This fall, credit card users are fortunately faced with a number of enticing cash back bonus offers. While just about every major credit card company offers at least one cash back product, the offers highlighted here provide a combination of rich bonuses, valuable 0% interest promotions and solid long term rewards earning opportunities.
The Citi Dividend Platinum Select Visa card comes with a $100 sign-up bonus granted after new cardholders spend $500 within three months of opening an account. All cardholders have the opportunity to earn 1% cash back on most purchases and 5% cash back in bonus categories Citi designates on a rotating quarterly basis.
From October to December, the list of 5% bonus categories covers purchases made at Macy’s, electronics retailers such as Best Buy and toy stores. A consumer who purchases a new TV at Best Buy for $2,000 can earn a quick $100 reward (with a $300 yearly maximum). Additionally, the Dividend card offers a 0% APR on purchases and balance transfers that lasts a full year. This can help consumers who overspend during the holidays avoid interest expenses.
The Freedom Visa is one of Chase’s most popular reward cards. Like the Dividend card, Chase Freedom offers $100 in cash back as a sign up bonus as long as new applicants make $500 worth of charges within three months of opening an account. It also offers 1% cash back on most transactions and 5% bonus cash on purchases in categories that rotate quarterly .
Unlike the Dividend card, however, Freedom’s 5% bonus is only valid on the first $1,500 worth of eligible purchases each quarter, for a total of $75 each quarter and $300 per year. During the fourth quarter of 2012, purchases from airlines, hotels, Best Buy stores, and Kohl’s earn 5% cash back while all spending or spending above $1500 in these categories earn 1%.
Like Citi’s Dividend card, Freedom also offers a timely 0% APR promotion. However, Chase bests Citi in this department by offering 0% rates for 15 months.
Choosing The Right 5% Cash Back Credit Card
Ultimately, when choosing between these offers, the primary things to consider are whether or not a 0% interest rate is needed and, if so, whether an extra three months is important. In terms of rewards, consumers who know they’ll be spending more than $1,500 in a bonus category like electronics stores during the holidays may want to take advantage of the ability to earn 5% on up to $6,000 in annual spending with Dividend as opposed to the 5% cap imposed by Freedom.
For rate fee and other information about these offers, please refer to the tables below. For complete terms, click apply to view the online applications.