Best cash back Visa/MC credit cards?

[normaldude]

First of all, I always pay off my credit card balance in full every month.

So all I care about is cashback and convenience.

Using the Capital One "Card Lab", I created a custom Visa Platinum credit card with the rewards I wanted..

- 1% cash back.

- Plus an additional 10c cashback bonus per transaction.

- So if I spend $5 at McDonalds, it's really only $4.85 (1% cashback, plus 10c cashback bonus).

- I can redeem any amount of my cashback balance, at any time. There is no limit on the cashback rewards I can earn, and the cash rewards never expire.

- And when I want to redeem my cashback balance, I have the option of just applying it to my current credit card balance. That means I don't have to worry about having them mail me a check, and depositing in my bank.

I looked around the internet at various cashback credit cards, and the Capital One "Card Lab" seemed the best. But does anyone know of any better cashback Visa/MC credit cards out there? Thanks in advance.

[jeffrey]

A lot depends on what you spend your money on - certain cards work better for specific types of purchases. Know how you spend and them match the card to that spending:

cash back cards

[buzz]

-Chase Freedom pays 3% in some categories.

-Amex Blue Cash pays off nicely for big spenders

Also...

-Discover pays 5% in their quarterly specials in addition to up to 1% on other purchases

-Fidelity Investment Rewards pays 1.5%, but involves other hoop-jumping

Some nice credit union cards...

-Penfed pays 5% on gas, 2% on groceries, 1.25% on everything else

-AFCU pays 1.25% on all purchases

-NASA FCU pays 1%, 1.25%, or 2% depending on your monthly spending


The Freedom card is my current go to card. I'll use the Discover for their 5% deals. I'll probably pick up one of the CU cards in the near future to have a quality back-up. Credit Unions are typically more customer-oriented than banks.

The Cap 1 card should work well if you make a lot of small purchases, but they are commonly referred to as Crap 1 for good reason, IMHO.

[normaldude]

Originally Posted by buzz

-Chase Freedom pays 3% in some categories.

-Amex Blue Cash pays off nicely for big spenders

Also...

-Discover pays 5% in their quarterly specials in addition to up to 1% on other purchases

-Fidelity Investment Rewards pays 1.5%, but involves other hoop-jumping

Some nice credit union cards...

-Penfed pays 5% on gas, 2% on groceries, 1.25% on everything else

-AFCU pays 1.25% on all purchases

-NASA FCU pays 1%, 1.25%, or 2% depending on your monthly spending


The Freedom card is my current go to card. I'll use the Discover for their 5% deals. I'll probably pick up one of the CU cards in the near future to have a quality back-up. Credit Unions are typically more customer-oriented than banks.

The Cap 1 card should work well if you make a lot of small purchases, but they are commonly referred to as Crap 1 for good reason, IMHO.

I considered the Chase Freedom card, but I didn't like the $600/yr cashback limit. And the 3% categories might work for most Americans who drive cars and spend a lot on gas. But I live in Manhattan, and don't even own a car.

[normaldude]

Originally Posted by jeffrey

A lot depends on what you spend your money on - certain cards work better for specific types of purchases. Know how you spend and them match the card to that spending[/url]

What I liked about the Capital One "Card Lab" Visa I created was that I didn't have to think about buying categories or cashback limits. I don't want to have to think about the card. I don't want to think about buying categories, cashback limits, when I should make a purchase (there are actually some cashback cards that give higher rewards on the weekends), or redemption tiers (some cards require cashback redemptions in increments of $25).

[terry1156]

The card sounds pretty average to me. Every cash back card basically gives 1% minimum and the 10 cents per transaction only is good only if the only thing you buy are low cost items - large purchases it is basically nothing. I have a Discover card and the 5% promos they run make a huge difference and I would think you would come out ahead with it even without worrying about what you buy.

[buzz]

Originally Posted by normaldude

I don't want to have to think about the card.

Enjoy your Capital One "Card Lab" Custom Visa Platinum Credit Card with Rewards.

ETA...I just did a quick check of my most recent statements. I made about $32 in cash rewards. I would have made about $19 with the Cap 1 card. Gas accounted for about $1.25.

[normaldude]

Originally Posted by terry1156

The card sounds pretty average to me. Every cash back card basically gives 1% minimum and the 10 cents per transaction only is good only if the only thing you buy are low cost items - large purchases it is basically nothing. I have a Discover card and the 5% promos they run make a huge difference and I would think you would come out ahead with it even without worrying about what you buy.

Probably, but I'm not considering Discover or Amex. Only Mastercard & Visa. I just want one primary card that I always use, and Mastercard & Visa are the most widely accepted.

[normaldude]

Originally Posted by buzz

Enjoy your Capital One "Card Lab" Custom Visa Platinum Credit Card with Rewards.

ETA...I just did a quick check of my most recent statements. I made about $32 in cash rewards. I would have made about $19 with the Cap 1 card. Gas accounted for about $1.25.

On average, the Chase Freedom card, might give me slightly more cashback. But I don't want to worry about the Chase Freedom cashback limits, the buying categories, and always having to check to make sure merchants were correctly categorized (I've had cards that did this incorrectly, especially when travelling internationally).

Maybe what I might do down the road is use the Chase Freedom Card, until I know I'm entering a time period where I'll be making a lot of large purchases (especially for work) or spending a lot of time overseas. At that point, I'll switch over the the Capital One "Card Lab" card. But that switching back & forth stuff is what I'd like to avoid.

btw, based on my research, Capital One and Discover are the only major cashback cards that don't charge 2-3% for international purchases. And Discover isn't widely accepted overseas.

moneybluebook.com/list-of-credit-card-foreign-currency-transaction-fees/

flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

[buzz]

Point by point...

Originally Posted by normaldude

On average, the Chase Freedom card, might give me slightly more cashback. But I don't want to worry about the Chase Freedom cashback limits,

The Chase limit merely limits you to $12/month extra at the 3% rate ($15 if you take advantage of the $250 for $200 points offer). This is equivalent to 120 or 150 purchases monthly on your Cap 1 card.

The triple rewards combined with 1.25% on all purchases if you cash in $200 blows 10 cents/transaction out of the water.

the buying categories, and always having to check to make sure merchants were correctly categorized (I've had cards that did this incorrectly, especially when travelling internationally).

Worry? You're kidding, right?

Maybe what I might do down the road is use the Chase Freedom Card, until I know I'm entering a time period where I'll be making a lot of large purchases (especially for work) or spending a lot of time overseas. At that point, I'll switch over the the Capital One "Card Lab" card. But that switching back & forth stuff is what I'd like to avoid.

Depending on one credit card while overseas sounds rather risky.

btw, based on my research, Capital One and Discover are the only major cashback cards that don't charge 2-3% for international purchases. And Discover isn't widely accepted overseas.

Neither Penfed nor NASA tack on any additional foreign exchange fee over the 1% charged by VISA. AFCU doesn't specify either way. With their higher reward rates, both of these cards would probably pay off better than Cap 1. I would guess you would get a higher limit too, not to mention customer service which far, FAR exceeds Cap 1.

If the Freedom card adds a fee overseas, that would not be the one to bring.

Cap 1 dabbles a bit in the prime card market, but they are basically bottom-feeders. I do not do business with them.

moneybluebook.com/list-of-credit-card-foreign-currency-transaction-fees/

flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

[normaldude]

Originally Posted by buzz

The Chase limit merely limits you to $12/month extra at the 3% rate ($15 if you take advantage of the $250 for $200 points offer). This is equivalent to 120 or 150 purchases monthly on your Cap 1 card.

I guess I misinterpreted the Chase Freedom cashback limits. I'll have to take a look at it again.

Originally Posted by buzz

Depending on one credit card while overseas sounds rather risky.

When I travel overseas, I'll bring another credit card as emergency backup. But I'll still have one primary credit card that I use.

Originally Posted by buzz

Penfed nor NASA tack on any additional foreign exchange fee over the 1% charged by VISA. AFCU doesn't specify either way.

Penfed and NASA charge 1% on foreign transactions, while Capital One charges 0% (they eat the 1% Visa fee).

Either way, I prefer to stick to the major issuers (Chase, Capital One, etc). I've had bad experiences with 2nd tier issuers changing their terms, or stopping their cashback program completely. In the 1990s, I had an Ameritech Visa cashback card, and they changed the cashback terms on me, and buried the notice in fine print. I didn't notice until months later.

So overall, I might consider using the Chase Freedom card domestically, and Capital One card overseas. The upside to this solution might mean +$10/yr more in cashback rewards. The downside is that I'll have to deal with moving back & forth between 2 cards.