By : 
Mr Credit Card
Mr Credit Card- Annual Fee = $0
- No foreign transaction fee
- Earn 2.5% cash back on all purchases for up to $10,000 in monthly spending
- Requires monthly direct deposit and $1,000 average daily balance to earn 2.5% cash back
| Pros | Cons |
|---|---|
| No Annual Fee | Need to open Alliant checking account |
| Earn 2.5% cash back for up to $10,000 in monthly spending | Need to have monthly direct deposit |
| No foreign transaction fee | Needs average daily balance of $1,000 in checking account |
| Min $50 redemption amount. |
At A Glance: 2.5% Highest Flat Rate But With Hoops To Jump Through
How does Alliant Cash Back Visa Works?
Tier 1 Rewards - If you qualify for Tier 1 Rewards, you will earn 2.5% cash back for up to $10,000 in spending per billing cycle. Any spending above $10,000 will earn 1.5% cash back.
Tier 2 Rewards - If you do not qualify for Tier 1 Rewards, you will be earning rewards based on Tier 2 status. Under this status, you will earn 1.5% cash back on all purchases. When you are first approved and have just gotten your card, you are at the Tier 2 status. You then need to qualify for Tier 1 status (which we will explain how below).
Requirements of Tier 1 Rewards
- Open a Alliant checking account - After you have been approved for the Alliant Cash Back Visa, you have to open a Alliant checking account (use this URL: myalliant.com/open-checking). If you already have a checking account with Alliant, then you do not have to do anything.
- Qualify for "High Rate" Checking - After you sign up for Alliants' checking account, you need to qualify for their "High Rate" checking account. You do so by opting for e-statements and signing up for one electronic deposit to your checking account. An electronic deposit could be a direct deposit, a payroll deposit, ATM deposit, mobile check deposit or transfer from another financial institution.
- Maintain $1,000 average daily balance for the preceding calendar quarter - To be eligible for Tier 1 Rewards, you need to make sure you have an average of $1,000 for your daily balance for the preceding calendar quarter (Jan - Mar, April - June). When you first get your Alliant Cash Back Visa, you will start off at Tier 2 (ie earning 1.5% cash back). You would have to qualify for for Tier 1 status during the present quarter to qualify for Tier 1 status for the next quarter. In practice, this is how it works. To qualify for Tier 1 Rewards for say the 2nd quarter (April, May and June), you have to have an average daily balance of $1,000 during the months of January, February and March (the preceding quarter).
Card Details
| Annual Fee | $0 |
| APR | 12.24% - 222.24% (Variable) |
| Cash Advance APR | 20.24% - 24.24 (Variable) |
| Cash Advance Fee | The greater of $10 or 3% of each cash advance |
| Foreign Transaction Fee | 0% |
| Late Fee | Up to $27 |
Aside from the 2.5% cash back that you can earn with this card, the other notable feature is that there is no foreign transaction fee (which is rare for a flat rate cash back credit card). The other notable thing is the lack of sign up bonus.
Other Features
- ID Theft Protection
- Purchase Security
- Travel Accident Insurance
- Auto Rental Collision Damage Waiver
- Roadside Dispatch
- ID Navigator Powered by NortonLifeLock
- Extended Warranty Protection
Competition
| Card | Annual Fee | Cash Back | Redemption |
|---|---|---|---|
| Alliant Cash Back Visa | $0 | 2.5% | Alliant Checking Account |
| AOD Visa Signature | $0 | 3% | Statement Credits |
| BOA Unlimited Cash | $0 | 1.5% - 2.625% | Checking Account, Merrill CMA and 529 Accounts |
| Wells Fargo Active Cash | $0 | 2% | Wells Fargo Accounts or Mortgage |
| Fidelity Rewards Via | $0 | 2% | Eligible Fidelity Accounts |
| Charles Schwab Amex | $0 | 2% | Eligible Schwab Accounts |
| SoFi Credit Card | $0 | 2% | SoFi Loans or Investment Accounts |
| BlockFi | $0 | $0 | TD Checking Account |
| Citi DoubleCash | $0 | 2% | Any Checking Account |
| TD Double Up | $0 | 2% | TD Checking Account |
Second Highest Cash Earning at 2.5%
The vast majority of flat rate cash back credit cards offer either 1.5% or 2% cash back. At 2.5% for the first $10,000 in monthly spending, the Alliant Cash Back Visa Signature has the second highest flat rate cash back payout. Only the AOD Visa Signature has a higher cash back rate at 3% for all purchases. Having said that, you have to jump through a few hoops to earn the 2.5% cash back (achieve Tier 1 status). Aside from having to open a checking account and opting to receiving e-statements, you also have to set up a direct deposit and have a $1,000 in average daily balance for the preceding 3 months to allow yourself to earn 2.5% cash back. If you do not meet these criteria, you will only earn 1.5% cash back rather than 2.5%.
You are also capped to earning 2.5% on the first $10,000 in monthly spending (though I suspect that is not going to be a problem for most of you). However, the one feature they have that many of their peers do not is that they do not charge any foreign transaction fee.
Beats Every Other 2% Flat Rate Credit Card But....
While 2.5% cash back is certainly better than 2%, other competitors do not make you jump through the hoops that Alliant make you. For example, Alliant requires that you set up a direct deposit with their checking account as a criteria to qualify for a "high rate" account. None of the other flat rate credit cards which require you to have a checking account with their bank (like Wells Fargo and TD) require you to set up a direct deposit. Cards like Citi Double Cash does not even require you to have a Citi checking account. You can redeem it as a deposit to your own checking account.
Alliant also requires you to have an average daily balance of $1,000 for the preceding quarter. NONE of the other 2% cash back credit cards have such a requirement or policy.
Pros: What We Like
- 2.5% Cash Back - Who would not like to earn 2.5% cash back? This certainly beats all their competition who at best offer 2% on a flat rate cash back credit card.
- No Foreign Transaction Fee - Alliant is one of the rare cash back credit card that has no foreign transaction fee.
Cons: What We Don't Like
- Electronic Deposit Requirements - Alliant has a few requirements you need to meet the "high rate" checking account threshold and also the Tier 1 Rewards status. Having a checking account and keeping an average daily balance of $1,000 is doable for most folks. However, to have to set up a monthly electronic deposit may be a bridge too far if you already an electronic deposit (most likely monthly paycheck) set up with another bank.
- $10,000 monthly cap on 2.5% - Alliant allows you to earn 2.5% cash back on up to $10,000 of monthly spend. Spending above that earns you 1.5%. While we do not like the cap, we accept that it will not be a problem for most people.
- Cash back can only be redeemed through Alliant checking account or statement credit - If you want to redeem your cash back as "cash", it has to be redeemed through your Alliant checking account. You cannot redeem it through another bank account.
- $50 Minimum Redemption and 5 Business Day to Clear - If you want to redeem your cash back into your Alliant checking account, you need to earn at least $50 in cash back to redeem it. This is higher than most other cash back credit cards which allow you to redeem into $20 or $25 increments. It will also take 5 business days to clear.
- Statement Credit Effective 2 Billing Cycles Forward - If you decide to redeem your cash back via statement credit, it may only be effective 2 billing cycle forward and not the immediate billing cycle depending on the date of redemption and date of your billing cycle. This is longer than most cash back credit cards and requires some spending planning if you plan to redeem a large chunk of cash back rewards.
- Cash Back has expiration - Unlike most modern cash back credit cards, Alliant cash back expires on the December of the 5th calendar year.
Our Take: Best Flat Rate Cash Back, BUT Many Flaws
If this was all the Alliant Cash Back Visa was about, then this would arguably be the second best cash back credit card and one that everyone would recommend. Unfortunately, to be able to earn the 2.5% cash back, you have to jump through a couple of hoops. Firstly, you have to set up a Alliant checking account. Then you have to qualify for a "high rate" version of their checking account. You do this via opting for e-statements and having an electronic deposit once a month. For most folks, the easiest way is to arrange for a payroll deposit. Then you need to have an average daily balance of $1,000 the preceding quarter to qualify for Tier 1 Rewards, which will allow you to earn 2.5% cash back for the next quarter. For most of you, the setting up of a monthly electronic deposit may be the biggest obstacle (if you already have a payroll deposit with your present bank) and prevent you from pulling the trigger even if you are really attracted by the 2.5% rewards.
Furthermore, Alliant does not make it as easier as far as cash back redemption goes. For example, you need a minimum of $50 to redeem your cash back (versus $20 or even no limit for other cash back credit cards). Rather than being an immediate transfer, redeeming your cash back through your Alliant checking account will take 5 days to clear. To me, this is simply unacceptable. For example, the Wells Fargo Active Cash allows you to redeem your cash back via ATM machine!
If you choose to redeem your cash back via statement credit, it will only apply to the the statement 2 billing cycles later. This is simply quite unacceptable also in my books. Most credit cards apply the redemption to the current or upcoming statement or at the very most one statement out.
I am quite torn as to what rating to give this card. I have given a 4 star rating for most other 2% flat rate cash back cards. Based on the 2.5% cash back rate, this card should be getting a 4.5 star at the very least. Unfortunately, the hoops you have to jump through and their redemption rules are really negative factors. In fact, I am tempted to give this card a rating below 4 star. Having really tore my hair out and agonizing over this, I have finally decided to give the Alliant Cash Back Visa Signature a review rating of 4 star out of 5 for it's 2.5% cash back rate and the absence of foreign transaction fee. The obstacles you have to go through to earn 2.5% and their redemption rules prevents what should have been a way higher rating for this card.
If you already have a banking relationship with Alliant and want a flat rate cash back credit card, then this card is quite a no brainer. If the 2.5% flat rate cash back is what you are looking for and you are aware of the requirements and the short fall of this card, then by all means get it. If you are looking for a flat rate cash back credit card but are not willing to change your payroll deposit to another bank or open a new checking account for the sake of opening this card, you will be happy to know that there are other alternatives. The best option would be the Citi DoubleCash, which has a flat 2% cash back and does not require you to have a Citi checking account as your cash back can be deposited into an account of your choosing.
FREQUENTLY ASKED QUESTIONS
Can I add authorized users to the card?
Can I add authorized users to the card?
Yes, you can.
How long does it take to get my card in the mail after I am approved?
How long does it take to get my card in the mail after I am approved?
14-21 days.
Do I need to enroll in the cash back or rewards program?
Do I need to enroll in the cash back or rewards program?
No, you are automatically enrolled.
Can I transfer a balance?
Can I transfer a balance?
Yes, you can. You have to pay a 3% balance transfer fee. There is also no 0% APR intro deal.
