Cash Back Credit Cards

The credit card companies are no longer generous in offering good cash back credit cards (before they would even give you $50 - $100 just to open the card, but these days are almost completely gone). Still, there are couple of good offers out there. I was looking only for the cards that come with no annual fee.

Card#1 American Express Blue Card

Here's the deal. You get the card, begin spending and you are getting 1% cash back on purchases made in supermarkets, gas stations and drugstores, and 0.5% on your other purchases. But once your cumulative spend (during a year) reaches $6,500 you'll start getting 5% cash back on purchases made in supermarkets, gas stations and drugstores, and 1.5% (!) on all your other purchases.

Another plus: there's no cap to the reward amount you can earn.

Downside: you can claim your cash rebate only once a year; also you have to be a high spender, however a lot of utility companies, cell phone providers, gyms, etc. nowadays accept credit card payments, so give this card a thought.

Year to Date Purchases	Cash Back on Everyday Purchases*	Cash Back on All Other Purchases
$0 - $6,500	1.0%	0.5%
$6,500.01 or more	5.0%	1.5%

You can apply for this card here (all links were valid as of March 3'09):

http://www201.americanexpress.com/apply/Fmacfservlet?csi=67/24000/b/3/3384663335/338033120336/20/n&from=0&mgmID=undefined&intsearchct=36778ab116adb9b94036063b5ea8b9465

Card#2 Bank of America® Accelerated Cash Rewards™ American Express® Card

The concept is really simple: you get 1.25% cash back on all your purchases.

Pluses: you can redeem once your reward reaches $50; there's no limit to the dollar amount you can earn.

Downside: the rewards on supermarkets, drugstores and gas are much worse compared to the Amex card.

Link: http://www1.bankofamerica.com/creditcards/?context_id=marketing_detail&offer_id=ECOMM0908ATY00300100145160EN000&requestTimeout=120&router_flag=y

Card#3 Citi® Driver's Edge® Options Platinum Select® MasterCard®

This is an interesting offer if you plan to buy/lease a car one year from now.

You earn 6% rebates on gas station, supermarket & drugstore purchases for first 12 months (3% thereafter) and 1% on all other purchases.

The catch: you can use your rebate only towards a new, used or leased vehicle of your choice.

Caps: up to $1,000 in rebates during any 12 consecutive months, not more than $5000 can be redeemed on any vehicle.

Link: https://www.citicards.com/cards/wv/filter1Search.do?constituent=CONSUMER&attrs=CC_CASH_BACK&x=38&y=6

Card#4 Chase Freedom

Used to be a good offer but not anymore.

You'll get 3% bonus cash back on gas, groceries and fast food purchases for the first six months and 1% Unlimited cash back on everything else with no cap.

After 6 months you'll be receiving 3% Cash Back offers every quarter.

Downside: 3% cash back is given only for first $600 you spend during any given month.

Link: https://www.chase.com/ccpmweb/card_servicing/document/credit-cards-at-chase.html

Card#5 Discover MoreSM Card

You'll get 5% bonus cash back on different categories that change quarterly, and up to 1% on everything else (yes, if have to reach certain spend level before you get to 1%).

Another downside: 5% cash back is usually given only for first $400 you spend during any given quarter.

Link: http://www.discovercard.com/more/rewards.html?i=1

Some cards will also offer you discounts (usually 4-10%) if you purchase stuff through their online malls, this is worth trying.

Also, continue to look for credit card offers you receive in the mail - they can be more generous compared to the offers found online.

Important: always read the offer before applying, make sure you understand how rewards work, if there's a cap to the amount you can earn, if there's annual fee, etc.

The winner: American Express Blue Card

Runner-up: Bank of America® Accelerated Cash Rewards™ American Express® Card

---

Windows Live™: Life without walls. Check it out.