Tuesday, April 13 2021

Best Rewards Credit Cards

The world of credit is getting more competitive, and that is good news for consumers. While credit cards are a convenience for consumers, banks also make a lot of money off them, so they need your business as well. “Rewards” are the latest thing they are using in commercials to attract customers. The most popular reward these days is cash back in the form of giving customers a small percentage of the cost of their purchases back. It is only one percent, or maybe a little more, but that can add up over time and that encourages people to use their cards even more. If you are able to handle credit wisely, having one of these cards could make a lot of sense. Interest rates are also low, and deferred payments, make them even better for consumers.

The Capital One and Venture One rewards cards are very popular thanks to a television advertising campaign. A lot of people were offering cash back on some purchases and certain times. This is the company that blew that out of the water by offering cash back on all purchases at all times.The Venture One card is great for traveling because you get bonus miles very quickly - after your spending reaches a certain level. You also earn miles with your normal purchases not related to travel. There are no limits on when you use your miles, and they never expire as long as you have the card. There is no fee for the first year, but there is a yearly fee after that. Interest rates range from 13 to 23 percent if you run a balance. Of course, you may pay off the card and not have any interest expense. This card was a pioneer in the rewards area, and adding east of traveling makes it even more appealing.

Chase Freedom Unlimited is very similar. Its appeal is the ease of the cash back system, and the ability to transfer that to actual cash at any time. With this card, you get 1.5 percent cash back on every purchase. You can also earn a cash bonus by spending a certain amount in three months. You may also get as much as five percent back on certain purchases.  Making life easier too is being able to put off paying off the card. There is no APR charge for 15 months after you open an account. After that interest rates are a little high at 16-25 percent.  There is no annual fee for this card, which also a plus. The only drawback is you have to opt in to the program each quarter to get the five percent, but as long as you remember to do that, the cash rewards can be good.

For getting cash back on everyday purchases, it is hard to beat the American Express Cash preferred card. There is a high annual fee, waived the first year.  It offers six percent cash back at grocery stores on up to $6,000 of spending - with no limits on what. That is one of the highest anywhere. You can still get three percent on all other purchases.  A hack there is to buy gift cards at grocery stores, which still counts. There is also a cash back signup bonus when you spend a certain amount in the first three months. The only drawback here is a high annual fee, but you could likely make that up with your general purchases.  This card carries a 15-25 percent interest rate and a penalty rate of up to 30 percent on late payments.