The bar has been raised. In terms of cash back credit cards, LendingTree’s saying holds true, “when banks compete, you win.” Or, at least you do in the current cash back card environment. It used to be that the common cash back reward was 1%. Now, we are seeing the most common is 1.5%. That is definitely good news for consumers. Below are some tips on choosing and using a cash back card to maximize your cash rewards.

HOW TO CHOOSE A CASH BACK REWARDS CARD

Deciding which is the best cash back rewards card for you depends entirely on how you spend your money. For example, if you spend a lot on groceries then you’ll likely want a card that gives you the best rewards for groceries. You’ll also want to take your goals into consideration. For example, is travel a big part of your life, or are you planning and saving for an upcoming trip? Then you may want to consider a cash back card that maximizes your cash back which pays out a generous 2% cash back (click graphic above to read cashback card reviews). IF air miles are more your thing, you may want to look for a card that provides bonus points at signup and offers a great point accrual system that allows you to use those points for travel.

Other things to consider include fees. Each card comes with a different list of fees, so make sure to read the terms of service before applying.

You’ll also want to know whether you qualify for a card before applying. Applying and getting rejected for too many cards at once can seriously harm your credit score. Make sure you’re realistic when applying and that your credit score is good enough to qualify for the card.

TYPES OF CASH BACK CARDS

You’ll find three types of cash back rewards, in the order of ease of use:

Unlimited cash back – This is by far the simplest form. Unfortunately, you usually won’t find the very highest 5%+ rewards this way, but you can find some great cards that get you 2-3% or more in some popular categories.

Cash back with limits – This is more commonly found for the higher percentage back offers. Basically, this is where a card limits the cash back you can earn by putting a cap on the spending which earns the cash back. Limits are found in one or more specific categories or the card as a whole.

Quarterly rotating categories – These are the cards with the brightly advertised 5% rates. It’s easy to fall for attractive offers such as these. Who wouldn’t want 5% back? Here’s where you read the fine print. Although you can earn the 5% rate, it may take some work on your part. Instead of automatically getting the higher rate, you may have to opt in to categories each quarter manually. Of course, there will be limits at this rate and you can max out this rate and then drop to a lower rate.

BEST PRACTICES FOR USING YOUR CASH BACK REWARDS CREDIT CARDS

Stay on Top of Things: Change is constant. As your needs change so will the credit cards you use. Additionally, rewards programs are constantly changing. For example, airlines devalue their points or mergers happen that can make reward programs less rewarding. The same can happen with cash back rewards. As such, you’ll always want to keep an eye on term changes and point expiration. Don’t be afraid to drop a card if it no longer fits your life.

Savvy Tip: Put reminder notes on your calendar to help you remember these important expiration dates so you can take the appropriate action.

Watch the Categories and Activate Each Quarter Many cards have special offers such as 5% cash back for rotating categories. This quarter, it may be gas stations, UBER rides and taxis. Next quarter it could be on restaurants and dining. Most cards require you to activate the card for that particular quarterly offer. Keep up with those offers and try to use the right card at the right place.

Card to Consider – Discover it® Cash Credit Card: For new Discover cardholders, there is a very compelling offer that ties in nicely with their cash back offerings. They offer a 5% cash back on specific types of purchases that changes each quarter. Beyond those, all other purchases get 1% back. At the end of the first year, Discover will double the amount earned during that time. This means all the 5% category cash back earned becomes 10% cash back and the 1% base feature of the card essentially turns the card into 2% card for all other purchases. They currently offer a 12 month 0% APR on both purchases and balance transfers, albeit with the 3% balance transfer fee.

Savvy Tip: Label your cards that give you the most cash back for certain categories so you can grab the right card at the right place.

Actually Use It: The best way to accumulate points is to actually use the card! That simply means using your credit card more often. This makes some people uncomfortable, but as long as you spend within your means, you’ll be fine. Additionally, you’ll actually want to use the points you accumulate. Far too many Americans have point balances that go unused and run the risk of expiring. Besides, what’s the point of accumulating points if you don’t actually use them?

PITFALLS TO AVOID

It should go without saying, but the only way to really get the most bang for your buck with cash back rewards is to make sure you pay your balance in full each month. Otherwise, the interest will eat away or cancel out your points.

CASH REWARDS VS. MILES and POINTS CARDS

In the world of credit cards, choosing between cash back rewards and credit cards that help you rack up airline miles can be a conundrum. After all, out of all the types of discounts, rewards and points available, these two are by far the best types of programs. What’s the point of saving 10 percent at Victoria’s Secret if you can cash in on hundreds, if not thousands, via cash back or free travel?

The option you choose really depends on your lifestyle and goals. For example, do you have to travel for business? Is traveling something you truly value and enjoy? If so, you may want to go with a card that helps you accumulate airline miles. Otherwise, you may be better off with cash back. Some cards actually let you rack up both simultaneously.

Savvy Tip: When comparing miles cards, pay attention to the way that points are redeemed. On some cards, 25,000 points equates to 25,000 actual airline miles, but on a growing number of cards, 25,000 points equates to $250 worth of air travel purchase, whereas 25,000 actual airline miles may be worth more than $250.

Then, there are also hotel point cards which earn you free and discounted stays at a number of locations, and those can be quite valuable. On both airline and hotel point cards, there is usually some form of initial points bonus and/or a points bonus that occurs at a spend amount. Cash back cards offer something similar in a cash bonus of $100 or $150 for $500 spend in the first 90 days. I do admit to getting a card mainly for the $150 bonus. I knew I had $500 in things I could put on the card, and getting a free $150 was not too shabby. Here at BestPrepaidDebitCards.com, we hope you have an even more rewarding experience.

Our Ratings/Disclaimer:
When reviewing these cards, we do our best to put ourselves in your shoes. We choose cards based on (lack of) fees, rewards and ease of use. In other words, if we wouldn’t use these cards ourselves, we wouldn’t recommend them. In fact, we do actually use cash back cards ourselves! 🙂

————————————————————————————-

Co-written by Curtis Arnold, a nationally recognized consumer advocate and founder of CardRatings.com, the pioneering website that started posting the first credit card ratings online around 20 years ago, and Shane Tripcony, personal finance blogger and web marketing consultant. They are the founders of BestPrepaidDebitCards.com, which provides ratings and reviews of prepaid cards and reward credit cards.

Author: Shane Tripcony

How to Maximize Cash Back Credit Cards Rewards and Rebates (Tips)

The bar has been raised. In terms of cash back credit cards, LendingTree’s saying holds true, “when banks compete, you win.” Or, at least you do in the current cash back card environment. It used to be that the common cash back reward was 1%. Now, we are seeing the most common is 1.5%. That is definitely good news for consumers. Below are some tips on choosing and using a cash back card to maximize your cash rewards.

HOW TO CHOOSE A CASH BACK REWARDS CARD

Deciding which is the best cash back rewards card for you depends entirely on how you spend your money. For example, if you spend a lot on groceries then you’ll likely want a card that gives you the best rewards for groceries. You’ll also want to take your goals into consideration. For example, is travel a big part of your life, or are you planning and saving for an upcoming trip? Then you may want to consider a cash back card that maximizes your cash back which pays out a generous 2% cash back (click graphic above to read cashback card reviews). IF air miles are more your thing, you may want to look for a card that provides bonus points at signup and offers a great point accrual system that allows you to use those points for travel.

Other things to consider include fees. Each card comes with a different list of fees, so make sure to read the terms of service before applying.

You’ll also want to know whether you qualify for a card before applying. Applying and getting rejected for too many cards at once can seriously harm your credit score. Make sure you’re realistic when applying and that your credit score is good enough to qualify for the card.

TYPES OF CASH BACK CARDS

You’ll find three types of cash back rewards, in the order of ease of use:

Unlimited cash back – This is by far the simplest form. Unfortunately, you usually won’t find the very highest 5%+ rewards this way, but you can find some great cards that get you 2-3% or more in some popular categories.

Cash back with limits – This is more commonly found for the higher percentage back offers. Basically, this is where a card limits the cash back you can earn by putting a cap on the spending which earns the cash back. Limits are found in one or more specific categories or the card as a whole.

Quarterly rotating categories – These are the cards with the brightly advertised 5% rates. It’s easy to fall for attractive offers such as these. Who wouldn’t want 5% back? Here’s where you read the fine print. Although you can earn the 5% rate, it may take some work on your part. Instead of automatically getting the higher rate, you may have to opt in to categories each quarter manually. Of course, there will be limits at this rate and you can max out this rate and then drop to a lower rate.

BEST PRACTICES FOR USING YOUR CASH BACK REWARDS CREDIT CARDS

Stay on Top of Things: Change is constant. As your needs change so will the credit cards you use. Additionally, rewards programs are constantly changing. For example, airlines devalue their points or mergers happen that can make reward programs less rewarding. The same can happen with cash back rewards. As such, you’ll always want to keep an eye on term changes and point expiration. Don’t be afraid to drop a card if it no longer fits your life.

Savvy Tip: Put reminder notes on your calendar to help you remember these important expiration dates so you can take the appropriate action.

Watch the Categories and Activate Each Quarter Many cards have special offers such as 5% cash back for rotating categories. This quarter, it may be gas stations, UBER rides and taxis. Next quarter it could be on restaurants and dining. Most cards require you to activate the card for that particular quarterly offer. Keep up with those offers and try to use the right card at the right place.

Card to Consider – Discover it® Cash Credit Card: For new Discover cardholders, there is a very compelling offer that ties in nicely with their cash back offerings. They offer a 5% cash back on specific types of purchases that changes each quarter. Beyond those, all other purchases get 1% back. At the end of the first year, Discover will double the amount earned during that time. This means all the 5% category cash back earned becomes 10% cash back and the 1% base feature of the card essentially turns the card into 2% card for all other purchases. They currently offer a 12 month 0% APR on both purchases and balance transfers, albeit with the 3% balance transfer fee.

Savvy Tip: Label your cards that give you the most cash back for certain categories so you can grab the right card at the right place.

Actually Use It: The best way to accumulate points is to actually use the card! That simply means using your credit card more often. This makes some people uncomfortable, but as long as you spend within your means, you’ll be fine. Additionally, you’ll actually want to use the points you accumulate. Far too many Americans have point balances that go unused and run the risk of expiring. Besides, what’s the point of accumulating points if you don’t actually use them?

PITFALLS TO AVOID

It should go without saying, but the only way to really get the most bang for your buck with cash back rewards is to make sure you pay your balance in full each month. Otherwise, the interest will eat away or cancel out your points.

CASH REWARDS VS. MILES and POINTS CARDS

In the world of credit cards, choosing between cash back rewards and credit cards that help you rack up airline miles can be a conundrum. After all, out of all the types of discounts, rewards and points available, these two are by far the best types of programs. What’s the point of saving 10 percent at Victoria’s Secret if you can cash in on hundreds, if not thousands, via cash back or free travel?

The option you choose really depends on your lifestyle and goals. For example, do you have to travel for business? Is traveling something you truly value and enjoy? If so, you may want to go with a card that helps you accumulate airline miles. Otherwise, you may be better off with cash back. Some cards actually let you rack up both simultaneously.

Savvy Tip: When comparing miles cards, pay attention to the way that points are redeemed. On some cards, 25,000 points equates to 25,000 actual airline miles, but on a growing number of cards, 25,000 points equates to $250 worth of air travel purchase, whereas 25,000 actual airline miles may be worth more than $250.

Then, there are also hotel point cards which earn you free and discounted stays at a number of locations, and those can be quite valuable. On both airline and hotel point cards, there is usually some form of initial points bonus and/or a points bonus that occurs at a spend amount. Cash back cards offer something similar in a cash bonus of $100 or $150 for $500 spend in the first 90 days. I do admit to getting a card mainly for the $150 bonus. I knew I had $500 in things I could put on the card, and getting a free $150 was not too shabby. Here at BestPrepaidDebitCards.com, we hope you have an even more rewarding experience.

Our Ratings/Disclaimer:
When reviewing these cards, we do our best to put ourselves in your shoes. We choose cards based on (lack of) fees, rewards and ease of use. In other words, if we wouldn’t use these cards ourselves, we wouldn’t recommend them. In fact, we do actually use cash back cards ourselves! 🙂

————————————————————————————-

Co-written by Curtis Arnold, a nationally recognized consumer advocate and founder of CardRatings.com, the pioneering website that started posting the first credit card ratings online around 20 years ago, and Shane Tripcony, personal finance blogger and web marketing consultant. They are the founders of BestPrepaidDebitCards.com, which provides ratings and reviews of prepaid cards and reward credit cards.

August 11, 2019
Where Can I Get an American Express Serve Card (You Can Apply @ WalMart)?

Welcome to our site! Our editors have been covering the credit and debit card space for a total of 30+ years and we are proud to have been featured by the Wall Street Journal, CNN, etc. Your input is invaluable and we’d love to have your opinion as to whether the Chime Bank debit card is a good deal (see below) – this site is powered by you!

Related Visa Card to Compare to AmEx Serve (like Serve but with less fees):

Chime is a new Visa card that is amazingly free (unless you use the card outside of their large ATM network). This is best alternative to a prepaid card that we’ve seen in 5+ years and offers all of the benefits of traditional bank account.

It’s a real debit card, not a prepaid debit card which usually have a lot more fees) and people with poor credit can apply too as there is no credit check. Chime can be managed entirely from your smartphone. No overdraft fees. No minimum balance. No monthly service fees. No transfer fees. Over 38,000 fee-free ATMs, plus 30,000+ cash-back locations.

And for a limited time, earn a Cash referral bonus of $50 when you tell your friends and family members about Chime and they sign up (and they’ll earn $50 too)- details within the app after you apply! Click for more info.- you can apply online in just 2 mins with no obligation. Start by simply entering your email address and clicking “Get Started”– over 3 million customers couldn’t be wrong. 🙂 (Ad Link)

Please Note! This article was published in 2013 and is being keep for historical purposes. Please click here for our current review of the American Express (AmEx) Serve Card.

In October of 2012 American Express and Walmart teamed up to launch Bluebird, a low-fee card meant to attract people unhappy with traditional checking and debit account fees. On April 21^st of this year, Walmart and AmEx announced that they were joining forces again, this time to make the American Express Serve prepaid card available for sale at 4,100 of the retailer’s stores nationwide. The card will cost $1.95 and be sold at checkout lines and in Walmart MoneyCenters.

This announcement instantly gives AmEx an attractive bragging point in the increasingly competitive prepaid debit card industry. By making Serve available at thousands of Walmart stores, AmEx has has created the largest free cash reload network in America. In addition to Walmart, it is now possible for Serve customers to add cash to their Serve accounts for no charge at 19,500 locations, including CVS pharmacies and 7-Eleven locations.

Customers can now go to the cash register at any of those locations and add as little as $20 or as much as $500 to their Serve accounts. This ubiquity is important, says Madeline Aufseeser, a senior analyst at Aite Group. “American Express Serve is making it even more convenient for consumers to add cash to their accounts so they can use those funds to quickly and easily manage their personal finances,” she says.

This expansion of Serve is just the latest effort by AmEx to better serve the millions of so-called “unbanked” or “underbanked” Americans, who either don’t have a traditional bank account or are unhappy with what they do have. “By offering American Express Serve alongside Bluebird at Walmart, we’re expanding our portfolio of products to meet the needs of more Walmart shoppers,” says Dan Schulman, group president of Enterprise Growth at American Express. “Bluebird is a great option for the “unhappily banked” who are looking for a true alternative to the fees and hidden charges often associated with debit and checking. With Serve, our full service reloadable prepaid account, we can now provide the nearly 70 million Americans who are unbanked or underbanked a simple and affordable way to move and manage their money.”

To go along with its expansion of the availability of Serve cards, AmEx is also launching an advertising campaign to highlight the benefits of its signature prepaid product. The TV ads are shot in a documentary style and are meant to highlight the struggles regular Americans who are either ignored or underserved by the traditional banking system face to make simple financial transactions.

April 22, 2019

Author: Shane Tripcony

How to Maximize Cash Back Credit Cards Rewards and Rebates (Tips)

Where Can I Get an American Express Serve Card (You Can Apply @ WalMart)?

Please Note! This article was published in 2013 and is being keep for historical purposes. Please click here for our current review of the American Express (AmEx) Serve Card.