|
Here are our thoughts and recommendations on the what we think are the best credit cards in various categories. In light of the global credit crisis that we are facing, and the fact that many banks have tightened their lending standards, we will also be recommending cards for those with just average credit in this section as well.
Best Cash Back and Gas Credit Card
There are quite a few very good cash back credit cards in the market today. Below are four cards that we recommend that allows you to earn more than the standard 1% rebates with most cards.
At present the best cash back and gas credit card in today's market is the TrueEarnings® Business Card from Costco and American Express. It is the only credit card today that pays 5% rebates on gasoline (with no spending tier requirements or limits), 3% on restaurants and 2% on any travel items. There is also no annual fee with this card (though you need to be a costco member). Due to the credit crisis, most cards have scaled back on their rewards. This is the only card today that pays 5% on gas without any tiers or limits. Note - you do not need to be a business owner to get this card. Just apply as a sole proprietor.
The Blue Cash® from American Express is the only consumer cash rebate card that pays 5% rebates for purchases at supermarkets, gas stations and drugstores and also the only card to pay 1.5% rebates on "other purchases". You earn these rebate levels once your annual spending exceeds $6,500. You can earn unlimited rebates with this card. This card is a must for those looking for a cash back card. Kiplinger has chosen this card as their best cash back credit card.
Best Balance Transfer Credit Card and
Best Credit Card Rate
Due to the credit crisis, banks have been pulling their offers on 0% balance transfer deals. If they are still advertising 12 month 0% deals, then the catch is that they have removed the cap on the balance transfer fees. A typical balance transfer fee is 3% of the amount that is transferred. So if you have a huge balance to transfer, then you may end up paying more on your balance transfer fee instead. The only card that has NO BALANCE TRANSFER FEE today is the IBERIABANK Visa Platinum. It has no annual fee and has a 0% BT offer for 6 months (though you are allowed 3 months to transfer the balance). It is also a reward card that allows you to earn one point for every dollar that you spend on the card.
If you have a smaller balance (say a few thousand dollars), then you might to consider the Discover® More(SM) Card. There is one of the rare consumer credit cards that still offers a 0% APR balance transfer deal for 12 months (though there is no cap on the balance transfer fee). It is a cash back credit card that lets you convert cash rewards to more than 100 gift card partners for more than the cash rebates you have earned. Furthermore, ShopDiscover.com allows you to earn up to 20% cash back bonus.
0% APR Credit Card for Purchase
If you are looking for a credit card with a 0% APR on purchases because you want to get 0% financing on a large one-time purchase, then the Blue from American Express® is probably the best card to get. This is because if you have good credit, you can get a 0% APR on purchases for up to 12 months. Plus it has no annual fee and a great reward program as well.
Travel Rewards
Summary - The Capital One® No Hassle MilesSM Ultra—For Professionals is a perfect card for those with excellent credit that want to earn airline miles rewards. Cardholders earn two miles for each dollar spent on all purchases. Miles never expire, and there is no limit to the amount of miles that you can earn. Plus, miles are redeemable on any airline, anytime, with no blackout dates or seat restrictions. This card has an annual fee of $39. Cardholders are also eligible to receive exclusive savings: up to 40% on featured deals and 10% on everything else on Capital One® Saving ZoneSM on Yahoo!Shopping.
The Starwood Preferred Guest Credit Card is one of the most popular credit cards among the really frequent fliers and travelers. This is because it has probably the best hotel reward program, but also allows you to transfer points you earn (at a one for one ratio) into miles of over 30 airline partners. Furthermore, you get a 5,000 airmiles bonus if you transfer 20,000 points into miles. Effectively, you only need 20,000 points or miles to get a free domestic flight (since most require 25,000 miles!). Many American Express Centurion and Platinum cardholders also carry this card.
The Blue Sky® from American Express is different from most typical rewards credit cards. This card allows you to use any travel agent (even internet agents) to book your travel arrangements and get the best deal. You then use your points to get a credit on your next statement at a rate of 7,500 points for $100 (ie more than 1%). No blackout dates, no Saturday night stays, no advance booking, stopovers allowed. For the ultimate flexibility, consider this card.
For College Students
The Citi® mtvUTM Platinum Select® Visa® Card for College Students is probably the most innovative student credit card. The reward program is based on Citibank's ThankYou Network reward program. You can earn five points for every dollar you spend at (1) bookstores, (2) record stores, (3) restaurants (including fast food), (4) motion picture theaters and (5) video entertainment rental stores and earn one point for every dollar spent on other purchases. But in addition to that, you earn 25 points each time you pay your minimum bills on-time and if you do not exceed your credit limit. You can also earn point twice a year for getting good GPA scores (4,000 points for a perfect score). This is a good incentive to develop good money habits and to motivate you to do well in studies.
Update : The Citi ThankYou Redemptions Network reward
program now allows you to exchange reward points that be
used to reduce your student loans.
|
