QuicksilverOne Review: Unlimited 1.5% Cash Back for Average Credit

For people with “average” or “fair” credit, Capital One offers QuicksilverOne Rewards.Every credit card issuer has a different definition of what “average” or “fair” credit means. Generally speaking, it means a FICO score between 580 and 669.

The QuicksilverOne Rewards card gives you an unlimited 1.5% cash back, which is a pretty sweet opportunity for consumers with less-than-perfect credit.

Just beware of the two catches: There’s a $39 annual fee and a high purchase APR.

QuicksilverOne® Rewards from Capital One

APPLY NOW Secured

on Capital One’s secure website

QuicksilverOne® Rewards from Capital One

Annual fee
$39 For First Year
$39 Ongoing
Cashback Rate
up to 1.5%
APR
24.99%

Variable

Credit required
fair-credit

Average

QuicksilverOne Card Overview

The QuicksilverOne Rewards program is low maintenance.

Unlike other programs with revolving categories and spending caps, this card doesn’t hold you to either. You will earn 1.5% cash back every time you swipe.

You can redeem cash back at any time for a check, account credit, or gift card. Cash back you earn never expires.

What We Like About This Card

No fuss.

We like that the cash back program terms are uncomplicated. There are no preset bonus categories that you have to adapt your spending to each month. You can also redeem cash back at any time without having to wait for the balance to reach a certain threshold.

Low credit score requirement.

The QuicksilverOne is one of the only cash back rewards cards around town for average credit. If you’re having trouble getting approved elsewhere, this is a card you need to seriously consider.

What We Don’t Like About This Card

The annual fee.

Since this card costs $39 per year, you need to spend at least $2,600 per year (or $217 per month) for the cash back to break even with the fee. Ideally, you’ll want to spend more than just the bare minimum for the rewards card to be worthwhile.

High APR.

This is a high interest rate. Avoid carrying a balance at all costs if you choose this card.

Who This Card Is Best For

Again, the QuicksilverOne is our top unlimited cash back pick for consumers who have trouble getting approved for other cash back cards.

According to Capital One, you may qualify for this card if:

  • You have defaulted on a loan in the past five years
  • You have limited credit history
  • You have had your own credit card or other credit for less than three years (this may include students, people new to the U.S., or authorized users on someone else’s credit card)

Keep in mind, these are just guidelines to give you a general sense of whether you’ll qualify. Your income, debt, and other credit limits are also factors used to make a decision.

Capital One has a nice feature where you can get preapproved online for offers without a hard credit inquiry. See if you prequalify for the QuicksilverOne card here.

Keep an eye out for the Quicksilver alternative while checking offers as well.

Quicksilver Rewards is the “big brother” of the QuicksilverOne card. It has no annual fee, and it’s for people with excellent credit. There’s no harm in checking to see if you prequalify for the Quicksilver card.

Is the QuicksilverOne card good for rebuilding credit?

Despite the lenient qualifying criteria, the QuicksilverOne card is not our top recommendation if you’re rebuilding credit, because of the annual fee.

Your focus should be keeping your credit utilization very low when rebuilding credit. You shouldn’t worry about having to earn enough cash back each month to cover a card’s annual fee.

Try a no-fee secured card like the Capital One Secured MasterCard or the Discover it Secured Credit Card instead.

QuicksilverOne Credit Card Benefits

QuicksilverOne offers:

  • Travel accident insurance and 24/7 roadside assistance. Travel insurance for death or loss of limbs. You can call in for help if your car breaks down.
  • Auto rental insurance. Insurance covers rental damage from collision or theft.
  • Extended warranty. Purchases made on your card will get an extended warranty.
  • Price protection. You can get reimbursed the difference if you find items you purchased on sale within 60 days.
  • Fraud coverage. Covered by $0 fraud liability if your card is lost or stolen.

Alternatives to the QuicksilverOne

QuicksilverOne doesn’t have much competition since it’s the best card for consumers with average credit. The following no-fee cash back cards officially require good to excellent credit but allow you to prequalify without a hard inquiry.

1.5% cash back, no fee

Chase Freedom Unlimited<sup>SM</sup>

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

1.5%

APR

14.24%-23.24%

The Chase Freedom Unlimited card gives you an unlimited 1.5% cash back on all spending without category restrictions or caps. What’s great about Chase is it’s another credit card issuer that lets you prequalify for offers without a hard pull. Check out offers you may prequalify for here.

You can redeem cash back from your Chase Freedom Unlimited card at any time, and cash back never expires as long as you keep your account open. At times there is an intro APR deal or cash back bonus offer that add benefits to this card, and ongoing rates are sometimes lower than what you’d see on the QuicksilverOne.

Double cash back, no fee

Citi®Double Cash Card

Annual fee

$0 For First Year

$0 Ongoing

Cashback Rate

1% when you buy, 1% when you pay

APR

14.49%-24.49%

Variable

The Citi Double Cash card is another good choice for low-maintenance cash back rewards. It gives double cash back on all purchases. You earn 1% cash back when you spend on the card and another 1% cash back when you pay off the bill.

This is a card that members report qualifying for with a credit score in the high 600s. Citi lets you shop for prequalified offers on the website as well. If you’re interested in this card, see if you can get prequalified here. In addition, there are changing intro APR deals for this card that allow you to save interest early on, and ongoing interest rates are sometimes lower than with the QuicksilverOne.

Bottom Line

The QuicksilverOne Rewards is a good rewards card for those with average credit. If you have had difficulty being approved for other higher cash back rewards cards, you may be approved for the QuicksilverOne Rewards, which offers unlimited 1.5% cash back. Be aware that this card comes with an annual fee and high APR, so make sure to do your research and see if this card is right for you.

FAQ

You should not keep a balance on this credit card to benefit from the cash back. The high APR is a large amount of interest to be paying on purchases. If the interest charges you experience on this card coupled with the annual fee surpass the cash back you earn, this card is pointless.

No. You’re free and clear to spend money on anything, and it’ll earn 1.5% cash back. This is the beauty of an unlimited cash back card. However, cash advances and balance transfers will not qualify for cash back.

No, you can redeem cash back for any amount at any time.

No, cash back does not expire as long as your account remains open.

You can, but not with average credit. The QuicksilverOne card is the best unlimited cash back card there is specifically targeting people with fair credit. Another option you have is working to improve your credit first before applying for a credit card to qualify for a card that gives you more cash back.

The post QuicksilverOne Review: Unlimited 1.5% Cash Back for Average Credit appeared first on MagnifyMoney.

The new Discover it Secured Card wins: No fee, Free FICO and up to 2% cash back

Discover it Secured Credit Card Review

Updated August 1, 2017

Discover has just launched a new product, the Discover it® Secured Card – No Annual Fee . Secured credit cards are an excellent way to build your credit with responsible use. With this product launch, Discover has created one of the best secured cards on the market. You do need to make a security deposit of $200 or more to establish your credit line (up to the amount that Discover can approve). If you are unable to afford the $200 deposit, you should consider the Capital One Secured MasterCard, which only requires a $49 deposit. But if you can afford the $200 deposit, this new card is clearly one of the best no fee secured credit cards available.

Learn More

Key Product Features

Here are the key product features:

No annual fee: There is no annual fee on this card. You do need to make a security deposit of at least $200. If you want a bigger limit, you will have to make a bigger deposit.

Automatic monthly reviews starting at 8 months: After just eight months, Discover will start monthly automatic reviews of your account to see if you can be transitioned to an account with no security deposit. With an 8-month review, Discover has one of the best upgrade policies in the market.

Earn cash back: Most secured credit cards do not offer any rewards. With Discover it, you have the opportunity to earn cash back while earning rewards. You can earn 2% at restaurants and gas stations (on up to $1,000 of combined purchases each quarter). Plus, get 1% cash back on all your other purchases. Earning cash back is not the primary reason to select a secured credit card, but it is a nice option to have available.

Free FICO Credit Score: Discover will provide you with a copy of your official FICO credit score. If you use a secured credit card properly, you should expect to see your score increase over time. And by providing your FICO score for free, you will be able to watch your improvement.

Monitor Your Social Security Number: Discover will monitor your Social Security Number and alert you if they find your Social Security Number on any of thousands of risky websites. Activate for FREE. This is a great feature that will help alert you of possible fraud.

You can learn more and apply by clicking on the link below:

LearnMore

How to Use a Secured Credit Card

A secured credit card is an excellent way to build or rebuild your credit history. In order to gain the most number of points in the shortest amount of time, you need to have a strategy. We recommend the following strategy (and describe how it helped someone build an excellent score in one year here):

  1. Avoid spending more than 10% – 15% of your available credit limit. Yes, that means if your credit limit is only $200, you should not spend more than $20 – $30 a month. Utilization is a very important part of your credit score. To calculate utilization, divide your statement balance by your available credit. People with the best credit scores have utilization well below 20%. Because you want to build an excellent credit score, you should keep your utilization low.
  2. Pay your statement balance on time and in full every month. To ensure your payments are made on time every month, you should consider automating the monthly payments. At the Discover website, you can sign up to have your monthly payment debited automatically from your checking account.
  3. Just continue to repeat Step #1 and Step #2. Your credit score should improve over time, which will help you qualify for a standard credit card.

If you have less than perfect credit and need to borrow money, you should consider shopping for a personal loan.

Who is Eligible to Apply?

According to disclosures on the Discover website, you are eligible to apply if:

  • You are at least 18 years old.
  • You have a Social Security Number.
  • You have an address in the United States.
  • You have a bank account in the United States. Note: You will need to provide your routing number and account number when you apply. If your account is overdrawn, it is highly unlikely that you will be approved.

Your credit history will be reviewed, and not all applications will be approved. The card is best for those with no credit, or scores of 670 or less.

The Application Process

You can apply online and Discover usually provides a decision instantly. You will need to make your security deposit as part of the application, which is why Discover asks for the routing number and account number of your bank.

Please remember that when you apply for the secured credit card, you will have an inquiry on your credit report just like an application for a normal credit card.

Alternate Secured Credit Cards

Discover it has one of the strongest offerings in the market. However, it might not be right for everyone. Here are some other good options.

If you cannot afford the $200 minimum deposit, you should consider the Capital One Secured MasterCard. There is no annual fee and a minimum deposit of $49. You will also be able to receive your FICO score for free. Capital One is known for accepting people with more adverse credit histories. So, if you are rejected by Discover, you might want to consider trying Capital One instead.

Capital One Secured MasterCard

Go to site

You should also consider a secured credit card from your local credit union. MagnifyMoney has a list of some of the best no fee secured credit cards offered by credit unions here.

Build Your Score, Not Your Balance

Secured credit cards are a great way to build your credit score. And, with this product launch, Discover has created an excellent tool. Just make sure you don’t use your credit card to build a balance and borrow money. Keep your balance well below 20% of your available credit, and pay your statement balance on time and in full every month. If you do that, you should start to see real improvement in your score.

The post The new Discover it Secured Card wins: No fee, Free FICO and up to 2% cash back appeared first on MagnifyMoney.

Ally CashBack Credit Card Review: Is it Worthwhile if You Don’t Bank with Ally?

Last year, Ally Bank rolled out the Ally CashBack Credit Card with a rewards program that offers 2% cash back on gas and groceries with no cap.

In addition to the cash back you earn from spending, Ally gives you a special 10% Ally Deposit Bonus when you deposit cash back earned into an eligible Ally Bank account.

Ally CashBack Credit Card

APPLY NOW Secured

on Ally Financial’s secure website

Ally CashBack Credit Card

Annual fee
$0 For First Year
$0 Ongoing
Cashback Rate
2% on certain categories, 1% on everything else
APR
13.74%-23.74%

Variable

Credit required
excellent-credit

Excellent

  • No annual fee
  • 2% cash back at gas stations and grocery stores
  • 1% cash back on all other purchases
  • Receive a $100 bonus when you make $500 in eligible purchases during the first 3 billing cycles
  • Get a 10% Ally Deposit Bonus when you deposit your cash rewards into an eligible Ally Bank account
  • 13.74%-23.74% purchase APR
  • 0% Intro APR for 12 months from account opening on balance transfers, then a variable APR of 13.74%-23.74%. Balance transfer fee is 4% of the amount transferred, $10 minimum
  • 3% foreign transaction fee

The Ally CashBack Credit Card Offer

1. Earn up to 2.2% cash back at gas stations and grocery stores.

Factoring in the 10% Ally Deposit Bonus, you have the potential to earn a total of 2.2% cash back in the gas and groceries category.

You have to deposit cash back earned into a qualifying account to get the 10% bonus. Qualifying accounts include:

  • Ally Money Market accounts
  • Non-IRA Online Savings accounts
  • Interest Checking accounts

Fine print alert: Discount stores, superstores, and warehouses are not included in the groceries category. Stores like Target, Walmart, BJ’s, and Sam’s Club specifically may be off limits for 2% cash back.

Ally Bank qualifies your purchases for cash back using merchant codes. You can call up a store directly to see if it has a merchant code within one of these eligible 2% cash back categories:

  • Grocery
  • Bakery
  • Dairy
  • Service stations
  • Automated fuel dispensers
  • Fuel dealers

2. Earn up to 1.1% cash back on all other purchases.

Purchases outside of groceries and gas earn 1% cash back. You can earn a total of 1.1% if you add in the 10% Ally Deposit Bonus.

3. Earn an introductory incentive.

There’s an introductory bonus of $100 if you spend $500 within the first three months of having this card.

How to Redeem Cash Back

You can redeem cash back in two ways. As mentioned, you get the extra 10% bonus if you deposit cash back into an eligible Ally Bank account.

The second option is redeeming cash back for statement credit. You need to build a balance of at least $25 before you can redeem cash back.

What We Like About the Ally CashBack Credit Card

You guessed it — we think the most attractive feature of the Ally CashBack Credit Card is the 10% Ally Deposit Bonus. We also like that this card has no spending cap for the 2% categories.

Other benefits are that there’s no annual fee and the interest rate range is reasonable.

The card even has a 0% APR introductory deal on balance transfers, although the 4% balance transfer fee is something to consider before moving your money.

The Ally CashBack Credit Card Fine Print

One of the major drawbacks of this card is the merchant code restrictions.

Don’t get us wrong — the Ally CashBack Credit Card isn’t the only cash back rewards program that uses merchant codes to qualify purchases. Pretty much every niche category card has some fine print related to what you will and will not earn bonus cash back on.

Before shopping at a warehouse or specialty food store with this card (or any category card for that matter), double-check the merchant code to see if the purchase will be eligible for 2%.

One more spot where the Ally CashBack Credit Card has fine print is the program termination policy. If your account is canceled for any reason, by you or Ally Bank, you forfeit the cash back balance. Ally Bank also reserves the right to change terms or cancel the cash back program. If this occurs, you may give up your balance.

To avoid losing out on money, keep the card in good standing and cash out whenever you hit the $25 mark just in case Ally Bank should change terms in the future.

Who the Ally CashBack Credit Card Is For

This card is best suited for current Ally Bank customers, but even people who bank with Ally should explore other options.

For non-Ally Bank customers, the 2.2% on gas and groceries is not worth opening two new accounts (the credit card account and a qualifying savings or checking account) to earn maximum cash back.

There are too many other category cards to consider ahead of this one that can give you more than 2.2% on gas and groceries.

There are even a few cards that offer you 2%+ cash back on all spending with no pesky category restrictions to keep up with.

We’ll share two alternatives with you in the next section.

But first, here’s an example to give you an idea of how much you can earn with the Ally CashBack Credit Card:

Say you spend $4,000 per year on groceries and $2,000 on gas. You can earn up to $132 in cash back for the year. (This includes the 10% Ally Deposit Bonus.)

Keep this scenario in mind because we’ll reference it next when reviewing a competitor.

For eligibility criteria, Ally Bank doesn’t get specific about the type of credit history or score you need to get approved.

However, some applicants have reported getting declined because of too many recent inquiries or new accounts. These are factors to be mindful of that could hurt your chances of getting approved.

Cash Back Alternatives

We have a list of the top cash back cards for all categories in this post. Here are two alternative cards from that roundup to take a look at:

Amex Blue Cash Preferred

The Amex Blue Cash Preferred card is one of our top picks for gas and grocery shopping rewards. This card gives you a huge 6% cash back on groceries and 3% cash back on gas. You get 1% cash back on all other purchases. The Amex Blue Cash Preferred card has a $95 annual fee.

Back to our example scenario from above:

If you spend $4,000 annually on groceries and $2,000 annually on gas, you earn $300 in total cash back from the Amex Blue Cash Preferred. Subtract the $95 annual fee, and you still net $205 in cash back. Remember — the Ally CashBack Credit Card only gives you up to $132 in this same spending scenario. The moral of the story is, rewards cards that have an annual fee can still outperform cards with no annual fee. So don’t let a fee deter you from reviewing an offer.

Alliant Visa Signature

If you do most of your shopping at wholesale stores or you prefer a non-category card, the Alliant Visa Signature card is another option we recommend. The Alliant Visa Signature card gives you an unlimited 3% cash back for the first year with no fee. After the first year, you earn 2.5% cash back on all purchases with a $59 annual fee. If your spending is all over the map, an unlimited cash back card like the Alliant Visa Signature can give you more flexibility than the Ally CashBack Credit Card.

Rewards Cards: Frequently Asked Questions

No, Ally cash back does not expire as long as your account remains open and in good standing. There is no limit to the amount of cash back rewards that may be earned.

Anything over 1.5% cashback is a good deal. There are some cards that offer more — as much as 5 or 6% cash back on purchases. But sometimes those offers are too good to be true. Banks don’t like to lose money, and will pepper the fine print with all sorts of limitations. For example, they may offer 5% cash back on only purchases at certain types of retailers and only for certain periods of time. And those categories may change every quarter, which can make it hard to keep track.

Don’t let those cash back promises pressure you into spending more than you can afford. If you don’t pay your statement balance in full each month, you could get slapped with sky high interest charges. That would totally negate any benefit you might get from earning cash back. Cash back cards are only valuable if you can pay your bill in full and capture the entirety of your cash back rewards.

It depends on the card. Some cards allow you redeem cash back dollar for dollar as a statement credit, which can help lower your total balance. Just keep in mind that applying cash back to your card statement does not count as a monthly payment. Other cards will increase the value of your cash back if you spend on certain categories, like travel. Review your terms carefully to be sure you’re getting the most bang for your buck.

Find the card that fits your day-to-day spending needs best, beyond the flashy sign-up bonus offers and cash back promises. Pay your bill in full each month (spend only what you can afford to pay off).

The post Ally CashBack Credit Card Review: Is it Worthwhile if You Don’t Bank with Ally? appeared first on MagnifyMoney.

Alliant Cashback Visa Signature Review: 2.5% Unlimited Cash Back

Few credit cards offer unlimited 2.5% cash back on all spending without caps or complicated category restrictions. Alliant Credit Union recently rolled out its Cashback Visa Signature Card, which may very well be the “holy grail” of unlimited cash back cards.

The Alliant Cashback Visa Signature Card gives cardholders 3% cash back the first year and 2.5% back subsequent years. This card does have an annual fee, but the fee is waived for the first 12 months.

Alliant Cashback Visa® Signature Card

APPLY NOW Secured

on Alliant CU’s secure website

Alliant Cashback Visa® Signature Card

Annual fee
$0 For First Year
$59 Ongoing
Cashback Rate
Unlimited 3% cash back during the first year; 2.5% cash back afterwards
APR
10.99%-23.99%

Variable

Credit required
good-credit

Good

  • Exclusively designed for those spending $50,000+ a year on their card
  • Rates as low as 10.99%APR
  • $59 annual fee, waived the first year
  • No foreign transaction fees
  • A true cashback card: 3% cash back in year one & 2.5% cash back after

How the Alliant Cashback Visa Signature Card works

Alliant Credit Union is an online credit union that anyone can join. If you don’t meet the standard credit union qualifying criteria (being a relative of a member or working for a select organization), you can join by making a $10 donation to Foster Care to Success.

If you choose to apply for this card, be sure to swipe it as much as possible during the first year to make the most of the free 3% cash back. This is a great deal.

The annual fee after the first year is $59. Aside from the annual fee, the Alliant Cashback Visa Signature Card has extra costs within the card terms that are pretty typical of any credit card.

Most notably, there’s a 3% balance transfer fee and no foreign transaction fee.

Redeeming Your Cash Back

You can redeem cash back earned through statement credit when your cash back balance reaches $25. Cash back expires after five years. Cash back also expires if your credit card account is closed voluntarily or involuntarily.

Who This Credit Card Is Best For

We highly recommend the Alliant Cashback Visa Signature Card if you hate keeping up with revolving category cards. Category rules can be a pain. This card makes earning cash back painless.

On the other hand, if you’re someone who likes using category cards (airline, grocery, gas, etc.), this card also partners nicely with others. Keep it in your wallet to maximize rewards in areas that your category cards don’t cover.

Alliant Credit Union has very lenient member-qualifying criteria, so non-members can join today. If you already have an Alliant Credit Union card, call credit card services to request an upgrade.

Cardholders report that you can get approved with a score in the high 600s, although credit card services states qualification is based on more than just your credit score.

For example, you may qualify for this card with less-than-perfect credit if your income is high. Since this is a Visa Signature card, credit limits are higher than traditional cards, and that requires having enough income to support a good-sized limit.

What we like about the Alliant Cashback Visa Signature Card

We like this card a lot because it’s one of few credit cards that give you 2% cash back without a long list of rules on what you can and can’t buy.

Until now, the Citi Double Cash card has been our top recommendation for no-fuss 2% cash back on all spending. However, the Alliant Cashback Visa Signature Card is giving the Citi Double Cash card some stiff competition.

The 3% cash back without an annual fee the first year is very hard to beat. And if you spend at least $1,000 per month on the card after year one, 2.5% cash back with the annual fee still outperforms the Citi Double Cash card.

We’ll discuss why the magic number for spending is $1,000 in our credit card comparison below.

What we don’t like about the Alliant Cashback Visa Signature Card

There’s not too much to discuss that’s negative about this card. The one thing to be mindful of is that it does not have an interest-free intro deal on new purchases or balance transfers.

This means you shouldn’t take out this card intending to go on a crazy shopping spree or to finance big life events like a wedding, relocating, or traveling unless there’s a repayment plan in the strategy.

You’ll get a great deal of cash back from large purchases the first 12 months, but you need to pay off the balance promptly to avoid many interest charges.

Three Alternative 2%+ Cash Back Credit Cards

We started out this post mentioning that there aren’t too many unlimited 2%+ cash back cards available, so let’s dive into the three main alternatives:

  • Citi Double Cash
  • Fidelity Rewards Visa Signature
  • USAA Limitless Cashback Rewards Visa Signature

Citi Double Cash

The Citi Double Cash card is usually our “go-to” pick for unlimited 2% cash back with no category restrictions.

The Alliant Cashback Visa Signature Card clearly has the Citi Double Cash card beat in the first year. Things get a little less clear-cut when the Alliant Cashback Visa Signature Card starts costing $59 annually.

As mentioned, when taking the fee into consideration, you need to spend over $1,000 per month on the Alliant Cashback Visa Signature Card to earn more from it than the Citi Double Cash card.

Here’s the calculation breakdown:

  • Citi Double Cash: $12,000 (spent) x 2% (cash back) = $240
  • Alliant Cashback Visa Signature Card: $12,000 (spent) x 2.5% = $300 – $59 (fee) = $241

The more you spend beyond $12,000 per year, the more the Alliant Cashback Visa Signature Card outperforms the Citi Double Cash card.

Fidelity Rewards Visa Signature

The Fidelity Rewards Visa Signature card is another 2% cash back option with no fee, but this card comes with conditions. You can only earn 2% cash back when you direct deposit rewards into a Fidelity Investment account.

This is still a decent deal for Fidelity Investment customers. If you plan to spend less than $12,000 per year on your rewards card, consider this one or the Citi Double Cash card.

USAA Limitless Cashback Rewards Visa Signature

Lastly, the Limitless Cashback Rewards Visa Signature card from USAA offers an unlimited 2.5% cash back with no annual fee. This card also has restrictions.

You have to keep a certain amount of cash in a connected USAA checking account to qualify for 2.5% cash back. Plus, the card is only made available to select USAA members who live in Alabama, Arkansas, Arizona, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Louisiana, Maryland, Michigan, Minnesota, Montana, North Dakota, New Mexico, Nevada, New York, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, and Washington.

In comparison to these cards, the Alliant Cashback Visa Signature card is a rare bird with its over 2%+ cash back program and very limited fine print.

Rewards Cards: Frequently Asked Questions

Yes, the Alliant cash back rewards expire after 5 years, and you also forfeit your unused rewards if you close your account. It’s important to note that cash back doesn’t expire exactly 5 years from the date you earn it. Cash back rewards expire on a rolling, annual basis; cash back earned in a calendar year will expire on the December cycle date of the fourth calendar year in which it was earned. For example, any unredeemed cash back earned in 2017 will expire on the December cycle date in 2021.

Anything over 1.5% cashback is a good deal. There are some cards that offer more — as much as 5 or 6% cash back on purchases. But sometimes those offers are too good to be true. Banks don’t like to lose money, and will pepper the fine print with all sorts of limitations. For example, they may offer 5% cash back on only purchases at certain types of retailers and only for certain periods of time. And those categories may change every quarter, which can make it hard to keep track.

Don’t let those cash back promises pressure you into spending more than you can afford. If you don’t pay your statement balance in full each month, you could get slapped with sky high interest charges. That would totally negate any benefit you might get from earning cash back. Cash back cards are only valuable if you can pay your bill in full and capture the entirety of your cash back rewards.

It depends on the card. Some cards allow you redeem cash back dollar for dollar as a statement credit, which can help lower your total balance. Just keep in mind that applying cash back to your card statement does not count as a monthly payment. Other cards will increase the value of your cash back if you spend on certain categories, like travel. Review your terms carefully to be sure you’re getting the most bang for your buck.

Find the card that fits your day-to-day spending needs best, beyond the flashy sign-up bonus offers and cash back promises. Pay your bill in full each month (spend only what you can afford to pay off).

The post Alliant Cashback Visa Signature Review: 2.5% Unlimited Cash Back appeared first on MagnifyMoney.

Chase Freedom Review: Is 5% Easy?

If you’re on the hunt for a new rewards card, you’ve probably come across the Chase Freedom card during your search. The Chase Freedom card offers 1% cash back on all purchases and the opportunity to earn additional cash back if you spend money within revolving quarterly bonus categories.

Chase Freedom<sup>®</sup>

APPLY NOW Secured

on Chase’s secure website

Chase Freedom®

Annual fee
$0 For First Year
$0 Ongoing
Cashback Rate
5% on certain categories, 1% on everything else
APR
15.99%-24.74%

Variable

Credit required
good-credit

Good

  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
  • Enjoy new 5% categories each quarter like gas stations, restaurants and drugstores
  • Unlimited 1% cash back on all other purchases - it's automatic
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 15.99%-24.74%. Balance transfer fee is 5% of the amount transferred, $5 minimum
  • Cash Back rewards do not expire as long as your account is open
  • No annual fee

How to Earn Cash Back with the Chase Freedom Card

You automatically earn 1% cash back on all purchases as soon as you start using the card.

Every quarter, Chase introduces bonus categories where you can earn 5% cash back. In order to earn 5%, you need to activate the bonus category every quarter. If you don’t activate, you will only earn at the 1% cash back rate. You can only earn 5% cash back on up to $1,500 of spending every quarter.

Here are the current 5% bonus categories for 2017:

July to September

Restaurants

Movie Theaters

The bonus categories for October will be announced in September.

Last Year’s Cash Back Calendar

Since you may have to wait several months for the holiday bonus category to be announced for 2017, here’s a look at the 5% categories for 2016 as a reference of what could be to come:

Keep in mind, the quarters can change annually, so the summer and fall categories for 2016 may not be the same for 2017. Although one thing you can be pretty sure of is the last quarter of the year will be a category that’s holiday shopping friendly. We’ll update cash back categories for 2017 when they’re announced.

How to Activate the Quarterly 5% Cash Back Categories

Now that you know the type of spending that will earn you 5% cash back, let’s touch on how it all works.

To earn 5% cash back each quarter, you must activate the quarterly bonus categories before the deadline. The activation deadline appears on the cash back calendar.

There are six easy ways to activate. Just choose the one that’s best for you.

  1. Online – Once you are a Chase Freedom cardholder, you can activate online at the Ultimate Rewards portal.
  2. Text message – Sign up for Chase Freedom 5% text reminders at online. You’ll get a text reminding you when it’s time to activate.
  3. Email – You can also sign up for email reminders from Chase.
  4. Phone – Call the number on the back of your card to let one of the specialists activate your 5% cash back.
  5. Chase location – Visit any Chase Bank and see a personal banker.
  6. ATM – Chase checking customers can activate their 5% cash back with one click via the ATM while making a cash withdrawal.

The base 1% cash back will always apply first to purchases on your statement. Each quarter you activate, spending that qualifies for an extra 4% cash back will appear in a separate section broken down by category.

What we like about the card

Up to 5% cash back if you are on top of things.

It’s hard to beat 5% back on spending you’re already doing, and if you pay attention and enroll in the categories every quarter, you can earn up to $300 in cash back a year compared to the base 1% cash back you earn on all purchases.

A good selection of 5% categories.

Chase comes up with fresh categories that sometimes include tie-ins with big retailers like Amazon so it’s not hard to find a way to earn 5% on your spending throughout the year.

You can pair it up with other Chase rewards.

If you have another card that earns Ultimate Rewards points, like the Chase Sapphire Preferred, you can combine the rewards you earn from the Freedom with your other Ultimate Rewards points anytime.

What we don’t like about the card

Need to enroll manually.

There’s no automatic enrollment in the 5% categories, so you need to remember to take care of that every quarter. Chase lets you sign up for alerts so it’s not hard to get reminded, and you can enroll right from your phone. This is a card for maximizers, not people who want to set it and forget it.

A cap on 5% earning.

You only earn 5% back on up to $1,500 worth of spending in the designated categories each quarter. That’s $1,500 total across all the categories, not $1,500 for each category.

Right off the bat, you can probably tell a card with changing quarterly categories like the Chase Freedom card isn’t for the passive cash back rewards earner. There’s a lot involved here.

You need to activate the 5% cash back bonus each quarter. The cash back categories can change each year. And you must be a mindful spender who remembers when to swipe the Chase Freedom card to earn 5% back.

There’s a fair amount of fine print that dictates what will and won’t qualify for 5% cash back. As the new categories roll out, you’ll want to pay close attention to the type of purchases that are eligible.

A noticeable category from 2016 that’s not yet on the 2017 calendar is wholesale clubs. The category may be included later, but it’s a notable exclusion that may impact wholesale club shoppers who previously relied on the Chase Freedom card for cash back on that spending.

How Much Are Chase Ultimate Rewards Points Worth?

The Chase Freedom card is part of the Chase Ultimate Rewards program, so the Ultimate Rewards portal is where you go to manage and redeem points. Cash back earned from the Chase Freedom card is tracked in Ultimate Rewards points – $1 in cash back equals 100 points.

When you redeem points for rewards, for the most part, 100 points also equals $1 (and 1 point equals $0.01).

The true value of points earned varies slightly. Here’s the breakdown:

Statement credit or cash deposit redemption: 100 points = $1; you can redeem for cash starting at 2,000 points

Gift card redemption: 100 points = $1

Travel redemption: 100 points = $1; you can use a combination of points and your credit card for bookings

Amazon product redemption: Below is a sample conversion, but it’s subject to change

If you do choose the Chase Freedom card, make sure to redeem your points in a way that you’ll get the most value. Choosing Amazon products may not be the way to go.

Combine with a Chase Sapphire Credit Card

If you have a Chase Sapphire Preferred or Chase Sapphire Reserve credit card, you can combine your Freedom Ultimate Rewards points with your Sapphire Ultimate Rewards points. That means you would have all of the redemption opportunities associated with the popular Sapphire cards, including the ability to transfer your points to frequent flier programs like United and Southwest.

How to Qualify for the Chase Freedom Card

You need to have good or excellent credit in order to be approved for the credit card. In addition to having a good credit score, Chase will consider your employment status and income to ensure that you would be able to afford any new debt.

Overview of Card Benefits

For benefits and protections, the Chase Freedom card offers:

  • Zero liability protection means you won’t be held responsible for unauthorized charges made with your card or account information. This is a fairly common credit card benefit.
  • Chip-enabled card. Just one warning: this is a chip and signature card (and not a chip and pin card). While that should be fine for all of your spending in America, it might make using the card overseas a bit more difficult when only chip-and-pin is accepted.
  • Purchase protection covers your new purchases for 120 days against damage or theft up to $500 per claim and $50,000 per account.
  • Price protection provides that if a card purchase you made in the U.S. is advertised for less in print or online within 90 days, you can be reimbursed the difference up to $500 per item, $2,500 per year.
  • Auto rental collision damage waiver means you can decline the rental company’s collision insurance and charge the entire rental cost to your card. Coverage is provided for theft and collision damage for most cars in the U.S. and abroad. In the U.S., coverage is secondary to your personal insurance.

Alternatives to Chase Freedom

How does Chase Freedom stack up versus the competition? It really depends upon how you use your card. 5% cash back is one of the highest rates on the market, but you need to activate and spend in that category to earn rewards. Otherwise you would be earning a not very exciting 1%.

We will now compare Chase Freedom to three other types of cash back credit cards:

  • Discover it – a credit card that offers rich cash back rewards
  • Flat rate cash back credit cards, where you can earn 2%
  • Bonus category cards

Discover it Cashback Match

There are a lot of similarities between Discover it and Chase Freedom. Both cards have no annual fee and pay a base cash back rate of 1%. Both cards offer 5% cash back in rotating categories. Both cards require you to opt in to the 5% cash back categories and cap the 5% cash back to the first $1,500 of spend. But there are two areas where these cards are different.

The first big difference is the intro bonus. With Chase Freedom, you can earn $150 after spending $500 in the first 90 days. Discover, on the other hand, will match all of the cash back that you earned during the first year – at the end of your first year as a new cardmember. There is no cap to the sign-on bonus. If you are a big spender (especially in the bonus categories), you would earn much more during Year 1 with Discover. Here is a comparison of first year earnings:

  • You spend $1,000 a month in 1% categories
  • You spend $500 a month in 5% categories
  • The sign-on bonus at Chase would be $150
  • The sign-on bonus at Discover, at the end of the first year, would be $420

While you get the intro bonus much quicker at Chase – for big spenders, it pays to wait until the end of Year 1 at Discover.

The second big difference is the categories. Each quarter Discover and Chase announce their bonus categories, and they can be different. At Discover, the 5% category until September 2017 is restaurants.

If you are a big spender, the Discover it first year bonus makes it a good choice. If you are constantly looking for good deals, having both cards in your wallet to take advantage of the bonus categories might be a good choice.

Flat Rate Cash Back Cards

If opting into bonus categories every month sounds painful, you might want to consider a card that pays a flat rate on all of your spending. Whereas Chase Freedom offers a combination of 5% on bonus categories and 1% on everything else – you can get 2% flat cash back with some credit cards.

Citi Double Cash

Citi Double Cash pays 1% cash back as you spend and 1% cash back as you pay your bill. If you pay your statement balance in full every month and claim the cash back as a check or deposit into your checking account, you can earn double cash back.

Alliant Cashback Visa

Another new option is from Alliant, a credit union that anyone can join. With the Alliant Cashback Visa Signature card, you can earn 3% cash back during the first year (with no annual fee) and then 2.5% cash back thereafter. Just be warned: after the first year, there is a $59 annual fee. If you spend more than $1,000 a month on the card, the Alliant card will be a better deal than Citi Double Cash.

Bonus Category Cash Back Credit Cards

If you spend a lot of money in a single category every month, you might want to consider a credit card that pays a higher rate on just that category. For example, if you spend a lot of money on gas, you can find a card that pays 5% cash back on gas. If groceries are your biggest expense, you can find a card with 6% on groceries. You can find the best cash back credit cards by category here.

Who the card is best for

Cash back credit cards are great ways to put a little extra money in your pocket. Just remember to pay the statement balance in full and on time every month. Interest and late fees can quickly eat away at the cash back that you earn.

Chase Freedom is a good choice for people who are willing to opt in to the bonus categories each quarter and actually spend a lot of money in the bonus categories. If you don’t take advantage of the generous 5% bonus categories, you will be left with a card paying only 1%, which is not very exciting.

Rewards Cards: Frequently Asked Questions

The Ultimate Rewards points you earn from the Freedom don’t expire as long as you keep the account open. If you close your account, you will forfeit your points, though if you keep another Chase card that earns Ultimate Rewards open you can transfer your points to that account before you close your Freedom, and keep them alive.

Credit card companies rely on merchant codes provided by payment networks to determine the category of a purchase. Some stores might have a merchant code that doesn’t fit what you might think the purchase will be. For example, buying groceries at a Walmart isn’t a grocery purchase because Walmart doesn’t code itself as a grocery store. There’s no way to know for sure in advance what category a merchant falls under, so be aware of that before relying on the cash back for a category from a merchant you haven’t shopped at before.

Don’t let those cash back promises pressure you into spending more than you can afford. If you don’t pay your statement balance in full each month, you could get slapped with sky-high interest charges. That would totally negate any benefit you might get from earning cash back. Cash back cards are only valuable if you can pay your bill in full and capture the entirety of your cash back rewards.

It depends on the card. Some cards allow you redeem cash back dollar for dollar as a statement credit, which can help lower your total balance. Just keep in mind that applying cash back to your card statement does not count as a monthly payment. Other cards will increase the value of your cash back if you spend on certain categories, like travel. Review your terms carefully to be sure you’re getting the most bang for your buck.

Find the card that fits your day-to-day spending needs best, beyond the flashy sign-up bonus offers and cash back promises. Pay your bill in full each month (spend only what you can afford to pay off).

The post Chase Freedom Review: Is 5% Easy? appeared first on MagnifyMoney.

Citi Double Cash Review: Twice The Cash, No Limits

Citi Double Cash offers the highest no-fee flat-rate cash back credit card on the market. If you pay your balance in full and on time every month, you can earn up to double cash back on everything you spend. You earn 1% cash back when you spend, and then 1% cash back when you pay. If you pay your statement balance in full and deposit the cash back into your checking account, you will have earned a nice 2%.

There is no cap on the cash back you can earn, and there are no rotating categories or requirements to opt into every quarter. If you are looking to earn a lot of cash back without a lot of work, this card could be right for you.

Citi®Double Cash Card

APPLY NOW Secured

on Citibank’s secure website

Citi®Double Cash Card

Annual fee
$0 For First Year
$0 Ongoing
Cashback Rate
1% when you buy, 1% when you pay
APR
14.49%-24.49%

Variable

Credit required
good-credit

Good

  • Earn cash back twice on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
  • Balance Transfers do not earn cash back
  • 0% Intro APR on Balance Transfers for 18 months. After that, the variable APR will be 14.49% - 24.49% based on your creditworthiness
  • Click 'Apply Now' to see the applicable balance transfer fee and how making a balance transfer impacts interest on purchases.
  • No categories to track, no caps on cash back, no annual fee

How the Citi Double Cash Card works

To get double cash back, you must emulate the habits of the savviest credit card holders: use your card, and pay it off in full each month. Do anything else, and you won’t get the full benefit of the double cash back reward.

With the Citi Double Cash Card, you receive your first 1% when you purchase something, but Citi holds onto the second 1% cash back reward until you pay them back. So you get 1% cash back for every dollar you spend, and another 1% cash back for each dollar you pay off on your balance — on time — each month.

To get the maximum double cash back quickly, you should pay off your entire balance. However, as long as you pay the minimum each month, you’ll eventually receive the double cash back, although you’ll pay a lot more than 1% in interest each month.

How to redeem cash back with Citi

When your balance reaches $25, you can choose to redeem your cash reward through a gift card, check, direct deposit, or statement credit to your Citi account. Beware: if you redeem with a statement credit, you won’t get exactly double cash back, but just shy of it depending on the size of the reward.

If you redeem via gift card, you’ll select from retail, restaurant, entertainment, and electronic gift cards in Citi’s gift card marketplace. Choosing the direct deposit option will allow you to transfer your cash back directly to your bank account whether it’s a Citi account or not. If you redeem via check, you should receive a paper check at the address you have on file in 7 to 10 business days.

You can also redeem with a statement credit, but you might notice you don’t get quite double cash back. Since a $25 credit on your statement reduces the amount you’d need to pay back by some amount, you technically get a little less than 2% cash back.

For example, if you redeem $1,000 in cash back for the year, you’ll be shorted about $10 if you redeem your rewards with a statement credit. Assuming you paid off your balance each month, your cash back is reduced to about 1.98%. If you don’t want to miss out on that gap, redeem via check or direct deposit. Also, remember Citi does not count a statement credit as a payment, so you still need to make at least your minimum monthly payment by the due date or you’ll be charged a late fee.

For more details on how to get your cash back, check out this article, where we show you step-by-step how to redeem your cash back with Citi.

Disclaimer: Your rewards will expire if you don’t use your card for 12 months, so be sure to swipe at lease once a year, or redeem your cash before it expires.

How to qualify for the Citi Double Cash Card

Borrowers with good or excellent credit scores are likely to get approved for the Citi Double Cash Card. That means you can still get approved with a few marks on your credit report. That’s unusual as rewards cards with a 0% introductory balance transfer offer like the Citi Double Cash Card are rare for those who lack excellent credit.

Overview of card benefits

The Citi Double Cash Card offers the following benefits and protections to cardholders:

  • No penalty for your first missed payment. Citi won’t charge you a late fee on a first missed payment. This benefit forgives those who usually pay on time, but may miss a payment by accident. Careful, you WILL be charged a fee if you miss a second payment.
  • Citi Private Pass. Citi customers get special access to purchase presale tickets and VIP packages to events such as concerts, sporting events, dining experiences, and complimentary movie screenings.
  • Citi Price Rewind. If you notice a price drop on the big-ticket item you just bought, Citi may have already refunded you the difference. Citi Price Rewind will look for a lower price on any registered items you purchase for 60 days. If the system finds a lower price, you may be refunded the difference.
  • Chip-enabled card. Just one warning: this is a chip and signature card (and not a chip and pin card). While that should be fine for all of your spending in America, it might make using the card overseas a bit more difficult when only chip-and-pin is accepted.
  • Citi Concierge. Citi Concierge sets you up with trained experts to help you plan your travel, shopping, dining, entertainment, and other parts of your next trip.
  • Protection against interrupted trips. If your travel plans are interrupted for some reason, Citi will reimburse you for part of your hassle. The bank will reimburse any nonrefundable travel expenses such as change fees if you paid for the ticket with your Citi Double Cash Card.
  • Car rental and collision insurance. You can skip paying extra for the rental company’s collision loss and damage insurance if you use your Citi Double Cash Card. Citi will cover you against any theft or damage done to the rental as long as you used your Citi card to pay for it.
  • Zero liability protection. You won’t be held responsible for unauthorized charges made with your card or account information. This is a fairly common credit card benefit.
  • Purchase protection covers repairs or refunds for your new purchases in case of damage or theft within 120 days of your making the purchase.
  • Lost wallet service. If you happen to lose your wallet and everything in it, take some comfort in knowing your Citi card, at least, will be replaced within 24 hours. Citi can also give you emergency cash up to your available cash advance limit to help out between losing your card and receiving a new one.

Why we like the Citi Double Cash Card

It has the highest no-fee flat rate reward in the market.

The clearest advantage of the Citi Double Cash Card is that it offers the highest flat rate cash rewards program without an annual fee on the market. The card’s double cash back feature can be a valuable feature for those known to make most everyday purchases on a credit card, and pay the card balance off each month.

The flat rate on all purchases keeps earning rewards simple.

If you like things simple, the card’s flat rate on everything will make keeping up with rewards a breeze. You’ll earn 1% on everything you buy, so there won’t be any need for you to fumble through a stack of credit cards for a specific cash back card at the grocery store. It also eliminates stressing over when or by how much rewards categories might change on your current go-to card each quarter.

It’s a good balance transfer card, too.

The card’s 18-month introductory 0% balance transfer offer makes it a good choice for those seeking to consolidate debt, too. The cash back rewards won’t apply to your balance transfer, but you’ll get 18 billing cycles to pay off the balance interest-free before the card’s higher ongoing interest rate kicks in.

It comes with other great cardholder benefits.

The Citi Double Cash Card’s other benefits aren’t bad either. The card also grants you free access to view your Equifax FICO® Score, and the Citi Price Rewind benefit automatically reimburses you the difference on purchases made with your card if the price changes within 60 days.

What to watch out for with the Citi Double Cash Card

You have to pay off your balance in full to reap the full reward.

You could pay the minimum each month and eventually see you’ve redeemed your cash back. However, the reward really only benefits you if you pay your balance in full each month. If you don’t, the full interest you’ll be charged on your purchases will eclipse the double cash back benefit.

It charges a 3% balance transfer fee.

Although the balance transfer isn’t the main perk the card has, it’s important to note Citi charges you a 3% fee to transfer your balance. Granted, the charge isn’t much compared to the 16% on average you’d be charged in interest on your balance each month if you don’t transfer, but there are many, no-fee balance transfer alternatives (like the Discover it or Chase Slate cards) you could qualify for instead.

You get charged 3% to use it overseas.

You’ll pay to use this card overseas, and the fee isn’t worth it if you can avoid doing so. The 3% foreign transaction fee you’ll be charged to swipe makes the potential double cash back you’d receive on the purchase trivial.

It doesn’t come with a sign-on bonus.

With the Citi Double Cash Card, you won’t get a sign-on bonus like you’d get with other competing cash back cards like Fidelity’s Rewards Visa Signature ($100) or the Capital One Quicksilver card. It’s not a huge pitfall among the card’s best-in-class cash back offer and other perks, but it’s something to consider when weighing your options.

Your rewards will eventually expire.

Take care to redeem your cash back before you stop using the card! If you don’t earn cash back on rewards with your Citi Double Cash Card for 12 months, your rewards will expire. If you plan to stop using the card — maybe you accepted the offer for a specific purchase, or simply for the balance transfer offer — make sure to redeem your cash back before adding it to your credit card graveyard.

Alternatives to the Citi Double Cash Card

The Citi Double Cash Card has the highest no-fee flat rate cash back reward on the market, but it might not be the best cash back card for you, depending on your spending habits.

Cards that only earn cash back in certain categories, for example, may work better for you. You might find you spend most of your income in a category such as groceries or gas, so you’d earn a greater reward with a card that earns cash back only in specific spending categories or enjoy keeping up with rotating categories.

Next we compare how the Citi Double Cash Card compares to four other cash back credit cards:

  • Fidelity’s Rewards Visa Signature – the other 2% cash back credit card
  • Alliant Cashback Visa Signature – the 2.5%-3% cash back credit card with a fee
  • Chase Freedom — the rotating category alternative
  • Blue Cash Preferred Card from American Express — the bonus category alternative

Fidelity Rewards Visa Signature

Fidelity’s Rewards Visa Signature card earns cardholders 2% cash back on all purchases with no annual fee. The card is best for existing Fidelity customers, as the funds you earn must be deposited into a Fidelity account.

Borrowers with “good” credit need not apply for this card. Your credit score has to be above 700 to get approved for a line of credit with the Fidelity Visa. Even then, you may be disappointed if you’re not a big Fidelity customer as Fidelity bases its credit limits on the total amount of assets it’s managing on your behalf.

Alliant Cashback Visa Signature

If you don’t mind paying an annual fee, the Alliant Cashback Visa Signature card could be a viable alternative to the Citi Double Cash Card.

Alliant’s Cashback Visa Signature card offers an unlimited 3% on all purchases in the first year and 2.5% cash back on all purchases in the years following. You’ll also forgo a foreign transaction fee if you use the card overseas. The catch is, cardholders pay a $59 annual fee to hold the card. Only those with excellent credit and high income will qualify for this rewards offer.

Chase Freedom — the rotating category alternative

With Chase Freedom, you’ll automatically earn 1% back on all purchases, 5% on purchases you make in the categories you’ve activated. The card also offers a $150 signing bonus when you spend $500 on purchases in the first three months the account is open.

The Chase Freedom card rotates rewards categories each quarter, so you’ll need to look out for changes and opt in to the quarter’s categories before you can start earning rewards in them. You also won’t be charged interest on purchases or balance transfers made in the first 15 months. You can also earn a $25 bonus when you add an authorized user and make your first purchase within the first three months.

If you qualify for the Citi Double Cash Back Card, you have a good chance of qualifying for Chase Freedom, too. Borrowers with good or excellent credit scores have the best shot at getting approved for the Chase Freedom card.

Blue Cash Preferred Card from American Express — the bonus category alternative

With a card like the Blue Cash Preferred Card from American Express, you’ll earn a larger amount of cash back, but only in one fixed category. The card awards holders 6% cash back at all supermarkets, on up to $6,000 worth of spending. You also get 3% cash back on gas station spending. So, if your household spends big on gas and groceries, the rewards you’d earn with a card like the Blue Cash Preferred Card will likely be greater that what you could earn with the Citi Double Cash Card.

The Blue Cash Preferred Card also awards a $250 sign-on bonus to cardholders who spend $1,000 within the first three months of opening the account, and you won’t be charged interest on your first 12 months of purchases, boosting your rewards in the first year. You won’t be charged any interest on a balance transfer for the first year either, but you will be charged 3% to transfer your balance over in the first place. The main downside to this card’s offerings is that it charges a $95 annual fee, so unless the cash back you’d earn makes that amount negligible, you should steer clear of this card.

Try using this tool to figure out which cash back card has the best ongoing program for your needs. Fill in how much you tend to spend each month in each spending category, and the system will generate recommendations based on your spending habits.

Who benefits the most from the Citi Double Cash Card

Overall, cash back cards can be a great way to put some extra money in your pocket, as long as you remember to pay your statement balance in full each month. Interest and late fees can eclipse your cash back earnings pretty quickly.

The Citi Double Cash Card is best for borrowers with good or excellent credit, who make everyday purchases with a credit card and have great payment habits. The double cash back feature is great if you already have the discipline to pay your statement balances off in full each month, and it’s the only way the card’s reward offer is valuable. If you don’t think you can consistently pay off your card each month, it’s best to get the habit set in stone before trying a rewards credit card.

If you’ve never had a rewards card, the Citi Double Cash Card’s simple terms and flat rate cash back rewards make for a great starter rewards card and — so long as you pay your balance off each month — it can be a great way to earn extra pocket change without going into debt.

Citi Double Cash Card FAQs

You’ll get up to double cash back on all of your purchases, which is the logic behind advertising the card as “Double Cash” and not “2% Cash.” You’ll earn your first 1% on all purchases, then another 1% when you pay off the purchase, but if you choose to redeem your cash back via statement credit on your account, you’re technically getting just shy of 2% cash back.

Yes, the cash back on the Citi Double Cash expires if you haven’t used your card for 12 months.

Anything over 1.5% cash back is a good deal. There are some cards that offer more — as much as 5% or 6% cash back on purchases. But sometimes those offers are too good to be true. Banks don’t like to lose money and will pepper the fine print with all sorts of limitations. For example, they may offer 5% cash back on only purchases at certain types of retailers and only for certain periods of time. And those categories may change every quarter, which can make it hard to keep track.

Don’t let those cash back promises pressure you into spending more than you can afford. If you don’t pay your statement balance in full each month, you could get slapped with sky-high interest charges. That would totally negate any benefit you might get from earning cash back. Cash back cards are only valuable if you can pay your bill in full and capture the entirety of your cash back rewards.

It depends on the card. Some cards allow you to redeem cash back dollar for dollar as a statement credit, which can help lower your total balance. Just keep in mind that applying cash back to your card statement does not count as a monthly payment. Other cards will increase the value of your cash back if you spend on certain categories, like travel. Review your terms carefully to be sure you’re getting the most bang for your buck.

Find the card that fits your day-to-day spending needs best, beyond the flashy sign-up bonus offers and cash back promises. Pay your bill in full each month (spend only what you can afford to pay off).

The post Citi Double Cash Review: Twice The Cash, No Limits appeared first on MagnifyMoney.