Tag: CREDIT CARDS

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Credit Cards

Uber Visa Card Review: Uber’s First Credit Card Offers a Lot for Millennials to Love

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

The rumors were true. Uber’s making the leap from the smartphone in your pocket to the wallet in, well, your other pocket.

The ride-hailing company has teamed up with Barclaycard, the credit card division of UK-based Barclays PLC, to launch what is shaping up to be an excellent no-fee rewards credit card for millennials, urbanites and business travelers alike. The new offering, dubbed the Uber Visa Card, will be available nationwide Nov. 2.

Uber’s first branded credit card lets cardholders earn 4% back on dining, 3% on hotels and airfare, 2% on online purchases including Uber, online shopping and video and music streaming services, and 1% on most everything else. Individually, the bonus categories are similar to those of a few existing no-fee cards with special category bonuses. But the Uber Visa Card’s 4-3-2-1 cashback rewards structure makes for a leading bonus category rewards credit card.

And that 4% cashback bonus makes the Uber Visa Card a leader in dining rewards.

Heavy Uber-app users need look no further for a cashback offering. However, to get the best bang for their buck, they should pair the Uber Visa Card with a flat-rate 2% cashback card such as the Citi® Double Cash Card or PayPal Cashback Mastercard®.

Uber Visa Card

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

Part I: Card benefits: At a glance

The Uber Visa Card boasts an impressive 4-3-2-1 rewards program, as described above, in addition to other bonuses. But those aren’t the only perks this car packs. The company is clearly making a play for millennials, with unique benefits like account credits for digital subscription services (a la Netflix or Hulu) and mobile phone protection.

With its rewards package, the Uber Visa Card might could act as bait to convince some millennials to use credit more often. (Recent research shows the generation favors debit and cash for everyday purchases.)

Cashback rewards

The pros

The cons

  • Unlimited 4% cash back on dining and takeout.
  • Unlimited 3% on hotel and airfare
  • Unlimited 2% back on online purchases including Uber.
  • Unlimited 1% back on all other purchases.
  • No annual fee
  • No foreign transaction fees.
  • 10,000-point bonus, redeemable for $100 cash back, after you spend $500 or more in purchases within the first 90 days after opening an account.
  • Cardholders who spend $5,000 or more per year, are rewarded with a $50 credit to use on digital subscription services.
  • Cardholders who use the card to pay their phone bill each month also get up to $600 for mobile phone supplemental insurance.
  • Cardholders can only redeem up to $500 worth of points per day for Uber Credits and bank deposits.
  • Online limitations to those 2% cash-back rewards.
  • No interest-free balance transfer period.

High rewards for no fee

The Uber Visa Card grants consumers comparatively lucrative ongoing-bonus-category rewards for no annual fee, and the card charges no foreign transaction fees. That’s rare, even in a market where banks are spending more and more on credit rewards to attract consumers.

The card that comes closest to offering a similar level of bonus rewards is the Chase Sapphire ReserveSM. It earns users an annual $300 travel credit, unlimited triple points on dining and travel, and 1% back on all other purchases. But it charges a hefty $450 annual fee.

If you don’t have an extra $450 in your budget but still want to earn big on dining and travel, the no-fee Uber Visa Card may be the better choice.

Chase Sapphire ReserveSM altered one cardholder perk in January – the lucrative 100,000-point-bonus signup offer. After less than a year on the market, Chase cut back a 100,000-point Ultimate Rewards bonus after spending $4,000 within three months to just 50,000 points for spending $4,000 in three months.

An Uber spokesperson tells MagnifyMoney that the Uber Visa Card’s rewards are not temporary, and there are no plans afoot to change them.

It’s important to note the Chase Sapphire ReserveSM does offer other traveler perks like up to $300 in statement credits for travel reimbursements per year, a $100 statement credit for applying for Global Entry or TSA PreCheck, and several travel protection benefits. If you use those perks, it may be worth it to you to pay the beefy annual fee for Sapphire.

4% cash back on dining

The Uber Visa Card awards a whopping 4% unlimited cash back on dining, which includes restaurants, cafes, bars and even takeout like UberEATS. The category’s cashback rate leads the industry, beating the Chase AARP Visa and Costco Anywhere Visa, which award only 3% cash back on dining.

The Uber Visa Card also beats the Chase Sapphire ReserveSM‘s 3x points on dining, since 4% cash back is equivalent to earning 4 points.

As mentioned, the Uber card awards 4% on takeout, too, and millennial cardholders may enjoy this perk the most. According to a recent Bankrate report, the average millennial dines out or orders in five times a week. The average member of the avocado toast generation spends about $233 on both dine in and take out meals, compared to just $182 a month for older generations. If a cardholder spends a weekly $233 on dining, he or she will earn about $9.32 a week, or $484.64 in cash back annually.

3% cash back on hotel and airfare

Cardholders earn 3% cash back on hotel and airfare purchases made using the Uber Visa Card. Another bonus for millennials: Cash back applies to vacation home rental services, like Airbnb.

According to travel website Hipmunk, nearly three-fourths of millennial travelers have used a vacation rental service like Airbnb while traveling for work, compared to only 38% of Gen-Y and 20% of Boomers. And, about 81% of millennial travelers said they would add extra time to business trip to make some room for leisure.

While Uber’s 3% offer on airfare and hotels is a good offer for the average frequent flyer, consumers can find the same deal with some other no-fee cards, like the AAA Member Rewards Visa, Chase Sapphire ReserveSM and Costco Anywhere Visa.

Beware: Although it offers the same amount of cash back on travel, the Chase Sapphire ReserveSM technically beats out the Uber Visa Card when cardholders use their points for travel rewards.

With Uber, 1 point = $0.01, but if users redeem points using the Chase Ultimate Rewards portal 1 point = $.015, so your points go about 50% further with Chase, allowing cardholders to purchase more with the same point value. Put another way: A 50,000-point bonus is really worth $750, instead of $500.

Up to $50 streaming credit bonus

Here’s a perk you won’t find on many rewards cards these days.

If a cardholder spends $5,000 or more in a cardmembership year — the 12 consecutive months following your account’s anniversary date — he or she stands to earn up to $50 for digital streaming purchases. Cardholders can earn the subscription credit each year.

The $50 credit is automatically applied as a statement credit for eligible digital subscription services once the cardholder meets the $5,000 spending threshold. If the cardholder hasn’t made $50 worth of eligible purchases by the time he/she spends $5,000, the result is a statement credit for any new eligible digital subscription services charged to the card up to $50.

Cardholders can track their progress toward the annual spending threshold on BarclaycardUS.com.

Up to $600 worth of mobile phone insurance coverage

When cardholders use their Uber Visa Card to pay for their monthly wireless bill, they receive up to $600 for mobile phone damage or theft for each phone listed on the wireless account. Coverage begins one month after the first bill was charged to the Uber Visa Card.

Depending on the kind of coverage a cardholder currently has through a carrier, those who take advantage of this perk could save a good chunk of money. Those under one of the four major carriers could see savings of $7 to $15 a month for a single device or up to $35 a month to cover up to three devices on one account.

There is a $25 deductible to use the protection. After that is paid, the protection covers up to $600 per claim on up to two claims in a 12-month period. If the phone has to be replaced, the protection awards the suggested retail value of the replacement phone, up to the $600 maximum per claim.

2% cash back on online purchases

The Uber Visa Card pays cardholders 2% cash back on online shopping, purchases made through Uber, video and music streaming services and online services like Instacart and TaskRabbit.

The cool thing about this perk is that cardholders can earn cash back on subscription services like Netflix, Amazon Prime and Spotify. Millennials, the leaders of the cord-cutting movement, will likely benefit by simply “setting and forgetting” their Uber Visa Card to pay for their favorite streaming services.

Update: Barclaycard sent cardholders an email Dec. 5 saying “using a third party payment method including PayPal, Venmo, Apple Pay, Samsung Pay, and Android Pay will now earn 2% back.” Take note: Using a credit card to make a person-to-person (P2P) transfer often carries a fee of about 3% of the transaction.

The 2% cash back on online purchases is good, but the bonus category offer isn’t a leading rate. Consumers who don’t do all their shopping online could benefit more from cashback options that earn double points on all purchases, not just those made online, like the Citi® Double Cash Card, Fidelity® Rewards Visa Signature® Card, or PayPal Cashback Mastercard®.

1% cashback on all other purchases

The Uber Visa Card still rewards spending if you don’t purchase in one of the bonus categories,. The card rewards cardholders 1% back on all other purchases, so it’s a good go-to card for everyday purchases, in addition to bonus-category buys. The 1% offer isn’t very competitive, as there are many existing cards that offer 2% on all purchases, but it ensures cardholders earn at least a little something on everything they buy with the Uber Visa Card.

Part II: Applying for the Uber Visa Card

The Uber Visa Card opens for applications Nov. 2. Interested applicants can apply for the unsecured rewards card online or directly through the Uber phone app and see an approval within minutes. The in-app application may be more of a win for Uber than for millennials, but it makes the application process easy for anyone who already has the Uber app, so may appeal to digital natives, too.

Once the application is approved, the card is made available for use immediately on rides and UberEATS purchases made through the Uber application on the cardholder’s mobile device. Cardholders should receive a physical card in the mail within about a week of approval.

What it takes to qualify

The card charges three tiers of variable interest — 15.99%, 21.74% or 24.74% — calculated based on your creditworthiness at the time of your application.

Borrowers with higher credit scores are more likely to qualify for the lower interest rates, while those with lower scores are likely to qualify for the higher APR. At this time, there is not a way for applicants to check to see if they prequalify.

This card is best for …

The Uber Visa Card is best for the regular Uber customer who dines out often, frequently travels for work, handles most shopping and bill paying online, and pays his/her balance in full each month. The unsecured rewards credit card’s features will likely hold the most appeal for traveling business people and city-dwelling millennials.

Consumers who spend heavily on dining, travel and online purchases would have the best shot at maximizing the Uber Visa Card’s rewards offers. However, the benefit is canceled out if a user carries a balance, thanks to a high interest charge on purchases.

Uber loyalists will benefit most from Uber app-centric perks like the ability to manage and redeem point using the app, and redeem rewards for Uber Credits for Uber rides and UberEATS.

Again, millennials may reap the greatest reward here as they more likely to use ride-hailing services like Uber on a regular basis. According to Pew Research, 7% of all 18- to 29-year-olds use ride-hailing on a daily or weekly basis; that figure rises to 10% among 18- to 29-year-olds living in urban areas.

Depending on how much an Uber app user spends and how often Uber gets used.

Those who aren’t frequent users of Uber’s app may benefit from earning cash back on spending in the card’s bonus categories, but may not realize as much value in the various app-centric perks.

Part III: Redeeming rewards

Cardholders can redeem cash back via Uber credits, gift cards, statement credit or direct deposit. Cardholders can start redeeming cash back for Uber credits once their cashback balance reaches $5, or 500 points.

As long as the account is active and in good standing, points never expire. The cashback balance must reach $25 before users can access it for gift cards, statement credit or direct deposit.

Cardholders are able to redeem rewards through the Uber app, online through the cardholder portal at BarclaycardUS.com, or by calling the customer service number on the back of the card. Cashback redemption is capped daily at $500.

If there are any authorized users on the card, they can earn and redeem points for gift cards and cash back, but not for Uber credits. Each cashback point is equivalent to $0.01 (2,500 points = $25).

How to redeem rewards for Uber credits in the Uber app

Uber lets cardholders directly manage the rewards points they’ve accumulated for Uber credits, gift cards or cash back through the Uber phone application. Users must first add the Uber Visa Card as a payment method.

Once the card is added, the user will tap on the Barclaycard mobile app menu to see a points balance. After tapping the points balance, the user should be prompted to select the amount to be redeemed.

Uber says the redemption should happen within seconds, but may take up to 24 hours to be applied to the account. The process is demonstrated in the GIF below.

Part IV: Pros and cons

What we like about the Uber Visa Card

No annual fee

The Uber Visa Card charges no annual fee, which is unusual for a card this loaded with rewards and bonuses. Cardholders can make the most of this no-fee rewards card if they charge only items that fall into the bonus rewards categories and pay the balance in full each month.

4-3-2-1 rewards perks

Uber’s card awards holders a high return on most purchases. In addition, rewards are unlimited and never expire. The card’s 4-3-2-1 cashback rewards program is appealing.

No foreign transaction fee

Cardholders can swipe to pay for items and services overseas without incurring foreign transaction fees. The lack of this fee combines with the 3% travel rewards bonus category to make the Uber Visa Card a good travel companion. Purchases made overseas also earn cashback rewards.

Apply directly in the Uber app

Uber’s 40 million active riders won’t need to rush to a computer to apply for the Uber Visa Card once the application opens Nov. 2. They can simply apply through Uber’s phone application. Uber claims users will be able to submit an application and see a decision within minutes on the app. Users can also apply for the Uber Visa Card online.

Immediate access

Approved applications are granted access to the funds immediately. Users can add the card as a payment option in the Uber mobile application for immediate use on rides and UberEATS orders.

Immediate access comes in handy if an applicant is in need of the funds ASAP. But it’s unclear if cardholders will be able to use the card immediately on purchases outside the Uber app, too.

Exclusive access to events and offers

Uber Visa Card users will get exclusive invites to events and offers in select U.S. cities. Uber app users may already be familiar with this perk if they have checked out Uber’s Visa Locals Offers. Cardholders earn Uber credit when they visit participating stores and restaurants if they pay with a Visa card (like the Uber Visa Card). Uber’s banded credit card is a Visa, so cardholders can earn rewards — like 10% Uber rewards if you shop at Whole Foods — plus the regular purchase rewards if they use the Uber Visa Card at checkout.

What to watch out for with the Uber Visa Card

$500 daily redemption limit

Cardholders can only redeem up to $500 worth of points per day on Uber Credits and cash back for a bank deposit. This may prove problematic if one wants to use points to redeem more than $500 in cash back rewards via bank deposit. There is no daily limit for cash back as a statement credit or for gift cards.

2% cash back on online purchases

2% cashback on online purchases is good, but the bonus categories offer isn’t a leading rate in itself.

1% cashback on all other purchases

For all other purchases, 1% isn’t a very competitive offer.

No interest-free balance transfer period

The Uber Visa Card is not a good option for anyone looking to consolidate credit card debt using a balance transfer. Unlike with the Citi® Double Cash Card, Uber Visa Card cardholders don’t pay 0% interest on balance transfers for a period. The card charges the greater of $10 or 3% of the transfer amount to transfer a balance, followed by the regular 15.99%, 21.74%, or 24.74% variable APR the cardholder is charged on all other purchases.

Part V: Alternatives to the Uber Visa Card

Consumers who don’t use Uber, don’t dine out often, don’t travel much or don’t make most of their purchases online may not find the Uber Visa Card’s cashback offer very appealing. While they can still earn a flat 1% cash back on all purchases they won’t be able to benefit much from the card’s bonus categories. Using a flat-rate cashback card with a higher reward, or one that offers a high cashback bonus in a category they use more often, may be beneficial to those consumers.

Flat-rate cashback alternatives

A flat-rate cashback card like the leading Citi® Double Cash Card and Paypal CashBack Mastercard® is a great option for anyone who wants to earn a reward on all purchases without thinking about bonus categories.

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 the second-highest no-fee flat-rate cashback credit card on the market. The card awards a first 1% cash back when you spend, and another 1% cash back when you pay. Cardholders receive the first 1% when they make a purchase and the second 1% when they pay at least the minimum payment due on their billing statement from the period, totalling 2% cashback.

The Citi® Double Cash Card offers an 18-month introductory 0% balance transfer offer, too, so it’s a good choice for those seeking to consolidate debt. Borrowers with good or excellent credit scores may be approved for the Citi® Double Cash Card.

PayPal Cashback Mastercard<sup>®</sup>

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

2%

APR

16.99%-27.99%

Variable

Cardholders with a PayPal Cashback Mastercard® can earn an unlimited, flat 2% cashback on all eligible purchases made using the PayPal Cashback Mastercard® for no annual fee. The card charges slightly higher variable interest rates than the Uber Visa Card — 16.99%, 24.99% or 27.99% — based on creditworthiness. Borrowers with fair, good or excellent credit scores may qualify for the PayPal Cashback Mastercard®

Similar to the Uber Visa Card, those approved for the PayPal Cashback Mastercard® can use the card immediately to pay for purchases through PayPal’s online and mobile applications. Cash back can be redeemed to the cardholder’s PayPal balance. From there it can be sent to the user’s bank account or used to send money to peers or make purchases via PayPal.

Fidelity® Rewards Visa Signature® Card

Annual fee

$0

Cashback Rate

2% on all spend

APR

14.99%

Variable

The Fidelity® Rewards Visa Signature® card earns cardholders 2% cash back on all purchases with no annual fee. The card is best for existing Fidelity customers, since the cashback earned has to be deposited into a Fidelity account.

Only borrowers with excellent credit should apply for this card. Fidelity also bases its credit limits on the total amount of assets it is managing on a consumer’s behalf, so those approved may still be disappointed in the limit they receive if they don’t have much money with Fidelity already.

Bonus category cashback alternatives

Uber doesn’t offer the best cashback rate on airfare and travel. In addition, the bonus categories the Uber Visa Card offers may not appeal to everyone hoping to earn cash back on the purchases they make most.

Best for airfare rewards:

PenFed Premium Travel Rewards American Express® Card

Annual fee

$0

Cashback Rate

-

APR

9.74%-17.99%

Variable

Cardholders earn an unlimited five points per dollar spent on airline purchases when they pay with the PenFed Premium Travel Rewards American Express® card. While the points translate to 5% cash back earned, each point is only worth 0.8 cents, so the reward is actually 4.25% when redeemed for airfare. Regardless, it’s still higher than the 3% a cardholder would ean with the Uber Visa Card.

PenFed Premium cardholders also earn a sign-on bonus of 20,000 bonus points after they spend $2,500 within three months of opening the account. The card does not charge an annual fee or foreign transaction fees. If you travel often and want to earn more than the Uber Visa Card is offering, the PenFed Premium Travel Rewards American Express® card is a solid alternative.

Best for supermarkets and fuel:

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

The Blue Cash Everyday® Card is a good alternative for consumers who spend more money on grocery than dining and more running around IRL on gas than making online purchases. The card offers cardholders 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) with no annual fee. In addition to a high cashback rate on groceries, cardholders earn 2% at U.S. gas stations and select U.S. department stores, and 1% on other purchases. The card also awards new cardholders a $150 statement credit after spending $1,000 in the first three months following opening of an account.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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Best of, College Students and Recent Grads, Credit Cards

Best Student Credit Cards 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.

Getting a credit card while you’re in college might seem dangerous or confusing. But if you are able to use a student credit card responsibly, you do not need to be afraid, and you can set yourself up for financial success after you leave school.

Fortunately, learning how to choose and use the right student credit card is relatively simple. Make sure you avoid annual fees and go with a bank or credit union you can trust. When you get the card, make sure you use it responsibly and pay the balance in full and on time every month. If you do these things consistently over time, you can leave school with an excellent credit score. And if you want to rent an apartment or buy a car, having a good credit score is very important.

Our Top Pick

Discover it® for Students

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® for Students

Annual fee
$0
Cashback Rate
up to 5%
APR
13.99%-22.99%

Variable

Credit required
fair-credit
Fair

Best for Commuter Students

Bank of America® Cash Rewards credit card for Students

APPLY NOW Secured

on Bank Of America’s secure website

Bank of America® Cash Rewards credit card for Students

Annual fee
$0 For First Year
$0 Ongoing
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%

Variable

Credit required
fair-credit

Average OK

Best Flat-Rate Card

Journey® Student Rewards from Capital One®

APPLY NOW Secured

on Capital One’s secure website

Read Full Review

Journey® Student Rewards from Capital One®

Annual fee
$0
Cashback Rate
up to 1.25%
APR
24.99%

Variable

Credit required
fair-credit

Average Credit

Best Intro Bonus

Wells Fargo Cash Back College℠ Card

APPLY NOW Secured

on Wells Fargo Bank’s secure website

Read Full Review

Wells Fargo Cash Back College℠ Card

Annual fee
$0 For First Year
$0 Ongoing
Cashback Rate
up to 3%
APR
11.90%-21.90%

Variable

Credit required
fair-credit
Fair Credit

Best Credit Union Card

Altra Federal Credit Union Student Visa

APPLY NOW Secured

on Altra’s secure website

Read Full Review

Altra Federal Credit Union Student Visa

Annual fee
$0 For First Year
$0 Ongoing
Rewards
1 point per dollar spent
APR
14.90%

Fixed

Credit required
zero-credit
New to Credit

Best for Studying Abroad

Bank of America® Travel Rewards credit card for Students

APPLY NOW Secured

on Bank Of America’s secure website

Bank of America® Travel Rewards credit card for Students

Annual fee
$0 For First Year
$0 Ongoing
Rewards
1.5 points per dollar spent
APR
15.99%-23.99%

Variable

Credit required
fair-credit
Fair Credit, Limited Credit history

Best Secured Card

Discover it® Secured Card - No Annual Fee

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® Secured Card - No Annual Fee

Annual fee
$0
Minimum Deposit
$200
APR
23.99% APR

Variable

Credit required
bad-credit
Bad

Best for No Credit History

Deserve Edu Mastercard

APPLY NOW Secured

on Deserve’s secure website

Deserve Edu Mastercard

Annual fee
$0 For First Year
$0 Ongoing
Cashback Rate
1% on all purchases
APR
19.74%

Variable

Credit required
zero-credit
New to Credit

Also ConsiderAlso Consider

Golden 1 Platinum Rewards for Students

Golden 1 Credit Union Platinum Rewards for Students:

This credit card offers a snazzy rewards program: rather than accumulate points, you’ll get a cash rebate instead. All you have to do is make a purchase. At the end of the month, you’ll get a rebate of 3% of gas, grocery, and restaurant purchases, and 1% of all other purchases deposited back into your Golden 1 savings account at the end of the month. You can join Golden 1 by joining the Financial Fitness Association for $8 per year and keeping at least $5 in a savings account.

What should I look for in a student credit card?

The most important thing to consider when looking for a student credit card is that it charges no annual fee. You should never have to pay to build your credit score. Fortunately, most student cards don’t charge you an annual fee, but it’s still something to watch out for.

The second most important thing you should keep an eye out for are tools that help you learn about credit or even promote good credit-building habits. For example, some student credit cards will give you a free monthly FICO score update. You can use this freebie to see in real time how your credit score changes as you build credit history by keeping the card open, or paying down your credit card balance, for example.

The last thing you should be considering when picking out a student credit card is the rewards program. I know, I know, it seems counterintuitive. But stick with me — I’ll show you why in the next question.

Why shouldn’t I be concerned about maximizing my rewards while in college?

Rewards cards are nice to have. But if you’re a college student, here’s the truth: you probably won’t spend enough to earn meaningful rewards.

Why? With a good rewards program, you can earn points or cash back. A small percentage of your monthly spending can add up quickly. However, given the tight budget that most college students live on, it will probably take a while to earn meaningful rewards. For example, if you earn 1.25% cash back and spend $300 a month on your card, you would earn $45 of cash back during the year.

College students are very good at making good use of $45. And our favorite card offers a great cash back rewards program. Just don’t expect to earn a lot of cash back, given the tight budget of a college student.

Why should I get a credit card as a college student?

There are a lot of great reasons why you should get a credit card, as long as you can commit to using it responsibly.

The single biggest reason why you should get a credit card as a college student is because you can start establishing a credit history now. When you graduate from college, you will need a good credit score to get an apartment. And your future employer will likely check your credit report. Building a good credit history while still in college will help prepare you for life after graduation.

Getting a credit card while in college can also train you to develop good credit habits now. But you need to be honest with yourself. If you find that you can’t avoid the temptation of maxing out your credit card, you might want to switch to a debit card or cash.

Finally, getting a credit card now can be the motivation you need to start learning about credit. These skills aren’t hard to learn, and they could save you thousands or even hundreds of thousands of dollars later in life (when you want a mortgage, for example).

What is the CARD Act and why should I care about it?

Many years ago, credit card companies would market on college campuses. You could get a free beer mug or t-shirt in exchange for a credit card application. And you would be able to qualify for a credit card without having any income. The Credit Card Accountability Responsibility and Disclosure (CARD) Act was signed into law in May 2009 to change a number of practices.

How did the CARD Act change student credit cards?

The CARD Act made a lot of changes in how credit card issuers do business with students. One of the biggest changes was requiring students to be able to demonstrate an ability to pay. If you are under 21 and do not have sufficient income (a campus job, for example), you would need to get a co-signer.

In addition, colleges must now limit the amount of credit card marketing on campus. The days of free t-shirts and pizzas in exchange for credit card applications are gone. But that doesn’t mean it is impossible for a college student to get a credit card. Some highly reputable banks and credit unions still offer student cards. And building a good credit score while still in college is still highly recommended.

How can I protect myself from racking up debt?

When used properly, credit cards are a very convenient method of repayment. However, when not used properly, you can end up deep in credit card debt. It is important to establish a healthy relationship to credit now, with your first credit card.

You should try to ensure that you pay off your credit card bill in full and on time every month. Ideally, you should set up an automatic monthly payment. And to keep yourself on track, take advantage of alerts offered by most credit card companies. You can even get daily text messages reminding you of your balance.

How can I automate my credit card usage?

If all of this sounds confusing, don’t worry. There’s actually a way you can automate your payments so you never even have to bother with the hassle of using a credit card. All it takes is a few minutes of upfront work.

First, you’ll need at least one recurring monthly bill of the same amount, such as Netflix or Spotify. Log in to your account and set up an automatic payment each month using your credit card. Make a note of how much your monthly bill costs.

Next, log in to your bank account. Set up a second automatic payment to go to your credit card each month for the same amount as the bill. If your bank doesn’t offer the option to set up automatic payments, you may also be able to set up your credit card to automatically withdraw the amount of the bill from your bank.

Because you know this bill will be for the same amount each month (barring any price increases), you can literally just leave this running in the background each month on autopilot. You don’t even have to carry your credit card in your wallet if you don’t want to. Then, when you graduate, you’ll automatically have an improved credit score!

What happens to my student credit card when I graduate?

Congratulations! You’ve made it to the finish line. But what about your student credit card? You will have a few options once you graduate.

First, you can simply keep it. You will want to keep the credit card open, because it helps you build a long credit history. However, you might want to call your credit card company and ask if you can migrate to a standard (non-student) credit card.

But if you have been using your credit card properly, you will have an excellent credit score when you graduate – and you will be able to get any credit card that you want.

Here is a summary of our favorite cards:

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Best of, Credit Cards

Best Credit Cards for Good Credit 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.

If you’re someone with good credit you should be able to qualify for a variety of credit cards. There are cards if you want to earn cash back, earn travel rewards or complete a balance transfer. MagnifyMoney has reviewed our database of over 2,000 credit cards to find cards you can qualify for with good credit. Here are our favorite cards for people with good credit.

Best cash back credit cards

Cash back credit cards can be great tools to boost your financial position. They basically make your life just a few percentage points cheaper — who wouldn’t want that?

Watch out for the pitfalls with these rewards cards, though. Don’t talk yourself into spending more because you’ll receive cash back. If you opt for a cash back card that offers you up to 5X more points on certain categories, make sure you understand that you often have to activate the bonus categories and set up reminders for yourself if necessary.

Best flat-rate cash back

Citi® Double Cash Card – 18 month BT offer

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on Citibank’s secure website

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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

Credit required
good-credit

Excellent/Good

Best 5% cash back

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

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on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® - Cashback MatchTM

Annual fee
$0
Cashback Rate
5% on certain categories, 1% on everything else
APR
11.99%-23.99%

Variable

Credit required
good-credit
Good / Excellent

Also Consider

Platinum Rewards Card from Nusenda CU

Nusenda Credit Union Platinum Rewards

This card is a great choice for forgetful people who want cash back rewards. It’s one of the only cards offering revolving categories each quarter that you don’t have to opt in for; you will get these rewards automatically. This card would also be a great choice for those who want cash back rewards and don’t mind working with a credit union.

Best for big spenders in gas

Commuting can be a huge cost, especially if you live far away from your work and don’t use public transportation. If you spend a lot of money on gas each month, consider getting a cash back rewards card that gives you higher rates of return for these purchases. It’s like having an instant coupon for gas with you all the time.

Fort Knox Federal Credit Union Visa® Platinum Card

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on Fort Knox Federal’s secure website

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

Credit required
good-credit

Good

Best for big spenders in groceries

Groceries can be one of your biggest budget-busters, especially if you have a large family, a specialized diet, or live in certain parts of the country. The good news is there are certain credit cards that offer great rewards for grocery purchases. Here’s our top pick for a credit card to maximize your grocery cash back rewards.

Blue Cash Preferred® Card from American Express

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on American Express Bank’s secure website

Terms Apply

Rates & Fees

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

Best travel rewards credit card

Travel can seem like a pipe dream to a lot of people. Even if you do have the cash, it still stings to see that much hard-won money leaving your bank account. But with a travel rewards credit card, you can have a sort of de facto savings account specifically for travel. And with a sign-on bonus like the one for our top pick, you can be jet-setting somewhere fun and interesting as soon as a few months from now.

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

Chase Sapphire Preferred® Card

Annual fee
$0 Intro for the First Year, then $95
Rewards
2 points on travel and dining, 1 point on all other spending
APR
16.99%-23.99%

Variable

Credit required
good-credit

Good/Excellent

Best airline credit cards

One of the biggest travel expenses is airfare. Even if you don’t have specific goals to travel regularly, surprises like cross-country family emergencies or get-togethers can take a big bite out of your budget.

Before signing up for an airline-specific card, it’s helpful to know what airline options you have near you. Different airlines tend to congregate more in different parts of the country; you won’t see any Alaska Airlines planes if you live in Maine, for example.

The information related to the Southwest Airlines® Rapid Rewards® Plus Card has been collected by MagnifyMoney.com and has not been reviewed or provided by the issuer of this card.

Best for Southwest frequent flyers

Southwest Rapid Rewards® Plus Credit Card

Annual fee
$69 For First Year
$69 Ongoing
Rewards
2 points per $1 spent on Southwest® purchase
APR
16.99%-23.99%

Variable

Credit required
excellent-credit

Excellent

The information related to the United MileagePlus® Explorer Card has been collected by MagnifyMoney.com and has not been reviewed or provided by the issuer of this card.

Best for United frequent flyers

United MileagePlus® Explorer Card from Chase Bank

Annual fee
$0 intro annual fee for the first year, then $95
Rewards
2X miles on tickets purchase from United, 1 mile on everything else
APR
16.99%-23.99%

Variable

Credit required
good-credit

Good

Best for American Airlines frequent flyers

Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard<sup>®</sup>

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on Citibank’s secure website

Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®

Annual fee
$95, waived for first 12 Months*
Rewards
2 AAdvantage® miles on American Airlines purchases, 1 AAdvantage® mile on everything else
APR
16.74%-24.74%

Variable

Credit required
good-credit

Good

Best for Delta frequent flyers

 Gold Delta SkyMiles® Credit Card From American Express

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on American Express Bank’s secure website

Terms Apply

Rates & Fees

Gold Delta SkyMiles® Credit Card From American Express

Annual fee
$0 introductory annual fee for the first year, then $95.
Rewards
2 miles on Delta purchases, 1 mile on everything else
APR
16.74%-25.74%

Variable

Best luxury credit card

Even though traveling is fun, it can still be a stressful experience. In between fighting throngs of crowds and cramming into airline seats, it can be enough to drive even the most ardent travel-lover insane sometimes.

The good news is you can avoid all of that with a luxury credit card. These credit cards will give you an across-the-board better travel experience, from the moment you arrive at the airport until you make it back home. Here is our top pick for a luxury credit card.

The Platinum Card® from American Express

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on American Express Bank’s secure website

Terms Apply

Rates & Fees

The Platinum Card® from American Express

Annual fee
$550
Rewards
5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel, 5X Membership Rewards® points on eligible hotels booked on amextravel.com
APR
-
Credit required
excellent-credit

Excellent

0% APR credit cards

If you really need to buy something moderately expensive but don’t have the cash for it yet, 0% APR purchase cards can be a great way to go. They’re basically like free short-term loans. These cards are similar to 0% balance transfer cards, but not all of them also offer you the ability to make new purchases with the free promo rates.

It’s recommended to only use these cards to buy things that you absolutely need rather than a new big-screen TV. For example, I used a 0% APR card to purchase the very computer I’m typing this on. I didn’t have $800 to spend at the time, but within a couple of months I had made enough money to pay it off in full — without having to pay a penny of interest. These cards offer great opportunities to better your life, without the extra cost — if you can pay off the card before the promo period is over.

21 months, 0% intro APR, 3% BT fee

Citi Simplicity® Card - No Late Fees Ever

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on Citibank’s secure website

Read Full Review

Citi Simplicity® Card - No Late Fees Ever

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 3% of the amount of the transfer, whichever is greater
APR
14.99%-24.99%

Variable

Duration
21 months
Credit required
good-credit

Excellent/Good

15 months, 0% intro APR, $0 intro BT fee

Chase Slate<sup>®</sup>

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on Chase’s secure website

Read Full Review

Chase Slate®

Intro BT APR
0%

Introductory rate

Balance Transfer Fee
$0 intro balance transfer fee when you transfer a balance during the first 60 days your account is open. After 5% of the amount transferred, with a minimum of $5.
APR
15.99%-24.74%

Variable

Duration
15 months
Credit required
fair-credit

Average

14 months, 0% intro APR, 3% BT fee

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

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on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® - Cashback MatchTM

Intro BT APR
0%

promotional rate

Balance Transfer Fee
$5 or 3% of the amount of the transfer, whichever is greater
APR
11.99%-23.99%

Variable

Duration
14 months
Credit required
good-credit
Good / Excellent

Learn more

You don’t need a perfect credit score to qualify for the best financial products. You’ll still get access to virtually all of the things an 850 credit score would unlock as long as you have a credit score of at least 760.

Good credit scores don’t happen by accident. Whether you deliberately aimed for your score or not, you have good financial management skills. However, this isn’t enough to guarantee your approval for a large number of financial products.

It’s actually possible to have a good credit score yet still be a high financial risk. For example, your credit score doesn’t take your salary into account. You could have a perfect credit score yet be unemployed with no income, in some cases.

When you apply for financial products, banks will look at your entire situation beyond just your credit score. Each bank will have their own approval criteria, and you might not pass one of them even if you have a good credit score.

Take heart, however; in general, you will be approved for most good financial products and services if you have a good credit score. But if the bank is very picky or something uncommon has happened to you (such as a recent job loss), it’s not surprising to be rejected.

Potential creditors don’t like to see a string of recent credit inquiries on your report because it might be a sign that you’re going on an out-of-control credit binge. Your score will be docked a few points per credit inquiry. This is a relatively small cut compared to more major transgressions like late payments and foreclosures, however.

When you have a poor credit score (600-648), you need every point you can get. The difference between a poor and a fair credit score is just 48 points; you need to do everything you can to gain those points and move up into the next bracket. Having a hard credit pull on your credit report will set you back even longer.

If you’ve got good credit, though, you don’t need to worry as much. You have 150 points between 700 and the maximum score of 850. That’s plenty of room to pay for small dings on your credit. You can have a hard inquiry on your credit report and still have a good credit score, unless you’re starting with a borderline good score of 700-705.

You’ve worked hard getting your score to this point, now how do you keep it there? Luckily, it’s not hard; basically, continue doing the good things you’re already doing.

Paying all of your statements on time and in full is one of the best things you can do to maintain your high credit score. A single late payment on your mortgage could set you back 60 points or more, downgrading you from good credit to average. Make sure all of your debt accounts are set up on autopay to avoid this potentially costly error.

Credit utilization (the percentage of available credit you’re using) is also one of the biggest factors in determining your credit score. The less available credit you’re using, the better. In general, a credit utilization ratio of 10% or less will boost your score the most. This means that you’ll have a credit card balance of $1,000 or less for each $10,000 of credit you have available to you.

A few minor factors will also boost your credit score, but not as much as having a good payment history and a low credit utilization ratio. Keep credit inquiries to a minimum. In order to avoid a slew of inquiries that will be reflected in your credit score, make sure companies use soft pulls if you need to shop around for the best interest rates.

Also consider keeping your oldest credit cards open and closing any newer ones you’re not using. This will increase your average credit age. In general, an average credit age of five years or more is considered best and will boost your credit score.

You don’t want to be juggling around a ton of cards you’re not using. Closing old cards sounds like a good idea until you consider one factor: It may ding your credit score.

Creditors like to see that you can effectively handle credit accounts over long periods of time. That’s why average credit age is one factor included in credit scoring models.
If you close out an old card, your average credit age might drop. This would cause a corresponding dip in your score. The effect wouldn’t be huge (not as large as a late payment, for example), but it could be there nonetheless, especially if your average credit age is five years or less (over five years is the optimal average credit age).

That’s why most experts recommend keeping your oldest credit card open. If you want to juggle fewer accounts, close any newer ones that you’re not using. Of course, if your oldest credit card charges an annual fee and you’re not using it, then go ahead and close it anyway. Paying an annual fee for a card you’re not using likely outweighs any benefits from keeping the card open for the sake of boosting your average credit age.

Furthermore, if you close your old credit card before you apply for a new card, it’s possible that your credit score will drop enough that your application will be rejected, especially if you have a borderline good credit score. In this case, it’s better to wait until after you’ve applied and been approved for the new credit card before closing your old card, if you decide to do so.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Best of, Reviews

10 Best NO ANNUAL FEE Rewards 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.

There are an abundance of no fee rewards credit cards available, so how do you best determine which one to keep in your wallet? Most earn a measly 1% on your spending, while others have no rewards at all. To help, we’ve dug deep into our database of thousands of rewards cards to find the very best no annual fee rewards credit cards of 2017 for each category.

While you might find rewards credit cards with an annual fee can give you the best rewards, we’re sticking to no fee cards that are available even if you don’t have truly excellent credit (good credit should be fine for most of these).

The first cards we list here offer unlimited double rewards on everything you purchase, while the remaining offer 3% or better rewards on spending in popular categories so you can mix and match to maximize your rewards, or they offer the chance for better earning if you use your rewards for travel.

1. Double Rewards on Everything, NO FEE – Citi® Double Cash Card

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

Citi offers you rewards twice. First, you get 1% cash back when you make a purchase. Then, you get another 1% cash back as you pay it off. All with no annual fee and no spending cap. This lets you earn rewards twice as good as standard reward cards. Read our review for more details on the Citi® Double Cash Card.

If you like to maximize things and want to earn more rewards in special spending categories, consider pairing this with one of the no fee cards we list below.

2. Honorable Mention: 2% Fidelity Rewards Visa Signature, NO FEE

Fidelity® Rewards Visa Signature® Card

Annual fee

$0

Cashback Rate

2% on all spend

APR

14.99%

Variable

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on Fidelity’s secure website

Fidelity provides no annual fee 2% cash rewards on purchases if you deposit the cash you earn into a Fidelity account. But you don’t need to have any stocks or investments to have an account. Fidelity has no fee cash accounts where you can deposit your rewards, then withdrawal when you’re ready to spend. Be aware this card is designed for people with excellent credit, while the Citi® Double Cash Card might be easier to get.

Both cards offer you the flexibility to earn double rewards on anything you purchase; so either one of these is a nice addition to a rewards strategy. The advantage of the Fidelity card over the Citi® Double Cash Card is that its foreign transaction fees are just 1% versus 3% for the Citi® Double Cash Card. But setting up the Fidelity card and rewards is more cumbersome than the dead simple Citi® Double Cash Card. Read our review of the Fidelity Rewards Visa Signature card.

If you want to earn more than 2% rewards here’s a rundown of the best no fee rewards credit cards that earn 3% or more in the most popular categories. You can click on each category for our take and details:

  • Rotating 5% categories: Chase Freedom®, Discover it® Cashback Match™, Nusenda Platinum Cash Rewards
  • Restaurant spending: Uber Visa Card – 4%
  • Travel spending: AAA Member Rewards Visa Signature® Card – 3%
  • Gas spending: Fort Knox Credit Union Visa Platinum – 5%
  • Grocery shopping: Blue Cash Everyday® Card from American Express– 3% (up to $6,000 of spend annually), Golden 1 Credit Union Platinum Rewards – 3%

And if you’re interested in traveling, here are the best no fee rewards credit card deals:

If you like to dig, we also have a complete (and long) list of cards that earn more than 3% on purchases in many more special categories, including cards with an annual fee.

3. Restaurant Spending: Uber Visa Card – 4% Rewards, NO FEE

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

If you frequently dine out, the Uber Visa card offers a great 4% back on dining purchases which includes restaurants, takeout, bars and UberEATS. You also get 3% back on hotel and airfare, including vacation home rentals; 2% back for Uber, online shopping, video and music streaming services; and 1% on everything else. To learn more about the Uber Visa card, check out our review.

4. Travel Spending: AAA Member Rewards Visa Signature® Card – 3% Rewards, NO FEE

AAA Member Rewards Visa Signature® Card

Annual fee

None

Rewards

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%

No need to be an AAA member to take advantage of this rewards card. You earn points when you shop at travel merchants including airlines, car rental agencies, hotels, cruise lines and travel agencies. Along with the 3 points for eligible travel & AAA purchases, you earn 2 points on gas, grocery store, and drugstore purchases, and 1 point per $1 for all other purchases. Learn about the  AAA Member Rewards Visa Signature® Card here.

5. Gas Spending: Fort Knox Credit Union Visa Platinum – 5% Rewards

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

Spend a lot of cash at the pump? The Fort Knox Credit Union Visa Platinum offers 5% cash back for gas. On all other retail purchases, you get 1% cash back. Anyone can join the Fort Knox Credit Union by becoming a member of the American Consumer Council for $5.

Another option to consider is the NRA Complete Rewards® Visa® Card which also offers unlimited 5% cash back on gas purchases. You do not need to be an NRA member to apply.

6. Supermarket Shopping: Blue Cash Everyday® Card from American Express – 3% Rewards

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 on U.S. supermarket purchases up to $6,000 per year. You also get 2% cash back at U.S. gas stations and select U.S. department stores. On everything else you earn 1% rewards. Read our review of the card for more detail.

7. Honorable Mention: Golden 1 Credit Union Platinum Rewards – Unlimited 3% Grocery Rewards

Golden 1 Platinum Rewards Credit Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

3% cash-rebate on gas, grocery, and restaurant purchases, plus 1% cash rebate on all other purchases

APR

7.79%-13.79%

APPLY NOW Secured

on Golden 1 Credit Union’s secure website

If you live in California, the Golden 1 Credit Union Platinum Rewards card will give you 3% cash rewards for purchases on groceries without the caps on the Blue Cash Everyday, along with gas and restaurants and 1% rewards on all other purchases. Also in California, the JCB Marukai Premium card offers unlimited 3% cash rewards on all purchases after your first $3,000 in spending each year. The catch is there’s a $15 annual fee on the card.

5% Cash Rewards in Rotating Categories: NO FEE

Cards with a rotating reward program can give you 5% cash rewards with no annual fee, but you’re limited to spending in special categories each quarter and there’s a cap on how much spending earns the 5%. You also have to opt into the 5% cash back rewards program each quarter.

8. Chase Freedom® – 5% in rotating categories, $0 ANNUAL FEE

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

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. Check out our review for more benefits of the Chase Freedom®.

9. Discover it® Cashback Match™ – 5% in rotating categories, $0 ANNUAL FEE

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

With the Discover it® Cashback Match™, 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. You can redeem your cash back for any amount at any time. And your cash back never expires. Discover will match ALL the cash back earned at the end of your first year, automatically – only for new cardmembers. Our review explains the other features of this card.

10. Platinum Cash Rewards Visa from the Nusenda Credit Union – 5% in rotating categories, NO FEE

Platinum Rewards Card from Nusenda CU

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

5% cash back on purchases in quarterly rotating categories

APR

10.00%-14.00%

Variable

APPLY NOW Secured

on Nusenda ’s secure website

5% cash rewards on groceries, gas expenses, movies, restaurants, home improvement, education and travel. This quarter, cardholders will earn cash back on restaurants, hotels and airfare purchases. There’s a cash back cap of $1,500 per quarter. Anyone can join the Nusenda Credit Union by donating $10 to the New Mexico Wilderness Alliance; contact a customer representative for details. The advantage of this card is that its categories tend to be more broad, and not store-specific like those on the Chase Freedom® and Discover it® Cashback Match™, so it’s a great way to get you closer to 5% rewards on everything you spend.

If you’re going to go through the effort of enrolling in a rewards program, consider all three cards to see which categories will benefit you the most. But, if you’re looking for freedom to spend without restrictions, sticking with the Citi® Double Cash Card may be your best simple bet.

Honorable mentions for travelers

No foreign transaction fees with plain cash back: Capital One® Quicksilver® Cash Rewards Credit Card – 1.5% Rewards

Capital One® Quicksilver® Cash Rewards Credit Card

Annual fee

$0

Cashback Rate

1.5%

APR

13.99%-23.99%

APPLY NOW Secured

on Capital One’s secure website

The Capital One® Quicksilver® Cash Rewards Credit Card gives you 1.5% cash back on all purchases. And like all Capital One credit cards, there are no foreign transaction fees. Even though you earn less rewards than the Citi® Double Cash Card or Fidelity American Express, this card is a better option for your international spending, since you avoid fees of 1 to 3%. To learn more, read our review.

Real airline miles: The Amex EveryDay® Credit Card from American Express

The Amex EveryDay® Credit Card from American Express

Annual fee

$0

Rewards

2X points at US supermarkets on up to $6,000 per year in purchases, 1X on other purchases

APR

13.99%-23.99%

APPLY NOW Secured

on American Express Bank’s secure website

Terms Apply

Rates & Fees

The Amex EveryDay® Credit Card from American Express is a $0 annual fee rewards credit card that earns Amex Membership Rewards points, which you can turn into real airline miles with several airlines, including Delta SkyMiles, Virgin Atlantic Flying Club, JetBlue True Blue, and Virgin America Elevate. It’s the only no annual fee card you can apply for online that can net you real Delta SkyMiles. When you want to convert points to Delta miles, just go to the Amex site, and transfer your points to Delta or the other participating airline programs any time. Read our review for more information.

Points for travel on any airline: Bank of America® Travel Rewards Credit Card

Bank of America® Travel Rewards Credit Card

Annual fee

$0

Rewards

1.5 points per dollar spent

APR

15.74%-23.74%

Variable

APPLY NOW Secured

on Bank Of America’s secure website

The Bank of America® Travel Rewards Credit Card earns a base 1.5 points per dollar spent, and you can use the points to erase travel purchases from your statement. Every 10,000 points is worth $100 when you use them for travel, so each point is worth one cent. Where the card gets interesting is if you’re a Bank of America customer with a checking, savings, or IRA account. If you are, you’ll get a 10% bonus on what you earn each year, so the card effectively earns you 1.65x points per dollar. Even better, if you’re a Platinum level member of Bank of America Preferred Rewards (which you get by keeping a lot of your money with them), you can earn up to 2.625x points per dollar, which is an incredible deal. There are also no foreign transaction fees to worry about.

How can you get the most value from a rewards credit card?

In order to best benefit from no annual fee rewards credit cards, follow these tips:

  • Narrow your focus: Before choosing a no annual fee rewards credit card (or cards), take a look at your budget and several months’ worth of bank statements. Then, pick cards that’ll offer you the most cash back for things you already buy. You shouldn’t change your spending habits to match a rewards program.
  • Give your rewards cards a job: Don’t spread out your spending onto too many cards without a purpose or you risk making less cash back overall. Choose a few cards and assign them a job so you know what purchases to make on each one to maximize your cash back.
  • Don’t get overzealous: Rewards shouldn’t justify overspending, especially if you’re struggling with debt. It’s a reward for making legitimate purchases. After all, you won’t make enough back to put a big dent in your monthly statement. For instance, $2,500 spent on the Fidelity American Express card equals a $50 deposit. It’s a great perk, but it shouldn’t be your sole reason for buying something.
  • Read the fine print: Understand the implications of each rewards program. For the rotating category cards, you get a huge amount of cash back, but you’ll have to strategize your spending each quarter to earn it. And you have to enroll into the program by the deadline to qualify. Set a reminder on your smartphone or calendar if necessary. You don’t want to miss out on a cash back category for an entire quarter.
Taylor Gordon
Taylor Gordon |

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

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Best of, Credit Cards

Best Credit Cards for Fair Credit 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.

Having fair credit doesn’t mean you’re ineligible for great credit cards. We’ve rounded up the top credit cards with the best offers in a range of different categories that you’re still likely to be approved for, even with fair credit. These credit cards can help you build credit as long as you use them wisely. In this guide, we’ll show you the best credit cards for fair credit scores as well as how to use them to boost your credit score even higher.

Here are some of the products we will be discussing today:

Check If You’re Pre-qualified

Before applying for any credit card it’s helpful to check if you’re pre-qualified from a variety of institutions. The soft credit check the institutions perform does not harm your credit score and allows you to compare credit options. Sites such as CreditCards.com provide good tools that can match you to offers from multiple credit card companies without impacting your credit score. You can read our complete guide to getting pre-qualified for a credit card here.

Build Credit with Secured Cards

A great approach to rebuilding credit is to get a secured credit card. In order to get the card, you will have to deposit money that will be your line of credit. To effectively rebuild your credit, you must use the card, and we recommend not charging more than 20% of your credit line. For example, if you have a $500 credit line, you should not charge more than $100. Then, pay off your balance in full every single month. You can even build credit with $10 a month on a secured card and see your credit score rise.

After you’ve consistently managed your secured card well over a period of time, you may be able to increase your credit line beyond your initial deposit or migrate to an unsecured credit card.

We’ve reviewed the best secured cards in the market and found our top pick — the Discover it® Secured Card. This card has no annual fee, a reasonable security deposit and offers an easy transition to an unsecured card. In addition, Discover offers a rewards program and free access to your FICO score.

Discover it® Secured Card - No Annual Fee

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on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® Secured Card - No Annual Fee

Annual fee
$0
Minimum Deposit
$200
APR
23.99% APR

Variable

Credit required
bad-credit
Bad

Best for Cash Back

If you have fair credit and want a cash back card the Capital One® QuicksilverOne® Rewards credit card is a good option. As a consumer with fair credit you may not qualify for all cash back cards, but you may qualify for the Capital One® QuicksilverOne® Rewards credit card since it is made for those with fair credit. With this card you will earn unlimited cash back, with no changing categories, and the rewards never expire.

However, this card comes with a high APR and annual fee. To earn enough cash back rewards to pay for the card itself each year you’ll need to spend $2,600 annually ($217 per month). To net a cash back of $50 you need to spend $5,933 in a year ($494 per month). This card may be an option for you if you want to earn more than 1% cash back.

Capital One® QuicksilverOne® Cash Rewards Credit Card

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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

 

Best Low Ongoing APR

No one wants to carry a balance on their credit cards, but if you must, it’s best to get a card with a low ongoing APR. Many lenders charge high APRs around 25%, but you can potentially qualify for a variable APR as low as 8.90%. This card will charge you less money on your debt than the typical credit card, which can save you big dollars in the long run.

MasterCard Platinum from Aspire FCU

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on Aspire Credit Union’s secure website

Read Full Review

MasterCard Platinum from Aspire FCU

Intro BT APR
0%

promotional rate

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

Variable

Duration
6 months
Credit required
fair-credit

Average

Best for Small Business Owners

Running a business is hard. Small business credit cards can make it a bit easier for you by giving you rewards for everyday purchases. Nevertheless, be aware: Business credit cards forego certain protections that personal credit cards have under the Credit CARD Act. For example, card issuers can change the payment due date or interest rate without giving you prior notice.

Still, small business cards can be a great option for you to build your credit and save money, even if you don’t have a traditional brick-and-mortar business. You can apply for these cards with just a DBA or even your own name, if you’re a freelancer.

Capital One® Spark® Classic for Business

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on Capital One’s secure website

Read Full Review

Capital One® Spark® Classic for Business

Annual fee
$0
Cashback Rate
1% on all spend
APR
23.99%

Variable

Credit required
fair-credit

Average

Best for Students

You may have a fair credit score because you are a student. Student cards provide a great way for you to build your credit score and establish good credit history. The Discover it® for Students card is made with students in mind and offers ways to help you build credit and also earn rewards.

Discover it® for Students

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on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® for Students

Annual fee
$0
Cashback Rate
up to 5%
APR
13.99%-22.99%

Variable

Credit required
fair-credit
Fair

FAQ

There’s a lot of math that goes into computing your credit scores, but at the end of the day, a fair credit score is defined as being between 649 and 699. Here’s how a fair credit score sits in relation to other credit scoring classes:

  • Excellent: Above 760
  • Good: 700-759
  • Fair/Average: 649-699
  • Poor: 600-648
  • Very Poor: Under 599

You can check your credit score for free on sites like Credit Karma, Chase Credit Journey, or AnnualCreditReport.com.

Having a good or excellent credit score unlocks a lot of advantages, such as lower interest rates and better approval odds for high-value credit cards and other financial products. These advantages will result in more dollars in your wallet at the end of the day. For example, having a high credit score can save you tens or even hundreds of thousands of dollars in interest payments over your lifetime, especially for big-ticket loans like a home mortgage.

But if you have a fair credit score, don’t fret! There is a reason that your score is less than optimal, and thus there are real, concrete steps you can take to boost your credit score into the good and excellent range.

If you play your cards right, you can even join the exclusive 800+ credit score club (unfortunately, it’s not an official club, and you don’t get a shower of balloons and confetti once you reach it — but you will get access to some of the most exclusive financial products).

There can be many reasons why your credit score is below 700. Here are some of the most common ones:

  • You have late payments on your credit report. Having even just one late payment on your credit report can seriously harm it because payment history makes up 35% of your credit score. Unfortunately, unless it’s an error, you’ll just need to wait for it to drop off of your credit report in seven years. To prevent this from happening, make sure all of your debt payments are set up on autopay. That way, you won’t have to worry about it.
  • You have a lot of credit card debt. Credit utilization ratio is one of the biggest factors in calculating your credit score — it affects 30% of the final score. It’s simply how much you owe relative to how much you are allowed to spend. For example, let’s say you have two credit cards with a $5,000 limit each, and you owe $2,000. Your credit utilization ratio is 20% because you owe $2,000 out of a possible $10,000. Luckily, this is one of the easiest factors to correct that will boost your credit score big time in the short run: Pay off your balance, and your score will bump up immediately.
  • You don’t have a long credit history. Although credit history doesn’t factor into the calculation of your credit score as much as the credit utilization ratio and payment history, it still makes up a sizable chunk at 15%. There’s not much you can do about this one: Simply wait for your accounts to age.
  • You have a lot of credit inquiries. Banks don’t like to see you applying for credit like an out-of-control spender in Las Vegas. Each time you apply for credit or a loan, it’s recorded on your credit report as a credit inquiry, and it stays there for two years. To minimize the number of credit inquiries you have, always shop around and make sure creditors use a soft pull credit check unless you’re absolutely ready to apply for the line of credit. This factor makes up just 10% of your credit score, but it’s an easy one you can affect as long as you’re careful about applying for credit.
  • You don’t have a wide variety of account types. You may be an ace at handling your student loans, but creditors also want to know you can handle other types of credit like mortgages and credit card debt, too. The more types of credit accounts you have on file, the better. However, we don’t recommend taking out a loan just for the sake of boosting your credit score — that costs money, and you’ll only receive a modest benefit from it because credit mix only makes up 10% of your credit score.

As you can see, you do have a lot of options when it comes to fine-tuning your credit score into the good or excellent category. We recommend the helpful credit score simulator at Chase Credit Journey to check your current score and see how these adjustments can potentially change your credit level. It’s available whether you’re a Chase customer or not. Give it a try!

Applying for a credit card is easy. You’ll need some basic information like name, address, and Social Security number. You’ll also need employment and income information. Simply enter it into the online form on the credit card company’s website, visit a branch of the bank (if they have one), or call the credit card company directly. You’ll usually receive instant notification if you’ve been approved or not.

There are many ways for you to increase your credit score. Ultimately practicing responsible credit behavior is the best way to see your score rise. Here are a few ways you can increase your credit score:

  • Have someone add you as an authorized user: If you have a willing (and very trusting) friend or family member with better credit, you can ask them to add you as an authorized user onto one or more of their credit cards. Their credit will not be harmed by this (as long as you don’t rack up charges or missed payments), and the credit card will show up on your credit report just as if you had applied for it — boosting your credit utilization ratio, number of accounts, and account age if you keep it for a long time.
  • Increase your credit history length: Unfortunately, you can’t go back in time, but you can still affect your credit history length. Your credit score is partially based off of average credit history length, and the more old accounts you have, the better. If you already have credit cards open, consider keeping them open so your average credit history won’t decrease and ding your credit. Each new credit card you get will drop your average account age, and it’ll take longer to boost this portion of your score.
  • Maintain a low credit utilization: Credit utilization (the percentage of available credit you’re using) is one of the biggest factors in calculating your credit score. The lower, the better. To decrease your utilization ratio, simply pay off your credit card. You can also request a credit limit increase from your credit card issuer to lower your credit utilization ratio — just make sure not to rack up a balance again with that extra credit or you’ll be back to square one.

Missing a payment can single-handedly cause your credit score to drop by 100 points or more. To avoid this, simply set up your credit card on autopay for the minimum amount due — that way you’ll never have to worry about missing a payment.

You can always apply for a personal loan if you need some cash right now for something. You can use this tool to shop around for the best interest rates without hurting your credit score. It’s smart to avoid hard inquiries until you’re ready to actually apply for a personal loan so that your credit isn’t dinged with multiple inquiries.

Each credit card is different, so you’ll need to check the fine print. Usually, though, you’ll need to both charge a purchase and pay off your bill before you’re eligible for those cash back rewards. Then, they’ll tally up this amount and periodically either send you a check, or offer a statement credit.

If you’re running a small business, it’s often easy to mix your personal and business accounts, especially if you’re self-employed. This creates an accounting nightmare to sort through, so it’s recommended (but not required) that you have a separate business banking account and credit card, if you need one.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Best of

20 Credit Cards with No Cash Advance Fees

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.

Credit Cards with No Cash Advance Fees

If you have a credit card, your financial institution has likely mailed you checks for cash advance purposes. Understanding this aspect of your available credit is incredibly important, as it can be much more expensive than simply making a purchase.

Taking a cash advance gives you money now in cases where you can’t use a credit card (perhaps paying rent), or have otherwise maxed out your purchasing power. Many financial institutions will charge you a fee between 1% and 5% just for making this transaction.

But some cards have no fees for cash advances.

The catch is, interest starts accruing immediately on cash advances, meaning that even if you pay your statement balance in full by the due date, you will still incur interest charges in the interim. So if you do a cash advance, try to pay it off as quickly as possible, even before the due date, to minimize the interest you pay.

Best Cards with No Cash Advance Fees

These credit unions offer no cash advance fees on all their credit cards. While you’ll pay interest from the day you take out the cash, as a last resort it’s a better bet than paying an upfront fee. These are all credit unions anyone can join, but many of them require excellent credit to qualify for a card.

 

PenFed Credit Union

PenFed Credit Union CDs Pentagon Federal Credit Union, commonly known as PenFed, offers five different credit cards with no cash advance fees. None of them charge a foreign transaction fee, and all interest rates are the same for purchases and cash advances.

Anyone can join PenFed Credit Union simply by making a one-time donation of $17 to either Voices for America’s Troops or the National Military Family Association.

  • PenFed Platinum Rewards Visa Signature® Card
  • PenFed Promise Visa® Card
  • PenFed Premium Travel Rewards American Express® Card
  • PenFed Gold Visa® Card

 

American 1 Credit Union

American 1 Credit Union American 1 Credit Union offers four different credit cards with no cash advance fees. Interest rates on purchases and cash advances are the same, though there is a foreign transaction fee of 1%.

Anyone can join American 1 Credit Union by joining Community 1 Cooperative. You pay $3 for membership, which includes a litany of discounts on consumer products and services across an array of industries.

  • American 1 In-House Visa

 

CapEd Federal Credit Union

 CapEd Federal Credit Union CapEd Federal Credit Union offers one card with no cash advance fees. It also carries the same interest rate for purchases and cash advances, but does have a foreign transaction fee that varies depending on if the transaction is in USD or requires conversion into a foreign currency.

To join CapEd, all you have to do is make a one-time $20 donation to the Idaho CapEd Foundation.

  • Visa Platinum Card by CapEd Federal Credit Union

 

First Tech Federal Credit Union

First Tech Federal Credit Union First Tech Federal Credit Union offers three different cards that come with no cash advance fees. The interest rates on these transactions will be higher than the interest rates on regular purchases, however. There are no foreign transaction fees.

Anyone can join First Tech through membership in the Financial Fitness Association, which costs $8 per year, or a digital membership to the Computer History Museum, which will run you $15 per year.

  • Odyssey™ Rewards World Elite MasterCard®
  • Platinum Rewards MasterCard®
  • Choice Rewards World MasterCard®
  • Platinum Secured MasterCard®

 

ISU Credit Union

ISU Credit Union ISU Credit Union offers two cards that have zero cash advance fees. Interest rates on cash advances are higher than those on regular purchases for the first year only, and there is a foreign transaction fee of 1%.

To join ISU Credit Union if you don’t live, work or study in Southeastern Idaho, you can qualify through paid membership at a number of Southeastern Idaho organizations including humane societies and educational cause groups. Also, ISU has a $1.00 membership fee and a minimum deposit of $25.00 which represents your share of ownership in the credit union . You must maintain a share balance of $25 while your account is open.

  • Platinum MasterCard® by ISU Credit Union
  • Platinum Plus MasterCard® by ISU Credit Union

 

Mid-Illini Credit Union

Mid-Illini Credit Union Mid Illini Credit Union offers two different cards that come with no cash advance fees. Interest rates for purchases and cash advances are identical, and there is a foreign transaction fee of 1%.

Anyone can join Mid Illini Credit Union by making a one-time $1 donation to the Mid-Illinois Dollars for Scholars, an organization that provides scholarships to students of McLean County, Illinois.

  • Visa Classic Card by Mid Illini Credit Union
  • Visa Platinum Card by Mid Illini Credit Union

 

Stanford Federal Credit Union

Stanford Federal Credit Union Stanford Federal Credit Union offers several cards with no cash advance fees for which the general public qualifies. There are no foreign transaction fees, and rates are the same for purchases and cash advances.

To join Stanford Federal Credit Union, you can become a member at the Museum of American Heritage or join Friends of the Palo Alto Library.

  • Visa Platinum Cash Back Rewards Card by Stanford Federal Credit Union

 

Digital Credit Union

Digital Credit Union Digital Credit Union offers two cards with no cash advance fees. While interest rates are the same for both cash advances and regular purchases, foreign transaction fees will vary based on the need for currency conversion.

You can join Digital Credit Union by donating to any number of organizations that match your interests. The most common organization new members choose is Reach Out for Schools, which only requires a one-year membership at the cost of $10.

  • DCU Visa® Platinum Credit Card
  • DCU Visa® Platinum Rewards Credit Card

 

Other Options with Restricted Membership

There are other credit unions that offer no cash advance fees, however they have restricted membership based on your residence or other factors. Here are some other cards that can be an option depending on where you live.

  • The Central Florida Educators’ Federal Credit Union offers 5 cards for people who live, work, worship, volunteer, or attend school in Orange, Osceola, Seminole, or Lake County:
    • Visa® Premier Rewards credit card
    • Visa® Platinum Rewards credit card
    • Visa® Platinum credit card
    • Visa® Platinum Cash credit card
    • Visa® Premier Cash credit card
  • O BEE® Credit Union provides a card for those who live or work in Washington State:
    • Visa® Oly Gold Card
  • The Hawaii State Federal Credit Union offers 2 cards for those who are active or retired members of the State of Hawaii, City and County of Honolulu, Maui County, Hawaii State FCU or select employment groups:
    • Visa® Signature Cash Rewards Credit Card
    • Visa® Platinum Rewards Credit Card

 

Alternatives to Cash Advances

While cards that offer no fees on cash advances are cheaper, that does not mean these transactions are cheap. You should only take a cash advance as a last resort in a true emergency. In order to avoid becoming one of the American households that can’t cover $400 financial hardships, start building an emergency fund today. When you withdraw money from your own savings account, you have to pay zero interest and zero fees.

If you don’t have an emergency fund, but you do have a credit card, it is wiser to charge emergency expenses as a purchase rather than taking money out as a cash advance if at all possible. Even when interest rates are identical for these two different types of transactions, cash advances will start charging you those rates immediately, while purchases won’t require you to pay interest until after the first statement is issued.

Payday loans are another alternative. However, they’re not necessarily a good one. They often come with numerous fees and aren’t as hassle-free as some lenders make them out to be. If you don’t pay off your loan at the end of the term (often about two weeks), you risk incurring fees that can add up to more than your loan. This can translate into effective interest rates in the triple digits. If they’re your only option, be extremely careful. Above all, make sure you fully understand the terms and costs.

Foreign travelers will also want to charge purchases whenever possible for this same reason. If you must use cash, a cash advance is a safer alternative to withdrawing money from your bank account abroad, but it is also wise to pay it off using your financial institution’s online services as soon as possible to avoid paying more interest than you have to.

Cash advances aren’t ideal, so if you can avoid them you should. However, they are a much better option than turning to the alternative lending industry where you’ll find predators and payday loans.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne at brynne@magnifymoney.com

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Balance Transfer, Best of, Pay Down My Debt

9 Best 0% APR Credit Card Offers – 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.

There are a lot of 0% APR credit card deals in your mailbox and online, but most of them slap you with a 3 to 4% fee just to make a transfer, and that can seriously eat into your savings.

At MagnifyMoney we like to find deals no one else is showing, and we’ve searched hundreds of balance transfer credit card offers to find the banks and credit unions that ANYONE CAN JOIN which offer great 0% interest credit card deals AND no balance transfer fees. We’ve hand-picked them here.

If one 0% APR credit card doesn’t give you a big enough credit line you can try another bank or credit union for the rest of your debt. With several no fee options it’s not hard to avoid transfer fees even if you have a large balance to deal with.

1. Chase Slate® – 0% Introductory APR for 15 months, $0 Introductory Balance Transfer FEE

Chase Slate<sup>®</sup>

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on Chase’s secure website

This deal is easy to find – Chase is one of the biggest banks and makes this credit card deal well known. Save with a $0 introductory balance transfer fee and get 0% introductory APR for 15 months on purchases and balance transfers, and $0 annual fee. Plus, receive your Monthly FICO® Score and Credit Dashboard for free.

You can get this offer if you complete the balance transfer within 60 days of opening the account. So it’s worth a shot to see how big of a credit line you get. If it’s not enough, move on to the other options below.

2. BankAmericard® Credit Card – 0% Introductory APR for 15 months, $0 Introductory Balance Transfer FEE

BankAmericard® Credit Card

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on Bank Of America’s secure website

This card is available if you have excellent credit. There is a $0 intro balance transfer fee if you complete the transfer within 60 days of opening your account.

Bank of America has just recently launched a balance transfer with no intro balance transfer fee. Credit card debt on an existing Bank of America credit card is not eligible for this offer.

Tip: The remaining no fee cards on this list are deals for 12 months or less. You might be better off paying a standard 3% balance transfer fee for a longer deal, like 0% for 18 months from the Discover it® - 18 Month Balance Transfer Offer, one of the better deals with a balance transfer fee of 3%. If you’re trying to transfer from Chase, consider a deal from Bank of America with $0 transfer terms.

3. Alliant Credit Union Credit Cards – 0% Introductory APR for 12 months, NO FEE

Visa® Platinum Card from Alliant CU

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on Alliant Credit Union’s secure website

Alliant is an easy credit union to work with because you don’t have to be a member to apply and find out if you qualify for the 0% Introductory APR deal.

Just choose ‘Apply as New Member’ when you apply and if you are approved you’ll then be able to become a member of the credit union to finish opening your account.

Anyone can become a member of Alliant by making a $10 donation to Foster Care to Success.

If your credit isn’t great, you might not get a 0% intro rate – rates for transfers are as high as 5.99%, so make sure you double check the rate you receive before opening the account, and they might ask for additional documents like your pay stubs to verify the information on your application.

4. Edward Jones World MasterCard – 0% Intro APR for 12 months on Balance Transfers, NO FEE

Edward Jones World MasterCard<sup>®</sup>

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on Edward Jones’s secure website

You’ll need to go to an Edward Jones branch to open up an account first if you want this deal. Edward Jones is an investment advisory company, so they’ll want to have a conversation about your retirement needs. But you don’t need to have money in stocks to be a customer of Edward Jones and try to get this card. Just beware that you only have 60 days to complete your transfer to lock in the 0% introductory rate. This deal expires 4/30/2018.

5. First Tech Choice Rewards – 0% Balance Transfer Intro APR for 12 months, NO FEE

Choice Rewards World MasterCard® from First Tech FCU

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on First Technology Federal Credit Union’s secure website

Anyone can join First Tech Federal Credit Union by becoming a member of the Financial Fitness Association for $8, or the Computer History Museum for $15. You can apply for the card without joining first. This introductory 0% for 12 months on balance transfers and no transfer fee on balances transferred within first 90 days of account opening is for the First Tech Choice Rewards World MasterCard. You also get 20,000 Rewards Points after you spend $3,000 on the card in your first 2 months.

6. La Capitol Federal Credit Union – 0% Intro APR on Balance Transfers for 12 months, NO FEE

Visa Rewards Card from La Capitol FCU

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on La Capitol Federal’s secure website

Anyone can join La Capitol Federal Credit Union by becoming a member of the Louisiana Association for Personal Financial Achievement, which costs $20. Just indicate that’s how you want to be eligible when you apply for the card – no need to join before you apply. And La Capitol accepts members from all across the country, so you don’t have to live in Louisiana to take advantage of this deal on the Prime Plus card.

7. Purdue Federal Credit Union – 0% Intro APR for 12 months, NO FEE

Visa Signature Credit Card from Purdue FCU

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on Purdue FCU’s secure website

This deal is only for their Visa Signature card – other cards have a higher intro rate. The Purdue Federal Credit Union doesn’t have open membership, but one way to be eligible for credit union membership is to join the Purdue University Alumni Association as a Friend of the University.

Anyone can join the association, but it costs $50. The good news is you can apply and get a decision before you become a member of the Alumni Association.

8. Logix Credit Union Credit Card – 0% APR for 12 months , NO FEE

The Logix Platinum MasterCard

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on Logix Federal Credit Union’s secure website

Although this card isn’t available for everyone, it can be a good choice if you live in AZ, CA, DC, MA, MD, ME, NH, NV, or VA. Residence in those states allows you to join Logix Credit Union and apply for this deal. Some applicants have reported credit lines of $15,000 or more for balance transfers, so if you have excellent credit, good income, but a large amount to pay off (like a home equity line), this could be a good option.

9. Premier America Credit Union – 0% Intro APR for 6 months, NO FEE

Premier Privileges Rewards MasterCard® from Premier America CU

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on Premier America’s secure website

Premier America is unique because it has a Student Mastercard® that’s eligible for the balance transfer deal, though limits on that card are $500 – $2,000. There’s also a card for those with no credit history – the Premier First Rewards Privileges®, with limits of $1,000 – $2,000. If you’re looking for a bigger line, the Premier Privileges Rewards Mastercard® is available with limits up to $50,000.

Anyone can join Premier America by becoming a member of the Alliance for the Arts. You can select that option when you apply.

Other 0% Intro APR cards to consider

10. Money One Credit Union – 0% APR for 6 months, NO FEE

Visa Platinum Card from Money One FCU

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on Money One Federal’s secure website

Anyone can join Money One Federal by making a $20 donation to Gifts of Easter Seals. And you can apply without being a member. You’ll see a drop down option during the application process that lets you select Gifts of Easter Seals as the way you plan to become a member of the credit union. Credit lines for the Visa Platinum card are as high as $25,000.

11. Andigo Credit Union – 0% APR Intro for 6 months, NO FEE

Visa Platinum Card from andigo

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on Andigo’s secure website

You’ll have a choice to apply for the Andigo Visa Platinum or Visa Platinum Rewards. The Visa Platinum Cash Back card doesn’t have this deal. The Visa Platinum without rewards has a lower ongoing APR, starting as low as 10.65%, compared to 12.65% for the Visa Platinum Rewards card, so if you’re not sure you’ll pay it all off in 6 months the Platinum without rewards is a better bet.

Anyone can join Andigo by making a donation to Connect Vets for $15, and you can submit an application for the card without being a member yet.

12. Evansville Teachers Credit Union – 0% APR on Balance Transfers for first 6 months, NO FEE

ETFCU's Platinum Rewards Credit Card

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on Evansville Teachers Credit Union’s secure website

You don’t need to be a teacher to join this credit union. Just make a $5 donation to Mater Dei Friends & Alumni Association. The Prime Plus has an ongoing rate as low as 7.25% variable, so you can enjoy a low rate even after the intro deal ends.

13. Elements Financial Credit Card – 0% Intro APR for 6 months on Purchases and Balance Transfers, NO FEE

Elements Financial Platinum Visa® Credit Card

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on ELFCU’s secure website

To become a member and apply, you’ll just need to join TruDirection, a financial literacy organization. It costs just $5 and you can join as part of the application process. The ongoing rate is 9.99% variable which is lower than typical cards.

14. Justice Federal Credit Union – 0% Intro APR for 6 months on Purchases, Balance Transfers, and Cash Advances, NO FEE

Student VISA Rewards Card from Justice FCU

APPLY NOW Secured

on Justice Federal’s secure website

If you’re not a Department of Justice, Homeland Security, or U.S. court employee (or a few others), you need to join a law enforcement organization to be a member of Justice Federal. One of the eligible associations for membership is the National Native American Law Enforcement Association. It costs $15 to join.

You can apply as a non-member online to get a decision before joining. And Justice is unique in that its Student credit card is also eligible for the 0% introductory rate on purchases, balance transfers, and cash advances, so if your credit history is limited and you’re trying to deal with a balance on your very first card, this could be an option.

15. Xcel Platinum Visa – 0% Introductory APR for 6 months, NO FEE

XCEL’s Platinum VISA® Credit Card

APPLY NOW Secured

on Xcel Federal’s secure website

Anyone can join Xcel by becoming a member of the American Consumer Council, and you can apply for the card as a non-member of the credit union, but not everyone who is approved for the card will get the low intro rate. Xcel advises you contact them to get as sense of whether your income, credit history, and employment history will qualify for the intro rate.

16. Michigan State University Federal Platinum Visa – 0% APR for 6 months, NO FEE

Platinum Visa Card from Michigan State FCU

APPLY NOW Secured

on Michigan State University Federal Credit Union’s secure website

There is the option to apply for the Platinum Plus Visa or the Platinum Visa. The Platinum Visa has a lower ongoing APR starting as low as 8.9%, compared to the 12.9% for the Platinum Plus which can earn you rewards. Anyone can join the Michigan State University Federal Credit Union by first becoming a member of the Michigan United Conservation Clubs. However, this comes at a high fee of $30 for one year.

Are these the best deals for you?

If you can pay off your debt within the 0% period, then yes, a no fee 0% balance transfer credit card is your absolute best bet. And if you can’t, you can hope that other 0% deals will be around to switch again.

But if you’re unsure, you might want to consider…

  • A deal that has a longer period before the rate goes up. In that case, a balance transfer fee could be worth it to lock in a 0% rate for longer.
  • Or, a card with a rate a little above 0% that could lock you into a low rate even longer.

The good news is we can figure it out for you.

Our handy, free balance transfer tool lets you input how much debt you have, and how much of a monthly payment you can afford. It will run the numbers to show you which offers will save you the most for the longest period of time.

promo balancetransfer wide

The savings from just one balance transfer can be substantial.

Let’s say you have $5,000 in credit card debt, you’re paying 18% in interest, and can afford to pay $200 a month on it. Here’s what you can save with a 0% deal:

  • 18%: It will take 32 months to pay off, with $1,312 in interest paid.
  • 0% for 12 months: You’ll pay it off in 28 months, with just $502 in interest, saving you $810 in cash. That even assumes your rate goes back up to 18% after 12 months!

But your rate doesn’t have to go up after 12 months. If you pay everything on time and maintain good credit, there’s a great chance you’ll be able to shop around and find another bank willing to offer you 0% interest again, letting you pay it off even faster.

Before you do any balance transfer though, make sure you follow these 6 golden rules of balance transfer success:

  • Never use the card for spending. You are only ready to do a balance transfer once you’ve gotten your budget in order and are no longer spending more than you earn. This card should never be used for new purchases, as it’s possible you’ll get charged a higher rate on those purchases.
  • Have a plan for the end of the promotional period. Make sure you set a reminder on your phone calendar about a month or so before your promotional period ends so you can shop around for a low rate from another bank.
  • Don’t try to transfer debt between two cards of the same bank. It won’t work. Balance transfer deals are meant to ‘steal’ your balance from a competing bank, not lower your rate from the same bank. So if you have a Chase Freedom with a high rate, don’t apply for another Chase card like a Chase Slate and expect you can transfer the balance. Apply for one from another bank.
  • Get that transfer done within 60 days. Otherwise your promotional deal may expire unused.
  • Never use a card at an ATM. You should never use the card for spending, and getting cash is incredibly expensive. Just don’t do it with this or any credit card.
  • Always pay on time. If you pay more than 30 days late your credit will be hurt, your rate may go up, and you may find it harder to find good deals in the future. Only do balance transfers if you’re ready to pay at least the minimum due on time, every time.
Nick Clements
Nick Clements |

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

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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.

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

Nick Clements
Nick Clements |

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

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Advertiser Disclosure

Best of, Credit Cards

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

0% purchase credit card

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

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

Below are the 7 longest 0% purchase credit cards from our database of over 3,000 credit card products from banks and credit unions, and all of them have no sneaky deferred interest, so you really are getting a 0% rate for the introductory period.

After the list, we will explain:

1. Citi Simplicity® – 0% Intro Purchase APR for 21 MONTHS

Citi Simplicity® Card - No Late Fees Ever

APPLY NOW Secured

on Citibank’s secure website


The longest 0% intro purchase APR available now is the Citi Simplicity® Card. This credit card is unique because it also offers no late fees ever, and no penalty APR if you make a late payment.

If you already have the Citi Simplicity®, you can apply for the Citi Diamond Preferred Card. The Diamond Preferred card also has no annual fee and a 0% introductory purchase rate for 21 months. Just beware that it’s not as friendly as the Simplicity®, and has late fees typical of regular credit cards (a fee up to $35. Your rate will go up to a 29.99% penalty APR if you miss a payment.

Citi is OK with you holding both cards to get the 0% on purchases twice, though don’t try to apply for them both on the same day. Better to space it out when you have your next big purchase to manage, and by then you’ll have a good payment history with Citi that could qualify you for the credit line you need for your purchase.

 2. TruWest Visa Signature Credit Card – 0% Intro Purchase APR for 18 MONTHS

TruWest Visa® Signature Card

APPLY NOW Secured

on TruWest Credit Union’s secure website


While this is a good deal, unfortunately TruWest is a credit union with restricted membership. You need to live in certain regions of Texas or Arizona, or work for a few select employers like Motorola in order to join (details here), but if you can join, you will enjoy 0% into APR for 18 months on purchases with no annual fee.

Even better, after the 0% purchase period is over, your regular ongoing APR is just 8.90% – 9.90% making this one of the safest choices for a 0% purchase credit card.

3. Citi® Double Cash Card – 0% Intro Purchase APR for 18 MONTHS

Citi® Double Cash Card – 18 month BT offer

APPLY NOW Secured

on Citibank’s secure website

The Citi® Double Cash offers a 0% introductory APR on purchase for 18 months with no annual fee.

It also happens to be one of the most rewarding cash back cards available. You get 1% cash back on your purchases, plus you get 1% more back when you pay those purchases off. So if you plan to be able to pay things off in full within 18 months this can be a better deal than cards that have no cash back rewards.

4. Wells Fargo Platinum Visa® Card – 0% Intro Purchase APR for first 18 MONTHS

Wells Fargo Platinum Visa® Card

APPLY NOW Secured

on Wells Fargo Bank’s secure website

This card offers an intro 0% on purchases and balance transfers for the first 18 months. After the intro period your APR will be 16.15% to 25.99% variable, depending on your credit history.

In addition to the 0% intro period, there is no annual fee and unfortunately no rewards. Keep in mind you need excellent credit to qualify, so if you have less than perfect credit check out some of the other offers.

5. Blue Cash Everyday® Card from American Express – 0% Intro Purchase APR for 15 MONTHS

Blue Cash Everyday® Card from American Express

APPLY NOW Secured

on American Express Bank’s secure website

Terms Apply

Rates & Fees

This card offers an introductory 0% on purchases and balance transfers for 15 months, and after that your variable rate will be 13.99% - 24.99% depending on your credit history. There’s a $0 annual fee, and it’s also a cash back card.

You can earn 3% at U.S. supermarkets (up to $6,000 per year in purchases), and then 1%. You can also earn 2% at U.S. gas stations and select U.S. department stores and you’ll earn 1% on all other purchases.

6. Discover It® Cashback MatchTM – 0% Intro Purchase APR for 14 MONTHS

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

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

This card does not charge an annual fee and offers a 0% introductory APR on new purchases and balance transfers for 14 months after you open the account. After that your regular variable APR will be between 11.99% – 23.99% variable, depending on your credit history.

It also happens to be a cash back card with rotating purchase categories which change each quarter. 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.

7. Alliant Visa® Platinum – 0% Intro Purchase APR for 12 MONTHS

Visa® Platinum Card from Alliant CU

APPLY NOW Secured

on Alliant Credit Union’s secure website


Alliant is a credit union that anyone can join. You can take a simple eligibility test (here). But don’t worry if you answer “no” to most of the questions. You can always join by donating $10 to Foster Care For Success. With that donation, you can join the credit union.

Their Visa® Platinum offers no annual fee and a 0% purchase APR for 12 months.

Deferred versus Waived Interest

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

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

Credit Card A: Deferred Interest

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

Credit Card B: Waived Interest

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

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

How To Qualify For A 0% Purchase Credit Card

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

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

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

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

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

When Is A Personal Loan Better?

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

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

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

Nick Clements
Nick Clements |

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

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Advertiser Disclosure

Balance Transfer

Capital One Balance Transfer Offer

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.

review-cc-full

Balance transfer offers on credit cards can be an excellent way to reduce the cost of expensive credit card debt, helping you can get out of debt faster. Capital One only offers one card with a balance transfer intro period. Balance transfers are usually offered only to people with excellent credit, however you may qualify if you have good credit. It’s always a good idea to check if you’re prequalified before submitting an application.

In this article, we will:

  • Review the balance transfer offer from Capital One
  • Provide details on who can be approved for the offer
  • Decode the fine print, so that you know how to avoid tricks and traps that could cost you

Note: If you are looking to get out of debt, you should consider downloading our free Debt Free Guide. It will show you how to slash your interest rates, boost your credit score, negotiate hard with creditors and become debt-free fast and forever. Balance transfers can be a great tool in your debt-free strategy, but everyone should have a strategy. And this guide can help you build one.

Offer Review

Capital One® Quicksilver® Cash Rewards Credit Card

Capital One® Quicksilver® Cash Rewards Credit Card

APPLY NOW Secured

on Capital One’s secure website

The Capital One® Quicksilver® Cash Rewards Credit Card is best known for having no annual fee, and providing unlimited 1.5% cash back on all of your spend. Unlike many cash back credit cards, there are no rotating categories, no caps, and no minimums for getting your cash back. They really raised the bar on cash back credit cards, until Citibank created the Citi® Double Cash Card which does the same thing, except you earn unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

Capital One® Quicksilver® Cash Rewards Credit Card offers 0% intro APR for 9 months on purchases and balance transfers, with a 3% fee. When compared to the rest of the market, this is a mediocre intro period. You can find cards with intro periods of 15, 21 and 24 months. We list all of the balance transfer options here.

Approval Criteria

Capital One markets this card for people with excellent credit. On their website, excellent credit is defined as someone who:

  • Has never declared bankruptcy or defaulted on a loan
  • Hasn’t been more than 60 days late on any credit card, medical bill, or loan in the last year
  • Has had a loan or credit card for 3 years or more with a credit limit above $5,000

If your credit score isn’t excellent, your options are much more limited. In fact, we recommend considering a personal loan to get a lower rate on your debt, where you will have a better chance of getting a higher loan amount.

 Fine Print Alert

Balance transfers can save you a lot of money. However, there are certain traps out there, and if you fall for those traps it could end up costing you a lot of money. Make sure you do the following:

  • If you are approved for your balance transfer credit card, complete the balance transfer right away. The 0% promotional offer begins the day your account is open.
  • Set up automatic payments so that you are never late. Even being late by one day can result in a steep late fee. And, if you are late by 60 days or more, you can see a big spike in your interest rate.
  • Don’t spend on the credit card. Although Capital One does offer 0% on purchases, they do that as a temptation. They want you to spend, so that you don’t use the promotional period to pay down your debt. If you are using a balance transfer, you should be doing it to get out of debt faster.

To learn more about balance transfers, you can visit our learning center.

Balance transfers, when used properly, can take years off your debt repayment. With proper credit behavior, the Capital One® Quicksilver® Cash Rewards Credit Card can save you money and help rid you of debt.

promo-balancetransfer-wide

Nick Clements
Nick Clements |

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

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