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As you look around for a credit card that pays cash back for your buying, you are likely to come across few cards – Chase Flexibility, Citi Dividend and Discover it – that have very comparable, very appealing cash back programs. When it comes to selecting the card for you, it might be a difficult decision. To alleviate this process, we take a look how each of these money back credit cards stand out.
The three cards have no yearly cost and will offer 5 % cash back on purchases in select classifications, which alter on a quarterly basis, while every various other investment earns 1 % money back. Cardholders have to enroll every quarter for their qualifying purchases to make 5 % money back. Sometimes, card companies will likewise include specific stores to the list.
More often than not, the classifications will match the typical investments that are made during that specific quarter. For example, house renovation shops are commonly eligible for 5 % money back during the spring and summer months.
For the purposes of maximizing your yearly cash back earnings, you must prepare your major purchases. Want to buy a brand-new TELEVISION? Make the purchases when electronics shops are eligible for 5 % money back.
Chase and Discover will release the 5 % cash back categories for the entire year while Citi just reveals the next quarter’s categories a couple of weeks prior to the brand-new quarter. The classifications may various from year to year.
Here’s a comparison of their 2013 5 % cash back calendars:
|Quarter||Chase Freedom||Citi Dividend||Discover It|
|Q1 (Jan. – Mar.)||Gas stations, medicine shops, Starbucks stores||Drug stores, fitness clubs, Zappos.com||Restaurants, movies|
|Q2 (Apr. – June)||Restaurants, movie theaters, Lowe’s stores||Home furnishing and home & garden shops, The Home Depot||Home improvement|
|Q3 (July – Sept.)||Gas stations, theme parks, Kohl’s||Hilton Worldwide hotels and resorts, vehicle rental agencies, theme parks, movie theaters||Gas stations|
|Q4 (Oct. – Dec.)||Amazon. com, select department stores||N / A (2012 – Toy stores, electronics shops, Macy’s)||Online holiday shopping|
Cash back limits
Chase Liberty and Discover it impose 5 % cash back spending limits of $1,500 per quarter. After you struck the spending limit, the cash back rate is up to the standard 1 %. So, with these two cards, you can earn an optimum of $75 money back on 5 % money back categories per quarter, for a total of $300 money back in the year.
Citi Dividend does not have a quarterly restriction but the card just enables $300 in money back incomes for the whole year, consisting of cash back made in non-bonus categories.
So, the Chase Liberty and Discover it cards provide the opportunity to earn overall combined cash back in the year, however the Citi Dividend card will let you make even more cash back in the quarterly classifications.
Other unique differences
Chase Freedom allows retroactive enrollment to the incentive cash back categories. If you forgot to enroll in 5 % money back, you’ve until two weeks before the start of the next quarter to enlist and earn reward money back on the qualifying purchases made throughout the entire quarter. Citi and Discover begins doling out 5 % cash back only on the acquisitions made after enrollment.
The Discover It card doesn’t charge a fee for the first late repayment and there’s no penalty APR. Additionally, cardmembers don’t need to pay foreign deal charges.
Citi offers its Citi Cost Rewind program, which lets charge card clients see if a recent acquisition had actually dropped in cost throughout the last 30 days and submit a claim to receive compensation for the distinction.