cash rewards credit cards
Card Comparison: Best Credit Cards with Cash Rewards – Chase Freedom vs. Discover More
Credit cards with most generous rewards in town are Chase Freedom and Discover More. If you have a clean credit history and pay off credit card debt every billing cycle, then you should consider to have either or both of these two cards since they reward your purchase with generous cash rewards, however, their regular APR are relatively high therefore they are not good instruments for you to keep revolving debt.
I highlighted the relative benefits in green, and drawbacks in red.
Chase Freedom vs. Discover More
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Chase Freedom Credit Card |
- $50 Cash Back after your first purchase
- 3% bonus cash back offers in categories like gas, home improvement and department stores
- Full 1% Cash Back on every purchase – no spending tiers or caps on how much you can earn
- Up to an additional 20% cash back at select merchants when you shop online through Chase
- 0% Intro APR for up to 12 months for purchase only
In addition to $50 sign-up bonus and 3% cash back rewards, Chase Freedom Card customers can wait and accumulate the cash rewards until it reaches $200 and then redeem with $250. This has been one of the favorite benefits of Chase Freedom. Despite that Chase has reported stopped this benefit earlier this year, existing Freedom card members report that they are still getting this benefit as of recently.
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Discover® More Card |
- 5% Cashback Bonus® in categories like travel, home improvement stores, department stores, gas, restaurants, pet stores and many more with caps on how much reward you can earn
- Up to 1% unlimited Cashback Bonus® on all other purchases
- 5% to 20% Cashback Bonus® through our exclusive online shopping site.
- 0% Intro APR for 6 months on purchase AND balance transfers
5% Cash Back Bonus in Q4 2009
Each quarter, Discover 5% Cash Back Bonus rolls out 4-5 purchase categories and a spending limit, all your purchase falls into those categories and under that spending limit will get 5% cash rewards (see previous quarter spending categories). Q4 2009 spending limit is $400, and spending categories are:
- Grocery Stores
- Restaurants
- Movie Theaters
- Movie Rentals
That means your first $400 spend in grocery, restaurants and movies from Oct. 1st to Dec. 31st 2009 using Discover More Card will get $20 cash back from Discover.
Term and Condition Fine Prints
For better comparison of these two cards, below are the extracted fine prints in both cards’ application forms. I am selecting paragraphs that interest most card customers, related to rewards, payment allocations, insurance.
Chase Freedom
Receive $50 Cash Back after first purchase
You will receive $50 in bonus rebates with this bonus offer, which can be redeemed for a $50 check. You will qualify for and receive your bonus after your first purchase/first use of the card. First purchase/first use includes purchases, balance transfers, or any checks that are used to access your account, and excludes cash advances. After qualifying, please allow 6 to 8 weeks for bonus rebates to post to your account. This one-time bonus offer is valid only for first-time cardmembers with new accounts. Existing cardmembers/accounts are not eligible for this bonus offer.
1% Cash Back
Cash Back Rewards described in this offer is a form of rebates subject to the Rewards Program Rules and Regulations; see Earning Rewards section. Restrictions and limitations apply. You will earn a 1% rebate for each $1 of net purchases. You will earn an additional 1% rebate for each $1 of eligible airfare net purchases made online through the program booking tool. You do not earn rebates on balance transfers, cash advances, cash-like charges such as travelers checks, foreign currency, and money orders, any checks that are used to access your account, overdraft advances, interest, unauthorized or fraudulent charges, or fees of any kind, including fees for products that protect or insure the balances of your account. There is no maximum number of rebates that you can accumulate in the program. A service fee of up to $20 per ticket may be charged for the use of our toll-free number to book or change airline itineraries. Redemptions made online do not have a service fee. See Rewards Program Rules and Regulations which will be mailed after your account is established.
Earn even more cash back:
3% Cash Back in rotating categories
You will be eligible for quarterly bonus rewards offers as long as (i) your account is not in default under, and/or you have not violated, the terms of your Cardmember Agreement and Rewards Program Rules and Regulations, and (ii) your statements are sent to a US address.
Discover More Card
PAYMENT ALLOCATION: We apply payments to balances with low introductory/promotional APRs (such as promotional balance transfer and purchase APRs) prior to balances with standard APRs. Therefore, your savings will be reduced by making additional transactions or having balances with standard APRs. In addition, the length of time the introductory/promotional APRs will apply to your account may be reduced by the amount of your payments. Effective February 1, 2010, to the extent your payments exceed the minimum payment due each billing period, we will generally apply them to balances with high APRs prior to balances with low APRs. Otherwise, we will apply payments and credits at our discretion, including in a manner most favorable or convenient for us.
Offer valid for new cardmembers only.
REWARDS: Earn unlimited cash rewards on all purchases. Earn 5% Cashback Bonus on category purchases throughout the year by signing up for each program. When you sign up, you will receive all the details, including the limit on the amount you can earn. In addition, earn 1% unlimited Cashback Bonus on all other purchases after your total annual purchases exceed $3,000; other purchases that are part of your first $3,000 earn .25%. Warehouse purchases (those made at select warehouse clubs, discount stores and their affiliates) earn .25%. We do not include warehouse purchases or 5% Cashback Bonus program purchases (up to the dollar limit specified in each applicable program) in calculating your total annual purchases to determine your tier level. Rewards are redeemable starting at $20. Rewards have no expiration date; however, if your account is closed for any reason or inactive for 18 consecutive months or if you fail to make the Minimum Payment Due by the Payment Due Date for two consecutive billing periods, your Cashback Bonus will be forfeited. Full terms and conditions will be sent with your card.
INSURANCE: Excess Collision Damage Waiver Insurance and Scheduled Air Travel Accident Insurance are underwritten by Federal Insurance Company, a member insurer of the Chubb Group of Insurance Companies of Warren, NJ. Certain restrictions and limitations apply. Refer to the Descriptions of Coverage for more complete information.
Important Disclaimer: the credit cards information in this post were accurate as of the date of publishing, some or all of the card programs may be discontinued, their terms may be changed after wards.
Card Comparison: 5% Cash Back on Home Improvement with Discover Card’s Rewards Program
Discover Card’s just rolled out a new cashback bonus program: 5% cash back for home improvement purchases made between now and June 30, 2009.
The purchases that qualifies for 5% rewards are (buying new clothes is also improving your home, that’s a new concept):
- Home improvement Stores
- Department Stores
- Clothing Stores
The up limit of the cash back rewards is $20, which means you get 5% cash back rewards only in the first $400 purchase in the above categories, the rest of purchases may be subject to a lower cash back ratio, most likely 1%.
Here is the card that can earn the 5% cash back on Home Improvement:
| Card Name | Benefits | Requirements | |
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Discover® More Card |
0% BT APR for 12 mths; 0% purch APR for 6 mths; 1% – 5% cash rewards | requires Excellent Credit; regular APR: 10.99%; annual fee: none |
Important Disclaimer: the credit cards information in this post were accurate as of the date of publishing, some or all of the card programs may be discontinued, their terms may be changed after wards.
Card Comparison: Best and Worst Credit Cards, according to BusinessWeek
Recently, BusinessWeek ran an interview with Greg Doherty, editor with Consumer Reports, a prominent consumer products rating agency. When asked about his pick of a credit card best for all situations, Greg pointed out the fact that there is virtually no such credit card which is best for every one under every circumstances. Greg also pointed out that even for a relatively good card, “it may not stay a good card forever“. The rankings of credit cards always are dynamic.
He broke down best credit cards to two categories that serve people with different needs best. For those who regularly run a balance/debt, they should consider low rate/low fee credit cards, for those who don’t run a balance/debt, best cash back rewards credit card makes more sense. As of now these are his picks of best low rate/low fee credit cards:
| Card Name | Regular APR and Credit Needed | Fee and Intro APR | |
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Capital One Platinum Prestige |
8.9%, requires excellent credit | No annual fee, 0% intro APR until Oct. 2009 |
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Capital One Platinum Prestige – Visa |
8.9%, requires excellent credit | No annual fee, 0% intro APR until Oct. 2009 |
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Clear from American Express |
as low as 10.99%, requires good credit | No fee of any kind, 0% intro APR for 12 mths |
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IberiaBank Visa® Platinum Rewards Card |
9 – 11% depends on creditworthiness, requires good credit | No annual fee, 0% intro APR for 6 mths, earn 1 bonus point for every $1 in qualifying net retail purchases |
As for best cash back credit cards, Greg picked these:
| Card Name | Reward on each $1 spent | Fee and Regular APR | |
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Capital One No Hassle Cash Rewards |
2% on purchases at gas stations and major grocery and drug stores, 1% cash back on others. Requires good credit | No annual fee, 13.9% regular APR |
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Capital One No Hassle Cash Rewards – Young Adults |
2% on purchases at gas stations and major grocery and drug stores, 1% cash back on others. Requires good credit | $29 annual fee, 16.9% regular APR |
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Chase Freedom Visa |
3% in Your Top 3 Everyday Spending Categories, 1% in others. Requires good credit | No annual fee, 14.99% regular APR |
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Discover® More Card |
5% Cashback Bonus® in categories like travel, home improvement stores, gas, groceries, restaurants, movies… 1% on others. Requires good credit | No annual fee, 10.99% regular APR |
And here are his picks of the “worst” credit cards, the reason I am listing them out is in case you are holding a contrarian view… 
| Card Name | Regular APR, Credit Needed and Fee | Grace period | |
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HSBC American Dream Card |
14.99% or 21.99%, requires fair credit, no annual fee | 20 days after the previous billing cycle provided you paid bal in full. |
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New Millennium Bank Secured Platinum Visa® |
19.5%, bad credit OK, $59 annual fee, $99 application fee | NO grace period |
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New Millennium Bank Secured Platinum MasterCard® |
19.5%, bad credit OK, $59 annual fee, $99 application fee | NO grace period |
Important Disclaimer: the credit cards information in this post were accurate as of the date of publishing, some or all of the card programs may be discontinued, their terms may be changed after wards.
Poll: Best Cash Back Credit Card
The following cash back credit cards feature reward programs that offer cash back or rebate incentives. A Cash Back Credit Card rewards you for using them with cash back incentives and rebate programs. Credit cards with cash rebates and incentives usually require a good to excellent credit rating for approval. Pick the best credit card in your opinion and leave feedback to let us know why you make that choice.
Loading ...Important Disclaimer: the credit cards information in this post were accurate as of the date of publishing, some or all of the card programs may be discontinued, their terms may be changed after wards.
Poll: Best Credit Card that Reward Cash for Gas Purchases
As gas price skyrockets, one way to tackle this problem is to get a gas rebate credit card in your pocket. Here I compare the best gas rebate credit cards from major banks. Discover Open Road card and American Express SimplyCash Business card both offer a 5% cash back reward on gas purchases, but Discover Open Road card sets $100 per month, $1200 per year limit on gas purchases that are eligible to 5% reward, so we pick SimplyCash card as the top choice since it remains the only card that offers 5% reward for unlimited gas purchases. Although it’s a business card, individuals could apply for it as a sole proprietor.
Loading ...Important Disclaimer: the credit cards information in this post were accurate as of the date of publishing, some or all of the card programs may be discontinued, their terms may be changed after wards.
