Rewards Credit Cards

Credit cards are a staple in most societies. For better or worse, most folks rely on credit, and while not everyone uses them responsibly, credit cards can be great tools if you can keep the spending temptation in check. Rewards credit cards provide “rewards” in the form of cash back, points or miles (on airlines). Cash rewards can obviously aid in reducing your balance, miles on airlines are quite popular due to the high cost of travel, and points are similar to miles but redeemable in the businesses aligned with the card company.

Rewards cards are everywhere nowadays. Yet, a 2019 study from J.D. Power was not overly optimistic that rewards cards are as positive as many feel. The competition is so fierce, found the study, that consumers aren’t receiving what they expect from the experience. A card might offer up to 16 different benefits, but J.D. Power found that only one-third understands what is available. If you can figure out what’s available however, membership certainly has its privileges.

Rewards cards members have a built-in incentive to keep spending with the card. After all, if you know that after spending $5,000 you’ll get one free night at the W Hotel, that’s a nice perk. In fact, why would you spend $5,000 in cash? At the end of those transactions you get nothing. With this said, rewards cards aren’t free. There are annual fees, and the higher they are the more benefits you’ll receive.

Citi Double Cash Card

It is hard to find a card with a higher rewards rate than the Double Cash Card. We aren’t going to say said card doesn’t exist, because this industry shifts rapidly. But this card is generous. With Citi you earn 2% on every purchase, but to do this you must pay at least the minimum balance due on time. If you are seeking to transfer an existing balance onto this card you may do so at a 0% intro APR for 18 months. In month 19, however, the variable APR will be 13.99% - 23.99% based on your individual credit.

Capital One Venture Rewards Card

If travel is your thing, this card should fall into your Top 3. The best perk about the Venture Rewards Card comes in the beginning. After spending just $3,000 (over the first 3 months of opening the account), you immediately receive 50,000 miles. Doing the math, this is roughly equivalent to $500. Not bad! Every purchase earns you double the miles, and the miles will never expire. They are there for the life of the account.

Discover it Student Chrome Card

Any college students out there? If so, do consider the Discover Chrome Card. A pro of this card is there is no FICO history required. This is good, especially if you have no credit to speak of as a young person. There is also no annual fee, no foreign transaction fees (good news for when a Cancun spring break comes calling), and a host of bonus cash back categories. Moreover, if you keep your grades up, you receive a $20 credit each school year (a 3.0 GPA or higher).

Capital One Spark Cash for Business Card

And lastly, for you small business owners, the Spark Cash card is aimed at providing business owners rewards that are relevant and timely to their business. To begin, once you spend $4,500 within the first 3 months you’ll receive a $500 cash bonus. That’s a nice perk to reinvest in your company. The con to this card is there is a high annual fee, but you are earning unlimited 2% cash back on every business purchase with no category restrictions or limits.

Our only word of caution – be careful how you spend. Getting into credit card debt is a tough road to traverse, and getting out is even rougher. But if you do this smartly, the sky truly is the limit from a rewards perspective.