3 On Your Side: Kiplinger's Pick For Best Rewards Cards
By Jim Donovan
PHILADELPHIA (CBS) -- Do you prefer points or getting cash-back? When it comes to reward cards - most sound like a great deal. But which one is best for you? 3 On Your Side Consumer Reporter Jim Donovan take a look at what's available.
If you're a smart spender with excellent credit and you're not reaping credit card rewards, Lisa Gestner with Kiplinger's Personal Finance says you're missing out. According to Gestner, "There are tons of benefits you can get, you know cash back, points, miles, kind of whatever floats your boat in terms of rewards credit cards. There's a lot to pick from right now."
Her first recommendation is the Citi Double Cash Card. Gestner says, "What's really excellent is it's a flat 2% on everything you buy, which is kind of outstanding because usually there's some gimmick or catch with this. But really the only catch here is you'll get 1 percent when you buy and another 1 percent when you pay the bill."
For travelers Gestner suggests the Barclaycard Arrival Plus World Elite MasterCard. She says, "Although there is an $89 annual fee, it's waived the first year, and the earnings are pretty good. You're going to get two miles for every dollar spent and when you redeem those miles for travel statement credits you're going to get them at a rate of a penny per mile which is pretty decent."
For general spending she suggests the American Express Blue Cash Preferred card. Gestner says, "You're going to get 6% back on up to $6,000 a year in grocery spending, so supermarket purchases in that case. You're going to get 3% on gas and department store spending and then 1% on everything else. So it's a really good deal."
There is a $75 dollar annual fee with the Blue Cash Preferred card, so you'll want to figure out if you're going to spend enough in all those areas to outweigh that fee. By the way, the key to getting a really good rewards card? You have to have excellent credit. A credit score of 750 or higher.
Web links:
Citi Double Cash Card:
Barclaycard:
http://www.findmybarclaycard.com/barclaycard-credit-cards/arrival-plus/
American Express Blue Cash Preferred