Advertiser Disclosure

Earning Cashback, Reviews

Chase Freedom Review: Is 5% Easy?

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.

Advertiser Disclosure

If you’re on the hunt for a new rewards card, you’ve probably come across the Chase Freedom® card during your search. The Chase Freedom® card offers 1% cash back on all purchases and the opportunity to earn additional cash back if you spend money within revolving quarterly bonus categories.

Chase Freedom<sup>®</sup>

APPLY NOW Secured

on Chase’s secure website

Chase Freedom®

Annual fee
$0
Cashback Rate
5% on certain categories, 1% on everything else
APR
15.99%-24.74%

Variable

Credit required
good-credit

Excellent/Good

How to Earn Cash Back with the Chase Freedom® Card

You automatically earn 1% cash back on all purchases as soon as you start using the card.

Every quarter, Chase introduces bonus categories where you can earn 5% cash back. In order to earn 5%, you need to activate the bonus category every quarter. If you don’t activate, you will only earn at the 1% cash back rate. You can only earn 5% cash back on up to $1,500 of spending every quarter.

Here are the current 5% bonus categories for 2017:

October – December

Walmart and Department Stores

How to Activate the Quarterly 5% Cash Back Categories

Now that you know the type of spending that will earn you 5% cash back, let’s touch on how it all works.

To earn 5% cash back each quarter, you must activate the quarterly bonus categories before the deadline. The activation deadline appears on the cash back calendar.

There are six easy ways to activate. Just choose the one that’s best for you.

  1. Online – Once you are a Chase Freedom® cardholder, you can activate online at the Ultimate Rewards portal.
  2. Text message – Sign up for Chase Freedom® 5% text reminders at online. You’ll get a text reminding you when it’s time to activate.
  3. Email – You can also sign up for email reminders from Chase.
  4. Phone – Call the number on the back of your card to let one of the specialists activate your 5% cash back.
  5. Chase location – Visit any Chase Bank and see a personal banker.
  6. ATM – Chase checking customers can activate their 5% cash back with one click via the ATM while making a cash withdrawal.

The base 1% cash back will always apply first to purchases on your statement. Each quarter you activate, spending that qualifies for an extra 4% cash back will appear in a separate section broken down by category.

What we like about the card

Up to 5% cash back if you are on top of things.

It’s hard to beat 5% back on spending you’re already doing, and if you pay attention and enroll in the categories every quarter, you can earn up to $300 in cash back a year compared to the base 1% cash back you earn on all purchases.

A good selection of 5% categories.

Chase comes up with fresh categories that sometimes include tie-ins with big retailers like Amazon so it’s not hard to find a way to earn 5% on your spending throughout the year.

You can pair it up with other Chase rewards.

If you have another card that earns Ultimate Rewards points, like the Chase Sapphire Preferred® card, you can combine the rewards you earn from the Freedom with your other Ultimate Rewards points anytime.

What we don’t like about the card

Need to enroll manually.

There’s no automatic enrollment in the 5% categories, so you need to remember to take care of that every quarter. Chase lets you sign up for alerts so it’s not hard to get reminded, and you can enroll right from your phone. This is a card for maximizers, not people who want to set it and forget it.

A cap on 5% earning.

You only earn 5% back on up to $1,500 worth of spending in the designated categories each quarter. That’s $1,500 total across all the categories, not $1,500 for each category.

Right off the bat, you can probably tell a card with changing quarterly categories like the Chase Freedom® card isn’t for the passive cash back rewards earner. There’s a lot involved here.

You need to activate the 5% cash back bonus each quarter. The cash back categories can change each year. And you must be a mindful spender who remembers when to swipe the Chase Freedom® card to earn 5% back.

There’s a fair amount of fine print that dictates what will and won’t qualify for 5% cash back. As the new categories roll out, you’ll want to pay close attention to the type of purchases that are eligible.

A noticeable category from 2016 that’s not yet on the 2017 calendar is wholesale clubs. The category may be included later, but it’s a notable exclusion that may impact wholesale club shoppers who previously relied on the Chase Freedom® card for cash back on that spending.

How Much Are Chase Ultimate Rewards® Points Worth?

The Chase Freedom® card is part of the Chase Ultimate Rewards program, so the Ultimate Rewards portal is where you go to manage and redeem points. Cash back earned from the Chase Freedom® card is tracked in Ultimate Rewards® points – $1 in cash back equals 100 points.

When you redeem points for rewards, for the most part, 100 points also equals $1 (and 1 point equals $0.01).

The true value of points earned varies slightly. Here’s the breakdown:

Statement credit or cash deposit redemption: 100 points = $1

Gift card redemption: 100 points = $1

Travel redemption: 100 points = $1; you can use a combination of points and your credit card for bookings

Amazon product redemption: Below is a sample conversion, but it’s subject to change

If you do choose the Chase Freedom® card, make sure to redeem your points in a way that you’ll get the most value. Choosing Amazon products may not be the way to go.

Combine with a Chase Sapphire® Credit Card

If you have a Chase Sapphire Preferred® or Chase Sapphire ReserveSM credit card, you can combine your Freedom Ultimate Rewards® points with your Sapphire Ultimate Reward®s points. That means you would have all of the redemption opportunities associated with the popular Sapphire cards, including the ability to transfer your points to frequent flier programs like United and Southwest.

How to Qualify for the Chase Freedom Card®

You need to have good or excellent credit in order to be approved for the credit card. In addition to having a good credit score, Chase will consider your employment status and income to ensure that you would be able to afford any new debt.

Overview of Card Benefits

For benefits and protections, the Chase Freedom® card offers:

  • Zero liability protection means you won’t be held responsible for unauthorized charges made with your card or account information. This is a fairly common credit card benefit.
  • Chip-enabled card. Just one warning: this is a chip and signature card (and not a chip and pin card). While that should be fine for all of your spending in America, it might make using the card overseas a bit more difficult when only chip-and-pin is accepted.
  • Purchase protection covers your new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.
  • Price protection provides that if a card purchase you made in the U.S. is advertised for less in print or online within 90 days, you can be reimbursed the difference up to $500 per item, $2,500 per year.
  • Auto rental collision damage waiver means you can decline the rental company’s collision insurance and charge the entire rental cost to your card. Coverage is provided for theft and collision damage for most cars in the U.S. and abroad. In the U.S., coverage is secondary to your personal insurance.

Alternatives to Chase Freedom

How does Chase Freedom® stack up versus the competition? It really depends upon how you use your card. 5% cash back is one of the highest rates on the market, but you need to activate and spend in that category to earn rewards. Otherwise you would be earning a not very exciting 1%.

We will now compare Chase Freedom® to three other types of cash back credit cards:

  • Discover it® Cashback Match™ – a credit card that offers rich cash back rewards
  • Flat rate cash back credit cards, where you can earn 2%
  • Bonus category cards

Discover it® Cashback Match™

There are a lot of similarities between Discover it® Cashback Match™ and Chase Freedom®. Both cards have no annual fee and pay a base cash back rate of 1%. Both cards offer 5% cash back in rotating categories. Both cards require you to opt in to the 5% cash back categories and cap the 5% cash back to the first $1,500 of spend. But there are two areas where these cards are different.

The first big difference is the intro bonus. With Chase Freedom®, you can earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening. Discover, on the other hand, will match all of the cash back earned during your first year, automatically. There is no cap to how much you can earn. If you are a big spender (especially in the bonus categories), you would earn much more during Year 1 with Discover. Here is a comparison of first year earnings:

  • You spend $1,000 a month in 1% categories
  • You spend $500 a month in 5% categories
  • The sign-on bonus at Chase would be $150
  • The sign-on bonus at Discover, at the end of the first year, would be $420

While you get the intro bonus much quicker at Chase – for big spenders, it pays to wait until the end of Year 1 at Discover.

The second big difference is the categories. Each quarter Discover and Chase announce their bonus categories, and they can be different. At Discover, the 5% categories until December 2017 are Amazon.com and Target.

If you are a big spender, the Discover it® Cashback Match™ first year bonus makes it a good choice. If you are constantly looking for good deals, having both cards in your wallet to take advantage of the bonus categories might be a good choice.

Flat Rate Cash Back Cards

If opting into bonus categories every month sounds painful, you might want to consider a card that pays a flat rate on all of your spending. Whereas Chase Freedom® offers a combination of 5% on bonus categories and 1% on everything else – you can get 2% flat cash back with some credit cards.

Citi® Double Cash

Citi® Double Cash pays 1% cash back as you spend and 1% cash back as you pay your bill. If you pay your statement balance in full every month and claim the cash back as a check or deposit into your checking account, you can earn double cash back.

Alliant Cashback Visa

Another new option is from Alliant, a credit union that anyone can join. With the Alliant Cashback Visa Signature card, you can earn 3% cash back during the first year (with no annual fee) and then 2.5% cash back thereafter. Just be warned: after the first year, there is a $59 annual fee. If you spend more than $1,000 a month on the card, the Alliant card will be a better deal than Citi Double Cash.

Bonus Category Cash Back Credit Cards

If you spend a lot of money in a single category every month, you might want to consider a credit card that pays a higher rate on just that category. For example, if you spend a lot of money on gas, you can find a card that pays 5% cash back on gas. If groceries are your biggest expense, you can find a card with 6% on groceries. You can find the best cash back credit cards by category here.

Who the card is best for

Cash back credit cards are great ways to put a little extra money in your pocket. Just remember to pay the statement balance in full and on time every month. Interest and late fees can quickly eat away at the cash back that you earn.

Chase Freedom® is a good choice for people who are willing to opt in to the bonus categories each quarter and actually spend a lot of money in the bonus categories. If you don’t take advantage of the generous 5% bonus categories, you will be left with a card paying only 1%, which is not very exciting.

Rewards Cards: Frequently Asked Questions

The Ultimate Rewards® points you earn from the Chase Freedom® don’t expire as long as you keep the account open. If you close your account, you will forfeit your points, though if you keep another Chase card that earns Ultimate Rewards® open you can transfer your points to that account before you close your Chase Freedom®, and keep them alive.

Credit card companies rely on merchant codes provided by payment networks to determine the category of a purchase. Some stores might have a merchant code that doesn’t fit what you might think the purchase will be. For example, buying groceries at a Walmart isn’t a grocery purchase because Walmart doesn’t code itself as a grocery store. There’s no way to know for sure in advance what category a merchant falls under, so be aware of that before relying on the cash back for a category from a merchant you haven’t shopped at before.

Don’t let those cash back promises pressure you into spending more than you can afford. If you don’t pay your statement balance in full each month, you could get slapped with sky-high interest charges. That would totally negate any benefit you might get from earning cash back. Cash back cards are only valuable if you can pay your bill in full and capture the entirety of your cash back rewards.

It depends on the card. Some cards allow you redeem cash back dollar for dollar as a statement credit, which can help lower your total balance. Just keep in mind that applying cash back to your card statement does not count as a monthly payment. Other cards will increase the value of your cash back if you spend on certain categories, like travel. Review your terms carefully to be sure you’re getting the most bang for your buck.

Find the card that fits your day-to-day spending needs best, beyond the flashy sign-up bonus offers and cash back promises. Pay your bill in full each month (spend only what you can afford to pay off).

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.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor at taylor@magnifymoney.com

TAGS:

Advertiser Disclosure

Best of, Earning Cashback

10 Best 5% Cash Back Credit Cards for December 2017

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.

Advertiser Disclosure

Cash Back Credit Cards for 2017
iStock

Credit card reward programs come in so many varieties that it can be difficult find the best cards for your spending habits. A basic, flat-rate card that earns you a certain percentage cash back on all purchases is probably the simplest bet out there. Typically, rates range from 1-2%. Not shabby, especially if you use that card exclusively. But it’s not exactly something to call home about either.

There are even better cash back rewards offerings out there, some as high as 5%. But with these high rewards cards, there’s almost always a catch. Most of the cards don’t offer 5% cash back across the board. Every few months, they pick a few select shopping categories that can earn 5% cash back. Once those few months are up, the categories change. For example, a card could offer 5% cash back on groceries, gas and airfare from January to March, then switch those categories to whole sale stores, restaurants and gyms from April to June.

Additionally, there are sometimes caps on how much of your spending can qualify for the 5% reward. So if the cap is $1,500, for example, everything past that amount won’t qualify.

The key to maximizing these great cash back card offers is to find the cards that offer cash back in categories you use the most. We can help there.

We dug around and found 10 cards that offer at least 5% cash back in some of the most common spending categories including: gas, groceries and entertainment.

Access to Bonus 5% Categories: Chase Freedom®

Chase Freedom<sup>®</sup>

Annual fee

$0

Cashback Rate

5% on certain categories, 1% on everything else

APR

15.99%-24.74%

Variable

APPLY NOW Secured

on Chase’s secure website

How it works: The Chase Freedom® card offers 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. This translates to a maximum return of $75 per quarter on the 5% bonus category. You earn an unlimited 1% cash back on all other purchases outside of the bonus categories. You can also earn a $150 Bonus $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.

The 5% category changes every quarter.

Another area where the Chase Freedom® shines is in how it allows customers to redeem their rewards. The cash you’ve earned converts into Chase Ultimate Rewards® points. Every $1 equals 100 points. You can easily use the cash and apply it to your monthly statement. Or you can convert them into points and use them on travel, gift cards, merchandise, and other services through the Chase Freedom® rewards dashboard.

They make it super simple to redeem points on the go through the Chase Freedom® Mobile app. While you’re shopping, you can pick the merchant from the list on of eligible merchants on your app (popular ones include Nike, Regal Cinemas, Lowe’s, Starbucks and Best Buy). Then tell the app how much cash you want to use. You’ll get a custom e-gift card that you can present at checkout to pay for your purchases.

chasefreedommobileapp

Plus, you can stack the points earned on your Chase Freedom® card with your points on other Chase rewards cards, like the Chase Sapphire Preferred® Card. That just increases the spending power of your points.

The Fine Print: You can’t beat 5% cash back for your spending, especially with no annual fee. The downside is you have to remember to activate the category each quarter by subscribing to the program. But, if you set a reminder to do so, you can earn money without too much effort.

The Original 5% Cash Back Card: Discover it® Cashback Match™

Discover it® - Cashback Match<sup>TM</sup>

Annual fee

$0

Cashback Rate

5% on certain categories, 1% on everything else

APR

11.99%-23.99%

Variable

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

How it works: With the Discover it® Cashback Match™ you earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate. ($1,500 of spend). You need to activate every quarter to get the 5% cash back rate. All other purchases get 1% cash back.

Earn 5% cash back in these categories through the end of 2017:

  • January to March: Gas stations, ground transportation, and wholesale clubs.
  • April to June: Home improvement stores and wholesale clubs.
  • July to September: Restaurants.
  • October to December: Amazon.com and Target

Using your rewards: Cash back from the Discover it® Cashback Match™ is tracked in dollars and cents. You can immediately apply your cash back earnings to your bank account or as a statement credit toward your bill (note: your minimum payment will still be due).There’s also no minimum rewards value if you want to redeem them for charitable donations.

The fine print: You can only earn 5% cash back on up to $1,500 of spend each quarter you activate. Once you’ve hit that cap, you’ll earn 1% on the rest of your purchases. This adds up to a $75 maximum return on your rotating bonus categories. There is no annual fee.

Extra perks: As an Intro Offer, Discover will match ALL the cash back earned at the end of your first year, automatically..

Best for Gas and Restaurants in 2017: Nusenda Visa Platinum Cash Rewards

Cash Rewards Card from Nusenda CU

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% in revolving categories up to $1,500 and 1% on all other purchases

APR

12.00%-14.00%

APPLY NOW Secured

on Nusenda ’s secure website

How it works: The Nusenda Visa Platinum Cash Rewards card gives 5% in revolving categories up to $1,500 and 1% on all other purchases. Notably, it offers both gas and restaurants in two quarters. As a bonus in the first 90 days, new cardholders will earn 2% instead of just 1% on purchases outside of the 5% category.

Earn 5% cash back in these categories through the end of 2017:

  • January to March: Groceries and gas expenses.
  • April to June: Movies, restaurants and home improvement.
  • July to September: Gas and education expenses.
  • October to December: Restaurants, hotels, and airfares.

Using your rewards: This offer stands out as a decent companion card for maximizing cash back. When coupled with the Chase Freedom or Discover it, you can maximize cash back in different areas during one quarter.

For an example, you can turn to the Nusenda Visa Platinum Cash Rewards card for 5% on gas and school expenses in Q3. Then pull out the Discover it for home improvement purchases for another 5% the same quarter.

The Fine Print: Once again, you’ll need to monitor your spending habits to get the most cash back from a revolving category card. If you choose to use this card along with another one, a good practice would be labeling the cards in your wallet to ensure you use the right one for the right purchases in a given quarter.

One final caveat: While there is no annual fee, Nusenda is a credit union, so you will have to go through the process of applying for membership.

Pick Your Own Cash Back Categories: U.S. Bank Cash+ Visa Signature

U.S. Bank Cash+™ Visa Signature® Credit Card

Annual fee

$0

Cashback Rate

5% on your first $2,000 in combined eligible net purchases each quarter on two categories you choose, 2% on one everyday category, 1% on all other eligible net purchases

APR

14.99%-23.99%

APPLY NOW Secured

on US Bank’s secure website

How it works: The U.S Bank Cash+ card has a revolving cash back program that’s unique in comparison to the others above because you get options.

Earning cash back: You can earn 5% cash back in two categories of your choosing each quarter limited to the first $2,000 of spend. Then you can choose another category with no cap to earn 2% cash back. On all other purchases, you earn 1% cash back.

The categories for an unlimited 2% cash back (choose one each quarter) are:

  • Gas stations
  • Restaurants
  • Grocery stores

The categories for 5% cash back up to $2,000 (choose two each quarter) are:

  • Select clothing stores
  • Cell phones
  • Electronic stores
  • Gyms and fitness centers
  • Bookstores
  • Fast food restaurants
  • Sporting goods stores
  • Department stores
  • Furniture stores
  • Movie theaters

Using your rewards: You can redeem cash back for gift cards, statement credit or a deposit into a U.S. Bank Savings, Checking or Money Market account. The first time you redeem $100 in cash back in a single transaction, you get a $25 Cash+ Bonus.

The Fine Print: Same opt-in revolving category spiel applies here except you must also remember to choose your categories. There is no annual fee. The U.S. Bank Cash+ is another good example of a card you may want to couple with another that gives you higher cash back for necessities i.e. groceries. But, for diverse spenders who can benefit from the 5% category options, the U.S. Bank Cash+ is worth considering.

Ideal for Typical Business Expenses: SimplyCash® Plus Business Credit Card from American Express

How it works: The SimplyCash® Plus Business Credit Card* gives 5% cash back on office supply and wireless telephone provider services. You also get 3% cash back on the category of your choice from a list of eight**, including:

  • Airfare purchased directly from airlines
  • Hotel rooms purchased directly from hotels
  • Car rentals purchased from select car rental companies
  • U.S. gas stations
  • U.S. restaurants
  • U.S. purchases for advertising in select media
  • U.S. purchases for shipping
  • U.S. computer hardware, software, and cloud computing purchases made directly from select providers

**Terms and Conditions Apply.

Earning cash back: You have to choose your 3% category within two months of signing. If you don’t choose one, the default is gas stations. The combined annual cap for the 5% and 3% categories is $50,000. On all other purchases, you get 1% cash back.

Using your rewards: Cash back will appear as a credit automatically on your statement. This American Express card has no annual fee, so you’ll earn cash back with a generous cap at no cost (see Rates & Fees).

The Fine Print: You must remember to choose your 3% cash back category every year. If you select one this year and forget to do so next year, you’ll be locked into the same 3% category for another 12 months until you make a switch. There is no annual fee.

*The information related to the SimplyCash® Plus Business Credit Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

5% Cash Back for the Amazon Prime Enthusiast: Amazon Prime Rewards Visa® Signature Card

Amazon Prime Rewards Visa® Signature Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% back on all Amazon purchases, 2% back at restaurants, gas stations, and drugstores, 1% back on other purchases

APR

15.24%-23.24%

Variable

APPLY NOW Secured

on Amazon’s secure website

How it works: The Amazon Prime Rewards Visa® Signature Card is open to Amazon Prime Members, so it’s somewhat exclusive. The perks of this card is 5% cash back on eligible purchases made on Amazon.com. Buying items on other merchant websites that have the Amazon Prime Rewards Visa® Signature Card payment option enabled will not earn you 5% cash back.

Using your rewards: The cash back you rack up will apply as a credit to your statement.

Do the math: If you’re not already an Amazon Prime Member, it’s probably not worth signing up to become one just for the card unless you intend to spend big bucks on the site. You need to spend $1,980 per year at Amazon.com for the 5% cash back to cover the $99 annual membership fee.

The Fine Print: The fine print of what you can and can’t buy to earn 5% is the only gotcha here. But, if you shop on Amazon.com often and stick to the rules, you’ll see a nice return from this card. There’s not an annual fee for the card, but you must be an Amazon Prime member, which costs $99 a year.

Good Fit for the Regular Target Shopper: Target REDcard

Target REDcard™ Credit Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% at Target & Target.com

APR

23.90%

Variable

APPLY NOW Secured

on Target’s secure website

How it works: For Target shoppers, there’s the REDcard. It gives you a 5% discount on your purchases at Target (minus any other discounts or promotions). Purchases that won’t earn 5% cash back include:

  • Target eye exams
  • Target gift cards and prepaid cards
  • Previous purchases
  • Target credit account payments, Target Debit Card cash back and cash advances on the Target MasterCard
  • Gift wrap and shipping and handling on Target.com purchases
  • Wireless protection program purchases and deposits required by mobile carrier

Earning and using rewards: The program is pretty simple as far as how Target gives you money back. Your 5% will apply to eligible purchases in your shopping cart at checkout. In addition to 5% cash back, this program includes free shipping from Target.com and 30 extra days for returns.

The Fine Print: No red flags with the REDcard other than watching out for the purchases excluded from cash back listed above. For faithful Target shoppers, this no annual fee card with the 5% discount may be a no brainer.

Most Straightforward 5% Rewards Card Just for Gas: Fort Knox Visa Platinum Card

Fort Knox Federal Credit Union Visa® Platinum Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

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

APR

10.25%-15.25%

Variable

APPLY NOW Secured

on Fort Knox Federal’s secure website

How it works: The Visa Platinum Card from the Fort Knox Credit Union makes our list with the most straightforward, no cap rewards program. You can earn an unlimited 5% cash back on gas and 1% cash back on all other purchases.

Using your rewards: Cash back will appear on your statement as a credit.

The Fine Print: This rewards program is offered by a credit union in Kentucky. You’ll have to take a few extra steps to qualify for membership. If you don’t live in Kentucky or have family in Kentucky, membership is open to anyone that joins the American Consumer Council. There is no annual fee for the card, but you will need to become a member of the credit union.

6% Cash Back for the Heavy Grocery Shopper: Blue Cash Preferred® Card from American Express

How it works: The Blue Cash Preferred® Card from American Express is our top pick for cardholders that want to maximize cash back on groceries. With this card, you get 6% cash back at U.S. supermarkets excluding superstores and warehouses up to $6,000 per year. You also earn 3% cash back at U.S. gas stations and select U.S. department stores and 1% cash back on everything else. Terms Apply.

Welcome offer: $200 statement credit after you spend $1000 in purchases on your new Card within the first 3 months.

Using cash back: Cash back builds as Rewards Dollars you can redeem for statement credit in increments of $25.

The Fine Print: There is an annual fee of $95 per year. See Rates & Fees.

Only Advantageous for Military Service Members Living On-Base: USAA Cashback Rewards Plus American Express® Card

USAA Cashback Rewards Plus American Express® Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% cash back on gas and military base purchases on your first $3,000 in annual purchases in these purchase categories combined (After that, earn 1% for the remainder of the year), 2% on groceries on your first $3,000 in annual purchases in these purchase categories combined (After that, earn 1% for the remainder of the year), 1% on all other purchases

APR

12.90%-26.90%

APPLY NOW Secured

on USAA Bank’s secure website

How it works: The USAA Cashback Rewards Plus American Express® Card gives 5% cash back on gas and military base purchases including commissaries, exchanges, and shopettes. The cap for the 5% category is $3,000 per year.

Earning cash back: In addition to the 5% back on gas and military base purchases, you’ll also earn 2% cash back on groceries up to $3,000 annually. On everything else, there’s 1% cash back. You can redeem cash back in increments of $1 through the USAA Rewards Service Center online or over the phone.

The Fine Print: The USAA Cashback Rewards Plus American Express® Card is light on the fine print. Just remember, the 5% category cap is $3,000 for combined gas and military base purchases per year and not per quarter. There is no annual fee.

The Key to Earning from Any Cash Back Card

In closing, regardless of which cash back card you choose, be sure to pay off your bill in full each month. That’s one underlying trap of any card rewards program. If you carry a balance over time, adding interest into the equation means you may end up paying the credit card company more than what you’re making in cash back.

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.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor at taylor@magnifymoney.com

TAGS: ,

Advertiser Disclosure

Best of, Earning Cashback

Best Cash Back Cards for Grocery Shopping in December 2017

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.

Advertiser Disclosure

groceries_lg

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

APR

13.99%-24.99%

Variable

APPLY NOW Secured

on American Express Bank’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%) 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.

In addition to a high cash back rate on groceries, you earn 2% cash back at U.S. gas stations and select U.S. department stores, and 1% on other purchases. The Welcome Offer of a $150 statement credit after you spend $1000 in purchases on your new Card within the first 3 months 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

APR

13.99%-24.99%

Variable

APPLY NOW Secured

on American Express Bank’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 $1000 in purchases on your new Card within the first 3 months.

Bank of America® Cash Rewards Credit Card

Bank of America® 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

APR

13.99%-23.99%

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

APR

13.99%-26.99%

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: ,

Advertiser Disclosure

Best of, Earning Cashback

The Best Cash Back Credit Cards for Every Category – 3% and More in December 2017

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.

Advertiser Disclosure

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® Double Cash Card – 18 month BT offer

Annual fee

$0*

Cashback Rate

1% when you buy, 1% when you pay

APR

14.49%-24.49%

Variable

APPLY NOW Secured

on Citibank’s secure website

Fidelity® Rewards Visa Signature® Card

Annual fee

$0

Cashback Rate

2% on all spend

APR

14.99%

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

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

APR

13.24%-23.24%

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

APR

9.74%-17.99%

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% back on the first $6,000 each year. 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® Platinum Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

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

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

APR

15.99%-24.74%

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 2017

  • 5%: Nusenda Credit Union Cash Rewards – Oct – Dec 2017 – 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

5% Quarterly Category in 2017

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.

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 2017

  • 5%: Citi Dividend – October – December 2017 – up to $300 total cash back on card (no longer open to new applicants)

Discount stores

Drug stores

With limits

Education

Quarterly category in 2017

  • 5%: Nusenda Credit Union Cash Rewards – July – Sept 2017 – 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 2017

  • 5%: (Best Buy only) Citi Dividend – October – December 2017 – 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 2017

  • 5%: Citi Dividend – January – March 2017 – up to $300 total cash back on card (no longer open to new applicants)

Gas

Unlimited

With limits

Quarterly category in 2017

Supermarket Spending

Unlimited

With limits

Quarterly category in 2017

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 2017

Hotels

Unlimited

With limits

Quarterly category in 2017

  • 5% – Nusenda Credit Union Cash Rewards – Oct – Dec 2017 – up to $1,500
  • 5%: (Hilton Hotels only) Citi Dividend – July – September 2017 – up to $300 total cash back on card (no longer open to new applicants)

Movie Theaters

With Limits

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

Quarterly category in 2017

Office Supply Stores

With limits

Restaurants

Unlimited

With Limits

Quarterly category in 2017

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

TAGS: , ,

Advertiser Disclosure

Best of, Earning Cashback

Best Cash Back Sign-On Bonus Credit Cards of December 2017

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.

Advertiser Disclosure

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 15.99%, 21.74% or 24.74%.
  • 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

Wells Fargo Propel 365 American Express® Card

  • You have to spend $3,000 in the first 3 months to receive the 20,000 bonus points
  • There’s an annual $45 fee, which is waived for the first year
  • You earn 3x the points at U.S. gas stations, 2x the points at U.S. restaurants, and 1x the points on all other net 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.
  • You can get an additional annual bonus of 10%, 25%, or 50% on non-bonus rewards points if you have a qualifying consumer Wells Fargo Checking or Savings Account
  • There’s an introductory APR of 0% for the first 12 months on balance transfers and purchases, and after that, the variable APR ranges from 14.99% – 22.99%
  • There are no foreign currency conversion fees
  • There’s a late and returned payment fee up to $37
  • Up to $100 off qualifying air + hotel packages at destinations worldwide

This card is a great option if you’re already a customer with Wells Fargo because of the relationship bonus offered.

Wells Fargo Propel 365 American Express® Card

APPLY NOW Secured

on Wells Fargo Bank’s secure website

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

TAGS: ,

Advertiser Disclosure

Earning Cashback

Best Rewards Credit Cards: Double miles, 5% cash, and more – December 2017

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.

Advertiser Disclosure

Rewards Credit Cards Illustration

Looking for a rewards credit card to earn cash or travel from the spending you’re already doing? There are hundreds of rewards cards out there, and we’ve combed through our database to hand pick the very best rewards credit cards, most with no annual fee.

If you’re just looking for one card to earn cash rewards, your best bet is to use our calculator to get a personalized recommendation based on your spending habits. Otherwise, read on for our top picks. This guide will help you understand whether you are ready to earn rewards, and whether earning cash back or miles for travel rewards is your best bet.

1. Cash back rewards credit cards

Start here: No annual fee, 2x cash

The most important recommendation we can make is to start with either the Citi® Double Cash Card or Fidelity Rewards Visa Signature in your wallet.

Both earn double cash on everything you purchase and pay off with no limits, and no annual fee.

If you prefer MasterCard or have less than perfect credit, go with the Double Cash. If you prefer Visa or plan to use the card abroad, go with the Fidelity (it has a low 1% foreign transaction fee).

If your credit is fair or you have no credit history, then consider one of these options with a slightly lower cash back rate.

Once you have one of these base cards, you can look at our other favorite cards to earn 3%, or even 5% on some of your other spending. You can scroll down this page to see our top picks, or go to our full directory of dozens of cards that earn 3% or better cash back in many categories.

 

Citi® Double Cash Card – 18 month BT offer

Easy double cash rewards

The Citi® Double Cash Card offers easy double cash rewards with no annual fee.

You get 1% cash back when you make a purchase, and another 1% when you pay your bill, so it’s easy to earn double cash on everything you buy with the card.

And since there’s no annual fee, you don’t have to miss out on the seductive 5% cash back you sometimes see on other cards. Just keep the Citi® Double Cash Card in your wallet for most of your spending, and if you have a card that earns 5% in special categories, just use it for that spending, so you can really rack up the cash rewards.

Transparency Score
Transparency Score
  • Earning cash back is simple – there are no special categories or limits
  • There is a fee on foreign transactions, so only use this card for purchases in the U.S.

Tip: You need to earn or use rewards at least once every 12 months, or else your rewards will expire.

APPLY NOW Secured

on Citibank’s secure website

Alliant Cashback Visa® Signature Card

2.5% cash back with an annual fee

If you’re willing to pay a $59 annual fee, this card offers a big 2.5% unlimited cash back on everything you spend. Alliant is a credit union anyone can join online and you don’t need to be a member to apply. There’s also a special 3% cash back rate for your first year, with no annual fee either. If you travel abroad there are no foreign transaction fees to worry about. So is the fee worth it? Basically, if you spend more than $1,000 a month on the card, you’ll earn more than the annual fee in cash back compared to the Citi® Double Cash Card.

Transparency Score
Transparency Score
  • Good disclosure: they tell you what they need to know
  • Simple introductory bonus
  • Impossible to know your interest rate until you apply

Tip: Be aware this card is only for people who are eligible for high credit limits, so it’s harder to get than the Citi® Double Cash Card. You’ll need excellent credit and a good income to qualify.

APPLY NOW Secured

on Alliant Credit Union’s secure website

Up to 5% rewards with a little effort

Once you have a double cash rewards card in your wallet, you’re ready to start considering cards that earn 5% cash back in special categories. If you’re really serious about earning the most cash from your spending, you can get all of these rotating category cards and leverage the fact they earn 5% in different categories. Then, use your base double cash rewards card for everything else.

All of these cards have a limit on how much cash back you can earn at 5%, so you’ll want to pay attention to that, and some of them require you to enroll each quarter to activate your 5% cash back, so if you miss the deadline you’ll earn just 1%.

Chase Freedom<sup>®</sup>

Our pick for small spenders & travelers

With Chase Freedom® you can earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases.

If you spend the full $1,500 in bonus categories each quarter all year long, you could earn $300 cash back a year from your bonus category spending.

A good introductory bonus for small spenders. Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening. That’s like earning 30% cash back on your first $500 in purchases with the card and gets you off to a fast start.

Boost your travel rewards. If you have a Chase Sapphire Preferred® Card for travel rewards, you can combine your points with those from the Chase Freedom®, letting you turn your Chase Freedom® points into real airline miles with Chase Ultimate Rewards® partners like United MileagePlus and Southwest Rapid Rewards, which can make your points worth even more.

Transparency Score
Transparency Score
  • There’s a nice, simple sign on bonus
  • You have to enroll every quarter to earn 5% in bonus categories
  • There are late payment and cash advance fees.

Tip: You generally have about 2 and a half months during the quarter to activate your 5%. For example, for January – March 2016, you can activate by March 14, and still get the 5% in your bonus category spending for the whole quarter, even if you made purchases in the category before you activated.

APPLY NOW Secured

on Chase’s secure website

Discover it® - Cashback Match<sup>TM</sup>

Best 5% cash for bigger spenders

The Discover it® and Chase Freedom® are pretty similar when it comes to rewards, but if you spend more than about $1,000 a month, the Discover it® is your better bet if you’re looking to choose just one.

Double cash back better for big spenders. As an intro offer for new cardmembers, Discover will match ALL the cash back earned at the end of your first year, automatically.So big spenders get more out of this than the introductory offer on the Chase Freedom®.

Plenty of 5% categories. Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate. All other purchases get 1% cash back.

From October until December of 2017, the bonus categories are Amazon.com and Target.

If you spend the full $1,500 in bonus categories each quarter all year long, you could earn $300 cash back a year from your bonus category spending.

 

Transparency Score
Transparency Score
  • There’s a nice, simple sign on bonus
  • You have to enroll every quarter to earn 5% in bonus categories
  • There are late payment and cash advance fees.

Tip: One gotcha about the Discover it® is that you only get the 5% in bonus categories for spending you do after you activate your bonus each quarter. For example, for the January – March 5% categories, if you activate on February 15, only spending from February 15 to the end of March will qualify, even if you made purchases in a 5% category before then.

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Platinum Rewards Card from Nusenda CU

Best 5% with no enrollment hassle

If you want 5% in rotating categories each quarter without having to enroll each quarter, consider the NUSENDA Credit Union’s Platinum Cash Rewards card.

Automatic 5% categories. You’re automatically eligible for 5% cash rewards each quarter, up to $1,500 worth of spending across the categories each quarter. Currently that’s typically a $1,500 per quarter maximum, like the Chase Freedom®. But the categories where you can earn 5% are a bit broader.

For 2017 the 5% cashback bonus categories include:

  • January – March: Groceries and Gas
  • April – June: Restaurants, Movies, and Home Improvement
  • July – September: Gas and Education
  • October – December: Restaurants, Hotels, Airfare

The introductory bonus is the weakest of the bunch, and offers 2% on all your purchases for the first 90 days. You’d have to spend $15,000 in 90 days to beat the Chase Freedom®’s $150 sign on-bonus (Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening).

 

Transparency Score
Transparency Score
  • No need to enroll every quarter to earn 5% in bonus categories
  • You need to join a credit union, though anyone can join NUSENDA

Tip: When you apply, you’ll be asked where you live or work to determine your eligibility to join NUSENDA Credit Union. If you don’t live in one of the New Mexico counties listed on the application, just enter the company you work for, and they’ll call you to offer you a non profit organization you can join for a small one time fee to be eligible.

APPLY NOW Secured

on Nusenda ’s secure website

Cash back for frequent diners

What’s better than 2% cash rewards? 3%.

While you can get 5% cash back on dining some quarters with the 5% foursome cards above, to get consistently good cash back on dining all the time, read on.

You can also check out our full list of the best cards for dining cash back.

Uber Visa Card

Best unlimited dining cashback rewards

There is no annual fee with this card. The Uber Visa Card offers 4% back on dining purchases, including UberEATS. Then there’s 3% back on hotel and airfare, including vacation home rentals; 2% back for online purchases that run the gamut from Uber and web shopping to video and music streaming services; and 1% on everything else.

This rate is great for people who dine out, whether it’s through a restaurant, a bar, a takeout joint on the corner or UberEATS.

There is a great sign-up bonus: Spend $500 within 90 days from account opening to earn $100 in Uber credits. Also, you can earn up to a $50 credit for online subscription services after you spend $5,000 or more on your card per year.

Transparency Score
Transparency Score
  • Good disclosure: they tell you what you need to know
  • Simple introductory bonus
  • Impossible to know your interest rate until you apply

Tip: Use this card for all dining, hotel and airfare purchases to maximize your rewards at the higher percentage rate.

Grocery cash rewards

Groceries are one of the most popular spending categories, and you can check out our full list of the best cards for grocery cash back.

But if you’re out to earn the most possible cash back from your grocery shopping, here is our pick:

Blue Cash Preferred® Card from American Express

Best grocery cash back for heavy shoppers

The Blue Cash Preferred® Card from American Express is the card that can earn the most cash from U.S. supermarket purchases, at 6%, but there are two big hoops to deal with.

  1. There’s a cap of $6,000 a year in supermarket spending that earns 6%, so you can get a maximum of $360 a year in rewards at the 6% rate.
  2. There’s a $95 annual fee. So, this is really offering 4.4% cash back on supermarket spending if you spend the full $6,000 a year at U.S. supermarkets and take the annual fee out of your rewards.

So the rule is this: if you spend about $300 – $800 a month at supermarkets, consider this card. Otherwise, get 3% back at supermarkets with no annual fee with the Blue Cash Preferred® Card from American Express or Consumers Credit Union Visa Signature Cash Rebate Card (anyone can join their credit union).

Transparency Score
TRANSPARENCY SCORE
  • The biggest supermarket cash back rate.
  • There is a $95 annual fee and a cap on the supermarket cash rewards you can earn at 6%.

Tip: If you shop at big box stores like Walmart or Target, those aren’t considered supermarkets, even when you’re buying groceries, and spending there won’t earn the grocery cash back bonus.

APPLY NOW Secured

on American Express Bank’s secure website

Terms Apply

Rates & Fees

Cash rewards for less than perfect credit

If you’re credit’s not perfect, but you’re now able to pay your cards in full each month, you won’t yet qualify for the very best cash rewards, but you can do well with no annual fee.

Discover it® Secured Card - No Annual Fee

Best cash rewards for rebuilding credit

If you have little or no credit history, or are rebuilding credit, the Discover it® Secured Card is the best way to do it while earning rewards.

You can earn 2% cash back at restaurants and gas stations (on up to $1,000 in combined purchases each quarter). Plus, get 1% cash back on all your other purchases. There is no annual fee. A security deposit of $200 or more will establish your credit line (up to the amount that Discover can approve). There are automatic monthly reviews starting at 8 months to see if you can be transitioned to an account with no security deposit.

Transparency Score
TRANSPARENCY SCORE
  • No annual fee.
  • The Regular APR is 23.99% variable.

Tip: You will get your official FICO credit score for free with this card. Watch it closely, because the goal of a secured card is to graduate to an unsecured card as quickly as possible.

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

2. Travel Rewards Cards

Real airline miles

If you’re serious about travel, you want points that give you the option to turn them into real airline miles. Yes, there are ‘no hassle’ cards out there that promise to avoid the rules and traps of airline miles, but you’ll often pay more in points if you use those cards, especially if you’re flying on expensive international flights.

 

The Amex EveryDay® Credit Card from American Express

Best real airline miles with no annual fee

The Amex EveryDay® Credit Card from American Express earns Amex Membership Rewards® Points.

With Membership Rewards® Points, you can turn your points into real airline miles with several frequent flier programs, including Delta SkyMiles, JetBlue True Blue, Virgin America Elevate, and British Airways Avios.

If you fly Delta and use SkyMiles this is a no brainer way to build on the SkyMiles you already have without a fee. Real airline miles are the best way to get expensive international flights and you can check here to see if focusing on convertible points that can turn into real airline miles is a good plan for you.

Even better, if you don’t want to deal with airline miles, you have the flexibility to use your points for travel on almost any airline. Just book your flight via the American Express website and pay for it with points.

 

Transparency Score
TRANSPARENCY SCORE
  • No annual fee.
  • There are late fees and a wide range of APRs you may be charged depending on your credit profile.
  • You get 2x points per dollar at U.S. supermarkets (up to $6,000), and a 20% bonus on all of your spending each statement period when you use your card to make 20 or more purchase in any category.

Tip: Some people find the Chase Sapphire Preferred® Card we mention below (which has an annual fee – $0 Intro for the First Year, then $95) has more useful travel partners, because it lets you transfer points to both United MileagePlus® and Southwest Rapid Rewards®.

APPLY NOW Secured

on American Express Bank’s secure website

Terms Apply

Rates & Fees

 Chase Sapphire Preferred® Card

Best for serious travel rewards

Chase Sapphire Preferred® Card

The information related to the Chase Sapphire Preferred® Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

Serious travel rewards are all about being able to earn points you can transfer into real airline miles or hotel points with several travel partners, and the Chase Sapphire Preferred® Card’s roster of partners is one of the most useful round. It’s why so many travel enthusiasts love this card.

Transfer to real airline miles and hotel points. You can transfer your points into you accounts with United MileagePlus®, Southwest Rapid Rewards, Hyatt Gold Passport, and more anytime you want. Between United and Southwest you’re covered for getting around in the U.S. or just about anywhere in the world at attractive point prices. And as you learn more about travel rewards you can take advantage of other partners like Singapore KrisFlyer and Virgin Atlantic Flying Club.

A fallback for when mile seats aren’t available. You always have the option to book flights directly via Chase on most airlines without the restrictions of frequent flier programs. Every 10,000 points is worth $125 in flights, hotels, or rental cars booked via the Chase website.

A big introductory bonus. The Chase Sapphire Preferred® Card comes with a big introductory bonus offer that can earn you award travel fast. (Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $625 toward travel when you redeem through Chase Ultimate Rewards®).

2x points on dining and travel. You get double points on all dining and travel purchases you make, even cab rides, fast food, and subway tickets.

Check to see if trying to convertible points that can turn into real airline miles makes sense for your habits, but if it does, this is a great card to get started earning big travel value fast.

Transparency Score
TRANSPARENCY SCORE
  • There are no foreign transaction fees.
  • There is a $95 annual fee, after a $0 introductory fee the first year.

Tip: For a real powerhouse combo, pair this up with a no annual fee Chase Freedom®. The points you earn from the Chase Freedom® can be added to those from your Chase Sapphire Preferred® Card, letting you take advantage of the fact the Freedom earns 5x points in special bonus categories.

And if you really want to turbocharge rewards, but can deal with a higher annual fee, the Chase Sapphire Reserve? offers 3x points on travel and dining.

Points that work like cash for travel

If you don’t want to put in the work to get the extra value real airline miles can offer, but like rewards for travel, consider a card that earns points that work like cash. With these cards you just pay for your flight or hotel with the card, and then use points to get statement credit.

 

Capital One® Venture® Rewards Credit Card

Best for not messing with miles

If you’re a big traveler, the action is with real airline miles. But if you don’t want to keep track of rules, and still want great rewards for travel, the Capital One® Venture® Rewards Credit Card is one of the biggest earners available.

Pay for travel, get it reimbursed. Instead of using an airline mile program, with the Capital One® Venture® Rewards Credit Card you just pay for travel with your card, then use your Venture® miles to get it reimbursed on your statement. 10,000 miles is worth $100 toward any travel.

2x miles on everything. Everything you buy with the card earns 2x miles, so you can earn up to twice as fast as many airline cards.

A big introductory bonus. The Capital One® Venture® Rewards Credit Card comes with a big introductory bonus offer that can save you hundreds on your next trip.

 

Transparency Score
TRANSPARENCY SCORE
  • There are no foreign transaction fees.
  • There is a $95 annual fee, after a $0 introductory fee the first year.

Tip: You can’t mix and match Venture® miles with any regular airline miles you already have. Venture® miles are simply like cash you can use to pay for travel charged to your card.

APPLY NOW Secured

on Capital One’s secure website

Bank of America® Travel Rewards Credit Card

Best for savers with no fee

This card has a pretty basic 1.5x points per dollar on everything you spend, and you can use those points to cover any travel purchase. There is no annual fee and no foreign transaction fee.

$50,000+ in Bank of America accounts = big earning. Where it gets interesting is if you have $50,000 or more in retirement, savings, checking, or other account balances with Bank of America. That qualifies you for the Bank of America Preferred Rewards program which lets you earn 2.25x – 2.6x points per dollar with no limits.

That’s because Platinum and Platinum Honors level members of Preferred Rewards get a 50% – 75% bonus on all the points earned with many Bank of America credit cards, including the Travel Rewards card.

You can rollover any of your 401k or IRA accounts to a Merrill Edge account with no maintenance fees, so you don’t need a huge checking or savings account balance to get this benefit.

No other card offers so much straight cash for travel earning potential off your spending across any category.

Transparency Score
TRANSPARENCY SCORE
  • There are no foreign transaction fees.
  • You need a big balance in Bank of America accounts to get the most out of the card.

Tip: Bank of America cards have the option to request a PIN that you can use for foreign purchases at places that don’t accept a signature.

APPLY NOW Secured

on Bank Of America’s secure website

3. Learn more

Are you ready to earn rewards with a credit card?

Rewards credit cards can be great, and earn you hundreds of dollars a year in savings, but they are still credit cards, with all the dangers that come with them.

Answer these questions

If you answer yes to any of these questions, you’re not ready for a rewards credit card.

  • Are you unsure if you’ll be able to pay your balance in full every single month?
  • Do you plan to do a balance transfer to your card?
  • Do you sometimes make late payments?
  • Do you tend to max out your current credit limit, even if you pay it off?

 

Even if you can safely say ‘no’ to the questions, be aware that the lure of rewards can cause you to spend more than you otherwise would.

 

Credit card companies make money every time you spend on the card, so they want you to spend more. And the more you spend, the greater the chance you spend more than you can afford, which makes them even more money in interest payments.

Cash back or miles for travel?

We don’t think most people should be messing with travel rewards.

Cash rewards cards are more generous than ever and choosing our favorite cash rewards cards will earn you 2% or better on your spending, which is hard to beat even with travel rewards.

You’ll get rewards you can use anywhere – to pay down bills, give a gift, or whatever you want – all with the same good value.

Travel rewards require extra effort, and they tend to penalize you if you use your rewards for something besides travel.

If you already travel twice a year or more, then travel rewards can sometimes offer you more rewards than straight cash back and you should read on.

We’ll cover cash back for travel, real airline miles, and a newer development, convertible points that can turn into real airline miles, but give you more flexibility.

Cash back for travel

Cards with cash rewards let you book travel with any airline or hotel, any time.

You don’t have to think about award rules or restrictions, but you get less value for your points if you try to use them for rewards that don’t involve travel, but you’re usually better off just earning straight cash rewards via a card like the Citi® Double Cash Card.

Best for: People who want to keep it simple (but a regular cash rewards card Is usually better)

Pros

You can use the rewards for any travel. You can pay for travel with your card and use points to get credit back. No worrying about airline award seats or

There are lots of special category bonuses. If you’re really into maximizing things, cash rewards have the biggest array of extra points you can earn from special categories like grocery, gas, or dining spending. We keep a full list of them here.

Usually no annual fee. Cash rewards cards mostly have no annual fee to worry about.

Cons

They don’t have the biggest intro bonuses. The very biggest introductory offers are typically reserved for cards that earn airline miles or other travel rewards.

Expensive tickets aren’t as good a deal. If you spend a lot and can earn a lot of airline miles, you can save a lot on tickets that are expensive in cash, like big international trips or first class tickets.

 

Real airline miles

These are cards that earn miles directly into your account with one airline, like a Delta SkyMiles American Express. They’re usually not the fastest way to earn miles, but they often come with other benefits like a free checked bag.

Our rule of thumb is you should only consider airline miles if you typically spend $2,000 or more in a month on a credit card, so you can earn enough miles for an award in a reasonable amount of time. Otherwise, stick with a cash back rewards card.

But spending $2,000 a month isn’t the only factor. You should also be able to answer YES to at least one of these three questions:

  1. Do you have 5,000 or more existing airline miles?
  1. Are you planning to fly in business or first class?
  1. Do you want to go to expensive destinations like Asia, Europe, Africa, South America, or Australia?

If you can answer YES to one of them, then airline miles are a good choice for getting the most out of your card spending.

Pros

They can get you luxurious flights. If you’re really flexible with dates and times, a good chunk of real airline miles can get you flights that would otherwise cost thousands of dollars in cash.

You can build on miles you earn from flying.

If you fly more than a few times a year, this can be really lucrative since the miles you earn from your credit card get to build on the ones you already have, getting you to an award ticket a lot faster than spending on a card that just earns regular cash rewards.

They have big intro bonuses

Often, the most generous deals that offer you a bonus to open a new account are on cards that offer travel rewards, rather than regular cash rewards. That’s because travel rewards are more restricted, and not appealing to everyone.

Cons

If you don’t have a big balance, they can be hard to use. To get the most out of airline miles, you really need to pay attention to things like what airline partners you can use with which miles, where to search for award seats, and how many miles is a ‘good’ price to pay.

They can expire. Many airline miles expire after a year or so if you leave your account dormant. It’s easy to avoid it by earning or spending just one mile, but a lot of people forget and end up losing their miles, so unless you’re willing to make them a habit, stay away from regular airline miles.

You need a lot of them to get a good value award. Here’s how much you can expect to pay for flights with miles:

  • 25,000 – 50,000 miles: domestic roundtrip ticket in Economy class (typical value: $300 – $1,000)
  • 50,000 – 100,000 miles: domestic roundtrip ticket in First Class (typical value: $500 – $1,500)
  • 60,000 – 100,000 miles: international roundtrip ticket in Economy Class (typical value: $800 – $1,500)
  • 100,000 – 200,000 miles: international roundtrip ticket in Business Class (typical value: $2,500 – $5,000)

That’s a lot of miles. And if you’re just sticking to one credit card, don’t fly much, and

They have annual fees. Most cards that can earn you real airline miles carry a hefty annual fee, which isn’t worth it if you don’t travel much.

You’re locked into one program. Miles you earn via a traditional airline miles card are stuck in that one program, so if the airline suddenly raises prices or changes rules you’re stuck. Instead, consider convertible points (below) which we prefer over plain airline miles.

 

Convertible points

These are the newest kind of rewards on the block, and cards like the Chase Sapphire Preferred® Card earn points you can convert into real airline miles with certain airlines anytime.

For example, the Chase Sapphire Preferred® Card will let you convert points into miles with United MileagePlus and Southwest RapidRewards, so you’re not locked into just one airline program.

Best for: People who want to take advantage of real airline miles, but want extra flexibility

Pros

You get all the advantages of airline miles. With convertible points like Chase Ultimate Rewards® or Amex Membership Rewards®, you can turn your points into real airline miles with several airline programs at any time. The catch is once you turn points into real airline miles, you can’t convert them back.

You’re not stuck with one airline. Convertible points cards let you turn points into real airline miles with several participating airlines, so you have even more options than a traditional airline miles card.

You get some of the cash rewards benefits. Points from convertible points cards can be used for a lot of things besides travel, like gift cards, merchandise, and sometimes statement credit, though your points tend to go much further using them for travel.

Cons

Cash rewards aren’t as generous. If you don’t have a need for airline miles at all, don’t go for a convertible points card. Stick to a straight up cash rewards card and your points will stretch further. Convertible points cards tend to be less generous for straight cash rewards because they use the savings there to help fund the cost of being able to convert your points into real airline miles.

There are usually annual fees. You’ll generally have to pay an annual fee to get a card that earns convertible points. The The Amex EveryDay® Credit Card from American Express is a notable exception. So again, only use these cards if you can answer “yes” to the 3 questions you should ask before earning airline miles with a credit card.

 

Questions and Answers

With most cash rewards credit cards, your rewards won’t expire as long as you keep your account open. But some like the Citi® Double Cash Card require you to either earn or use rewards at least once every so often. For the Citi® Double Cash Card that’s once every 12 months.

With cash rewards, you may lose all of your unused rewards if you close your account, so make sure you use them before closing. With travel rewards, miles you hold in an airline program aren’t affected if you close your credit card account, but they will be subject to whatever expiration rule the airline has.

No – you can earn rewards, even if you pay off your entire balance each month before it’s due.

Most cash rewards cards have no annual fee. But if you have an annual fee card, and don’t want to pay the fee, you can sometimes ask your bank to ‘downgrade’ you to a version with no fee. It might earn fewer rewards, but you can avoid the hassle of closing your account altogether.

Many cards won’t give you the rewards from your spending in months where you are late on your payment, so always make your payments on time with a rewards card.

Usually mortgage servicers and other loan providers don’t accept credit card payments. Some companies will make payments on your behalf with a credit card, but you’ll be charged a fee, and often that fee is more than the rewards are worth.

Most cards don’t offer rewards for ‘cash equivalent’ transactions like using a cash advance. Some will offer you rewards for completing a balance transfer, but you’re likely to get hit with fees or a less favorable deal than if you use a good card designed for balance transfers..

If you have cash rewards, just send the cash to whomever you want. If you have travel rewards, many cards will let you combine your points with your spouse or domestic partner. Otherwise, you can just book tickets for someone else using your points if you want to make a gift. Airline miles usually can’t be shared with other people unless you want to pay a fee.

You shouldn’t be carrying a balance month to month on rewards cards, because the interest rates on them is sometimes higher than on cards with no rewards. But if you do end up carrying a balance over from one month to another, your rewards won’t disappear as long a you make your payment on time.

5% cards are designed to catch people who aren’t paying attention. So if your card has an enrollment requirement to earn 5% each quarter, and you miss it, you’ll be out of luck for earning 5%.

Yes, many cash rewards cards offer rewards in the form of statement credit, and that reduces the balance you need to pay on your account.

Some cards require you keep your account open for a certain number of months, or else you will lose any sign on bonus you earned. It’s usually best to keep a card open for about a year or more.

Usually authorized users earn rewards in the same account as the primary user.

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

TAGS:

Advertiser Disclosure

Best of, Earning Cashback

7 Best Cash Back Credit Cards for Dining Out in December 2017

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.

Advertiser Disclosure

iStock

If you’re someone who frequently dines out, cashback credit cards that reward you for it are a great way to put money back in your pocket. Cashback cards for dining can earn you rewards for purchases made through restaurants, bars and takeout establishments. This is a great way for foodies to reap extra rewards just by doing what they love — eating!

We picked the following cards because they offer competitive cashback rates above 2% for dining-related purchases, as well as have low or no annual fees. As with most rewards credit cards, you may lose your cashback rewards if your account is not in good standing.

Uber Visa Card – 4% cash back

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

APR

15.99%-24.74%

variable

The Uber Visa Card offers unlimited 4% back on dining purchases that will benefit the biggest foodies. Additionally, earn 3% back on hotels and airfare, including vacation home rentals; 2% back on online purchases that include Uber, online shopping and video and music streaming services; and 1% back on all other purchases. Dining purchases include those made at restaurants, fast-food restaurants, bars and UberEATS. Your rewards come in the form of points with a value of $0.01 per point (so 2,500 points can be redeemed for a $25 statement credit, for example). Another cool perk: There is a great sign-up bonus of 10,000 points (worth $100) if you spend $500 within the first 90 days of account opening. You can read our full review here.

AARP® Credit Card from Chase – 3% cash back

AARP® Credit Card from Chase Bank

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

3% cash back at restaurants and gas station purchases, 1% on everything else

APR

16.49%

Don’t be led astray by the name: This card isn’t limited to people over 50 — anyone can apply. The AARP® Credit Card from Chase offers 3% cash back at restaurants (including fast food) and gas station purchases, and all other purchases will earn 1%. There is a great sign-up bonus of $200 after you spend $500 on purchases in the first three months from account opening.

The information related to the AARP® Credit Card from Chase has been collected by MagnifyMoney.com and has not been reviewed or provided by the issuer of this card.

Sam’s Club Mastercard® – 3% cash back

Sams Club MasterCard

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% cash back on gas (on first $6,000 per year in purchases, then 1%), 3% on dining and travel, and 1% on other purchases

APR

11.65%

APPLY NOW Secured

on Sam's Club’s secure website

The Sam’s Club Mastercard® offers 3% cash back on restaurant purchases (excluding purchases at wholesale clubs other than Sam’s Club). You will also earn 5% cash back on gas (on the first $6,000 per year in purchases, then 1%), 3% on travel and 1% on other purchases. From now until Dec. 31, you can receive a $45 statement credit if you open your card online and make a $45 purchase on Samsclub.com on the same day you open your account. However, you do need a Sam’s Club membership to apply, and current membership fees start at $45 per year.

Take note that you’re limited to earning a maximum of $5,000 in cashback rewards in a calendar year. Checks are issued each February for the cash back earned during the previous calendar year. You will lose any cash back you earned if you end your membership or let it lapse, or if you accumulate less than $5 cash back in a calendar year.

Costco Anywhere Visa® by Citi – 3% cash back

Costco Anywhere Visa® Card by Citi

Annual fee

$0

Cashback Rate

4% on eligible gas worldwide, including Costco (for the first $7,000 per year and then 1%), 3% on restaurant and eligible travel worldwide, 2% on all other purchases at Costco and Costco.com and 1% on everything else

APR

16.24%

APPLY NOW Secured

on Citibank’s secure website

The Costco Anywhere Visa® by Citi requires a Costco membership (currently, annual memberships start at $60) and offers 3% cash back on restaurant purchases, including at cafes, bars, lounges and fast-food restaurants. Take note that purchases made at bakeries and certain restaurants/cafes in department stores, groceries or warehouse clubs will only earn 1%. In addition, earn 4% on eligible gas worldwide, including Costco (for the first $7,000 per year and then 1%), 3% on eligible travel worldwide, 2% on all other purchases at Costco and Costco.com and 1% on everything else, including the nonqualifying purchases listed above.

Cash back comes as an annual credit card reward certificate in February billing statements, redeemable for cash or merchandise at U.S. Costco Warehouses. You must maintain your Costco membership to receive rewards, and you will also lose rewards if you accumulate less than $1 in cash back or if you don’t redeem them by the end of the year.

Capital One® SavorSM Cash Rewards Credit Card – 3% cash back

The Savor℠ card From Capital One

Annual fee

$0

Cashback Rate

3% on dining, 2% on groceries, 1% on all other purchases

APR

15.49%-24.49%

APPLY NOW Secured

on Capital One’s secure website

The Capital One® SavorSM Cash Rewards Credit Card enables you to  earn unlimited 3% cash back on dining, as well as 2% on groceries and 1% on all other purchases. Also, there is a one-time $150 cash bonus after you spend $500 on purchases within the first three months from account opening. (The card website specifies that the one-time bonus is available by applying through the site, and may not be available if an applicant navigates away from the page. Also, the bonus may not be available for existing or previous accountholders.)

Alternatives: Rotating Cashback Categories

Chase Freedom® – 5% cash back

Chase Freedom<sup>®</sup>

Annual fee

$0

Cashback Rate

5% on certain categories, 1% on everything else

APR

15.99%-24.74%

Variable

APPLY NOW Secured

on Chase’s secure website

The Chase Freedom® card offers rotating bonus categories that earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter (then 1%). All other purchases will earn 1% cash back. This past July through September, the bonus category was restaurants. Through the rest of this year, October-December, is Walmart. You must activate the bonus category to earn at the higher rate. You can also earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening.

Discover it® Cashback Match™ – 5% cash back

Discover it® - Cashback Match<sup>TM</sup>

Annual fee

$0

Cashback Rate

5% on certain categories, 1% on everything else

APR

11.99%-23.99%

Variable

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

The Discover it® Cashback Match™ offers 5% cash back in different places (on up to $1,500 in purchases each quarter, then 1%) and 1% on all other purchases. Restaurants are slated to be a bonus category from July 1 through Sept. 30, 2018. Set a reminder to activate the bonus category. In addition to a cashback program, Discover is offering a first year cashback reward in which it will automatically match all the cash back you’ve earned at the end of your first year.

Are these deals the best for you?

Cashback rewards should only be pursued by responsible credit users who have no trouble paying off their balance on time and in full every month. If you’re a credit all-star who also has an affinity for dining out, these cards will provide the best perks.

If you’re apt to carry a balance, check out our picks for the best credit cards that can help you pay down debt faster.

As always, check the fine print on each card before signing up, taking special note of any fees. With those things in mind, decide which rewards structure best serves your typical spending activity and enjoy the cashback benefits — and the good eats.

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.

Alexandria White
Alexandria White |

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

TAGS: , , ,

Advertiser Disclosure

Earning Cashback, Reviews

Is the Amazon Rewards Visa Signature Card or Amazon Prime Store Card Better for Your Amazon Purchases?

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.

Advertiser Disclosure

Review - Amazon Rewards Visa Card or Amazon Prime Store

For loyal Amazon shoppers, a credit card that will give you money back for spending only makes sense. There are three options:

  • Amazon Prime Rewards Visa Signature Card (from Chase) – 5% back, and our top choice
  • Amazon Rewards Visa Signature Card (also from Chase) – 3% back
  • Amazon Prime Store Card (from Synchrony, can only be used at Amazon) – 5% back

The good news: if you are an Amazon Prime member, it is easy to get 5% cash back from all of your Amazon spending all year long. And if you spend a lot of money at Amazon, the savings can be significant.

Note: The information related to the Amazon Prime Rewards Visa Signature Card, Amazon Rewards Visa Signature Card, and Amazon Prime Store Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card.

Amazon Prime Rewards Visa® Signature Card5% at Amazon: The Amazon Prime Rewards Visa Signature Card 

With this credit card, you get 5% back at Amazon.com with an eligible Prime membership.

You also earn 2% back at restaurants, gas stations and drug stores. And you will earn 1% back on everything else.

There is no annual fee, no earning caps and no foreign transaction fees.

How the points work

When you use your card, you will actually be earning points.

You would earn 5 points for every $1 you spend at Amazon.com, 2 points for every $1 spent at restaurants, gas stations and drug stores and 1 point for every $1 spent everywhere else.

You can choose to redeem those points at Amazon (during checkout) or through Chase.

When you check out at Amazon, you will see your point balance and would be able to apply those points to your purchase. Every 100 points = $1.

But you can also redeem those points through Chase and get cash back, gift cards or travel. If you want cash back or gift cards, the value is the same as using the points at Amazon to shop. Every 100 points = $1.

You will also receive a $70 Amazon.com gift card instantly upon approval. The best part is you do not have to spend a certain amount of money in order to get the gift card.

If you are already enjoying the benefits of Amazon Prime, this card is an obvious choice.

But if you are thinking about Amazon Prime, this card is a great way to try it out.

If you spend $99 for Amazon Prime membership and then apply for this card, you will immediately get $70 of it back in the form of an Amazon gift card. You can learn more about the card at Amazon.

Amazon.com Rewards Visa Card from Chase Bank 3% at Amazon: Amazon Rewards Visa Signature Card

You can also get 2% back at gas stations, drugstores and restaurants. On other purchases you get 1% back. So everything is the same as the Amazon Prime Rewards Visa Signature Card, except you earn only 3% at Amazon instead of 5%.

Just like the Amazon Prime Rewards Visa Signature Card, cash back is tracked with a point system. 1 point equals $0.01. For example, if you spend $100 on Amazon.com, you’ll get $3 in cash back, which equals 300 points. You can trade in points for statement credit, travel or gift cards. Points never expire unless your account is closed and there’s no rewards cap.

The card doesn’t have a 0% introductory promo period. As a rule of thumb, you should avoid transferring a balance to a card you want to use for rewards. This card has an exceptionally high balance transfer fee ($5 or 5% of the amount of each transfer, whichever is greater) and no 0% introductory promo period; two major red flags for a balance transfer.

After approval, the card gives a $50 Amazon.com gift card loaded to your Amazon.com account. The Amazon Rewards Visa Signature Card has no annual fee and you can learn more here.

Amazon Prime Store Card 5% at Amazon: Amazon Prime Store Card

The card can be used on Amazon.com and on other merchant sites that have the Amazon Prime Store Card option activated for payment. However, the card can’t be used for the following: textbook rentals, digital and print + digital subscriptions (including newspapers and magazines), cell phones associated with a plan, purchases on Amazon subsidiaries, digital add-on subscriptions (e.g. Starz, Hulu, GameFly, etc.), Prime Now items.

You can redeem cash back for statement credit until instructed otherwise. In the fine print, Amazon reserves the right to change the cash back program into a rewards program where you redeem points for products instead.

If you end your Amazon Prime Membership, your Amazon Prime Store Card will become a regular Amazon Store Card that doesn’t earn 5% cash back. There’s no annual fee on the card, but Prime membership does cost $99 per year.

This card offers special financing on all orders of $149 or more. You will pay no interest if your balance is paid in full within 6, 12, or 24 months as applicable. If you don’t pay off your balance within the promotional period, interest will be charged to your account from the purchase date. Minimum monthly payments are required. Learn more about the terms on here.

Pros and Cons

Amazon Rewards Visa Signature Cards

Pro: Multiple bonus categories. Sure, you shop on Amazon.com, but you probably shop elsewhere too. With this card you’ll get an extra bonus for shopping online plus cash back in other areas that fulfill everyday needs like filling up your gas tank. You also have flexibility to redeem cash back in multiple ways.

Pro: No annual fee. Earning cash back from each category is free, no annual fee.

Pro: A gift card once approved. When you get approved you’ll get either a $70 (Amazon Prime Rewards Visa Signature Card) or $50 (Amazon Rewards Visa Signature Card) gift card right away you can use to shop.

Pro: 3% or 5% cash back when you pay for Amazon Prime Membership. Amazon Prime Membership comes with free two-day shipping and unlimited TV and movie screening with Prime Video. What devoted Amazon shopper doesn’t want that? An added benefit with this card is double-dipping. You get the Prime perks and cash back for paying for them.

Pro: High cash back for Prime members. If you’re a Prime member, you can get 5% cash back. You likely won’t be able to beat that rate.

Con: No intro APR. Since most credit cards have some type of introductory interest rate, a card that doesn’t have one stands out. You’ll need to pay off the balance each month starting from the very beginning to benefit from rewards earned.

Con: Tougher approval. You may need better credit to get these cards from Chase than the Amazon Store Card from Synchrony, which has a much higher interest rate.

Amazon Prime Store Card

Pro: 5% cash back. This is a huge amount of cash back for faithful Amazon shoppers. You’ll get rewarded handsomely for spending. And the redemption process is easy; your cash back is used for statement credit. One thing to keep in mind is it may take up to two billing cycles for the money to appear on your account.

Pro: Easier approval. This is a store card limited to Amazon purchases, so you might find it easier to get approved for this card with less than perfect credit.

Pro: No annual fee. The Amazon Prime Store Card doesn’t have an annual fee.

Con: A very high APR for everyone: This card charges a 26.99% APR for everyone, regardless of credit score. Yes, even an 850 FICO would still get you a horrible 26.99% interest rate. Never borrow with this card.

Con: Fine print. The fact that you can’t use this card for software downloads on Amazon sticks out as a negative. Amazon sells software downloads including TurboTax, QuickBooks and Norton Security. These products aren’t cheap and purchases you would want to get 5% cash back on.

Con: Requires Amazon Prime Membership. To use this card you have to be an Amazon Prime Member so in some respects there is a fee involved even though it’s not an annual fee specifically for the card. Amazon Prime Membership costs $99 per year. If you’re not already a member and want to become one for the card, you must spend enough to pay for membership.

Con: Exclusive to Amazon. A gift and a curse. You’ll have to follow up with another card for cash back on other things like groceries, gas, dining or travel.

Other Cards for Amazon Spending

Chase Freedom® is another option to consider, especially if you don’t want to spend the money for a Prime membership but still want to earn 5% on Amazon purchases.

With the Chase Freedom®, 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. In the past, Amazon has been included as one of the 5% categories, typically around the holidays. 

You’ll get 5% back in categories like gas stations, restaurants, Amazon.com and more, up to the quarterly maximum each time you activate.

From September until December 2017, the bonus categories are Walmart and select department stores.

All other purchases get an unlimited 1% cash back. You can redeem cash back for gifts cards, travel, experiences, statement credits and deposits to an account.

Which Card Should You Choose?

The Amazon Prime Rewards Visa Signature Card is a good one to consider if you already have an Amazon Prime account. It’s not worth getting an Amazon Prime account just to get this card unless you plan on spending big in the future on the site. If you spend moderately throughout the year, the basic Amazon.com Rewards Visa Card is a better choice between the two. You’ll get rewarded for more diverse spending in addition to your online shopping.

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.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor at taylor@magnifymoney.com

TAGS: ,

Advertiser Disclosure

Building Credit, College Students and Recent Grads, Credit Cards, Earning Cashback

I Got My First Credit Card One Year Ago – Here’s How I Already Have a Good FICO Score

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.

Advertiser Disclosure

iStock

When I moved to the U.S. from my hometown, Hangzhou, an eastern Chinese city, in 2012 to pursue my undergraduate degree, the thought of establishing a credit history wasn’t even on my radar. I was, after all, an international student from China, where day-to-day credit card use has only recently caught on.  

It wasn’t until I returned to the U.S. a few years later to pursue my master’s in Chicago that I realized I’d need to establish credit if I planned to launch my career in the States.  

It’s been only a year since I opened my first card last September, and I already have a solid FICO score – 720, the last time I checked.  That’s not a perfect score by any means, but it lands me safely in the “good” credit range, meaning I probably won’t have trouble getting approved for new credit in the future. I still have work to do if I want to get into the “very good” credit category, which starts at 740, according to MyFICO, but for a credit card newbie I’m not disappointed in my progress so far. 

Here’s how I did it:  

I selected the right card for my needs
 

I wish I could say I diligently researched credit cards to choose the best offer and best terms, but honestly, I just got lucky: 

Shortly before graduate school started, I visited friends in Iowa. When we were about to split the bill after dinner at a Japanese restaurant, I noticed that all my friends had a Discover card with a shimmering pink or blue cover. The Discover it for Students card was known for its high approval rate for student applicants, and had been popular among international students. 

I thought, “Oh, maybe I should get this one, too.”  

One of the friends sent me a referral link that very night. I applied and got approved quickly. We both received a $50 cash-back bonus after I made my first purchase — an iPhone — using the card through Discover’s special rewards program. I even received 5 percent cash back from the purchase.  

Besides imposing no annual fee, the card has other perks, like rewarding me with a $20 cash-back bonus when I reported a good GPA, letting me earn 5 percent cash back on purchases in rotating categories, and matching the cash-back bonus I earned over the first 12 months with my account. For me, it was a great starter card, but there are plenty of other options out there.

Check out our guide on the best credit cards for students. 

I also could have explored other options of establishing credit, like opening a secured card, for example, which would have been a smart option if I hadn’t been able to qualify for the Discover it student card.

I never missed a payment

Despite my very limited financial literacy at the time, I attribute my current stellar credit score to the old, deeply ingrained Chinese mentality about saving and not owing. 

I never missed payments, and I always paid off my balance in full each month, instead of just making the $35 minimum payment. I didn’t want to pay a penny of interest. 

Credit cards carry high interest rates across the board, but student credit cards generally have some of the highest APRs. This is because lenders see students like me — consumers without much credit history — to be risky borrowers, and they charge a higher interest rate to offset that  risk. 

Best Student Credit Cards October 2017 

It wasn’t until much later when I learned that payment history is critical to credit establishment. In fact, it is the biggest factor there is. It accounts for as much as 35 percent of my FICO score. Naturally, I felt like I dodged a bullet! 

A Guide to Getting Your Free Credit Score 

I was careful not to use too much of my available credit

My friends with more experience advised me to use as little of my available credit as possible. They warned me that overuse had hurt their credit scores in the past. This didn’t much sense to me, but I followed their advice, for the most part diligently.. 

I later learned this is almost as important as paying bills on time each month. Your utilization rate is another 30 percent of the FICO score. Credit experts urge cardholders to keep their credit utilization ratio below 30 percent.  

That means if you have three credit cards with a total available limit of $10,000, you should try never to carry a total balance exceeding about $3,000. 

A Guide to Build and Maintain Healthy Credit 

I beefed up my score with on-time rent payment 

Keeping in mind the importance of not maxing out my credit card, I never considered paying my rent with the card. In fact, some landlords charge credit card fees for tenants who try to pay with plastic.  

But I did find a way to establish credit by paying rent using my checking account. 

I paid rent to my Chicago landlord through RentPayment, an online service. RentPayment gave me the option of having my payments reported to TransUnion, one of the three major credit-reporting agencies. Because I knew I’d always pay bills on time, I signed up for the program.  

This likely helped me improve my credit mix, another key factor influencing one’s credit score. The more types of accounts you show on your report, the better your score can be — providing you make all your payments on time.  

Yes, I made mistakes. This was my biggest one.

My first foray into the world of credit wasn’t completely blip-free.  

The only thing that hurt my credit, besides my short credit history, was that I had tried signing up for a Chase credit card and other ways to finance my iPhone just a few days before I applied for my Discover card.  

None of the other banks approved my applications, and my score went down from the very beginning due to the number of “hard inquiries” against my report. Hard inquiries occur when lenders check your credit report before they make lending decisions, and having too many inquiries in a short period of time can result in several dings to your credit score. 

I’ve learned my lesson, though. And I haven’t applied for a new credit card since. Today, as I said, my FICO score is a healthy 720, and I am on the lookout for a second credit card now that I’ve graduated and gotten a job. 

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.

Shen Lu
Shen Lu |

Shen Lu is a writer at MagnifyMoney. You can email Shen at shenlu@magnifymoney.com

TAGS: ,

Get A Pre-Approved Personal Loan

$

Won’t impact your credit score

Advertiser Disclosure

Building Credit, Credit Cards, Earning Cashback, Reviews

QuicksilverOne Review: Unlimited 1.5% Cash Back for Average Credit

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.

Advertiser Disclosure

For people with “average” or “fair” credit, Capital One offers the Capital One® QuicksilverOne® Cash Rewards Credit Card. Every credit card issuer has a different definition of what “average” or “fair” credit means. Generally speaking, it means a FICO score between 580 and 669.

The Capital One® QuicksilverOne® Cash Rewards Credit Card gives you an unlimited 1.5% cash back, which is a pretty sweet opportunity for consumers with less-than-perfect credit.

Just beware of the two catches: There’s a $39 annual fee and a high purchase APR.

Capital One® QuicksilverOne® Cash Rewards Credit Card

APPLY NOW Secured

on Capital One’s secure website

Capital One® QuicksilverOne® Cash Rewards Credit Card

Annual fee
$39
Cashback Rate
Unlimited 1.5%
APR
24.99%

Variable

Credit required
fair-credit

Average

Capital One® QuicksilverOne® Cash Rewards Credit Card Overview

The Capital One® QuicksilverOne® Cash Rewards Credit Card program is low maintenance.

Unlike other programs with revolving categories and spending caps, this card doesn’t hold you to either. You will earn 1.5% cash back every time you swipe.

You can redeem cash back at any time for a check, account credit, or gift card. Cash back you earn never expires for the life of the account.

What We Like About This Card

No fuss.

We like that the cash back program terms are uncomplicated. There are no preset bonus categories that you have to adapt your spending to each month. You can also redeem cash back at any time without having to wait for the balance to reach a certain threshold.

Low credit score requirement.

The Capital One® QuicksilverOne® Cash Rewards Credit Card is one of the only cash back rewards cards around town for average credit. If you’re having trouble getting approved elsewhere, this is a card you need to seriously consider.

What We Don’t Like About This Card

The annual fee.

Since this card costs $39 per year, you need to spend at least $2,600 per year (or $217 per month) for the cash back to break even with the fee. Ideally, you’ll want to spend more than just the bare minimum for the rewards card to be worthwhile.

High APR.

This is a high interest rate. Avoid carrying a balance at all costs if you choose this card.

Who This Card Is Best For

Again, the Capital One® QuicksilverOne® Cash Rewards Credit Card is our top unlimited cash back pick for consumers who have trouble getting approved for other cash back cards.

According to Capital One, you may qualify for this card if:

  • You have defaulted on a loan in the past five years
  • You have limited credit history
  • You have had your own credit card or other credit for less than three years (this may include students, people new to the U.S., or authorized users on someone else’s credit card)

Keep in mind, these are just guidelines to give you a general sense of whether you’ll qualify. Your income, debt, and other credit limits are also factors used to make a decision.

Capital One has a nice feature where you can get preapproved online for offers without a hard credit inquiry. See if you prequalify for the Capital One® QuicksilverOne® Cash Rewards Credit Card here.

Keep an eye out for the Capital One® Quicksilver® Cash Rewards Credit Card alternative while checking offers as well.

The Capital One® Quicksilver® Cash Rewards Credit Card is the “big brother” of the Capital One® QuicksilverOne® Cash Rewards Credit Card. It has no annual fee, and it’s for people with excellent credit. There’s no harm in checking to see if you prequalify for the Capital One® Quicksilver® Cash Rewards Credit Card.

Is the Capital One® QuicksilverOne® Cash Rewards Credit Card good for rebuilding credit?

Despite the lenient qualifying criteria, the Capital One® QuicksilverOne® Cash Rewards Credit Card is not our top recommendation if you’re rebuilding credit, because of the annual fee.

Your focus should be keeping your credit utilization very low when rebuilding credit. You shouldn’t worry about having to earn enough cash back each month to cover a card’s annual fee.

Try a no-fee secured card like the Capital One® Secured Mastercard® or the Discover it® Secured Card – No Annual Fee instead.

Capital One® QuicksilverOne® Cash Rewards Credit Card Benefits

Capital One® QuicksilverOne® Cash Rewards Credit Card offers:

  • Travel accident insurance and 24/7 roadside assistance. Travel insurance for death or loss of limbs. You can call in for help if your car breaks down.
  • Auto rental insurance. Insurance covers rental damage from collision or theft.
  • Extended warranty. Purchases made on your card will get an extended warranty.
  • Price protection. You can get reimbursed the difference if you find items you purchased on sale within 60 days.
  • Fraud coverage. Covered by $0 fraud liability if your card is lost or stolen.

Alternatives to the Capital One® QuicksilverOne® Cash Rewards Credit Card

The Capital One® QuicksilverOne® Cash Rewards Credit Card doesn’t have much competition since it’s the best card for consumers with average credit. The following no-fee cash back cards officially require good to excellent credit but allow you to prequalify without a hard inquiry.

1.5% cash back, no fee

Chase Freedom Unlimited<sup>®</sup>

Annual fee

$0

Cashback Rate

1.5%

APR

15.99%-24.74%

Variable

The Chase Freedom Unlimited® card gives you an unlimited 1.5% cash back on all spending without category restrictions or caps. What’s great about Chase is it’s another credit card issuer that lets you prequalify for offers without a hard pull. Check out offers you may prequalify for here.

You can redeem cash back from your Chase Freedom Unlimited® card at any time, and cash back never expires as long as you keep your account open. At times there is an intro APR deal or cash back bonus offer that add benefits to this card, and ongoing rates are sometimes lower than what you’d see on the Capital One® QuicksilverOne® Cash Rewards Credit Card.

Double cash back, no fee

Citi® Double Cash Card – 18 month BT offer

Annual fee

$0*

Cashback Rate

1% when you buy, 1% when you pay

APR

14.49%-24.49%

Variable

The Citi® Double Cash Card is another good choice for low-maintenance cash back rewards. It gives double cash back on all purchases. You earn 1% cash back when you spend on the card and another 1% cash back when you pay off the bill.

This is a card that members report qualifying for with a credit score in the high 600s. Citi lets you shop for prequalified offers on the website as well. If you’re interested in this card, see if you can get prequalified here. In addition, there are changing intro APR deals for this card that allow you to save interest early on, and ongoing interest rates are sometimes lower than with the Capital One® QuicksilverOne® Cash Rewards Credit Card.

Bottom Line

The Capital One® QuicksilverOne® Cash Rewards Credit Card is a good rewards card for those with average credit. If you have had difficulty being approved for other higher cash back rewards cards, you may be approved for the Capital One® QuicksilverOne® Cash Rewards Credit Card, which offers unlimited 1.5% cash back. Be aware that this card comes with an annual fee and high APR, so make sure to do your research and see if this card is right for you.

FAQ

You should not keep a balance on this credit card to benefit from the cash back. The high APR is a large amount of interest to be paying on purchases. If the interest charges you experience on this card coupled with the annual fee surpass the cash back you earn, this card is pointless.

No. You’re free and clear to spend money on anything, and it’ll earn 1.5% cash back. This is the beauty of an unlimited cash back card. However, cash advances and balance transfers will not qualify for cash back.

No, cash back does not expire as long as your account remains open.

You can, but not with average credit. The Capital One® QuicksilverOne® Cash Rewards Credit Card is the best unlimited cash back card there is specifically targeting people with fair credit. Another option you have is working to improve your credit first before applying for a credit card to qualify for a card that gives you more cash back.

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.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor at taylor@magnifymoney.com

TAGS: ,

Get A Pre-Approved Personal Loan

$

Won’t impact your credit score