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Important Consumer Note! Please be careful when comparing no interest balance transfer offers online- almost all sites ONLY list credit cards that advertise with them (about 80% of our card offers don’t pay us a dime) and a few sites claim to have no fee 0% balance transfers, but actually are no fee 0% APRs (rates) that APPLY ONLY TO NEW PURCHASES (and not to balance transfers). 🙁
If you’re like the average American, you’re carrying a significant amount of credit card debt (thousands of dollars, not hundreds), but unless you’re proactively looking for lower-rate cards, you’re probably paying too much in interest. A number of financial institutions have credit card balance transfer applications with a 0% APR on balance transfers for periods up to 21 months (apply securely online in mins) (Sponsor Link) with fees typically around 3-4% of the transferred amount and others are offering 0% on new purchases for up to 18 months (the best offers have 0% introductory rates on both purchases and balance transfers).
Questions or Concerns? Please feel free to post at the bottom of this page in the comment section and a credit expert will typically reply within 24 hours!
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Debt can be crippling, and finding a way to erase it is the key to good financial health. An often-overlooked tool to accomplish this is by transferring the balance you owe on a high-interest card to one with little or no interest (at least for a while).
Balance transfers are a known debt repayment hack, and credit card issuers know this. Which is why there are now several balance transfer credit cards on the market.
But of course, balance transfer credit card offers are not all created equal. In fact, some may have lower fees but a shorter introductory term where you can pay off what you owe while being charged 0 percent interest. By contrast, others may have a longer 0 percent introductory interest rate window but higher fees.
To take full advantage of a limited duration 0 percent interest rate to pay down debt requires you to be honest about your willingness and ability to make the necessary payments. “If you miss the deadline to pay off or transfer your debt before the offer expires, it can be very costly,” says Gerri Detweiler, Head of Market Education for Nav.com.
Whether through a balance transfer card or not, the time to pay off your debt is now, while interest rates are still very low. “Consumers are being given a rare opportunity to make their financial lives easier,” says Gary Foreman, founder of The Dollar Stretcher website. “The Federal Reserve has been talking about raising interest rates for quite some time. Normally, we don’t get this type of warning. Anyone who is paying attention wants to lock in low rates on the money they owe.” Higher rates mean debts will be even more costly to pay off, says Foreman.
Balance transfer credit cards with long and generous introductory interest rate offers are a tool to eliminate your debt. We’ve rounded up a list of the best long-term balance transfer credit cards with introductory offers that range between 15 and 24 months.
IN A CLASS OF ITS OWN
Chase Slate
January 2020 Card Update! This card is in a class of its own among long-term balance transfer credit cards. It’s not because its introductory offer is 15 months at 0 percent APR. It’s because that initial 0% APR for 15 months has no fee, which is a very rare in today’s market (click for detailed card review and application info).
Remember, several of these cards offer terms as long as 21 to 24 months. Depending on how big your balance is, you could still really get slammed with those 3 percent balance transfer fees.
As long as you know you can pay off your debt in 15 months, the Chase Slate gives you an opportunity to pay off your balance with absolutely no fees or interest. This is the best long term no fee balance transfer offer we are aware of, but before you apply, you should compare Slate to other similar balance transfer offers.
Best Long Term 0% Balance Transfer Credit Card Offers (No Transfer Fee)
Citi Simplicity® Card*
The Citi Simplicity Card made our list for two simple reasons: It has an introductory balance transfer APR of 0 percent and it lasts for 21 months (and 0% Intro APR on purchases for 12 months from date of account opening ). This is one of the best offers on the market (click for detailed card review and application info). Second, its “No Late Fees Ever” promise is truly unique.
There is a 5 percent or $5 balance transfer fee, but that lack of late fees and penalties makes it worthwhile. Remember: Even though this card doesn’t charge late fees, not paying your bill on time will still result in a lower credit score and could raise your rate to the penalty rate.
Santander Sphere® Signature Card
The Santander Sphere Signature card offers a 18-month 0 percent APR introductory rate when you complete a balance transfer within the first 90 days of opening an account. At 4 percent, the balance transfer fee is a little higher than competing cards.
Rare for a balance transfer card, the Santander Sphere Signature card has a rewards program. You receive one point for every dollar you spend, which can then be used to redeem rewards, such as gift cards, travel perks or cash back. You will want to note that it is not 0 percent on purchases, only balance transfers, so it would be unwise to use the card for purchases during the transfer period.
Discover it® Card*
The Discover it card gives you 0 percent APR on balance transfers for 14 months. The balance transfer has a 3 percent fee. Discover sweetens the deal by offering 0 percent APR on purchases made within the first 6 months after opening an account.
In other words, this is a great card for doing double duty. Not only can you get 0 percent APR on a balance transfer of existing debt, you can also use the card if you need to make a large purchase. But remember: Adding more debt through a purchase will make it harder to pay off your balance within 14 months.
NASA Federal Credit Union Card
The NASA Federal Credit Union card offers a 8.9 percent balance transfer for life. In other words, there is no limit to the incredibly low APR. There’s also no balance transfer fee.
This could be a great card for individuals who know they will take longer than 18, 21 or 24 months to pay off their debt. When the introductory APRs on the other cards expire, the rate is usually double what’s being offered by this card.
BankAmericard Credit Card*
The BankAmericard credit card offers 0 percent APR on balance transfers for the first 15 months and has a 3 percent transfer fee. After the initial 18 months, the BankAmericard offers one of the lowest ongoing APR of any of the BankAmericard products. The ongoing APR is between 14.49 and 24.49 percent, depending on your creditworthiness.
This card also offers credit education resources, making it a good card for individuals who are looking for a long-term balance transfer card in an effort to pay off their debt and improve their credit.
Barclay Bank NFL Extra Points Card*
Although U.K. based Barclay Bank has been offering credit cards in the U.S. for several years, the bank still is far from a household name here and is a bit of a best kept secret. The balance transfer offer of the NFL Extra Points card is impressive, though not quite a touchdown. It offers 15 months on transfers made within the first 45 days and comes with the industry standard 3% fee. After that, a variable purchase APR applies, currently 15.24%-25.24%, based on your creditworthiness.
While not the best transfer offer on the market, the card also offers a unique 0% promotional APR for 6 months on NFL ticket purchases from any participating NFL team ticket office. Another nice perk is complimentary online FICO credit score access.
Simmons Bank Visa® Platinum*
If you’re looking for a long-term balance transfer credit card that doesn’t have a balance transfer fee, look no further than the Simmons Bank Visa Platinum card. Though the card charges no balance transfer fee, it does levy a variable 7.5 percent APR on balance transfers made within the first 90 days of opening the account. This is comparable to the NASA card, although at a lower rate.
A unique feature of the card: Unlike many other cards on this list, the APR following the introductory rate does not vary depending on your credit worthiness. With the Simmons card, it’s simply a flat 7.5 percent, if you get approved.
BEST LOCAL AND REGIONAL LONG-TERM BALANCE TRANSFER CARDS
Sometimes the best long-term balance transfer credit cards don’t come from large national chains and credit unions. Instead, you can find some gems right where you live. Here is a sampling of some of the most attractive offers, but be sure to consult with locally owned and operated banks and credit unions in your area.
First National Bank of Omaha Platinum Edition® Visa® Card
This is a good regional card worth considering. First National Bank of Omaha currently offers the Platinum Edition Visa Card with a long-term balance transfer period available to people who reside in Colorado, Illinois, Iowa, Kansas, Nebraska, South Dakota or Texas. These cards offer a 0 percent APR on balance transfers for 15 months along with a 3 percent balance transfer fee. After the introductory period, the bank offers APRs as low as 10.24% up to 18.24%.
Note: This is an interesting side note for those applying for a transfer offer with another issuer. Although not a balance transfer card, we did not want to neglect to mention another card worth considering from FNBO: the Complete Rewards Visa Card. This card offers a 15 month 0% APR on purchases, not balance transfers. This could be a nice complementary card to use while paying down your transferred balance if you expect to be making some purchases along the way.
TruWest Credit Union Visa® Platinum Card
The TruWest Credit Union Visa Platinum credit card is a long-term balance transfer card available to people who reside in parts of Arizona and Texas. The card offers a 0 percent APR on balance transfers for 18 months, though there is a 3 percent fee. After the introductory period, the credit union offers APRs as low as a very rare rate of 6.5 percent, a real bargain.
TruService Community Federal Credit Union Visa® Platinum Card
Arkansans looking for a long-term balance transfer credit card won’t find a better deal than what’s offered by the TruService Community Federal Credit Union.
TruService lives up to its name with a ridiculous ongoing APR as low as 5.5 percent. This is the lowest ongoing rate in the nation (that we are currently aware of). There’s also no balance transfer fee within the first 60 days. After that, it’s only $25 per card.
Logix Platinum Rewards MasterCard®
The Logix Platinum Rewards MasterCard offers a very unique variable long-term balance transfer deal of 4.99 percent to 9.99 percent APR for 24 months with no balance transfer fee. It also has no foreign transaction fees, a plus for travelers. The transfer rate is based on your creditworthiness, so if you can get the lower rate, this is a good offer, but if you get the higher rate, it’s not that great. For those qualifying for the lower rates, this can be a great option for individuals in Southern California who need to find a way to pay off high-interest debt.
WHAT TO LOOK FOR
Long-term balance transfer credit cards are a great solution for individuals who are looking to pay down their high-interest debts once and for all. In a nutshell, here’s what makes a card worth looking at: It must have a long introductory period 0 percent APR, decent fees and low ongoing APRs. All of the cards above fit the bill and can help you improve your financial situation.
CHECKLIST BEFORE YOU TRANSFER
– Identify which balance(s) and which card(s) you want to transfer.
This can be as simple or complicated as you choose to make it depending on your goals and how many cards and balances you are looking to transfer. For many people, they may be simply transferring debt from one card to another. Others may want to consolidate debt from multiple cards, especially if they can move all balances to one card at 0%. It is good to know in advance what balance(s) you want to transfer. If you have some cards that you do not have a balance on, you can contact those issuers to see what kind of balance transfer deal they may be able to offer to win your business.
– Identify how much you plan on paying per month and how fast you can pay it off.
This can impact which card you choose. If you determine that you can pay off your current debt within twelve months, you open the range of cards to select from. If you figure out that 15-18 or 24 months is a more realistic assessment of how fast you could pay the transferred balance off, you may want to strongly consider one of the cards with longer intro rates or plan for transferring to another card with a balance transfer offer when that intro offer expires.
– Check your credit score.
Knowing your credit score is handy to helping know what card or cards you can be approved for. The higher your score, the more options you will have in applying for a great balance transfer card. If your FICO credit score is 720-750 or higher, you should have no problem qualifying for most cards that state that “Excellent credit is required.” Click here to check your credit score.
Consider the impact of transferring a balance on your credit score, but maintain your focus on the goal. Although it could negatively impact your credit score, especially in the short term, you should be more concerned with taking advantage of the offers that allow you to pay off your debt the fastest and at the lowest rate possible. In the long run, that will be the best toward eliminating debt and improving your credit score.
– Get an idea on how much you can be approved for on the new card.
If you have not applied for a card in a while, you may be flying blind on this one. A number of factors influence how much credit you will be awarded including your current debt load, credit score and other items. If you apply online, you should know fairly soon if you are approved and how much credit you qualify for. If the amount is not enough to cover the balance you wish to transfer, contact the card issuer and see if they can do anything to extend that to help accommodate the balance(s) you are wanting to transfer. Worst case, you can apply for multiple cards (from different issuers) to accommodate the total balance and identify which amount from which card will go where. (A word of caution: Each time you apply for a credit card, it can lower your score a little bit on a temporary basis.)
– Use a balance transfer savings calculator to determine which offer is best for your situation.
Terms vary on the introductory balance transfer offers. Most of the 0% offers carry a balance transfer fee typically at 3%, but some are higher. Other cards offer an intro period without a balance transfer fee. You can use such an online calculator to determine how much you will save for each card and see which gives you the biggest bang for your buck over time.
– Decide if you prefer to transfer a balance or get a consolidation loan.
It is true that a balance transfer at 0% is the absolute lowest rate you can find. But, crunching the numbers are not 100% of what erasing debt is all about. Personalities and personal preferences should be considered as well. Some people are more comfortable with a single fixed monthly payment and a pre-determined final payment date. In that instance, a loan may be the best route for you. There are a number of companies offering great rates on personal loans that can be paid off over two to five years on average. Check out local credit unions first and then local banks to find the best rates and terms. Also consider online sources such as Payoff.com for debt consolidation loans. Although not as low as 0%, you may find that you can afford the payment and get a plan that will erase that debt once and for all.
– Don’t try to transfer balances between two cards with the same bank or card issuer.
This may seem like a tip that does not need to be said, but you may have an airline miles card, rewards card or a store card issued by a bank and their logo is not prominent front and center on the card. Check the issuing bank on the back of the card before applying for that new card. Banks typically use these balance transfer offers to create new business and are hoping to steal business away from their competitors. They will not be interested in reducing a rate on a balance they already manage. Having said all that, many cardholders often have success contacting the existing card issuer and negotiating a lower rate on their current balance.
– Get the transfer done as soon as possible and know the deadline date. (Typically, 60 – 90 days.)
Many card issuers have promotional balance transfer offer time periods between 60 to 90 days from the time you open the account. It is definitely in your best interest to transfer your balance as soon as possible. The sooner you are paying on a lower interest rate, the better, right? So, if transferring a balance to help pay it down faster with interest is your goal, don’t procrastinate on this. Get it transferred as soon as possible!
CHECKLIST FOR AFTER THE BALANCE TRANSFER IS DONE
– Pay on your card on time, every month!
Ok. So, you know this one. Late payments can trigger steep late payment fees and can also hurt your credit score. If you make a late payment, you will most likely lose your low introductory transfer rate and could get stuck with a high default or penalty rate which can be northwards of around 30%. In addition, late payments are typically reported to the credit bureau, which could then impact your score. Automate your payments (at least to the minimum) so you are never late. You can always go online and make extra payments as well to help pay it down faster.
– Don’t use your new balance transfer credit card if you can help it.
After you have transferred your balance to the card, you don’t want to add more debt. Unless the card also offers a 0% purchase rate offer for a set time period, any purchase you make on that card will start accruing interest at a higher rate after the grace period. The goal is to drop the interest for a while so you can pay down the debt. If you can help it, you don’t want to add to it.
– Don’t use your card at an ATM or get cash out while shopping.
Walking hand-in-hand with the tip to not use your card, we emphatically say to avoid using your card at ATMs or getting cash back at the checkout counter. These transactions are not your typical “purchase” transactions; they are considered cash advances and almost always come with an initial fee, usually around 5% and carry a much higher interest rate. In addition, there is usually no grace period for cash advances, so interest accrues immediately. If your shiny new card does offer a 0% purchase rate for a time, these cash advance transactions will not fall under that category.
– Don’t close your old accounts.
After you have transferred your balance from one card to another, you may be tempted to close the accounts of those cards that now have a $0 balance. You do NOT want to do this. Keeping those accounts open will help you with your credit utilization ratio which is a factor used in determining your overall credit score. Each card has its own credit utilization ratio, which is the actual debt balance divided by the total credit available.
For factoring your credit score, they also look at the overall credit utilization ratio, which is the total debt balance divided by the total credit available. Your goal is to be below 30%. As you get new cards and move the balances there, you will have increased your total available credit, which will improve your overall credit utilization ratio. Also, the age of accounts is also a factor and older accounts can help improve credit scores. For more information on when to close an account, click here. The bottom line is: get those cards to a $0 balance as fast as possible, but leave them open to improve your credit score.
– Add to the payment as you can over time.
While experiencing a breather from your earlier interest rate, you may find times when you can pay on the card a little more over time. Anything you can do to pay off the debt faster is always helpful. Eventually, the intro rate will end, unless you have locked down with a low ongoing rate. Even paying $10 or $20 extra each month can have a big impact. Paying extra reduces the balance faster and gives you more of a chance to keep interest charges at bay.
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! 🙂
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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.
This article is Part Two of a Two-Part Roundup of the Highest Rated Cash Back Rewards Credit Cards for 2016 (see link below for 2019 offers). Also, be looking for another article coming soon to where we will discuss some savvy tips for using cash rebate cards, or more commonly known as cash back cards.
In part one, we showcased our picks for the overall cash rebate rewards card winners for 2016, including cards that offer up to 2% Cash Back on all purchases. You can also find our picks for the best cash back cards for excellent Credit, building or rebuilding Credit, travel and specific categories of spending: groceries, gas and dining.
Without further ado, here’s part two of our roundup of some of the highest cash back reward cards for 2016:
This is part two of a two part story about the best cash back cards of 2016, For part one, click here.
BEST CASH BACK REWARDS CARD FOR MILITARY PERSONNEL
PenFed Defender Visa Signature Card
Editor’s Note: As you may guess from the card name, the PenFed Defender Visa Signature card is designed for a military personnel and offers a very respectable 1.5% cash back on all purchases as well as no foreign transaction fees. Truth be told, there are no fees at all.
Cash earned is automatically added in to your account each month. Rates are as low as 10.24% and enhanced with 24/7 concierge services. If collecting rewards points are more interesting than traditional cash back, PenFed also has a compelling offer in their Platinum Rewards Visa Signature Card.
A Closer Look: You earn an unlimited 1.5% cash back on every purchase and a $100 cash bonus when you spend $500 in the first 90 days after opening an account. There’s a 4.99% balance transfer for 12 months with no balance transfer fee and you can even earn a $100 bonus on qualifying transfers.
Another nice feature is the travel and emergency assistance services. Need help managing warranty information? The card provides an extended warranty on purchases and several other features through its warranty manager service.
USAA Cashback Rewards Plus American Express®*
Editor’s Note: Another strong card for military personnel is the USAA Cashback Rewards Plus American Express. Cardholders can earn 5% back on the first $3,000 in gas and military purchases. On groceries, you earn 2% on the first $3,000 and then 1% thereafter for the remainder of the year for both of these categories. Aside from these special categories, all other purchases earn an unlimited 1% cash back. The purchase APR is between 12.15% to 26.15%.
A Closer Look: Military personnel get some unique benefits we have not seen with other cards. For example, they offer a special Deployment/PCS rate that provides a 4% APR on all balances for up to 12 months during deployment or PCS. Another feature is a special 4% SCRA rate for people entering active military duty.
If the cardholder has a balance on their account at the time they enter active military duty, they will get a 4% APR on that existing balance until one year after they complete active duty. Finally, the Military Campaign Benefit is for those serving in qualified military campaigns. During that time of service, USAA will rebate all finance charges accrued while serving in that capacity.
Honorable Mention: cashRewards Credit Card from Navy Federal Credit Union
Military members and their families can also qualify for membership to Navy Federal Credit Union. The cashRewards card offers an attractive purchase rate between 9.90% and 18.0% based on creditworthiness. In addition, this card offers 1.5% unlimited cash back on all purchases. There is no annual fee and no fee on foreign purchases, a big plus for those traveling with the military.
Rewards Details:
Rewards Expiration: Never
Rewards Limit: None
Start Redeeming: Anytime once earned
BEST CREDIT UNION CASH BACK REWARDS CARD
NASA Federal Credit Union Platinum Cash Rewards Credit Card
Editor’s Note: Even if you do not work for NASA, you can show off a NASA FCU cash back credit card to your friends. They have a number of membership eligibility options, and one that allows anyone interested to gain membership. According to their website, a complimentary membership to the National Space Society (NSS) entitles you to join NASA FCU, and they offer a one year introductory membership fee of $20.
That’s not too much to pay for a card that offers up to 2% cash back and 7.9% on balance transfers completed within 90 days for the lifetime of the balance (not a limited time rate) with no transfer fees. The purchase rate is between 14.15% – 17.99%.
A Closer Look: You don’t start out earning 2% with this card, but must spend $2,001 annually to start earning 2% cash back (which is still a pretty low threshold). Here’s how the cash back tiers work: Card holders earn a 1% rebate for annual purchases up to $1,000, then a 1.25% rebate for annual purchases from $1,001 up to $2,000 and it is then 2% thereafter. The 2% rebate tier can be achieved fairly quickly for many active households.
HEADS UP ON NEWER CARDS
The bar has been raised. It used to be that the typical cash back reward percentage was 1%. Now, we are seeing the most common earn rate is 1.5% (Citi® Double Cash has raised the bar even higher as it offers an amazing 2% cash back rebate). This all is definitely good news for consumers! Before we leave our best cash back card roundup, there are a few new cards worth mentioning.
BEST NEWCOMER
Barclaycard CashForward World MasterCard Credit Card*
Editor’s Note:A newer offering, released in November 2015, the new Barclaycard CashForward World MasterCard is a strong contender as it features a 1.5% Cash Back earn rate and a $100 cash bonus after spending $500 in the first 90 days.
It also offers a 0% APR for 12 months on purchases and balance transfers. After the 0% ends, a variable APR will apply, currently 15.24 -23.24% based on the applicant’s creditworthiness. This card is designed for people with excellent credit.
A Closer Look:There are a couple of things to note on this card. It has a pretty high minimum threshold for cash redemption at $50, but they encourage cardholders to redeem by offering a 5% redemption bonus. So, your actual cash rebate percentage is effectively higher than 1.5%.
Chase Freedom UnlimitedSM Credit Card
Chase launched a 1.5% cash back card in April. Competing with Capital One’s QuickSilver and other similar offerings, the new “Freedom Unlimited” card pays back 1.5 percent on all purchases, a higher standard rate than the current Chase Freedom card which pays back 1 percent. It is available to customers with good and excellent credit scores.
Editor’s Note: Although expired at the time this is being published on BestPrepaidDebitCards.com, what initially set this card apart from all the others was your ability to get 20 percent cash back on all Uber rides through April 2016. This was a great bonus for those who use the car sharing service often.
A Closer Look: Aside from the 20 percent cash back on Uber rides, Capital One’s QuickSilver is an overall good program. You earn an unlimited 1.5 percent cash back on every purchase, a $100 cash bonus when you spend $500 in the first three months after opening an account, there’s no annual fee and the card offers a 0 percent introductory APR.
You can also use it for travel upgrades, there are no foreign transaction fees, the rewards don’t expire, and you can redeem your cash back for any amount, anytime.
BEST BUSINESS CASH BACK REWARDS
Ink Cash Business Credit Card*
Editor’s Note: The Ink Cash Business Credit Card by Chase is often hailed as one of the best credit cards for small business owners. You get 5 percent cash back on the first $25,000 you spend each year on business expenses, including office supplies, cellular and landline phones, Internet and cable TV. You also get 2 percent cash back on the first $25,000 spent on gas and restaurants. A 0 percent introductory APR and no annual fee also make this card very attractive.
A Closer Look: In addition to the great cash back offer on things all businesses need, you also get $200 bonus cash back when you spend $3,000 in the first three months after opening an account. You can redeem points for cash, travel or gift cards.
HONORABLE MENTIONS
Discover it® Cash Credit Card*
This means all the 5% cash back earned on certain purchases effectively becomes 10% cash back and the 1% base feature of the card doubles and becomes 2% back on all other purchases. They currently offer a 12 month 0% APR on both purchases and balance transfers. After that 12 month period balances revert to the standard rate, which is between 11.24% and 23.24%.
A Closer Look:Discover adds some additional security features to help protect your account. Their Freeze It program allows cardholders to pause cards, preventing new purchases, cash advances or balance transfers on your account. Cardholders can easily freeze and unfreeze accounts via a mobile app or their website. As they monitor your account, if something looks fishy, they will notify you by phone, email or text message. If you are tracking your FICO credit score, you can get your score each month for free on your statement as well as on their website.
PenFed Platinum Cash Rewards Visa Plus*
Editor’s Note:The Plus card is actually the premium version for this particular card, which comes in two flavors: standard or plus. For cardholders that have qualifying accounts at PenFed, they can qualify for the Plus bonus on this card. Where the standard card features an unlimited 3% cash back on gas purchases at the pump, the Plus version raises that to an unlimited 5% at the pump. There is a 0% balance transfer for 12 months.
A Closer Look:There is an opportunity to earn up to $200 in bonus cash back. This is a bit higher than many of the other similar $100 cash bonuses, but it does require you to spend $1,500 on the card during the first 90 days (compared to the $500 spend required by others). Another bonus up to $100 can be earned by transferring balances to the account. Transferring between $5,000 and $9,999 earns $50. Transferring $10k or more earns $100.
Wells Fargo Cash Back Visa Signature® Card
Another card worth considering is the Wells Fargo Cash Back Visa Signature card. For six months, cardholders get unlimited 5% cash back rewards on all gas, grocery and drug store purchases. Unlike many of the other 5% offers, this one has no cap, at least for six months, and many families can easily spend a few thousand in these categories over a six month time frame. All other purchases get 1% cash back. There is also a 0% APR balance transfer for 15 months to encourage cardholders to bring along existing balances as well.
COMING SOON: Coming soon to a Costco near you: The Costco Anywhere Visa® Card by Citibank. A new Costco credit card from Citi will replace the existing TrueEarnings® Card from Costco and American Express. In addition to accepting the new Visa card, starting June 20, Costco will accept all Visa credit cards. This card is great for travelers: you get 4% back on gas purchases at Costco and other gas stations for the first $7,000 spent per year and 3% back on restaurants and most travel purchases such as airfare, hotels, car rentals, cruise lines and Costco travel.
Cardholders will get 2% back at Costco and Costco.com and 1% back on everything else. The rewards are not distributed as easily and quickly as other cards: cardholders get a Costco coupon once a year that they must redeem by the end of that year. The benefits of this upcoming card are worth looking into, especially if you have travel plans on the horizon and do not mind cashing in all of your rewards at Costco.
Other Related Reviews and Resources That Might be Helpful:
PRIMER: HOW TO CHOOSE A CASH BACK REWARDS CARD
Now that you know the best card picks in each category, we’d like to help you simplify your selection process as the process can be overwhelming. 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? 2016-03-31-1459442839-9612854-BestChoice300x240.jpgThen you may want to consider a cash back card that allows you to use points for travel or awards bonus cash back for travel related purchases.
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. Many cards are listed indicating what kind of credit is needed to apply for the card. For example, you could apply and have a good chance of being approved for cards labeled as “excellent credit required” if you have a credit score of 720-750 or higher.
PRIMER: THREE MAIN 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, and you can even find cards that give 2% cash back on all purchases, such as our current cash back winner, the Citi Double Cash Card.
Cash back with limits: These cards are more commonly associated with higher percentage cash 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% rebate 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 earn rate and you can max out this rate and then drop to a lower rate.
BEST PRACTICES FOR USING YOUR CASH BACK REWARDS CARD
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 (some change is good though!). The same can happen with cash back rewards. As such, you’ll always want to keep an eye on term changes and point expirations. 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 or quarterly 5% category changes so you can take the appropriate action.
Get Organized: If you really want to play the game, and you have significant expenses each month in multiple categories, you may want to look at cash back cards the way some people look at couponing. This works well with the 5% rotating cards. Print out labels for the category that a given card offers the greatest reward in. For example, if you get 5% cash back on gas and travel related purchases with one card, label that one gas, for the card with 5% back at restaurants, label dining, for groceries, well, you get the idea! This ties in with staying on top of things. You will have to sign up for these rotating categories (typically every quarter) and make card label changes as needed.
Actually Use It: The best way to accumulate rewards 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 (stick to your budget closely), you’ll be fine. Additionally, you’ll actually want to use the rebates you accumulate. Far too many Americans have reward/point balances that go unused and run the risk of expiring. Besides, what’s the point of accumulating rebates if you don’t actually use them?!
PRIMER: 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 you pay will typically more than cancel out your earnings (i.e. you’ll lose money on the deal). Beyond paying off your balance in full every month, you really need to also stick closely to your budget as cash back cards are designed with the express purpose to make you spend a lot. Studies show that consumers do spend more with plastic than cash- be very disciplined!
If you have a great cash back card and you have a significant purchase where a card can be used, don’t forget you have that card and accidentally write a check, such as for a major home remodeling expense. If they take cards, a check is definitely better for the person getting paid, but they get the bonus, not you! 🙂
CASH REWARDS VS. MILES AND HOTEL POINTS CARDS
In the world of credit cards, choosing between cash back rewards and credit cards that help you rack up airline miles or hotel points can be a conundrum. After all, out of all the types of discounts, rewards and points available, these three card types are among the most popular programs out there. What’s the point of saving 10 percent at your favorite retailer if you can cash in on hundreds, if not thousands, via cash back, free travel or discounted hotel stays?
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. If you are constantly staying in the same hotel chains, a hotel points card may be just right for you.
It’s a good idea to do the math on this, though. Over the years, we have found that it’s hard to beat a cash back card (and they’re usually simpler to use as well). Some cards do actually let you choose the way you redeem – for cash, points, gift cards, etc. And you can typically change your redemption preference whenever you want if you so desire.
FINAL NOTES
We hope you enjoyed our overview of the top cash back cards of 2016. Click here for more information and tips that can help you maximize your cash back earnings.
This article is Part Two of a Two-Part Roundup of the Best Cash Rebate Rewards Cards in 2016. The first article can be found here.
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! 🙂
This is part two of a two part story about the best cash back cards of 2016, For part one, click here.
* NOTE: About half of the credit card offers that appear in this article are from credit card companies from which we receive financial compensation (these cards are listed as such on our site). They are noted above with an asterisk. We are proud that we list cards that don’t advertise with us—- almost all of our competitors ONLY list cards that advertise with them. The bottom line is that we don’t know of another site that prominently lists as many non-advertiser cards.
Over the summer CardRatings.com issued a disturbing report that revealed the sorry state of financial literacy among the general population. Despite all of the news about data breaches at Target and Home Depot, fewer than half of those surveyed knew the proper steps to take to monitor and protect their credit – basic steps to maintaining financial security. This lack of understanding, unfortunately, extends beyond just credit issues to the basics of savings and investing and other straightforward elements of financial fitness. Add in the stressed finances of many American families and the predatory practices of payday loan and check cashing outfits and it all adds up to a major problem.
Yet it is one the financial services industry seems increasingly focused on addressing. As part of that effort, JPMorgan Chase & Company announced on Sept. 19 a two-year, $35 million effort to assist individuals and families to save money, build credit and generally improve their financial security. The money will be disbursed in the forms of grants to non-profit organizations that help consumers boost their financial knowledge and that also develop financial products and tools that meet the needs of typically under-served communities.
Indeed, according to JPMorgan Chase, its grants will be targeted to three distinct areas. For one thing, it will be seeking out non-profits that can provide innovative, technology-heavy financial solutions to help meet consumer needs in an affordable way. Understanding that innovative solutions that nobody knows about aren’t useful, grants will also be given to support efforts to expand the availability of these novel solutions. And grantees that seek to disseminate financial best practices will also be considered.
For instance, JPMorgan Chase contributed $150,000 to MoneyThink to help that group develop and app and curriculum to boost the financial literacy of 11th and 12th graders. “Chase’s support will help serve an additional 2,000 youth through near-peer mentorship and game-based mobile technologies,” said Ted Gonder, the CEO of MoneyThink.
This latest announcement is a follow-up to JP Morgan Chase’s establishment earlier this year of the Financial Solutions Lab. A five-year, $30 million program in collaboration with the Center for Financial Services Innovation, the lab is centered on developing and distributing innovative products that improve financial security.
If you step back and think about it for a moment, college seems like a downright lousy time to start building good credit. For all too many students, the college years are a time to amass a mountain of student debt while not working. Building the solid credit history that allows you to get home and car loans at reasonable interest rates is something to put off until after graduation, right? Not necessarily. In fact, in the not too distant past, credit card companies tried to entice every student within a Frisbee’s throw of a college green to signup for entry-level cards by offering perks like free airline flights. While that practice was a way for lots of undergrads to demonstrate they were ready for the adult responsibility of repaying their debts – and hence establishing good credit – it also resulted in too many young people drowning in credit card debt. It was an unpopular enough marketing tactic that the Credit CARD Act of 2010 largely eliminated those campus credit card promotions. But the fact remains that it is better to get started building your credit sooner rather than later. And there are still ways to begin constructing the sort of stellar credit that lenders want to see while still in college. If you are asking the question about how to build credit as a college student, here are a few tried and true methods:
Obtain a secured card: Unlike standard credit cards, secured cards are easy to get because they require applicants to deposit money into their account before they spend a penny. That deposit amount becomes the card holder’s credit line, which makes it a risk-free proposition for the company offering the card – if you don’t pay your bill, they keep your deposit. But if you are smart and pay off all of your charges on-time it can be a great tool for burnishing your credit.
Open a gas or department store account: Like secured cards, department store or gas cards are a snap to get compared to traditional credit cards. And if you use it wisely – meaning you always pay your bills before they’re due – you’ll be sending a message that you reliably pay off your debts.
Get a credit card: True, the days of having multiple credit card offers stuffed in your campus mailbox are over. But if you have a part-time job and an existing relationship with a bank through a checking account and debit card, you just might be able to land a credit card. If you can swing it, do it. And this will sound like a broken record, but be sure to always pay your bill on-time and don’t get anywhere near your credit limit. Small, smart purchases that you pay off on a monthly basis will make a very good impression.
Hit up your parents: If you’re in college, your parents have clearly already done a lot for you. But if you think they’d be open to one more request, try to get them to add you as an authorized user of their credit card account. You won’t have complete control over the card, obviously, but it is a tool for building credit. If, that is, you use it wisely.
There’s just no escaping the fact that a mountain of student debt is a big burden. And these days, kids fresh out of college are looking at a Himalayas-like amount of debt to pay off before they’ve even started their careers. According to a recent story in US News & World Report, college kids owe an average of $33,000 from the moment they grab their diplomas and stride into adulthood.
But in that same story reporter Divya Raghavan offers up a way grads can make lemonade out of that forest of lemons. How? By responsibly paying off all of that student debt and showing lenders that you know how to handle your finances responsibly. Doing so is a way to build the kind of credit score and credit history every adult needs. “They can result in a graduate being able to qualify for his or her first apartment, first car loan and, very often, first unsecured credit card,” writes Raghavan.
As Raghavan points out, there’s nothing particularly magical about how this all works. In simple terms, a large amount of student debt can only be paid off with diligent and persistent hard work. Which means that if a fresh graduate makes on-time payments month after month creditors are going to get the message that this young adult is someone who can be trusted with a car loan, mortgage or credit card. Lenders will know that a former student is low risk because student loan payments are reported to the three major credit bureaus, TransUnion, Experian and Equifax. The credit score and report that these agencies come up with is based on how timely and complete those repayments are.
And their impact goes beyond just how likely you are to get a car loan. There are times when prospective employers will ask applicants for their credit report. Although employers can only review a potential hire’s credit report with the consent of a job applicant, it’s important to be aware of the possibility of a request. In fact, a study by the Society for Human Resource Management found that almost half of employers conducted a credit check on potential employers.
There are times when even the most well-meaning and responsible graduate just can’t make those loan repayments. When that is the case, Raghavan writes that the best approach is to defer the loans. Defaulting on the debt will do lasting harm to your credit score. “As a good rule of thumb, remember that it’s OK to defer, but not to default,” she writes.
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January 2020 Card Update! This card is in a class of its own among long-term balance transfer credit cards. It’s not because its introductory offer is 15 months at 0 percent APR. It’s because that initial 0% APR for 15 months has no fee, which is a very rare in today’s market (click for detailed card review and application info).
Remember, several of these cards offer terms as long as 21 to 24 months. Depending on how big your balance is, you could still really get slammed with those 3 percent balance transfer fees.
As long as you know you can pay off your debt in 15 months, the Chase Slate gives you an opportunity to pay off your balance with absolutely no fees or interest. This is the best long term no fee balance transfer offer we are aware of, but before you apply, you should compare Slate to other similar balance transfer offers.
