March 16, 2009
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Guidelines for Choosing the best CC Rewards, Pt.4
Navigate the hurdles and reap rewards.Navigators: If you've got it all together and welcome the challenge to make a few extra bucks while not getting burned in the process, any of these choices will work for you. However, there may be other credit card choices that will benefit you even more.
1) Introductory offers: This is an aggressive move that might make sense for people facing large purchases that might not be paid off at the end of the month. Open a credit card promo with a no-interest offer for 12 months, make the large purchase with it and earn the cash-back rewards for that purchase. At the end of the 12 months, transfer that balance to a credit card offering a no-fee, no-interest balance transfer for six months.
2) Tend to the fine print: Flagging the land mines early on will make your path much simpler and safer. The higher ‘beta' that comes with higher volatility means that, in order to get the higher yield, you have to be more vigilant.
3) Investing: There's much you can do if you've a mind to. You can, not only run that credit card through the mill with activity but, also, reinvest that cash you still hold from paying mins on free interest accounts in other high-yield areas (even if it's paying down other high interest from other accounts.
4) Recommendations: For those who don't mind the detail, additional credit card choices include business accounts like:o Discover (Biz)/Brighter: To begin with, you can stake $10 bucks each month off the top for the first six months by just purchasing one thing on the credit card each month. Every one of those months, Discover with either credit your account or else direct-deposit to another account of your choosing.
Beside that, they will also reward you with 5% for the 1st $2.000 charged for office supplies; 2% for 1st $2.000 charged for gas; 0.25% on everything else up to $5.000 charged and; 1% unlimited after $5.000 charged all in the same year.
For the vigilant, you can take advantage or the Promo: 0% purchases for 4 months. This must be classified as a business account, which is fairly easy to get around. You can either have them pay against your credit card or else have them direct-deposit your cash to another account. Note, the payments only come in $50 increments.
o Chase (Biz)/Premier rewards: Similar business credit card with 3% cash back on gas, restaurants, hardware, home improvement and office supply stores. Other business charges are worth 1% cashback. Again, there is a 12-month promo with 0% interest. Go get it.
For an organized rundown of most of these credit card plans, please refer to the article series entitled: "The Best Bang for the CC Rewards Bucks".