The Best Reward Credit Cards (Updated)

Comments (scroll down to add your own):

1. I have the True Earnings from Costco–there is a cap of $500 a year you can earn.

   Interesting no Citi card represented. I guess everybody has learned to dislike Citi as much as I have.

   Comment by Siena — Dec 18th 2007 @ 3:20 pm

2. Siena: They must’ve updated the program since you signed up, as the application page clearly states that there is no limit on the amount of cash you can earn with the Costco card.

   Comment by nickel — Dec 18th 2007 @ 3:28 pm

3. That true earnings Card from AMEX looks like a stinker unless you are a traveling salesman. It promotes eating out which goes against basic personal finance rules for saving money.

   I think that should be removed from the list as it is counter productive in the end.

   Comment by Cheapster Bob — Dec 18th 2007 @ 3:48 pm

4. I have the True Earnings, and Nickel you’re right, there’s no cap, I’ve already earned over $700 this year. (Yes, I travel and eat out alot, but the majority was when I was able to charge my wedding reception @ 3% cash back) I pay off the card each month, so it’s a good deal.

   Cheapster - It doesn’t actually promote eating out. I mean, when deciding between eating at home and going out, it was never that 3% cash back that pushed me over the edge.
   It’s just about being realistic on what you spend your money on - and picking the most advantageous creditcard.

   Eating out isn’t always evil. My friend is an attorney and works 70+ hours a week. He rarely has time to cook and eats almost all his meals out. But he also makes $175,000+ a year. I guess he could get a job with less hours, and cook himself every meal, but that doesn’t really make sense.

   I know that’s the extreme, but the bottom line is everyone likes to spend their money on something, and works hard to be able to afford that “luxury”.

   Comment by Jason — Dec 18th 2007 @ 5:37 pm

5. True Earnings for Costco Business if you can qualify is really good since it also adds 5% on Costco gas to the normal card. (most other gas cards disqualify warehouse gas)

   Comment by StanDaMan — Dec 19th 2007 @ 6:53 pm

6. As regards the Blue Cash vs. Fidelity:

   For the first 6500, your redemption rate is 0.5% vs. 1.5%: Basically, you give up $65 in rewards for the Blue Cash card…

   Is giving up $65 in rewards worth the 5% cash back on groceries. Well, just compare the 1.5% you would get at Fidelity with the 5% you get with Blue Cash. How much grocery shopping would make up for the $65 loss: Answer: $1800 of groceries. Most people do spend more than $1800 in groceries, which makes the Blue Cash a good deal.

   A lot of places don’t accept American Express, so the Fidelity card has a good use as an overall card (once you’ve hit the $6500 limit for Blue Cash).

   I am grandfathered in on a 5% cash back on Groceries through a Chase card (no longer offered). That makes the Blue Cash card redundant for me.

   Comment by Johan Ericsson — Dec 21st 2007 @ 10:22 am

7. Most people don’t spend more than $1800 in groceries? You’ve gotta be kidding me! That’s only $150 per month. Maybe if you’re single, but I’d be willing to bet that the vast majority of people spend more than $150/month on groceries.

   And you also forgot to account for gas station and drugstore purchases. These also qualify for the 5% reward.

   Don’t get me wrong… Pairing the Blue Cash Card with something like your Fidelity card, or Chase Freedom (3% on you 3 highest spending categories) is a smart strategy. But if you have “typical” spending patterns (and especially if you have a family) it’s hard to beat the Amex Blue Cash.

   Comment by nickel — Dec 21st 2007 @ 10:31 am

8. Another good thing about Amex Blue Cash is its Buyer’s Assurance Plan which Mirrors manufacturers’ warranties for covered products purchased entirely with your Card account, for up to one additional year.

   Comment by Ritesh — Dec 24th 2007 @ 9:24 am

9. I currently have four main cards:

   1) Discover Open Road: 5% cash back on gas and car repairs (on first $100 in purchases a month — this is usually a tank of gas and some months an oil change), 0% APR for the first year. The other rewards are not much to write home about but the 0% has in handy. (I have cash in hand to pay it off when the time comes.) They also will give you a temporary credit card number that’s only good for one purchase, which is a nice security feature when dealing with online merchants you’ve never done business with.

   2) Chase Freedom MasterCard: You all know this one. I use it for groceries and a couple of other categories I get 3% on. I was using it for everything, until I got…

   3) FNBO Direct Visa: 2% on everything for the first year. I use this one for everything I don’t get 3% on with the Chase card.

   4) Chase Buy.com VISA. Basically the same deal as the Amazon card, 3% on purchases from Buy.com and 1% on everything else, with a $30 spiff after your first purchase. Except that Buy.com offers 10% off most of Amazon’s prices on books. And I don’t have to pay sales tax like I do with Amazon (I live near Seattle).

   I also just got a WaMu personal business card that is 0% on purchases for the first 18 months. They also give you a free FICO score every month, which is nice (though it’s from your TransUnion report). I have some fairly big technology purchases I will be making soon and not having to pay for them until 2009 will be nice; I will earn north of 7.5% by being able to keep the cash in the bank all that time.

   Comment by Jerry Kindall — Dec 30th 2007 @ 11:31 pm

10. Except discover has the worst customer service ever and is a pain in the ass to deal with. I have twice canceled discover cards because of how frustrated they made me. I like the Amex options. I might switch out my Amex card.

    Comment by deepali — Jul 16th 2008 @ 2:38 pm

11. My experience with Discover has been quite the opposite.

    Most of my interaction with customer service has been regard to payments

    They have accepted 1 day late payments with no fees, and when I missed payments later than that, I was able to get them to reverse the charges based on my payment history.
    Once, when I was in the hospital, and I didn’t have my card or number with me. I called them up and explained the situation, and helped me make a phone payment with fee. Plus they are the only credit card I have that allows me to pay by phone (on the automated system) with no fee.

    Another thing I like is that I can choose the payment due date. Other cards I’ve owned move it around depending on whether or not I paid off the balance, and how many days in the billing cycle.

    At one time I was really irritated with the interest rate on the card, so I called them up to complain. I told them that it was higher than all my other cards, and they reduced the interest rate to 10.99. It’s not phenomenally low, but it’s decent. Most of the time I pay if off, but it’s reasonable if I need some flexibility.

    I’ve always been nice to the customer service reps and they’ve been nice to me in return.

    Now Citibank … that’s another story.

    Some time ago I got a Citi rewards card offer in the mail that promised a $100 gift card for my choice of a number of popular retailers. The only conditions were transferring a balance and spending charging at least $100 within the first 3 months. I followed the conditions and kept calling about when the bonus points would be added. They kept telling me it takes a couple of months to show up. They never did. When I escalated it, they told me they knew of no such offer, and I had to produce the original offer (which I had already tossed). They offered some measly compensation, which I refused. I cancelled the card and they lost a good customer.

    Comment by snapdragon — Jul 29th 2008 @ 1:17 pm

12. Has anyone any feedback on the Capital One Card Lab? On the Capital One website, you can choose the rewards and the APR of your card. Of course, you have to be approved, but it offers a 10% CASHBACK rate on every purchase, with no annual cap. Everything else seems standard (25 day grace period, etc.) but I’d love if fivecentnickel could uncover any uglies associated with this option.

    Comment by TC — Jul 31st 2008 @ 2:41 pm

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