The are several benefits to owning a credit card, such as keeping track of your transactions, building a credit score, borrowing without paying interest. The list is endless, so you should check out these options and get a credit card right away.
Costco Anywhere Visa Card by Citi
Costco is an immensely popular brand, so it’s no surprise that its co-branded cashback card from Citi seems to be one of the most popular options due to its no annual fee. With Costco’s Anywhere Visa Card, customers can receive Citi’s best cashback rewards designed exclusively for Costco members.
The card earns 2% back on Costco purchases, as well as another 3% back on eligible gas purchases, restaurants, and verified travel purchases. Cardholders can earn 4% at both Costco and non-Costco gas stations, which makes it an ideal option to maximize spending at the pump. Each member receives an annual credit reward certificate, which is redeemable for cash or merchandise at US Costco warehouses.
Southwest Priority Card
Southwest offers three rapid reward credit card options — the Plus card, the Priority card, and the Premier card — each at different annual fees. All offer many rewards that you can redeem for cashback.
If you fly Southwest more than once or twice a year, the Priority card is worth its annual fee. You can get up to $75 in yearly credit to use with Southwest and four upgraded boardings per year with an additional 7,500 redeemable Rapid Rewards points on your account anniversary. You can also earn tier qualifying points towards A-list status, and the card includes no foreign transaction fees or booking/change fees.
Discover It Cash Back Card
This is a particularly valuable cashback card. The Discover It card offers 5% back at different places each quarter and an extra 1% back on everything else. Its popularity arises from the fact that it has a $0 annual fee card and the fact that Discover will match all the cashback rewards you've earned at the end of your first account year, meaning you can get 10% back on the 5% categories. The card's Cashback Match feature doubles all cashback a cardholder earns within the first 12 months.
Chase Sapphire Preferred
The Chase Sapphire Preferred card is one of the most popular travel rewards credit cards with a generous mix of rewards and flexibility for travelers. It has been around for more than a decade, but it remains popular among credit card beginners thanks to its sub-$100 annual fee and extra perks.
Customers earn 2x points on all travel and dining purchases, 5x points on Lyft rides, and 1x points per dollar on everything else. As an extra, the card offers a stellar sign-up bonus of 60,000 Chase Ultimate Reward points after you spend $4,000 in the first three months. Its main features include a high sign-up bonus that starts you with lots of points and strong travel coverage.
The Chase Freedom is another great cashback card with no annual fee, making it a great starter card with an additional sign-up bonus. It earns 5% back on up to $1,500 in combined purchases each quarter on rotating bonus categories and 1% back on everything else.
If you have another Chase credit card that earns Ultimate Reward points, such as the Chase Sapphire Preferred, you can combine your cashback rewards from the Freedom card with your Ultimate Rewards and redeem them for travel. This feature could get you more value than the flat cashback rate of 1 cent per point. You can also earn extra cashback shopping online and get added protection while shopping. The Chase Freedom ensures that your rewards don’t expire as long as your account is open. You can also tap to pay with your contactless card and travel and emergency assistance.
About the Author
Luigi Wewege is the Senior Vice President, and Head of Private Banking at Caye International Bank. Outside of the bank, he serves as an Instructor at the FinTech School which provides online training courses on the latest technological and innovation developments within the financial services industry. Luigi is also the published author of: The Digital Banking Revolution.