is that there is no time frame for when your account will be reviewed. Capital One said that it depends on various credit activities.

 

$200 minimum deposit - Citi® Secured Mastercard®

Citi® Secured MasterCard<sup>®</sup>

Annual fee

$0

Minimum Deposit

$200

Regular Purchase APR

23.74%

Variable

APPLY NOW Secured

on Citibank’s secure website

The Citi® Secured Mastercard® is a no frills secured credit card. There is no annual fee and a $200 minimum deposit requirement, like most cards on this list. Unfortunately, there are no rewards associated with this card — however that's typical for a secured card. When coupled with responsible credit behavior, this card can help you build credit and work your way to an unsecured card.

How to go from a secured card to unsecured card: Citi will hold your security deposit in a Collateral Holding Account for 18 months. Prior to the 18-month term ending, Citi will send you a notification in the mail informing you if you will be transitioned to an unsecured card. If transitioned, you will receive an unsecured card and your deposit back. If not, you will still have your secured card. The status of your account at the end of the 18-month term and whether you get back your deposit depends on your account history and other credit factors.

 

$100 minimum deposit - Visa Classic Secured by Justice FCU

Visa Classic Secured Card from Justice FCU

Annual fee

$0 For First Year

$0 Ongoing

Minimum Deposit

$100

Regular Purchase APR

16.90%

Variable

APPLY NOW Secured

on Justice Federal’s secure website

You can join Justice FCU if you are an employee, retiree, or family member of the Department of Justice, Department of Homeland Security, United States Courts or another qualifying group. If that doesn’t apply, don’t fret. Anyone can join JFCU by first becoming a member of an eligible JFCU association like the National Sheriff’s Association, charges a $41 membership fee for auxiliary or student members. It only costs $5 for eligible individuals to join JFCU, so that would raise the total cost of membership to $46. Credit limits range from $100 to 110% of pledged shares.

How to go from a secured card to unsecured card: Justice FCU doesn’t provide automatic reviews of your account or a simple way to transition to an unsecured card — you need to initiate the upgrade to an unsecured card. To do this, apply for one of their unsecured credit cards. Then, upon approval, your secured card will automatically be cancelled and you will receive your security deposit back. Note that your approval for an unsecured card depends on your creditworthiness.

 

Best Strategy for Rebuilding Credit

The strategy for building a strong credit score with a secured card is simple. Make one small purchase each month ($10 or less), wait for your statement to come in, pay your bill on time and in full and then repeat the next month. By making just small purchases, you'll be using a very low amount of your overall credit limit (also called utilization), which helps drive your credit score up faster because it shows you're responsible.

 

Keep an Eye on Your Credit Score and Credit Report

Once you're in the process of building or rebuilding your credit, it helps to have a benchmark. The easiest way will be to establish a profile with one of the free credit score websites: Credit Sesame, Quizzle, Credit Karma. Do a monthly check in with your credit score to see how it's improving.

In addition, you should also keep tabs on your credit report by downloading the report from each of the three bureaus. By law, you're entitled to one free report from each bureau per year. You can download them all at once or space them out throughout the year. Go to annualcreditreport.com to download your free reports. Monitoring your reports will ensure all the information there is accurate and alert you about anything that may be damaging to your score, like an item in collections or reported missed payments.

 

A Word to the Wise

Never carry a balance on your secured card. The point of a secured card is to be building (or rebuilding) your credit history. Make one small purchase a month and pay it off on time and in full. Follow those two steps and you’ll see your credit score start to raise quickly.

Find other secured card options on our secured card comparison table.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

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Best of, Building Credit

The Best Options for Rebuilding Your Credit Score – February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

The Best Options for Rebuilding Your Credit Score

A strong credit score is a vital part of your overall financial health. But rebuilding a damaged (or non-existent) credit score can feel impossible. Don’t despair. There are plenty of avenues you can take in order to rehabilitate your credit score and it all begins with identifying your starting point.

How Bad is Your Bad Credit Score?

Before you start to panic about rehabilitating your bad credit score, let’s determine if it’s even bad. Where do you fall in the range of FICO® credit scores? Below you'll find what your credit score is considered, with ranges from Experian.

  • Above 740: Excellent Credit
  • 670 – 739: Good Credit
  • 580 – 669: Fair Credit
  • Below 579: Bad Credit or No Credit Score/Thin File

Your credit score isn’t the only thing that will keep you from being approved for credit. These factors are common reasons for being declined.

  • Your debt-to-income ratio is above 50%
  • You have no credit score
  • You have been building up a lot of debt recently
  • You are unemployed

In order to focus on rehabilitating your credit score, you’ll need to start with getting a line of credit. This may sound impossible because you’re constantly getting declined. Fortunately, there are options tailored specifically for people looking to re-establish credit.

[Read more about bad credit scores here.]

Rehabilitating a Bad Credit Score (579 and under)

Get a Secured Card

You’ll use your own money as collateral by putting down a deposit, which is often about $150 - $250. Typically, the amount of your deposit will then be your credit limit. You should make one small purchase each month and then pay it off on time and in full. Once you prove you’re responsible, you can get back your deposit and upgrade to a regular credit card. Read more about secured cards here.

Check out two of our favorite secured cards below, and our secured credit card database here.

Discover it<sup>®</sup> Secured Card - No Annual Fee

Annual fee

$0

Minimum Deposit

$200

Regular Purchase APR

24.24%

Variable

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Perhaps our favorite secured card, Discover it® Secured Card - No Annual Fee, has numerous benefits for those looking to rebound from a bad credit score. There is a $200 minimum security deposit that will become your line of credit, which is typical of secured credit cards. Your deposit is equal to your credit line, with a maximum deposit of $2,500. Additional perks include a rewards program (very rare for secured cards) that offers 2% cash back at restaurants or gas stations on up to $1,000 in combined purchases each quarter, plus 1% cash back on all other credit card purchases.

This card has another great feature: Discover will automatically review your account, starting at month eight, to see if your account is eligible to transition to an unsecured card. Discover will decide if you’re eligible based on a variety of credit factors, and if you are, you will receive notification and get your security deposit back.

Capital One® Secured Mastercard®

Annual fee

$0

Minimum Deposit

$49

Regular Purchase APR

24.99%

Variable

APPLY NOW Secured

on Capital One’s secure website

The Capital One® Secured Mastercard® is another option for those who want to strengthen their credit score. This card offers a potentially lower minimum security deposit than other cards, starting as low as $49, based on creditworthiness. Be aware the lower deposit is not guaranteed and you may be required to deposit $99 or $200. You can deposit more before your account opens and get a maximum credit limit of $1,000.

There is a feature that will assist your transition from a secured to an unsecured card. Capital One automatically reviews your account for on time payments and will inform you if you’re eligible for an upgrade. However, there is no set time period when they will review your account — it depends on several credit activities. If you receive notification that you’re eligible, you will be refunded your security deposit and will receive an unsecured card.

Rebuilding from a Fair Credit Score (580 – 669)

Apply for a Store Credit Card

You might be used to checking out at a store and being asked if you’d like to open a credit card. While these credit cards come with really high interest rates and are great tools to tempt you into buying items you don’t need, there is a big perk to store credit cards: they’re more likely to approve people with low credit scores. Just be sure to only use the card to make one small purchase a month and then pay it off on time and in full. Unsubscribe to emails about deals and don’t even carry it around everyday in your wallet if you can’t resist the desire to spend. Read more here. 

Find all the details about how to improve your score here.

Those unable to get a store credit card should apply for a secured card to build credit. With proper credit behavior, you can see your score rise and then you may qualify for a store card.

Here are our picks for two store credit cards:

Walmart Credit Card®

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

3% cash back on Walmart.com purchases (including purchases made on the Walmart app), 2% back on fuel purchases made at Walmart or Murphy USA (excluding Murphy Express) gas stations and 1% at Walmart & anywhere your card is accepted

Regular Purchase APR

23.90%

Variable

APPLY NOW Secured

on Walmart’s secure website

The Walmart® Credit Card offers a three-tiered cashback program to benefit avid Walmart shoppers. You receive 3% cash back on Walmart.com purchases (including purchases made on the Walmart app), 2% back on fuel purchases made at Walmart or Murphy USA (excluding Murphy Express) gas stations and 1% at Walmart & anywhere your card is accepted. Your cash back will be issued monthly as a statement credit for all earnings during that period. Note: This card can only be used at Walmart Stores, Walmart Supercenters, Neighborhood Markets, Walmart.com, Walmart and Murphy USA Gas Stations and Sam’s Clubs.

Target REDcard™ Credit Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% at Target & Target.com

Regular Purchase APR

24.15%

Variable

APPLY NOW Secured

on Target’s secure website

The Target REDcard™ Credit Card offers great perks that are sure to please frequent Target shoppers. You receive 5% off every eligible transaction made at Target and Target.com. The discount automatically comes off your purchase — no redemption needed. Other benefits include free shipping on most items, early access to sales and exclusive extras like special items, offers, and 10% off coupon as a gift on your REDcard anniversary each year.* Recently, cardholders received early access to Black Friday deals. Reminder: This card can only be used at Target and on Target.com.

Check If You Pre-Qualify

If you’re on the higher end of the spectrum, you may want to consider checking to see if you're pre-qualified for any cards. This will help minimize your chance of rejection upon applying because pre-qualification performs a soft pull on your credit. This doesn't harm your credit score.

Your goal in this credit range should be to use no more than 20% of your total available credit. Pay your bills on time and in full. And keep pumping that positive information onto your credit report until you reach the 700+ category. 

Who You Need to Avoid

Access to credit and loans may come easier than you expect, but that should also be a danger sign. There are several lenders who are willing to provide lines of credits or loans to people with poor credit. These options are often very predatory. If you’re simply trying to rebuild your credit history and improve your credit score, then there is no need to take this offers. If you’re in desperate need of a line of credit for an emergency, but have bad credit, please email us at info@magnifymoney.com for a tailored response.

Here are the options you need to avoid when trying to rebuild credit:

1. Payday and Title Loan Lenders – There is never a need to take out a payday or title loan if you’re trying to merely rebuild or establish credit history. Most of these lenders don’t report to the bureaus and you’ll likely end up in a painful vicious cycle of borrowing and being unable to pay it down.

[How to get out of the payday loan trap.]

2. First Premier – The bank claims to want to offer people a second chance when it comes to their finances, but its fee structure and fine print prove the exact opposite. First Premier charges you a $95 processing fee just to apply for a credit card. Then it levies a $75 annual fee on the credit cards and most cards only come with a $300 limit. You’re paying $170 for a $300 credit line! The APR is a painful 36%. In year two the annual fee reduces to $45, but then you’re charged a monthly servicing fee of $6.25. And to top it all off, you’ll be charged a 25% fee if your credit limit is increased. Stay away from this card! Use the $170 it would take to open the card and get a secured card instead.

[Read more about First Premier here.]

3. Credit One – Credit One does an excellent job of confusing consumers into thinking they’re applying for a Capital One card. The logos are eerily similar and easily confused.

Creditone

Capital one

While Credit One is not as predatory as First Premier or payday loans, there is really no need to be using it to rebuild your credit score. Credit One makes it a bit tricky to get to its terms and conditions without either going through the pre-qualification process or accepting a direct mail offer. You’ll see this when clicking to look at its credit card option.

Screen Shot 2015-08-17 at 4.34.54 PM

A quick Google search yielded this terms and conditions sheet, which may be slightly different than the one you’d receive if you applied for a card. According to the one we found, Credit One charges an annual membership fee from $0 to $99. Credit line minimums are between $300 and $500. So you could be paying $99 for a $300 credit limit. APR is relatively standard, but on the high side, with variable 16.99% to 24.99%. Given the high annual fees, we recommend saving your money and using a secured card with no annual fee to begin rebuilding your credit score.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Erin Lowry
Erin Lowry |

Erin Lowry is a writer at MagnifyMoney. You can email Erin at erin@magnifymoney.com

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Best of, Earning Cashback

Best Cash Back Sign-On Bonus Credit Cards of February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Temptation_large

Do you normally use your credit card for making every day purchases? Can you manage your money responsibly and pay off your balance in full every month? If so, you should be using a rewards credit card to take advantage of the free cash back and bonuses that are offered.

Many credit card companies are offering cash back rewards and sign-up bonuses these days. You can earn an equivalent of $400 or more just keeping to your regular spending. It’s essentially free money, as long as you use your credit card correctly.

Let’s take a look at how you can be a responsible consumer first, and then we’ll review the credit cards with the best cash back sign-on bonuses.

How to Be Responsible With Your Credit Card

Before we recommend credit cards with the best sign-on bonus, we want to make sure you understand exactly how rewards credit cards should and shouldn’t be used.

You shouldn’t try and take advantage of a rewards credit card by charging anything and everything to it. Yes, you acquire cash back or points based on your purchases, but you’re also acquiring debt if you charge more than you can afford.

You should use a rewards credit card exactly as you would use any other credit card (or your debit card). Only swipe for what you can afford to pay at the end of your billing cycle.

While many of these cards have 0% introductory APRs, after the introductory period is over, you’ll have high APRs (in the 14% - 24% range). If you carry a balance, any cash back you receive will be negated by the interest you’ll have to pay.

Only charge your necessary expenditures and stick to your budget. Don’t look for extra opportunities to pay more just for the sake of getting points.

You want to take advantage of credit card companies – not have it the other way around.

Best Cash Back Sign-On Bonuses

Now that you know how to use rewards cards, let’s review the best options out there.

Uber Visa Card

  • You have to spend $500 on purchases in the first 90 days to receive the $100 bonus.
  • There is no annual fee.
  • Earn 4% back on restaurants, takeout and bars, including UberEATS; 3% back on hotel and airfare, including vacation home rentals; 2% back for online purchases including Uber, online shopping, video and streaming music services; and 1% back for everything else.
  • Earn up to a $50 credit for online subscription services after you spend $5,000 or more on your card per year.
  • The variable APR is 16.24% - 24.99%.
  • There is no foreign transaction fee.

This card is not only great for its sign-up bonus requiring a low spend, but also for the great 4-3-2-1 rewards program.

Read our full review here >

Uber Visa Card

Visa® Signature Elite Card from NEFCU

  • You have to spend $2,000 in the first 3 months for 20,000 points
  • Those 20,000 points are redeemable for travel, merchandise, gift cards, and more. These points are not redeemable for a cash equivalent
  • You earn 1.25 points per $1 spent, which can be redeemed for travel, merchandise, gift cards and more
  • The points to cash option allows members to use points to make a NEFCU Visa Signaure Elite Credit Card payment or a cash deposit to their NEFCU accounts. There is a $25 minimum per conversion.
  • Rates range from 11.99% - 17.99% APR on the Visa® Signature Elite Card
  • No annual fee

This card requires a membership to NEFCU, a credit union located on Long Island, NY. If you live, work, worship, attend school, or regularly conduct business in Nassau or Suffolk County, you’re eligible for membership. If a relative is already a member, he or she can sponsor you.

Visa Signature Elite Card from NEFCU

APPLY NOW Secured

on NEFCU’s secure website

Wells Fargo Rewards® Card

  • You have to spend $1,000 in the first 3 months to receive 20,000 bonus points (note this is an online only offer)
  • You can earn 5% cash back for every $1 you spend on groceries, gas, and drugstore net purchases for 6 months on up to $12,500 spent, plus 1% for every $1 spend on all other purchases
  • You can redeem points for travel, merchandise, cash back, gift cards, and more
  • Points can be redeemed for cash by applying them to your qualifying Wells Fargo account or requesting a paper check. Cash redemption options are available by phone and online in increments of $25 only.
  • There’s no annual fee
  • There’s a 0% introductory APR for the first 12 months on balance transfers and purchases. The variable APR then ranges from 18.15% - 26.99% based on your creditworthiness
  • There’s a late fee and returned check fee up to $37
  • The foreign exchange currency conversion fee is 3%

This is a good “every day” rewards card to carry with you. You’re automatically enrolled in the Wells Fargo Rewards Program when you get this card.

You need a Wells Fargo account to apply online, though you can also apply at a branch.

Wells Fargo Rewards Visa® card

APPLY NOW Secured

on Wells Fargo Bank’s secure website

Use Cash Back Credit Cards With Caution

As you can see, some of these cards come with annual fees and introductory APRs that are great for the first year. However, some of the benefits might not be good enough to warrant keeping the card once that year is over.

Keep in mind that “credit card churning” – canceling your cards after the first year and applying for a new one – will have an effect on your credit score. It might not be huge, but it’s a good idea to avoid this practice if you’ll be making an important purchase in the near future (like buying a home).

Otherwise, take advantage of credit card companies and save money on travel, gift cards, and more. You should absolutely earn points on your regular purchases by spending with a rewards credit card.

promo-cashback-wide

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Erin Millard
Erin Millard |

Erin Millard is a writer at MagnifyMoney. You can email Erin at erinm@magnifymoney.com

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Best of, Earning Cashback

The Best Cash Back Credit Cards for Every Category – 3% and More in February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

credit card and dollar close-up

Note from the Editor: The information related to SimplyCash Plus Business Credit Card from American Express credit card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

MagnifyMoney keeps a database of over 2,000 credit cards and their features, including cash back cards you can compare with our tool. We used it to find the absolute highest cash back rewards you can earn in each category, more than the standard 1-2% you usually see.

If you're ready for cash back there are over 25 categories where you can earn 3% or more in pure cash back on your credit card purchases.

Scroll down and you'll find links to the best cash back credit cards we've found that earn more than 2% cash back in special categories. These are cards that let you get pure cash value, not complicated points that can be used only for travel.

Before you dig into categories, every cash rewards wallet should have one of these cards, with double cash back on everything you spend and $0 annual fee:

Citi<sup>®</sup> Double Cash Card – 18 month BT offer

Annual fee

$0*

Cashback Rate

1% when you buy, 1% when you pay

Regular Purchase APR

14.74%-24.74%

Variable

APPLY NOW Secured

on Citibank’s secure website

Fidelity<sup>®</sup> Rewards Visa Signature<sup>®</sup> Card

Annual fee

$0

Cashback Rate

2% on all spend

Regular Purchase APR

15.24%

Variable

APPLY NOW Secured

on Fidelity’s secure website

Once you have one of these, you can add other cards that earn more than 2% in special categories to really boost your cash rewards.

The best cash back credit cards with no limit rewards

Maybe you don't want to mess with rotating categories or remembering limits on cash back. If that's you, there are only a handful of cards that you need to carry to get the most in totally unlimited cash back.

As you'll learn below, you may be leaving about $500 a year or more on the table by not holding at least some of these cards.

They are all no annual fee cards, and they ensure you will earn more than 2% cash back on your total spending with absolutely no limits. Some cards have higher cash back rates with limits, and you can see those below this list in our review of cards for each category.

Airfare - 4.25%

PenFed Premium Travel Rewards American Express® Card

Annual fee

$0

Rewards

5x points on airfare purchases, 1x on all other purchases

Regular Purchase APR

9.74%-17.99%

Variable

APPLY NOW Secured

on PenFed Credit Union’s secure website

This card advertises 5x points on airfare, but there is a bit of a catch. When you redeem the points it earns for the closest thing to cash, a prepaid Visa card, your points are worth about 0.8 cents each, so that 5x points is really about 4.25% cash back on your airfare spending.

Travel - 3%

AAA Member Rewards Visa Signature® Card

Annual fee

None

Cashback Rate

3 points for eligible travel & AAA purchases, 2 points on gas, grocery store, and drugstore purchases, and 1 point per $1 for all other purchases

Regular Purchase APR

14.24%-24.24%

Variable

APPLY NOW Secured

on Bank Of America’s secure website

While the PenFed Premium Travel Rewards American Express® Card wins for airfare spending, the AAA Member Rewards Visa Signature® card offers 3% back on airfare, plus all kinds of travel, including hotels, car rentals, and cruises. You don't have to be a AAA member to get the card.

Supermarkets - 2.55%

PenFed Platinum Rewards Visa Signature® Card

Annual fee

$0 For First Year

$0 Ongoing

Rewards

5x points on gas at the pump, 3x points at supermarkets, 1x points on all other purchases

Regular Purchase APR

9.99%-17.99%

Variable

APPLY NOW Secured

on PenFed Credit Union’s secure website

The card earns 3x points on supermarkets, but the points are worth about 0.85 cents each when you redeem them for a prepaid Visa gift card, so the real unlimited cash back rate is about 2.55%.

If you spend less than $6,000 a year ($500 a month) on groceries, then the Blue Cash Preferred® Card from American Express offers 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 3% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases. Terms Apply. See Rates & Fees. The $95 annual fee on this card is a better deal vs the PenFed Platinum Rewards Visa Signature® Card if you spend about $3,000 a year in groceries (about $250 a month).

Note that if you live in California, you may earn 3% unlimited cash back on groceries with the Platinum Rewards Credit Card from Golden 1 Credit Union.

Gas - 5%

Fort Knox Federal Credit Union Visa<sup>®</sup> Platinum Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% back on all gas station spending, 1% on all other purchases

Regular Purchase APR

10.25%-15.25%

Variable

APPLY NOW Secured

on Fort Knox Federal’s secure website

You might not have heard of this credit union, but anyone can join. You just need to pay $5 to join the American Consumer Council / Kentucky and you're eligible.

Other options include the NRA Complete Rewards® Visa® Card also offering 5% cash back (no NRA membership required), and the Sam's Club MasterCard® with 5% at the pump on up to $6,000 worth of gas purchases a year, but you need to be a Sam's Club member to hold the card.

Dining - 4%

Uber Visa Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

4% back on dining, 3% back on hotel and airfare, 2% back for online purchases, and 1% on everything else

Regular Purchase APR

16.24%-24.99%

variable

This card earns 4% back on dining purchases which includes restaurants, takeout, bars and UberEATS. You will also earn 3% back on hotels and airfare, including vacation home rentals, 2% back for online purchases including Uber, web shopping, video and music streaming services; and 1% on all other purchases.

Everything else: Citi® Double Cash Card (up to  1% + 1%) or Fidelity® Rewards Visa Signature® Card (2%)

If you're willing to pay an annual fee, the Alliant Cashback Visa® Signature Credit Card card earns 2.5% cash back unlimited. The $59 fee is worthwhile if you spend over $1,000 a month on the card. Alliant is targeting this card to people with high income who spend $10,000 or more a month, so it might be tough to get approved.

If you have a military affiliation, USAA offers some members the Limitless™ Cashback Rewards Visa Signature® Card, with 2.5% unlimited cash back if you make $1,000 a month in direct deposits to USAA. This card is only targeted to select members, so you won't see it advertised on their website and no guarantees you will be offered the card.

Or if you live in California, the Marukai Premium JCB Card gives you up to 3% cash back points on all purchases beyond $3,000 in yearly spending.

Just mark each of the cards you pick in your wallet with a sticker for each category so you remember which to use, and you'll rack up lots of cash with minimal hassle. And afraid to have more than one card? Well if you're responsible with credit, a few additional inquiries might have less of an impact than you think. See our experience with scores and getting several cards for the rewards.

For unlimited retailer-specific discounts, also consider:

If you want to maximize absolutely everything, read on...

We've organized cash back cards for each of the over 25 spending categories that are currently eligible for more than 2% in cash back rewards.

They include both year round and quarterly rotating categories like those on the Discover it® Cashback Match™. Pick the categories that matter most to you, and you'll see the opportunities you have to earn 3-5% if you're willing to keep track of some limits and quarterly changes.

Remember, these are all cards that let you earn cash value rewards, with no restriction on where you spend the rewards, unlike travel points.

You'll find three flavors of cash back rewards, in the order of hassle factor:

  • Unlimited cash back - This is the simplest form. You usually won't find the very highest 5%+ rewards this way, but we've found some great cards that get you 3% or more in some popular categories.
  • Cash back with limits - This is where a card limits the cash back you earn by putting a cap on the spending which earns the cash back in the specific category, on a combination of categories, or the card as a whole.
  • Quarterly rotating categories - These are the cards with the big headline 5% rates. Don't be fooled. While you can earn the 5% rate, you may have to opt in to categories each quarter manually and be hit with caps on how much you can earn.

Advertising Services

With Limits

3%: SimplyCash® Plus Business Credit Card - up to $25,000 in purchases in bonus categories. Terms Apply.

Airfare

Unlimited

With limits

Quarterly category in 2018

  • 5%: Nusenda Credit Union Cash Rewards - Oct - Dec 2018 - up to $1,500 - Anyone can join the Nusenda Credit Union (formerly the New Mexico Educators Credit Union) by becoming a member of the La Montanita Food Co-op.

Amazon.com

Unlimited

Quarterly category in 2018

Bookstores

With limits

  • 5%: U.S. Bank Cash+ up to $2,000 / quarter across two 5% categories you choose

Car Rentals

Unlimited

With limits

Cell phone

With limits

    • 5%: U.S. Bank Cash+ up to $2,000 / quarter across two 5% categories you choose
    • 5%: SimplyCash® Plus Business Credit Card - up to $50,000 in bonus purchases a year. Terms Apply.

Internet / Cable / Phone Services

  • 5%: Chase Freedom® - up to $1,500 when you activate - January - March 2018

Cellular Phone / Landline / Internet / Cable TV

Clothing Stores

With limits

Commuting, Taxis

Unlimited

Department Stores

Select U.S. department stores. See the list here.

With limits

Quarterly category in 2018

  • 5%: Citi Dividend - October - December 2018 - up to $300 total cash back on card (no longer open to new applicants)

Discount stores

With limits

Drug stores

With limits

Education

Quarterly category in 2018

  • 5%: Nusenda Credit Union Cash Rewards - July - Sept 2018 - up to $1,500 - Anyone can join the Nusenda Credit Union (formerly the New Mexico Educators Credit Union) by becoming a member of the La Montanita Food Co-op.

Electronics

With limits

Quarterly category in 2018

  • 5%: (Best Buy only) Citi Dividend - October - December 2018 - up to $300 total cash back on card (no longer open to new applicants)

Furniture

With Limits

  • 5%: U.S. Bank Cash+ up to $2,000 / quarter across two 5% categories you choose

Quarterly category in 2018

  • 5%: Citi Dividend - April - June 2018 - up to $300 total cash back on card (no longer open to new applicants)

Gas

Unlimited

With limits

Quarterly category in 2018

Supermarket Spending

Unlimited

With limits

Quarterly category in 2018

Gyms

With Limits

  • 5%: U.S. Bank Cash+ up to $2,000 / quarter across two 5% categories you choose

Home improvement

No limits

With limits

Quarterly category in 2018

  • 5%: Nusenda Credit Union Cash Rewards - April - June 2018 - up to $1,500
  • 5%: (Home Depot only) Citi Dividend - April - June 2018 - up to $300 total cash back on card (no longer open to new applicants)

Hotels

Unlimited

With limits

Quarterly category in 2018

Movie Theaters

With Limits

  • 5%: U.S. Bank Cash+ up to $2,000 / quarter across two 5% categories you choose

Quarterly category in 2018

Office Supply Stores

With limits

Restaurants

Unlimited

With Limits

Quarterly category in 2018

Shipping

  • 3%: SimplyCash® Plus Business Credit Card- up to $25,000 in purchases in bonus categories. Terms Apply.

Sporting Goods Stores

Unlimited

With limits

Target

Unlimited

Trains, Cruises, Other Vacation

Unlimited

With limits

Utilities

Walmart

Warehouse Clubs

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Nick Clements
Nick Clements |

Nick Clements is a writer at MagnifyMoney. You can email Nick at nick@magnifymoney.com

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Best of, Credit Cards, Reviews

Best Credit Cards for Small Businesses February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

Note from the Editor: The information related to Chase Ink Business Preferred Card credit card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

 

As a small business owner you know you need to manage your cash flow and plan for financing. Credit cards can be an ideal way to meet those needs. But business owners need to be savvy cardholders. Small business credit cards come with unique risks that personally affect entrepreneurs.

 

In this roundup we cover the risks and advantages of small business credit cards. And we’ll show you what card fits your business needs.

 

Best Cards for Financing

If credit cards are an important source of financing and capital for your business, then you need to be a savvy borrower. Look for cards with compelling terms, and take the time to understand the fine print. Remember, the card may be in the business’s name, but you’re personally liable for the debt. Don’t take on more debt than you can handle.

Best 0% Financing

The Blue Business℠ Plus Credit Card from American Express

The Blue for BusinessSM Plus Credit Card from American Express

The Blue BusinessSM Plus Credit Card from American Express offers an introductory 0% for 15 months for financing. If you fail to pay back your purchases within 15 months, your interest rate will move to a variable rate 12.49%, 16.49% or 20.49%, depending on creditworthiness. You lose access to the introductory rate if you make a late payment.

The intro period is one of the most generous offers available. On top of generous financing, you earn rewards for spending.

The card offers perks including secondary car rental insurance, purchase protection, extended warranties, baggage insurance, trip accident insurance, and travel hotline help.

The Fine Print
  • Introductory rate: intro 0% for 15 months. You must pay on time, or you lose this rate.
  • APR: 12.49%, 16.49% or 20.49% Variable, depending on your creditworthiness. See Rates & Fees.
  • Annual fee: $0 annual fee
  • Rewards: 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
  • Terms Apply.

The information related to The Blue BusinessSM Plus Credit Card from American Express has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

Low Interest Rates

If you and your business have excellent credit, the Bank of America Platinum Plus® for Business Mastercard® offers low ongoing financing. This is a great card for businesses with periodic short-term borrowing needs. Besides interest rates from 10.49% to 21.49% variable, it offers a seven-billing-cycle 0% APR promo rate and $200 statement credit if you spend $500 in the first 60 days.

Plus, the card offers travel accident insurance, secondary rental insurance, and automatic downloads to QuickBooks.

Remember, it’s not wise to use a small business credit card for long-term financing. Many credit unions will offer low rates on installment business loans.

The Fine Print
  • Introductory rate: 0% APR financing for seven billing cycles.
  • APR: 10.49%-21.49% variable APR, depending on your creditworthiness (after seven billing cycles)
  • Annual fee: No annual fee
  • Late fee: $19-$49 (depending on your balance)
  • Returned payment fee: $39
  • Cash advance fee: Greater of $10 or 4%
  • Cash advance APR: 25.49% variable
  • Sign-up bonus: $200 statement credit if you spend $500 in your first 60 days
  • Rewards: None
APPLY NOW Secured

on Bank Of America’s secure website

Cash Flow Management

The Plum Card® from American Express OPEN

The Plum Card® from American Express

Managing cash flow can be one of the most difficult problems facing small business owners. The Plum Card® from American Express makes cash flow easier. You can pay no interest if you take up to 60 days to pay the balance in full. You effectively get a 0% working capital line of credit if you can make your payments within 60 days. And if you are able to pay back your balance sooner - within 10 days - you get a 1.5% early pay discount.

This card is one of our favorites because (a) it has one of the most generous grace periods in the market (60 days), which can really help businesses that have customers who pay on a Net-60 basis. But it is also our favorite because (b) if you pay the balance in full and on time, you are still able to earn really good rewards (a 1.5% discount).

The Fine Print
  • On-time payment bonus: 1.5% discount if you pay balance within 10 days of statement closing
  • Annual fee: $0 for the first year, $250 thereafter
  • Terms Apply. See Rates & Fees.

The information related to The Plum Card® from American Express has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

 

Imperfect Credit

If you’re struggling to get approved for a small business credit card, the Capital One® Spark® Classic for Business offers an excellent option. The card has a high variable APR (24.24%) and mediocre rewards (1% cash back). But Capital One will approve business owners with just average credit.

This isn’t a great card for borrowing, even in the short term. However, the Capital One® Spark® Classic for Business will give you some working capital, and it will help your business build its credit. Just remember to pay your bill on time each month and to keep your credit use low.

The Capital One® Spark® Classic for Business also offers perks like purchase protection, free extended warranties, and travel and emergency assistance. These protections offer tremendous value to business owners.

The Fine Print
  • APR: 24.24% variable APR
  • Annual fee: No annual fee
  • Late fee: Up to $39
  • Cash advance fee: Greater of $10 or 3%
  • Cash advance APR: 24.24% variable
  • Rewards: 1% cash back on all purchases
APPLY NOW Secured

on Capital One’s secure website

Cards for Service Members

Former and current members of any branch of the military can join Navy Federal Credit Union and apply for these high-quality credit cards. The Visa and MasterCard have the same fees and conditions, but they offer different perks.

 

Navy Federal Credit Union’s Visa for Business credit card gives former service members access to low interest rates and rewards spending. This can be an excellent choice for service members with excellent credit who may have to borrow for short-term needs.

The card gives access to the Visa SavingsEdge program, which gives up to 15% off business purchases at qualifying retailers. However, the card doesn’t offer extended warranties or other protections, so it isn’t always the best choice.

The Fine Print
  • APR: 9.99%-18.0% variable
  • Annual fee: No annual fee
  • Late fee: Up to $20
  • Returned payment fee: Up to $20
  • Cash advance fee: $0 at Navy Federal Credit Union branch ATM, 50 cents domestic, $1 foreign
  • Cash advance APR: APR + 2%
  • Rewards: 1 point per dollar spent
APPLY NOW Secured

on Navy Federal Credit Union’s secure website

Navy Federal Credit Union’s MasterCard for Business credit card gives former service members access to low interest rates and rewards. The low interest rates make it a compelling choice for service members with short-term borrowing needs.

The card gives access to the MasterCard Easy Savings program, which gives automatic 10% rebates at a network of gas stations, auto repair shops, and shipping companies. This can lead to significant savings. The card also connects to the MasterCard Business Network, which makes expense reports easy. However, the card doesn’t offer extended warranties or other protections.

The Fine Print
  • APR: 9.99%-18.0% variable
  • Annual fee: No annual fee
  • Late fee: Up to $20
  • Returned payment fee: Up to $20
  • Cash advance fee: $0 at Navy Federal Credit Union branch ATM, 50 cents domestic, $1 foreign
  • Cash advance APR: APR + 2%
  • Rewards: 1 point per dollar spent
APPLY NOW Secured

on Navy Federal Credit Union’s secure website

Best Cards for Rewards

Many small business credit cards offer compelling rewards to cardholders. These rewards can allow you to reinvest in your business, or you can take them for personal use. If you choose to use a rewards credit card, try to avoid paying interest. Most of these cards are not good choices for short-term borrowing.

Travel Perks

If you’re a frequent traveler, these small business credit cards give you access to incredible perks. But be sure to read the fine print. These cards have a few gotchas attached.

 

Business Platinum Card from American Express

The Business Platinum® Card from American Express

The Business Platinum® Card from American Express is a charge card with a premium price tag ($450 per year) and premium benefits. Please note, it is not a credit card; you should not plan to borrow money with this card. These are the most significant perks:

  • Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com.
  • Get 50% more Membership Rewards® points.1.5 Points per dollar on each eligible purchase of $5,000 or more. Up to 1 million additional points per calendar year. 1 point for every dollar you spend on eligible purchases.
  • Global Lounge Collection access, which includes access to Delta Sky Club lounges and American Express Centurion lounges
  • $200 airline fee credit (for checked bags, inflight refreshment, etc.)
  • One free Global Entry or TSA Pre-check application fee (allows you to expedite security at select airports and U.S. Customs)
  • 10 free passes per year to inflight Gogo Wi-Fi and unlimited Boingo (land-based Wi-Fi) access
  • Starwood Preferred Guest Gold Elite Status, which also gets you Marriott Rewards Gold status for room upgrades and free breakfast. It also gets you access to the Fine Hotels and Resorts Program (perks like in-room WiFi, complimentary breakfast, and other hotel perks at participating luxury hotels).
THE FINE PRINT
  • Annual fee: $450
  • Rewards: Earn Membership Rewards® points
  • Terms Apply. See Rates & Fees.

The information related to The Business Platinum® Card from American Express has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

As a business owner, little incidentals can add up in a big way. The Chase Ink Business Preferred Card mitigates these costs by providing high-value insurance protection to you and your employees. Not only will you earn rewards (outlined in the fine print), you’ll enjoy these perks, too.

  • Trip Cancellation/Trip Interruption Insurance: If your trip is canceled or cut short by sickness, severe weather, or other covered situations, you can be reimbursed up to $5,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.
  • Trip Delay Reimbursement: If your common carrier travel is delayed more than 12 hours or requires an overnight stay, you and your family are covered for unreimbursed expenses, such as meals and lodging, up to $500 per ticket.
  • Travel Accident Insurance: When you pay for your air, bus, train, or cruise transportation with your card, you are eligible to receive accidental death or dismemberment coverage of up to $500,000.
  • Auto Rental Collision Damage Waiver: Decline the rental company's collision insurance and charge the entire rental cost to your card. Coverage is primary when renting for business purposes and provides reimbursement up to the actual cash value of the vehicle for theft and collision damage for most cars in the U.S. and abroad.
  • Baggage Delay Insurance: You are reimbursed for essential purchases like toiletries and clothing for baggage delays over six hours by passenger carrier up to $100 a day for five days.
  • Lost Luggage Reimbursement: If you or an immediate family member check or carry on luggage that is damaged or lost by the carrier, you're covered up to $3,000 per passenger.
  • Extended Warranty Protection: This warranty extends the time period of the U.S. manufacturer's warranty by an additional year on eligible warranties of three years or less.
  • Cellphone Protection: Get up to $600 per claim in cellphone protection against covered theft or damage for you and your employees listed on your monthly cellphone bill when you pay it with your Chase Ink Business Preferred Credit Card. There is a maximum of three claims in a 12-month period with a $100 deductible per claim.
The Fine Print
  • APR: 16.99%-21.99% variable
  • Annual fee: $95 per year
  • Late fee: $15-$39, depending on balance
  • Returned payment fee: $39
  • Cash advance fee: Greater of $15 or 5% of transaction
  • Cash advance APR: 25.99% variable
  • Sign-up bonus: 80,000 points when you spend $5,000 in the first three months
  • Rewards: 1 point per dollar spent, 3 points per dollar spent on travel, shipping purchases, internet, cable or phone services, or online advertising (social media or search engines)
  • Bonus: Points worth 25% more when you redeem through Chase Ultimate Rewards (Chase’s travel website)

Big Introductory Bonuses

Business owners who know they’ll spend a lot in a short period of time should take note of these cards. These bonuses provide excellent value if you can meet the spending requirements. But be wary: these cards have high interest rates. You won’t come out ahead if you end up financing a big purchase with these cards.

The Business Platinum Card offers excellent travel perks, but it offers an unparalleled Welcome Offer, too. Right now, you can earn 50,000 Membership Rewards® points after you spend $10,000 within three months of card membership. You’ll also earn 25,000 more points after spending an additional $10,000 within your first three months (See Rates & Fees).

If you plan to spend $20,000 or more in the next three months, this bonus is worth the highest value when redeemed for travel rewards. Depending on which option you choose, this bonus may offset annual fees. You need to churn through a lot of money to meet the spending minimums, but this is a lucrative bonus.

Click here to see details including perks and the fine print.

The Chase Ink Business Preferred Card offers ideal perks for frequent travelers, but right now you can get a great sign-up bonus, too. By spending $5,000 in three months, you’ll earn 80,000 points. This bonus is worth $1,000 if you spend your points through Chase Ultimate Rewards for travel or $800 if you redeem for cash back. You can also transfer the points to airline partners like United and Virgin Atlantic and hotel partners like Marriott and Hyatt.

In addition to the lucrative bonus, you can earn everyday spending rewards (including 3 points per dollar spent in certain categories) and valuable trip insurance.

Click here to see details including perks and the fine print.

Cash Back Rewards

Every business owner can benefit from more cash in their pocket. These cards give you the best cash back offers for everyday spending. You can find better rewards if you use multiple cards, but these have excellent rewards for those who don’t want to mess around with multiple cards. Plus, these cards have excellent protections, too. But be careful when you finance with these cards; they don’t offer great terms for borrowing.

 

The Capital One® Spark® Cash for Business offers unlimited 2% cash back on all purchases, and it is free for the first year. Plus, if you spend more than $4,500 in the first three months of holding the card, you get a $500 cash bonus. After the first year, you’ll pay $59 to hold the card. After the first year, if you spent more than $3,000 per year, it’s worth it.

The Capital One® Spark® Cash for Business also offers valuable protective features like purchase protection, free extended warranties, primary auto rental collision coverage, and more. Overall, the Capital One® Spark® Cash for Business gives straightforward rewards to business owners with excellent credit.

The Fine Print
  • APR: 18.24% variable APR
  • Penalty APR: 30.65% (applied if you make a late payment)
  • Annual fee: Free for the first year, $59 per year afterward
  • Late fee: Up to $39
  • Cash advance fee: Greater of $10 or 3% of transaction
  • Cash advance APR: 24.24% variable
  • Sign-up bonus: $500 cash bonus when you spend $4,500 in the first three months
  • Rewards: 2% cash back on all spending
APPLY NOW Secured

on Capital One’s secure website

The Capital One® Spark® Cash Select for Business offers a rare combination of friendly financing terms and rewards. You’ll earn an unlimited 1.5% cash back rewards on all purchases, and you’ll receive a $200 sign-up bonus if you spend $3,000 or more in your first three months.

On top of that, you’ll have a 0% APR financing rate for nine months, and an APR as low as 14.24 - 22.24% variable afterward.

This isn’t the most lucrative rewards card, but you won’t pay an annual fee. This makes it a great card for businesses that don’t spend as much on a credit card.

The Fine Print
  • Promo APR: 0% for nine months
  • APR: 14.24%-22.24% variable, depending on your creditworthiness
  • Penalty APR: 30.65% variable (applied if you make a late payment)
  • Annual fee: $0
  • Late fee: Up to $39
  • Cash advance fee: Greater of $10 or 3% of transaction
  • Cash advance APR: 24.24% variable
  • Sign-up bonus: $200 cash bonus when you spend $3,000 in the first three months
  • Rewards: 1.5% cash back on all spending
APPLY NOW Secured

on Capital One’s secure website

Best Category Bonuses

If you and your employees spend a lot of money in a limited number of categories, you might want to consider a rewards card with heavy bonuses in those categories. These cards offer at least 3 points for every dollar you spend in a given category. That’s the equivalent of a 3% reward.

Remember, rewards cards aren’t usually a good choice for financing purchases. Look to pay off these cards every month.

Online Advertising

Businesses that regularly advertise on social media networks (Facebook, Twitter, etc.) or via search engines (Google, Bing) can earn impressive rewards on their marketing spending. These are the best cards for heavy online advertisers.

 

You’ll earn 3 points for every dollar you spend on online advertising. In addition, you’ll be eligible for travel perks, sign-up bonuses, and more.Click here to see details including perks and the fine print.

The Business Gold Rewards Card from American Express OPEN

The Business Gold Rewards Card from American Express OPEN

The American Express Business Gold Rewards Card allows you to choose to earn 3 points per dollar spent on any one of the following categories: airfare purchased directly from airlines, U.S. advertising in select media, U.S. gas stations, U.S. shipping, or U.S. computer hardware, software, and cloud computing purchases made directly from select providers. You’ll earn 2 points per dollar on the four remaining categories.

All other spending earns 1 point per dollar you spend.

As a Welcome Offer, you’ll earn 50,000 Membership Rewards® points after you spend $5,000 in qualifying purchases on the Card within your first 3 months of Card membership. In addition to the rewards, you get trip accident insurance, extended warranties, and purchase protection.

Since the Business Gold Rewards Card is a charge card, you shouldn’t plan to borrow with the card. But the rewards for online advertisers are excellent. Just watch out for the $175 annual fee that kicks in after the first year.

The Fine Print
  • Annual fee: $0 introductory annual fee for the first year,
    then $175
  • Rewards: 1 point per dollar spent
  • Bonus rewards: 3 points in one category (pick between airfare purchased directly from airlines, U.S. advertising in select media, U.S. gas stations, U.S. shipping, or U.S. computer hardware, software, and cloud computing purchases made directly from select providers).
  • 2 points rewards on remaining four categories.
  • Terms Apply. See Rates & Fees.

The information related to The Business Gold Rewards Card from American Express credit card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

Dining and Travel

Dining and travel cost a lot, but these cards offer enticing rewards. The cards we recommend offer more than 3% cash back on restaurant spending, travel, or both. Plus, they have other compelling perks. But most of these cards aren’t great for borrowing, so check the fine print.

 

Looking to thin down your wallet? A Sam’s Club Business MasterCard, doubles as your membership card. But it’s not just for wholesale shopping. Spending on the Sam’s Club Business MasterCard gives you the opportunity to earn 3% cash back rewards on all restaurant spending worldwide. It also gives 5% cash back rewards on gas (except when purchased at other wholesalers) and 1% on all other spending.

Road warriors and frequent business entertainers will love this card. Plus, the $45 statement credit (if you spend $100 the day you open it) pays for your annual Sam’s Club membership.

The Fine Print
  • APR: 15.90%-23.90% (assigned upon aproval)
  • Penalty APR: 29.99% (applied if you make a late payment)
  • Annual fee: $0 (requires $45 Sam’s Club membership)
  • Late fee: Up to $39.99
  • Cash advance fee: Greater of $5 or 3% of transaction
  • Cash advance APR: 20.90%-26.90%
  • Sign-up bonus: $45 statement credit when you spend $45 on a single-receipt purchase the same day you open your account.
  • Rewards: 1% cash back on all spending. Maximum of $5,000 back in a given year.
  • Bonus rewards: 3% on dining and travel expenses. 5% on gas (up to $6,000 in gas purchases). Gas cannot be purchased from other wholesale clubs.
APPLY NOW Secured

on Sam's Club’s secure website

If you prefer Costco to Sam’s Club, the Costco Anywhere Visa® Card by Citi offers similar terms. Their 4-3-2-1 program includes 4% on eligible gas purchases for the first $7,000 per year and then 1% thereafter, 3% cash back on restaurants and eligible travel purchases, 2% on Costco and Costco.com purchases, and 1% on all other purchases.

While the rewards are sweet, the terms can be expensive. This is not a good card for borrowing, so be sure to pay it off each month.

The Fine Print
  • APR: 16.49% variable
  • Penalty APR: up to 29.99% variable (applied if you make a late payment)
  • Annual fee: $0 with your paid Costco Membership
  • Late fee: Up to $37
  • Returned payment fee: Up to $37
  • Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater
  • Cash advance APR: 26.49% variable
  • Bonus rewards: 4% on eligible gas for the first $7,000 per year then 1% thereafter (Gas cannot be purchased from other wholesale clubs). 3% cash back at restaurants and eligible travel purchases. 2% rewards on all purchases from Costco and Costco.com, and 1% cash back on all other purchases.
APPLY NOW Secured

on Citibank’s secure website

If you’re a frequent business traveller, Chase Ink offers the best rewards. You earn 3 points for every dollar you spend on travel, but you get a travel bonus. Every point is worth 1.25 points when you book through Chase Ultimate Rewards.

Travel perks also include trip insurance, auto rental collision damage waivers (this is primary coverage), and more.

Click here to see details including perks and the fine print.

Gas

 

As a small business owner, you know that driving can be an economical choice, but you can also earn rewards for all those miles on the road. Sam’s Club Business MasterCard gives 5% cash back rewards on gas (except when purchased at other wholesalers), and 1% on all other spending.

Even if you don’t frequent Sam’s Club, this is the best category for rewards for gas purchases.

Click here to see details including perks and the fine print.

Learn More

Risks of Using Small Business Credit Cards

Many business owners see credit cards as an easy solution to their capital needs. But small business credit cards have unique risks. Savvy entrepreneurs will consider the risks before opening a new line of credit. These are the most important considerations.

 

1. Personal Liability

As a small business owner, you’re personally liable for credit card debt. Business bankruptcy won’t protect you. Whether your business succeeds or fails, you have to pay back the debt.

 

The only way to get rid of small business credit card debt is to declare personal bankruptcy. Bankruptcy destroys your credit history for a few years, and it stays on your report for 7-10 years.

 

Don’t treat a credit card like venture capital. It’s not. You need to repay it.

 

2. Credit Bureau Reporting

Small business cards don’t report to the credit bureaus the same way personal cards do. Depending on which card you choose, if you pay your credit card on time, you may not see any information on your personal report. For most business owners, that is a good thing. It will keep your personal credit utilization low.

 

However, an unpaid bill will show up on your personal credit report. A bill that goes unpaid for 60 days will generally appear on your personal credit report. Some banks offer more generous reporting and some less. You can speak with a banker to determine your bank's reporting standards. Still, your personal credit score can take a hit at the same time that your business credit runs afoul.

 

When you take out a business credit card, put precautions in place to protect yourself. You can limit employee spending, and remove authorized users. You can also set up automatic payments each month.

 

3. Not Protected by the Credit CARD Act

In 2009, Congress passed the Credit CARD Act. The act curtailed predatory lending behaviors, including raising interest rates on existing balances. It also required credit cards to be more transparent about rates and fees.

 

This act does not apply to business credit cards. With a small business card, banks can raise the interest rate on your existing balance at any time. A higher interest rate means a bigger minimum payment and a longer time to pay off your debt. If you’re using your small business credit card to finance something, you could be at risk.

 

Still, many banks will not raise your rate if you have an excellent history of on-time payments. It is simply a risk to understand.

 

Another risk related to the Credit CARD Act is the possibility of double-cycle billing. Business credit cards do not require an interest accrual grace period. This means you may begin accruing interest on purchases right away. We only recommend cards that have a grace period of at least 23 days built in. If you choose a different card, be sure to check for this in the rates and fees schedule.

 

4. Employee Risk

Small business credit cards make it easy to watch employee spending. Still, they pose serious risks. You’re personally liable for any employee spending on a credit card. If you wouldn’t trust an employee with your wallet, don’t trust them with a company card. Employees can rack up debt and leave the company. That leaves you with a bill and no recourse to get the money back.

 

The Best Ways Use Small Business Credit Cards

Once you understand the risks of small business credit cards, you can also understand their best uses. Over 65% of small businesses use credit cards on a regular basis. Some use them for rewards, and some for financing. In fact, close to 10% of all small business financing comes from credit cards.

Here are some of the best ways to use a small business credit card.

 

1. Earning Rewards and Protection

If you pay your small business credit card in full each month, you can earn substantial rewards. Many business credit cards offer perks, including cash back, travel rewards, extended warranties, trip insurance, and more. As a business owner, you can reinvest the rewards into your business or take them for personal use.

 

2. Managing Cash Flow

Cash flow problems destroy small businesses, but credit cards provide short-term working capital. If you have a sales cycle that lasts 30 days or less, a credit card can fund inventory purchases. By the time your bill comes due, you'll have money to pay it off. If you follow this practice, you’ll pay no interest, and you’ll manage your cash flow.

 

Credit cards can simplify employee monitoring, too. Most business credit cards allow you to place individual restrictions on employee use. That means you can limit how much and where employees can use company cards. But your employees may manage to misuse the cards. If they do, you will be stuck with the bill.

 

3. Building Business Credit

Businesses have credit reports just like people. Business credit cards can help you build your score. To build your business credit, hold the card under your employer identification number (EIN).

 

When your EIN establishes a record of paying its bills on time, it makes your business creditworthy. That means you’ll have an easier time finding long-term loans at great rates.

 

63% of all small businesses carry debt. Having a lower interest rate on that debt could make the difference between success and failure. This means every small business should take their credit history seriously from the outset. Small business credit cards may allow you to build that history without paying interest or fees.

 

4. Short-Term Borrowing

Small business credit cards have high interest rates, but they can work for short-term borrowing. If you know that you’ll only carry debt for a few months, you may want to finance something with a credit card.

 

Credit cards do not have origination fees or prepayment penalties. Sometimes this means that they offer the best terms for short-term borrowing. Just be careful when you borrow, and pay it back quickly. High interest debt compounds over time.

 

If possible, borrow on a card with a 0% introductory offer. Remember, failing to pay off 0% interest purchases may result in back interest. Be sure you understand the risks before you borrow.

 

The Worst Ways to Use Small Business Credit Cards

Small business credit cards aren’t always the best tool to get the job done. These are a few times when you should avoid using credit cards.

1. Personal Expenses

Bad accounting sinks many entrepreneurs. Always keep your personal spending off of your business credit cards. This will simplify bookkeeping, and it will keep your business credit utilization low. If you need to borrow for personal expenses, look for a low-interest credit card instead.

 

2. Long-Term Financing

Due to the high interest rates, most businesses should not finance long-term commitments using credit cards. Instead, consider an installment loan from a local credit union or a bank.

 

Applying for an installment loan can be a pain, but the lower interest rate will be worth it in the long run. Keep money in your pocket and avoid small business credit cards for long-term financing.

 

3. Cash Advances

Cash advances are the most expensive way to use a credit card. Banks begin charging interest right away, and the advance has a higher interest rate. Cash advances also have high fees of up to 10% of the amount you withdraw.

 

If you need cash, withdraw it from your business checking account instead, or take out a traditional loan.

 

4. Financing a Failing Business

Do not use credit cards to help a failing business limp along. Too many people will not give up on their idea even when the execution doesn’t work out. Credit card debt will bury a failing company and erode your personal wealth.

 

Remember, negative credit behavior will show up on your personal credit report. Plus, courts hold you liable for all credit card debt your business incurs. Use an objective lens to decide whether you need to shut down your business.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Hannah Rounds
Hannah Rounds |

Hannah Rounds is a writer at MagnifyMoney. You can email Hannah at hannah@magnifymoney.com

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Advertiser Disclosure

Balance Transfer, Best of

Credit Scores That Get Balance Transfer Credit Cards

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

If you’re someone who struggles with credit card debt and high interest rates, a balance transfer might be a way to dig yourself out of indebtedness. There are various balance transfer credit cards that offer long 0% intro APR periods that provide you with ample time to pay off your balance. Depending on your credit score, you may qualify for some of the cards we list below.

Keep in mind that the credit score ranges listed below don’t guarantee that you will be approved for a card simply because you fall within the given credit range. Lenders consider numerous factors when determining eligibility.

Excellent credit

The Amex EveryDay® Credit Card from American Express

APPLY NOW Secured

on American Express’s secure website

Terms Apply

Rates & Fees

Read Full Review

The Amex EveryDay® Credit Card from American Express

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$0 balance transfer fee. Must be requested within 60 days of account opening.
Regular Purchase APR
14.24%-25.24%

Variable

Duration
15 months
Credit required
good-credit
Excellent/Good

Chase Slate<sup>®</sup>

APPLY NOW Secured

on Chase’s secure website

Read Full Review

Chase Slate®

Intro BT APR
0%

Introductory rate

Balance Transfer Fee
$0 intro balance transfer fee when you transfer a balance during the first 60 days your account is open. After 5% of the amount transferred, with a minimum of $5.
Regular Purchase APR
16.24%-24.99%

Variable

Duration
15 months
Credit required
fair-credit

Average

BankAmericard® Credit Card

APPLY NOW Secured

on Bank Of America’s secure website

BankAmericard® Credit Card

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$0 Intro balance transfer fee for the first 60 days your account is open. After that, 3% (min. $10)
Regular Purchase APR
13.24%-23.24%

Variable

Duration
15 months
Credit required
good-credit

Excellent/Good

Discover it<sup>®</sup> - 18 Month Balance Transfer Offer

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® - 18 Month Balance Transfer Offer

Intro BT APR
0%

promotional rate

Balance Transfer Fee
3%
Regular Purchase APR
13.24%-24.24%

Variable

Duration
18 months
Credit required
good-credit

Excellent/Good

Good / Excellent

Citi Simplicity<sup>®</sup> Card - No Late Fees Ever

APPLY NOW Secured

on Citibank’s secure website

Read Full Review

Citi Simplicity® Card - No Late Fees Ever

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 3% of the amount of the transfer, whichever is greater
Regular Purchase APR
15.24%-25.24%

Variable

Duration
18 months
Credit required
good-credit
Excellent/Good

Citi<sup>®</sup> Double Cash Card – 18 month BT offer

APPLY NOW Secured

on Citibank’s secure website

Read Full Review

Citi® Double Cash Card – 18 month BT offer

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 3% of the amount of the transfer, whichever is greater
Regular Purchase APR
14.74%-24.74%

Variable

Duration
18 months
Credit required
good-credit
Excellent/Good

Citi<sup>®</sup> Diamond Preferred<sup>®</sup> Card– 21 Month Balance Transfer Offer

APPLY NOW Secured

on Citibank’s secure website

Read Full Review

Citi® Diamond Preferred® Card– 21 Month Balance Transfer Offer

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 3% of the amount of the transfer, whichever is greater
Regular Purchase APR
14.24%-24.24%

Variable

Duration
21 months
Credit required
good-credit

Excellent/Good

Sphere<sup>®</sup> Credit Card from Santander

APPLY NOW Secured

on Santander’s secure website

Read Full Review

Sphere® Credit Card from Santander

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$10 or 4% of the amount of the transfer, whichever is greater
Regular Purchase APR
13.74%-23.74%

Variable

Duration
18 months
Credit required
fair-credit

Average

Wells Fargo Platinum Visa® Card

APPLY NOW Secured

on Wells Fargo Bank’s secure website

Wells Fargo Platinum Visa® Card

Intro BT APR
0%

promotional rate

Balance Transfer Fee
3% Intro for 18 months, then 5%
Regular Purchase APR
16.40%-26.24%

Variable

Duration
18 months
Credit required
good-credit

Excellent/Good

Good credit

The Amex EveryDay® Credit Card from American Express

APPLY NOW Secured

on American Express’s secure website

Terms Apply

Rates & Fees

Read Full Review

The Amex EveryDay® Credit Card from American Express

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$0 balance transfer fee. Must be requested within 60 days of account opening.
Regular Purchase APR
14.24%-25.24%

Variable

Duration
15 months
Credit required
good-credit
Excellent/Good

Chase Slate<sup>®</sup>

APPLY NOW Secured

on Chase’s secure website

Read Full Review

Chase Slate®

Intro BT APR
0%

Introductory rate

Balance Transfer Fee
$0 intro balance transfer fee when you transfer a balance during the first 60 days your account is open. After 5% of the amount transferred, with a minimum of $5.
Regular Purchase APR
16.24%-24.99%

Variable

Duration
15 months
Credit required
fair-credit

Average

BankAmericard® Credit Card

APPLY NOW Secured

on Bank Of America’s secure website

BankAmericard® Credit Card

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$0 Intro balance transfer fee for the first 60 days your account is open. After that, 3% (min. $10)
Regular Purchase APR
13.24%-23.24%

Variable

Duration
15 months
Credit required
good-credit

Excellent/Good

Discover it<sup>®</sup> - 18 Month Balance Transfer Offer

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® - 18 Month Balance Transfer Offer

Intro BT APR
0%

promotional rate

Balance Transfer Fee
3%
Regular Purchase APR
13.24%-24.24%

Variable

Duration
18 months
Credit required
good-credit

Excellent/Good

Good / Excellent

Citi Simplicity<sup>®</sup> Card - No Late Fees Ever

APPLY NOW Secured

on Citibank’s secure website

Read Full Review

Citi Simplicity® Card - No Late Fees Ever

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 3% of the amount of the transfer, whichever is greater
Regular Purchase APR
15.24%-25.24%

Variable

Duration
18 months
Credit required
good-credit
Excellent/Good

Citi<sup>®</sup> Double Cash Card – 18 month BT offer

APPLY NOW Secured

on Citibank’s secure website

Read Full Review

Citi® Double Cash Card – 18 month BT offer

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 3% of the amount of the transfer, whichever is greater
Regular Purchase APR
14.74%-24.74%

Variable

Duration
18 months
Credit required
good-credit
Excellent/Good

Chase Freedom<sup>®</sup>

APPLY NOW Secured

on Chase’s secure website

Read Full Review

Chase Freedom®

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 5% of the amount of the transfer, whichever is greater
Regular Purchase APR
16.24%-24.99%

Variable

Duration
15 months
Credit required
good-credit

Excellent/Good

Fair credit

We recommend using LendingTree, MagnifyMoney’s parent company, to shop for the best personal loan. With a single online form, you can see results from dozens of lenders and shop around for the best deal. By using LendingTree to look for a personal loan, a soft credit pull is performed, which means your credit score will not be negatively impacted. Here are options for fair credit:

MasterCard Platinum from Aspire FCU

APPLY NOW Secured

on Aspire Federal Credit Union’s secure website

Read Full Review

MasterCard Platinum from Aspire FCU

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 2% of the amount of the transfer, whichever is greater
Regular Purchase APR
9.15%-18.00%

Variable

Duration
6 months
Credit required
fair-credit

Average

LEARN MORE Secured

on LendingTree’s secure website

LendingTree

Loan Amount
up to $35,000
Term
24 to 60 Months
APR Range
5.99%-35.99%
Origination Fee
Varies
Credit Required
Bad or Could be Better/Average/Good/Excellent
Soft Pull
You can get your rate without hurting your score.

Bad credit

*The credit score ranges listed above are for FICO Scores and obtained from Experian.

FAQ

The amount of time your have to complete your transfer will vary by credit card. Many cards require you to complete your transfer between 30 to 60 days from account opening, but check your specific card agreement for specifics. A good rule of thumb is to complete your transfer as soon as possible; the 0% intro APR period often starts from the day your account is opened.

Many cards charge a balance transfer fee ranging from 3 to 5 percent of the amount you transfer. So if you transfer $1,000 to a card with a 3 percent fee, you will accrue a $30 fee and owe $1,030. But be advised: There are cards that have $0 intro transfer fees.

Any remaining balances will accrue interest. The rate depends on your card agreement.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Alexandria White
Alexandria White |

Alexandria White is a writer at MagnifyMoney. You can email Alexandria at alexandria@magnifymoney.com

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Advertiser Disclosure

Best of, Earning Cashback

Best Cash Back Cards for Grocery Shopping in February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

iStock

Shopping for groceries can be a painful experience. There are numerous aisles, thousands of items and long checkout lines to contend with. Then there’s one more blow: watching the dollars add up at the register.

But signing up for a solid cashback credit card can be a good way to earn a percentage of your grocery purchases back and take some of the sting out of that shopping trip.

Here are the best cashback cards for grocery shopping.

Blue Cash Everyday® Card from American Express

Blue Cash Everyday® Card from American Express

Annual fee

$0

Cashback Rate

3% at U.S. supermarkets, on up to $6,000 per year in purchases (then 1%), 2% at U.S. gas stations & select U.S. department stores, 1% on other purchases

Regular Purchase APR

14.24%-25.24%

Variable

APPLY NOW Secured

on American Express’s secure website

Terms Apply

Rates & Fees

The Blue Cash Everyday® Card from American Express, offers 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 2% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases. It comes with a $0 annual fee. This is a great rate for habitual shoppers so long as you spend up to $3,167 a year at supermarkets. If you spend more than that, then you might be better off with the Blue Cash Preferred® Card from American Express, which comes with a $95 annual fee but higher cashback potential.

The Welcome Offer is a $150 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months. This is a good way to maximize your rewards.

Blue Cash Preferred® Card from American Express

Blue Cash Preferred® Card from American Express

Annual fee

$95

Cashback Rate

6% at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 3% at U.S. gas stations and select U.S. department stores, 1% on other purchases

Regular Purchase APR

14.24%-25.24%

Variable

APPLY NOW Secured

on American Express’s secure website

Terms Apply

Rates & Fees

The Blue Cash Preferred® Card from American Express offers the highest cashback rate for big grocery spenders — 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). This card does come with a $95 annual fee and you need to spend $1,584 a year on groceries to break even. If you spend $3,167 a year ($264 a month) or more on groceries you will benefit from this card more than the Blue Cash Everyday® Card from American Express. You’ll also earn a high 3% cash back at U.S. gas stations and select U.S. department stores and 1% back on other purchases. There’s an added Welcome Offer: $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

Bank of America® Cash Rewards Credit Card

Bank of America<sup>®</sup> Cash Rewards Credit Card

Annual fee

$0

Cashback Rate

1% cash back on every purchase, 2% at grocery stores and wholesale clubs, and 3% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter

Regular Purchase APR

14.24%-24.24%

Variable

APPLY NOW Secured

on Bank Of America’s secure website

The Bank of America® Cash Rewards card offers a decent cashback rate for groceries, however it is lower than what you’ll find with competing cards. You’ll earn 2% cash back at grocery stores and wholesale clubs and 3% on gas for the first $2,500 in combined grocery/wholesale club/gas purchases each quarter. All other spending will earn 1%. There is no annual fee and you can redeem your cash back directly into a Bank of America checking or saving account for a 10% bonus. People who will benefit most from this card are those who are Bank of America Preferred Rewards clients. As a Preferred Rewards client, you could increase your bonus to 25-75%, making your grocery cash back an effective 2.5-3.5%. If you apply online and spend $500 in the first 90 days, you also receive a $150 online cash rewards bonus.

Huntington Voice Credit Card®

Huntington Voice Credit Card®

Annual fee

$0 For First Year

$0 Ongoing

Rewards

3X points in one of 13 categories (capped at $2,000 each quarter or 6000 points), and all other purchases earn 1X points

Regular Purchase APR

13.24%-27.24%

APPLY NOW Secured

on Huntington National Bank’s secure website

The Huntington Voice Credit Card® has no annual fee and earns you 3X points in one of 13 categories. Simply choose to earn 3X points at grocery stores once you open your account. The rewards you earn at the 3X rate are capped at $2,000 each quarter or 6000 points, with all other purchases earning 1X points. You also have the freedom to change your 3X category every quarter to suit your spending. But be aware that if you switch from grocery stores to another category, you’ll only earn 1X points on grocery spending. Points can be redeemed for cash and 1 point equals $0.01, therefore 5,000 points is equal to $50 cash rewards.

Which card is the right fit for me?

With numerous credit cards available to help maximize your grocery rewards, it can be confusing to know which to choose. Some cards provide unlimited rewards at a high rate, while most have caps on grocery spending.

The table below breaks down which grocery card may be a good fit for you when factoring in annual grocery spending, cashback rate and annual fee. (Sign-on bonuses are not reflected.) Keep in mind: This only factors in spending on grocery purchases and doesn’t consider if you
spend in other categories or at the other cashback rates.

Here are a few key takeaways:

  • If you spend about $3,000 a year on groceries, you will benefit more from the Blue Cash Everyday® Card from American Express or the Huntington Voice Credit Card®.
  • If you spend more than $4,000 a year, you will benefit more from the Blue Cash Preferred® Card from American Express.
  • The Bank of America® Cash Rewards Credit Card earns you subpar cash back unless you have $100,000 in a Bank of America checking or savings account.

  

Card

Huntington Voice Credit Card®

Blue Cash Everyday® Card from American Express

Blue Cash Preferred® Card from American Express

Bank of America® Cash Rewards Credit Card: without BofA checking/
savings

Bank of America® Cash Rewards Credit Card: with $100,000 in BofA checking/
savings

Spending

$1,000

$30

$30

-$35

$20

$35

$2,000

$60

$60

$25

$40

$70

$3,000

$90

$90

$85

$60

$105

$4,000

$120

$120

$145

$80

$140

$5,000

$150

$150

$205

$100

$175

$6,000

$180

$180

$265

$120

$210

$7,000

$210

$190

$275

$140

$245

$8,000

$240

$200

$285

$160

$280

$9,000

$250

$210

$295

$180

$315

$10,000

$260

$220

$305

$200

$350

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Alexandria White
Alexandria White |

Alexandria White is a writer at MagnifyMoney. You can email Alexandria at alexandria@magnifymoney.com

TAGS: ,