Which Credit Card is best?

We get about $400 - $500 a year from our credit cards rewards program…and you can too! I’ll recommend my top picks.

Disclaimer: Credit cards are both an amazing budgeting tool, and an easy way to get up to your ears in debt. Always pay your balance!

-Cash Back Programs*:

Chase Freedom Visa
3% cash back on top 3 spending categories
1% cash back on everything else
For every $200 check you get, they’ll give you another $50
Total yearly value = $350
Personal opinion – Chase is a great company. I bought a faulty dishwasher once and they gave me all my money back. They are great to work with.

Capital One No Hassel Rewards Visa
1% cash back
25% annual bonus on your cash back
Total yearly value = $150
Personal opinion – Capitol One is the scum of the earth. I had truly fraudulent charges on my card and it took MONTHS for them to do anything. I will never own a Capitol One card again.

-Rewards/Points Programs:
There are a lot to choose from. Here’s the scam. You get 1 point for each dollar spent, but 6,000 points equals a $50 gift certificate. You’ve essentially paid $60 for a $50 gift certificate to a Hallmark Gold Crown store…and how many crappy figurines do you need in your life?
-Store-Specific Credit Cards:
We buy almost everything at Target. So, naturally we have a Target Visa. After every $1,000 we spend, or every 10 prescriptions we buy, we'll get 10% off one day of our choosing. Also, 1% of your purchases go as a donation to the school of your choosing. If you shop predominately at one store, take a look at their credit card (there are too many to talk about here). They may be a gold mine!

-Airline Miles**:

Southwest Airlines Rapid Rewards Visa
One time Bonus: 1 free flight
2 points per $1 spent on Southwest
1 point per $1 spent everywhere else
$59 annual fee
Total 5 year = 4.6 flights
Average yearly value = $217

Personal opinion – The only thing I have against Southwest is that there are no international flights.

Gold Delta SkyMiles Amex
One time Bonus: 17,500 miles
2 points per $1 spent on Delta, supermarkets, gas, bills, etc.
1 point per $1 spent everywhere else
$85 annual fee
Total 5 year = 4.3 domestic flights; 2.1 international flights
Average yearly value = $335

Personal opinion – This seems good, but I had an American Express card once, and NO ONE took it. It’s a Visa and Mastercard world.

Top Pick:

Gives the most money, and it’s cash, so you can use it to buy an airline ticket, a Hallmark figurine, or laundry detergent.

*Assumptions – you spend about $12,000 a year on each credit card.
**Most airlines have one time bonuses, so I did a 5-year average to even out the initial bonus.
(Posted by Shannon Adams)


Lance said...

I like AE because they make you pay off the total each month. The member services are pretty good too.

Court said...

And Chase has a good name. However, my only experience with a credit card company was AWFUL. I hate talking to people that can't understand you.