best rewards credit cards

Best Credit Cards Rewards – How Does Yours Compare?

Over the years, I’ve simplified my credit-card usage to just a few reward cards. My main goal was to rake up rewards as much as possible, without having to remember a complex algorithm to decide which card to use when.

Not that I’m too stingy and trying to collect changes, but I dislike leaving money on the table, especially when a couple of one-time habit-changes/steps can increase annual cash-flow by at least several hundred dollars, if not more. At the same time, neither I nor my family members (additional card-holders) are inclined to carry a lot of cards together with a mini-manual. I use cards heavily for over 80% of my total expenses (notable exceptions being the property tax and a few small recurring/annual payouts).

I wanted to share what I do and also get input from others as to what they follow:

  1. All gas purchases anywhere are with a card from penfed.org. 4.25% or more cash value depending on how one redeems
  2. All travel-related expenses and restaurant/dining-out are with Costco Citi Visa card): 3% cash-back
  3. [Under Consideration] Amazon Prime Visa card (5% cash-back), given our increased purchase from Amazon.com
  4. Fidelity Card for most everything else (including #3 at this moment): 2% cash-back

Notable choices made:

  • I used to have a Shell card for 5% cashback at gas stations, but discontinued it since this is available only at Shell gas-stations
  • The switch from AMEX to VISA has simplified this further as AMEX is still not accepted in a few merchants we use
  • Stopped using “rotating reward category” cards (e.g., Chase gives 5% on 3 category of expenses, but the categories change frequently).
  • I prefer getting cash or equivalent as reward than “in-kind”, due to the flexibility
  • I learnt that x% reward does not necessarily mean x% cash. The reward points may be diluted depending on what is being redeemed
  • I noticed that over the last few years, many online payments, including most utilities, are now accepting credit card auto-payments without any extra fee. Previously only a bank account was possible.
  • I’ve left the other cards as is, and use them sporadically if needed (e.g., foreign travel)

What do you think? Anything you’d like to share from your experience?

Fidelity Credit Card

Fidelity Credit Card Review

The fidelity credit card has a lot of great perks. The Fidelity Rewards Visa Signature Card gives you 2% cash back on all purchases.  In additional, they have a promotional offer where if you spend $500 in eligible net purchases within 90 days of opening the account you’ll earn $100 cash back.  During the first 12 months you’ll receive an introductory APR of 0%.  After the 12 month promotion your rate will increase to 15.49% APR for purchases & balance transfers, while cash advances will be at 25.49%.

Pros & Cons of The Fidelity Credit Card

Benefits:

  • $100 bonus cash for signing up
  • 0% APR for the first 12 months
  • 2% cash back on all qualifying purchase
  • No annual fee
  • You can easily transfer your cash back into a savings account, checking account, and most fidelity manage accounts (Traditional IRA, Roth IRA, Rollover IRA, SEP IRA, and 529 College Savings Plans).

Things To Consider:

  •  25.49% APR on cash advances (introductory rate doesn’t apply)

Final Thoughts on The Fidelity Rewards Visa Signature Card

Fidelity has one of the better rewards programs that’ll you find out there.  For those who have trouble savings, this card makes it super easy to transfer your earned cash back into a savings/investment account.  If you don’t plan to take cash advances out, than I would recommend this card to you.