Credit Card Rewards Comparison
Guest Post: What Are the Best Rewards Credit Cards?
By Odysseas Papadimitriou, CardHub.com
It's easy to get caught up in the whole daily-deal craze, but let me ask you a question: When was the last time a Groupon saved you hundreds of dollars on something you were going to buy anyway? Don't even bother checking the endless e-mails you've received, the answer is pretty obviously "Never."
More often than not daily deals require that you alter your spending habits in some way to benefit. Companies offer them in order to garner new customers, after all, not to give altruistic discounts to already loyal patrons. Besides, such deals can help you score some pretty good percentage discounts, but the monetary value they provide isn't usually all that high.
That's the beauty of a credit card deal. Going out of your way isn't necessary to line your pockets or jet off to Europe. Rather, all you have to do is spend normally with what according to our research is one of the best rewards credit cards. Really, I'm not kidding. More than 300 credit card offers now come with some sort of initial rewards bonus, which typically kicks in after users make a single purchase or spend up to $1,000 per month for the first three months after opening the account. Check out the five I consider best:
Credit Card Rewards Comparison:
Card: Chase Sapphire Preferred
Initial bonus: $625 in travel accommodations or $500 cash back.
What you have to do: Spend $3,000 in the first three months and pay a $95 annual fee only if you keep the card for 12 months.
Fine Print: You need excellent credit to qualify for this offer, which is only available for first-time Chase credit card customers; in other words, if you currently have a Chase credit card or have been a Chase customer in the past three years, you won't get the initial bonus.
Card: Capital One Venture Rewards
Initial bonus: $250 in travel expenses.
What you have to do: Spend $1,000 in the first three months and begin paying a $59 annual fee if you choose to keep the card for more than a year.
Fine Print: You need at least good credit to qualify; 25,000 bonus miles are worth $250 only when redeemed for travel-related purchases made with the Venture Card; miles must be redeemed within 90 days of the travel purchase being posted to your account; miles redeemed for cash garner $125.
Card: Citi ThankYou Premier
Initial bonus: $500 in gift cards
What you have to do: Spend $2,000 in the first three months and pay a $125 annual fee.
Fine Print: The 50,000 bonus points you receive with this offer -- which requires excellent credit for approval -- can be redeemed for either five $100 gift cards of your choice or other rewards available at thankyou.com.
Card: British Airways Credit Card
Initial bonus: One transatlantic flight or two domestic flights.
What you have to do: Spend $2,500 in the first three months and pay a $95 annual fee.
Fine Print: Good or excellent credit is required for approval; offer applies to World Traveler, economy class transatlantic flights to the United Kingdom, Belgium, France, Germany, Ireland, Luxembourg, Netherlands, and Switzerland; if you are not approved for this card, you will be considered automatically for a Visa Platinum Card, which has different terms, fees, and rewards.
Card: Southwest Airlines Credit Card
Initial bonus: One "Wanna Get Away" fare roundtrip flight.
What you have to do: Make a single purchase and pay a $69 annual fee.
Fine Print: Excellent credit is a pre-requisite for card approval; ability to obtain a free round-trip flight with this offer is based on two $208 one-way Wanna Get Away fares; Wanna Get Away flights often have to be booked further in advance than other Southwest fares; your first and second bags always fly for free with Southwest.
What gives?
Ah, the benefits of competition. The Great Recession, as we all know, took a toll on consumer credit, increasing the percentage of Americans with "bad" credit from 10% to about 25%. People with excellent credit are now such prized commodities that credit card companies are competing, perhaps more fiercely than ever, for their services. They're offering 0% APR credit cards with longer introductory terms for both balance transfers and purchases as well as lower annual fees and extremely lucrative initial rewards bonuses in hopes of attracting this upper echelon of credit users.
It doesn't really matter why issuers are offering such attractive deals, however. All that matters is that they're offering them, and most of the aforementioned deals are only going to be around for a limited time. So hurry up and collect your free money.
Odysseas Papadimitriou is the CEO of Card Hub, a credit card comparison website focused on helping consumers get the best credit card deals and stay on top of the latest credit card news.
