8.22.2009

Rewards Cards: Looking for advice

Maybe It’s Time to Change Credit Cards

Excerpt:

Let’s start with my first principle of rewards cards. Whether you’re seeking cash back, travel points or frequent-flier miles, users of credit card programs typically earn one penny for every dollar they charge, assuming they always pay their bills off and never pay interest.

But you want to be above average. To double that 1 percent, sign up for the Schwab Bank Invest First Visa Card or Fidelity’s American Express Cards. The big catch here is that your rebate (which doesn’t count as taxable income) will need to go into a brokerage account at Schwab or one of several possible accounts at Fidelity. If you don’t already have an account at either place, you’ll need to get one.

The American Express Blue Cash card still helps big spenders easily break the 1 percent threshold, and the Amex Costco card gives you 3 percent back at restaurants. You have to be a Costco member to get that card.


Comment: I'm looking for advice on the best rewards card. I prefer to just have one card so Discover doesn't work (not accepted everywhere). I do not carry a balance. I am looking at the Chase Shapphire. Thoughts?

3 comments:

  1. As much as I think their commercials are annoying, Capital One seems to have the best options - you can pick and choose a lot of your own options. But I don't have one...my circumstances right now don't make sense for me to switch from the Citibank Rewards card we've had for years. We've gotten 2 free ipods and a free digital camera in the past 3 years or so using the rewards points from that card. No complaints, and good customer service from them...I've had the card since 1996.

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  2. We use Citibank Dividend card. I prefer to just get cash back. (I know the one you mentioned gets cash back as well) Citi also has a large list of select retailers that you get more than the usual 1%.

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  3. We applied for the Chase Sapphire. I won't know for week but I expect to get it.

    I have a bank Visa card but the rewards are not easy to manage.

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