The one perfect card for any credit cardholder is …
A myth.
It doesn’t exist. There’s no one-size-fits-all card that everyone will love. It’s no more real than the man or woman who’s perfect for everyone. But even though there isn’t one card that’s perfect for everybody, that doesn’t mean you should give up looking for the one that’s perfect for you.
One of the few things most Americans can agree on is that we love, love, love cash back with our credit cards. Young and old, rich and poor, city folks and rural folks, we’re all united by a seemingly undying love for free cash. Still, even with our beloved cash back, there’s not one perfect credit card that every single person will love. It ultimately comes down to personal preference, taste and fit.
The good news is that narrowing the field of cash back cards is far simpler than spotting the right person for a relationship. There’s one question that most people never think to ask, though, and it can make all the difference in whether you find the right cash back card for you.
Am I a set-it-and-forget-it type or a willing-to-work-for-it type of credit cardholder?
It’s that simple.
Are you just looking for a credit card that gives you the same percentage of cash back with every purchase you make, regardless of where you go, what you buy and where you buy it? Or are you game for taking the time to seek out and opt in to potentially get higher cash back percentages from certain stores during certain time periods?
To be clear, there’s no one-size-fits-all answer. But if you know yourself and answer honestly, you’ll go a long way toward finding the right card for your lifestyle and your personality — and that’s when you can really get the most out of the card. After all, if you’re always working or driving your kids to soccer practice or trying to slim down your ever-expanding to-do list, you’re probably not going to take the time to opt in for the next group of rotating categories to get that 5 percent cash back deal. Just make it easier on yourself. Get the set-it-and-forget-it card, and go back to scratching items off your to-do list.
So once you’ve determined your type, which card is the best fit? Here are my recommendations:
Top Set-It-And-Forget-It Cash Back Card: Citi Double Cash
The Citi Double Cash card is billed as the “only card that earns you cash back twice on every purchase” because it gives you 1 percent cash back when you buy something, plus 1 percent cash back when you pay. But for all intents and purposes, it’s just a set-it-and-forget-it cash back credit card that gives you 2 percent cash back on everything. That’s because Citi isn’t asking you to do anything to get the rewards. No opting in to rotating categories. No seeking out participating retailers. Just buy something, pay your bill and collect 2 percent back on everything — a deal few cards can match.
There are also no caps on how much cash back you can earn, no annual fee and no interest on purchases or balance transfers for 15 months. Add an APR as low as 12.99 percent, and it’s a strong choice among cash back cards.
Top Willing-To-Work-For-It Cash Back Card (Tie): Discover it and Chase Freedom
Discover it is my overall top pick in this category. It offers 5 percent cash back in rotating categories — currently, department stores, clothing stores and Amazon.com are featured — and 1 percent everywhere else. However, Discover is currently offering new cardholders double cash back at the end of their first year, meaning that if you earn $150 cash back that year, they’ll double it to $300. (If you buy something via Apple Pay with your Discover it card, you can get 10 percent cash back on that purchase. And Discover’s double-cash-back deal applies to those purchases as well, meaning you can effectively get 20 percent cash back on those purchases. The offer lasts until the end of the year.)
The card has no annual fee, no foreign transaction fees, no late fees the first time you’re late with a payment and no interest on purchases and balance transfers for 12 months. The card’s APR ranges from 10.99 to 22.99 percent based on your creditworthiness, and you can track your credit by checking the FICO credit score that comes on each monthly statement.
The Chase Freedom card is worthy of recommendation, too. Like the Discover it card, Chase is currently offering 5 percent cash back up to $1,500 on Amazon.com purchases through the end of the year, though there’s no double cash back offer with this card. It does, however, reward you with $100 cash back after you spend $500 on purchases in your first three months with the card. (You can get another $25 for adding an authorized user to your account and making a purchase.)
In addition, the card comes with no interest on purchases and balance transfers for 15 months, and a standard APR as low as 13.99 percent. There’s also no annual fee, and rewards don’t expire as long as you have the account.
Think First, Then Apply
As with any financial decision, it’s important to be thoughtful before applying for a credit card. There are many, many out there, and banks are eager to find good applicants. Take the time to shop around, read the fine print and find a card that fits your lifestyle. After all, no one cares as much about your money as you do, so it is your job to make the most of it.
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Cash Back Matchmaker: Which Credit Card Is Right for You? originally appeared on usnews.com
