Greatest Hits
- (L)Earning What I'm Worth
- The Save-to-Spend Budget
- Salary Negotiation Post - Retraction
- Money Types: Carrie, Samantha, Miranda or Charlotte?
- How Jenny Earned $15,000 on eBay
- The Fashionomics of Retail Begging
- Create Other Income Streams
- Rx for a Bloated Budget
- Stop Wasting Time on Things That Will Never Make You Money
- End the Superwoman Syndrome
- Challenge: Wear Just Six Things
- Your (New & Improved?) Credit Card
- The High Cost of Part-Time Work (+ working mom poll)
- Smash Student Loan Debt
- Prep for More Pay
- Personal Account: My Brain on Sales
- On Becoming a Financial Grown-up
- Pop Quiz from DailyWorth!
- Personal Account: Gabrielle's Reflection on Worth
- Bouncing Back From Bankruptcy
4 Top Cash-Back Cards
By Catey Hill Friday July 30, 2010
You hear about cash-back cards all the time—but which ones deliver the goods? These four cards deliver the most buck for your bang. But remember: As with most rewards cards, you MUST pay your balance in full and on time each month or get hit with steep late fees and interest rates. - Chase Freedom
You earn an unlimited 1% cash back on all purchases, and 5% cash back on rotating categories of purchases like gas, groceries, travel, and more (a quarterly maximum applies). No annual fee. - Discover More
This is a great cash back card—but it requires patience. You can earn 5% cash back (up to a maximum), but it does so in rotating categories (hence the need for patience). It also gives you up to 1% cash back on many other purchases—unlimited! Read the fine print. No annual fee. - Blue Cash from American Express
Hey, big spenders—this is the card for you! Charge less than $6,500 per year and Blue Cash offers 1% cash back on purchases at supermarkets, drug stores and gas stations and 0.5% cash back on all other items. Spend more than $6,500 in a year and earn 5% cash back on those three categories—and 1.25% on other items. Rewards are unlimited. No annual fee. - Capitol One No Hassle Cash Rewards
No hassle indeed: You get 2% cash back on gas and grocery purchases and 1% on all other purchases—and the rewards are unlimited. The card has an annual fee that varies according to your credit score.
Talk back. What's your favorite rewards card?
Catey Hill is the money editor for the New York Daily News online and the author of "Shoo, Jimmy Choo! The Modern Girl's Guide to Spending Less and Saving More."
Comments
(21)
Subscribe to this comment's feed
Written by Elesha, July 30, 2010
Our family uses the Cabela's Visa card to pay for everything in our home that can be paid with a credit card. Gas, groceries, even some bills. We pay it off each month, and we earn about $500-700 per year to spend at Cabela's on hunting accessories, shoes, clothes, jewelry, housewares, etc. This works out well for our family of hunters! We have been able to redecorate our new home with items that we don't even have to pay for! It has been great!
Written by tara gentile, July 30, 2010
I'm not sure if this counts.. but I use the PayPal card.
Anytime you use it as a credit card (without PIN) I earn 1% back. Now because it's not actually a credit card, there's no danger of me racking up debt AND I make back a small portion of the fees that I pay for using them as my merchant services.
Anytime you use it as a credit card (without PIN) I earn 1% back. Now because it's not actually a credit card, there's no danger of me racking up debt AND I make back a small portion of the fees that I pay for using them as my merchant services.
Written by Toni, July 30, 2010
Today's email is a total FAIL! I don't like the promotion of credit cards in any way - why encourage people to go into debt at all? Even if you tell them to pay their balance off each month, its still a vicious system that we could chose to not participate in- regardless of the 'incentive'. If we consider large purchases carefully, shop for sales and bargains, consider buying things used and pre-certified (GASP). Credit cards are coupled with a mentality that we must have it all- If you can't afford it, you probably shouldn't buy it.
Written by Petunia, July 30, 2010
I have a Chase Freedom and use it for all my gas purchases, and also have some monthly bills automatically charged to it (newspaper subscription, cell phone, etc.) I pay it in full monthly and receive $100 - $150 per year cash back. Sometimes I use that bonus as an extra principal payment towards my mortgage, sometimes I throw it in my savings account. It's free money, I love free money.
Written by Kate, July 30, 2010
@ Toni: I think there is a long-standing and outdated assumption that credit cards = debt. However, when used *responsibly*, that couldn't be anything further than the truth. Like Petunia and Elesha, I use my rewards/cash-back cards for recurring and everyday purchases. It helps me track my spending, I don't have the hassle of going to the ATM constantly, and at the end of the year I have a nice stash of bonus money and/or rewards that I redeem for gift cards to pay for my holiday shopping. For me, it's a complete win-win!
Written by Karen, July 30, 2010
Wachovia Bank offers the "Way To Save" account. It is a free, interest paying savings account that is tied to your checking account. Every time you use your debit card, $1 gets transferred into the savings account, which also acts as an overdraft protection. Also, if an emergency occurs and you need immediate access to the money, it is available through the ATM machine.
Written by Jaime, July 30, 2010
I have a Discover and I use it for almost all of my purchases so I can get that cash back. Depending on what's going on in a given year (this year I bought a house, so more purchases than normal like my washer/dryer and fridge), I can get $100-500 cash back. I pay my balance every month, so I don't have to worry about interest or fees. I have, unfortunately, occassionally forgotten a bill over the years so if that happens the higher interest rate can wipe out the cash back savings in a heartbeat. But, that's a rare occurrence so I almost always come out ahead.
I don't have credit card debt (depending on how persnickety you want to get about it), but I like putting my purchases on the card as a way to control my money as well. If someone catastrophic were to happen, I could float that card if I needed to while I used my cash to pay the mortgage and bills. I have enough in savings that I shouldn't have to float the card even then but catastrophes sometimes come in twos and threes, so I like to be prepared. And, I like this method for me. YMMV
I don't think an article about rewards cards encourages people into debt. Many debt free people don't use credit cards, but many others do. It all depends on your own discipline level, your comfort with using credit responsibly and your lifestyle needs (tough to run a business without using credit in some way).
I don't have credit card debt (depending on how persnickety you want to get about it), but I like putting my purchases on the card as a way to control my money as well. If someone catastrophic were to happen, I could float that card if I needed to while I used my cash to pay the mortgage and bills. I have enough in savings that I shouldn't have to float the card even then but catastrophes sometimes come in twos and threes, so I like to be prepared. And, I like this method for me. YMMV
I don't think an article about rewards cards encourages people into debt. Many debt free people don't use credit cards, but many others do. It all depends on your own discipline level, your comfort with using credit responsibly and your lifestyle needs (tough to run a business without using credit in some way).
Written by Petunia, July 30, 2010
A great way to make sure you don't overspend on a credit card is to set up that card on bill pay (most banks offer this for free to checking account customers). When you use your credit card for a purchase, don't wait for the statement. Instead, at your earliest convenience, sign on to bill pay and send them a payment from your checking account in the amount of the purchase, recording the transaction in your register. There. No debt, no finance charges, no cost at all AND you just racked up some rewards. Sweet.
Written by JoAnne, July 30, 2010
I agree with Toni on this one - encouraging the use of a credit card regardless of the so called rewards is only compounding the problem.
We ALL have the best intentions of "being responsible" by paying the balance off each month, but you cannot predict the future and there may come that time when you CANNOT pay off the balance for one reason or another.
Currently there are so many people who are "living" on their cards because that's all they have and that just digs them deeper and deeper into the pit of debt.
I was one of those "responsible" people who paid off the balance on the card every month, but then times for us changed while I couldn't pay off the balance, we still needed the card to get by.
You can keep an accurate record of your spending when you're using your debit card or better yet when you use cash. If you don't have the cash, you don't make the purchase.
We had a plan and worked that plan. We have not had credit cards since 2007. It was a process but we overcame our addiction to the cards and have never looked back.
We make purchases at the grocery store and other stores with cash and those purchases are the necessities only. Our bills are paid electronically and we know where the money is spent each month.
Change doesn't happen overnight, yet it can be done. You CAN live without credit cards.
We ALL have the best intentions of "being responsible" by paying the balance off each month, but you cannot predict the future and there may come that time when you CANNOT pay off the balance for one reason or another.
Currently there are so many people who are "living" on their cards because that's all they have and that just digs them deeper and deeper into the pit of debt.
I was one of those "responsible" people who paid off the balance on the card every month, but then times for us changed while I couldn't pay off the balance, we still needed the card to get by.
You can keep an accurate record of your spending when you're using your debit card or better yet when you use cash. If you don't have the cash, you don't make the purchase.
We had a plan and worked that plan. We have not had credit cards since 2007. It was a process but we overcame our addiction to the cards and have never looked back.
We make purchases at the grocery store and other stores with cash and those purchases are the necessities only. Our bills are paid electronically and we know where the money is spent each month.
Change doesn't happen overnight, yet it can be done. You CAN live without credit cards.
Written by Terri, July 30, 2010
I really like my Chase Freedom card. I am trying to get rid of all credit cards, but this one, I can't give up. I treat it just like a debit card. As I make a purchase I record and deduct it in my check book register. When the credit card bill comes, I write a check for all the purchases that have already been deducted from my checking account. I have to buy groceries and gas anyway, why not get some money back for it? I know, as Dave Ramsey says, "I am playing with snakes" but so far the "snakes" haven't bitten yet! I have received three sizeable reward checks in the last year. I make more money on my everyday "spending" than I do on "saving" in my savings account.
Written by kim, July 30, 2010
We have a Wells Fargo credit card that allows us to earn points towards the principal on our mortgage. We use it for everything and pay it off monthly. We just remember to put aside the cash we would normally use to pay off the card. Since we use it for practically everything, it also gives us an overview of our monthly spending.
Written by carrie, July 31, 2010
I like my Chase credit card. I only use it at gas stations and the grocery store which I would do with cash too. It allows be to get approx $200 gift cards which I couple with coupons to buy great presents for people. Also, I don't have credit card debit; I pay it off each month. It also allows to successfully know how much I spend in each catagory each month by running some of there software. Plus unlike cash if I loose it and someone else uses it I'm covered with their insurance after $50 instead of being out all of the cash.
Written by Daisy A., July 31, 2010
I use my Discover card. When I started using the card for that purpose I was able to pay it off each month. This have gotten tuft so paying it off each month has not happen for a while. Right now I have been trying to control my expenses and use my Chase ATM which does the same thing with no interest. But when I come up short I have to fall back on my Discover.
Written by Donnie, July 31, 2010
Just a quick note. If anyone has difficulty remembering to pay her credit card bill on time, most cards offer a service where the current balance (or a set amount) can be automatically sent by the bank out of your checking account. On my cards there is no charge for this service.
Written by Toni, July 31, 2010
@ Kate.
Definition of a Credit Card:
A card allowing someone to make a purchase on borrowed money. Credit cards are one of the most popular forms of payment for consumer goods and services in the United States.
Its not exactly an "outdated" assumption, credit by fact is BORROWED money. Borrowed money = debt.
All you have to do is read a few studies from economists to know as a whole, we are in debt and in trouble.
It actually is quite frightening to read some of the mentalities and justifications as to why you must MUST use your credit card.
We have all been brainwashed.
Once upon a time credit didn't exist and everyone still survived.
(debt free)
Definition of a Credit Card:
A card allowing someone to make a purchase on borrowed money. Credit cards are one of the most popular forms of payment for consumer goods and services in the United States.
Its not exactly an "outdated" assumption, credit by fact is BORROWED money. Borrowed money = debt.
All you have to do is read a few studies from economists to know as a whole, we are in debt and in trouble.
It actually is quite frightening to read some of the mentalities and justifications as to why you must MUST use your credit card.
We have all been brainwashed.
Once upon a time credit didn't exist and everyone still survived.
(debt free)
Written by Nicole, July 31, 2010
Thanks to those who commented on what cards help them. This is my first look at this website and I think it is very helpful!
I understand that some people's opinions will differ, but at the end of the day I make the decisions about my money, and I wanted to know about what cards have worked for people. Not what people think credit cards are the devil.
I understand that some people's opinions will differ, but at the end of the day I make the decisions about my money, and I wanted to know about what cards have worked for people. Not what people think credit cards are the devil.
Written by Robin, August 01, 2010
Something I've done periodically over the years is call each of the companies from whom I have a credit card, and ask them if they can lower the rate. It's almost always yes and it goes into effect the following month. I haven't done this in awhile only because I've forgotten to, but I will tommorrow. Don't know how current economy is going the affect the outcome, but I'll find out. Nothing ventured, nothing gained. If even partially successful, I'll be adding a note to my calendar every 6 mos. to remind me to call again to see if I can do better.
Robin Barr
Founder, Inventor of topical, herbal, Cold Sores Begone™, Canker Sores Begone™
www.csbegone.com
Robin Barr
Founder, Inventor of topical, herbal, Cold Sores Begone™, Canker Sores Begone™
www.csbegone.com
Written by sinderz, August 02, 2010
Haven't used a credit card in over 5 years. Nice not to have that debt or "potential" debt over my head. Credit card debt is a HUGE problem in this country! I joined the Dave Ramsey bandwagon about 5 years ago and never looked back! if you really want to know the truth about credit cards (Dave Ramsey): http://www.daveramsey.com/arti...card-debt/
Shame on Daily Worth for promoting credit cards.
Shame on Daily Worth for promoting credit cards.
Written by cooper, August 02, 2010
i think it's completely ridiculous and closed-minded that anyone would turn down FREE MONEY simply because a credit card is being used to get it. if you have the cash to pay for the purchases, does it matter if you're in debt for 30 days? not only on you earning rewards cash, but you're earning interest on the cash while it sits in the bank for those 30 days!
Written by Fi, August 02, 2010
These cards are great. I have the Discover Card (I switched from Chase Freedom when they discontinued straight % back for a points system that is very confusing). This year alone, I have received $390 cash back from Discover (and I am a spender who pays her bill in full every month). It's a great program - particularly the merchant % back partners (i.e. I made a $50 reward last year when purchasing a set of wheels and tires from a participating retailer - and I had a great price on the wheels and tires!) Thank you for posting - I keep telling my sister and friends about these cards.
Written by Ambellamy, August 03, 2010
I use an HSBC Platnium Select Master Card. I get 2% cash back on eveything with no limit, or rotating categories.I get check for $25.00 in the mail all the time. I LOVE THIS CARD!!!!!
