You can save money with the right credit card. I thought to bring focus to one of those ways you can actually save money, provided that you are highly disciplined with paying your bills and managing your debt. How about revisiting the topic of rewards credit cards? When you use such cards enough on your usual purchases, you can get cash back: up to a 5% rebate from some of the better rewards programs out there.
I’m not the only one who thinks that the American Express Blue Cash Card is one of the best cash back credit cards available. In fact, it’s been repeatedly cited as the one to get for its great rewards — this according to none other than Consumer Reports and more recently, MSN Money’s Liz Pulliam Weston.
The reason for the accolades is that this card is one of those offering better rewards at a time when credit card companies are becoming stingier about their reward programs. With cards yielding skimpier offerings or requiring stricter redemption rules and more limitations stated in the fine print, the 5% rebate is now a standout (even though it used to be more standard fare in the past).
American Express Blue Cash Card Features
I’m glad to know that AmEx Blue Cash is able to offer such relatively generous terms to its cardholders. Here is what makes this card so popular:
- You’ll earn up to 5% cash back at drugstores, supermarkets and gas stations, including 1.25% cash back for all other purchases.
- No minimum spending required and the cash rewards you earn are unlimited. There’s no cap or limit on the rebates you receive, so if you typically spend $10,000 a year using your card, you can earn back up to $500 a year. Not bad!
- For those cardholders who spend over $6,500, you’ll be able to increase your cash earnings from 0.5% to 1.25% on every purchase. For certain spending categories like groceries and gasoline, you’ll grow your rewards from 1% to 5%.
- For now, the introductory APR is 0.00% for 6 months.
- There’s no annual fee.
Now based on how most people spend their money, many AmEx customers claim an average of 2% to 3% cash rebate for each purchase they make through this card, and with no limits on what you can get back, this sounds like a really great deal.
One more thing, the good news — so far — is that this card hasn’t really changed its terms much since it was launched, unlike many other popular cards that have been altering their programs of late (or will be changing their programs in the near future), so it’s something I’d check out if I were shopping for a card.
Best Cash Back Credit Cards and Other Rewards Cards
For additional top choices for rewards cards, I put together a list of popular cards below. These other cards are also worth a look because of their outstanding rewards programs:
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For more on great rewards cards check out these articles:
Don’t forget though, that rewards cards are a best fit for those who can pay their bills in full each month and those with good credit. If you carry a balance, the rewards you earn won’t be worth the extra interest you would end up paying with these types of cards. For those in this predicament, you’ll pay less in charges and interest by going with a low interest rate credit card that pays no rewards.
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- Earn top returns: FNBO Direct [1.90%], HSBC Direct [1.65%], WTDirect [1.76%], E*Trade Bank [0.95%], ING Direct [.25% to 1.65%]
- Cash bonus: Discover More [$50], American Express [$25], Lending Club [$25]
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{ 6 comments… read them below or add one }
We like this card at MYC! I think this is one of my personal favorites, as well. My only concern about Amex is that they’ve been cutting back on credit limits quite a bit – which is understandable given the economy – but they’ve been cutting back on long time customers who do pay their balances in full, not just the iffy customers. If I’m using my credit responsibly, I don’t want my credit limit yanked out from underneath me. That messes with my dti ratios and my utilization rations, which in turn, affect my score. But, despite that, I still think this is a valuable card to have in your arsenal.
Too bad I don’t spend enough to meet the $6,500 threshold. Must seek an alternative card for lower spenders
Eric,
With my 5 member family, we put it all in one card, and we easily break that $6,500 threshold in a year, so this type of card suits us fine! We already pay everything in full so we actually fit the profile of those who’d benefit from such a card. Right now, we have a Upromise card that earns a cash back of only 1% for purchases. The benefit is that all earnings go a 529 account. We like the automated aspect of how the cash back process here works. But we’re always checking out other cards and comparing to see if something is worth a switch. This card stood out for me as I reviewed what’s out there. This and Discover More are the better cards for rewards, in my opinion.
Gr8 to know the limits to score the Cash back and gifts. Thanks
Cards are dangerous things, and I don’t recommend them at all. If you do have to have a credit card, then this cash back offering associated with the American Express Blue Card definitely seems to be one of the most sensible offerings out there.
Been using it for years… last year $893 in cash back, tax free. Sweet.