January 1, 2010
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2009 Rewards Awards, Pt.1
Show Me the Money!A) Show Me the Money!
Ah, yes. First-level liquidity -- cash. Everybody takes it, no questions asked. The main rub with credit card rewards programs is the blurring of liquidity level. Lower levels of liquidity are things like gift cards, credits, bonuses and especially, discounts. "Do I have to pay 20% more in order to redeem my 10% discount?"
According to CreditCards.com, the best "no-strings attached" cash-back deal goes to Schwab Bank Invest First Visa Credit Card. Again, we should mention here that this card isn't available to all and all are not eligible. To get this deal, you must first open a Schwab One brokerage account. Step two here is qualifying for a Visa Signature credit card. If you clear the necessary hurdles, you can receive straight, 2% cash rebates on all your purchases. No limits or further restrictions are placed and you can shop anywhere that accepts VISA and charge any amount (up to your credit limit, of course).
Again, according to CreditCards.com, the runner-up goes to TrueEarnings from Costco and American Express. Note here, of course, that only Costco members are eligible. One major benefit is that you can purchase from any retailer who accepts AmEx. Rewards are tiered. First level are 3% cash-back rewards for gasoline (max: $3,000/yr) and restaurants; 2% for travel and 1% for most all else.
There is a second runner-up here. For those who can open up a business credit card account (it's easier than you might think), Discover Cash-Back Bonus offer some very sweet deals. You can redeem a full 5% Cashback Bonus on office supply purchases (max: $2,000/yr); 2% Cash back on gas purchases (max: $2,000/yr); and 1% unlimited Cash back on the rest. This 1% also kicks in where other max limits are passed, like for office supplies or gas.
Not rated here are the Qualified Merchant Purchases made by shopping at select warehouse clubs, discount stores and affiliates. These rewards can reach.25% but are not rate-able because of not being market-competitive. Affiliate prices are almost always marked up beyond what the savings would be. There are rare exceptions, however, when it comes to Branded Gift Cards. These make great holiday gifts.