Credit-Card Promotions Improving, And Here's The Proof...

Citi® Credit Cards

The Fed lifted the U.S. Prime Rate from 3.25% to 3.5% at the end of last year.

While the U.S. economy is still not as healthy as it should be this far into the post-Great-Recession recovery, the Federal Reserve may still opt to raise short-term rates again as soon as the December 14, 2106 FOMC monetary policy meeting.

And when the Fed demonstrates confidence in the U.S. economy, big banks tend to respond by making their loan products more attractive.  American banks are more profitable when the short-term interest rates controlled by the Federal Reserve rise.

In the credit-card zone, I'm seeing the return of some very consumer-friendly promotions, including extended zero percent introductory APR offers, on both balance transfers and new purchases, and balance transfer offers that don't charge balance transfer fee.

I'm old, and I'm a very responsible borrower, so I always expect the banks and credit unions with which I have an established relationship to offer me nothing but the best. 

According to Equifax®, my FICO® credit score is 814 out of a possible 900.  A brief, FICO credit-score history is a new feature I noticed when I logged into my Citi® credit card account today.

My FICO® Credit Score - Brief History

What My 814 FICO® Score Means To Lenders

FICO® Scores At A Glance

Right now I'm taking advantage of three concurrent Citi promotions with my Citi® Dividend World MasterCard®:

• 0% APR on all new purchases until June 1, 2017.
• 5% cash back on purchases I make at department stores (Macy’s, Bloomingdale’s, Dillard’s, Kohl’s, Saks Fifth Avenue, etc.) and includes the electronics retailer Best Buy, which suits my geeky lifestyle just fine.  This particular promo lasts from October 1 through December 31, 2016.
• And last, but certainly not least, I am currently getting 5% cash back on all online purchases I make with my card, until November 30, 2016.

I understand the timing with the above incentives, with the holiday shopping season in the offing, but I won't be doing much spending.  I'm not rich, and I never spend for the sake of spending. 

Move Free® ULTRA

But I did use my Citi card to purchase some Move Free® ULTRA Triple Action Joint / Cartilage / Bone supplements, which the CVS.com website had discounted at buy one, get one free.  I'm an avid quad skater, and my knees have been complaining so much lately that I had to find a solution.  Move Free ULTRA has lots of very positive reviews online.

I like to use my Citi card every once in a while, just to let the folks and computers at Citi know that I'm interested in keeping the card alive.  The card offers the kind of value I appreciate, so I don't want some algorithm and/or employee to close my card due to inactivity. 

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A Very Nice Thank You from Bank of America

Bank of America Reward Debit Card

Apparently, Bank of America is very happy with the interest income they are making from me with my business credit card.  They sent me a generic, $25 debit card (Reward Card.)  Domestic use only!

How did I use it?  Some sushi for my daughter and yours truly.  It was nice.

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Discounts for Using Cash

The Wall Street Journal's Brett Arends recently produced a great article titled "The Death of The Rewards Card."

As you probably already know, when you use a credit card to pay for a purchase, a small cut goes to the bank that issued your card. An even smaller cut goes to the "middle-man" bank, the bank that handles the processing. Invariably, these fees are paid by the retailer. When dealing with volume, these small fees add up fast. In fact, many retailers complain that these fees are so burdensome that they can't afford to hire new workers, and help this limping economy get back to prosperity.

With credit card banks like American Express and Discover, the processing is not handled by another party (no middle-man.) This doesn't mean that transactions handled by these banks are cheaper for the merchant. In fact, if you ask a merchant if the fees associated with accepting American Express are higher than those associated with accepting Visa or MasterCard, the merchant is likely to tell you: yes, they are. In my own real world experience, however, I found that accepting American Express cost me about the same. That's because my transaction volume was very low, and the middle-man bank I was using for Visa and MasterCard payments was charging me a hefty fee for keeping my merchant account active.

I canceled my merchant account 2 years ago. Got too expensive for my meager volume. I now use PayPal for credit card payments, as it's very convenient, and the fees are manageable.

OK, enough with the primer. Onto this article by Mr. Arends.

Legally, all types of merchants who accept credit cards, from gas station owners to web designers, have always had the freedom to offer a discount for paying with cash instead of a credit card, thus eliminating the fees associated with accepting credit cards.

Most merchants, however, were not in the habit of pursuing this money-saving option because the payment networks used "restrictions" to discourage the practice.

The Dodd–Frank Wall Street Reform and Consumer Protection Act(1), which is now law, eliminates those "restrictions" and gives retailers true freedom to offer discounts for using cash over a credit card.

Mr. Arends contends that this could spell the end for the rewards credit card. Mr. Arends predicts that consumers will eschew using a rewards card and take the discount for using cash instead. Bottom line: credit-card rewards are great, but cash is better. Mr. Arends' thesis statement goes something like this:

"...Plastic is so over. The new cash is, er, cash...."

I totally disagree.

My position:

• Consumers like using cards. In my opinion, most people would not be comfortable carrying around wads of cash so as to enjoy discounts offered by retailers and other merchants. Using credit cards is much safer, and convenient. Would you be comfortable carrying $1,800 in cash when you go to buy that new flat-screen TV you've always wanted? I don't think so. I know I wouldn't. What if I was in NYC visiting family and fell asleep in a super crowded subway car (I used to doze off on the subway all the time when I lived there)? I might wake up and find that my cash has been "borrowed." On the other hand, if I accidentally dropped my credit card on a subway train, all I'd have to do is make a quick, toll-free call to my credit-card bank, and all would be fine.
  
  
• Has Mr. Arends forgotten about purchase protection? How much protection do you get with cash? Zero. Recently, someone tried to cheat me by selling me a broken laptop LCD backlight inverter, which was supposed to be brand new. I tried to get the problem resolved but the retailer didn't answer his phone, and didn't respond to emails. Solution was easy: let my credit-card bank deal with it. Got my money back.
  

However, I do agree with the author's statement, that:

"...Credit cards are bad for your wealth..."

No doubt, this is true for anyone who carries even a small balance from month-to-month, and pays interest on it. But for those who know how to use credit wisely, credit cards are...well...cool.

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Is the Discover More Card Still the Best Cash Back Rewards Card in the American Market

Summary: The Discover More card boasts discounts of up to 20% off through participating partners while earning unlimited rewards. Combined with their stellar customer service and built-in perks for being a Discover cardholder, it has never been easier to make your money work for you.

It seems that rewards cards are a dime a dozen these days, but all rewards cards are not created equal. The Discover More card blasts the competition with features like no annual fees, unlimited cash back reward earnings, and rewards that do not expire. Combined with the many different ways to earn and redeem rewards, the Discover More card is continually hailed as the best rewards card out there.

Discover More Card Basics

The fundamentals of the Discover More card look like this: there is absolutely no annual fee. Ever. Which means the money you earn stays in your pocket. In addition, you also get zero percent interest on all purchases for the first six months, and balance transfers for the first year. After the six month period and one year period, respectively, the rate jumps to as low as 11.9% for all purchases which is still below the average 14.9% of other cards. Discover cardholders also get to enjoy a 25-day grace period, five days more than any other card. You can also opt to have an additional card number for all of your online shopping; protecting your real card number in the event someone would get hold of it.

Reward Tiers

Rewards. Everyone loves them. And when you can earn unlimited rewards that do not expire, what could be better? With the Discover More card, you can do this and so much more. This card has a “tiered rebate system;” spend up to $1500 and get 0.25% back. Spending $1500-$3000 will get you 0.50% back, and once your annual expenditures are over $3000 you get a full 1% back on your purchases. There is also a program called “Get More Purchase” that gives you a 5% rebate on any purchase within the categories that rotate quarterly. You must sign up for each quarter’s program, but once you do simply use your card to start earning. This program does have a cap for the 5% reward, but anything over the cap will count toward the up to 1% reward you earn everyday by using your card.

Shop Discover

Built-in to the Discover More card is a shopping portal that can earn you up to a 20% rebate on your purchases with participating partners. Simply sign in and browse through their huge list of partners, such as Best Buy (5% rebate), Foot Locker (10% rebate), PetCo (15% rebate), and Restaurant.com (20% rebate) to earn your rewards. The amount of rewards that you can earn is unlimited, and you can even take the rebates earned and double their value by redeeming them for a gift certificate to over 100 partner stores.

Reward Redemption

Racking up the rewards is nice, but the real fun comes when you redeem them. The Discover More card gives you many different options for getting your rewards. You can redeem them for Discover gift cards or merchandise, or even make a charity donation in $20 increments. Or you can choose cash back via direct deposit or a Discover More account credit in $50 increments. You can always combine the different ways to redeem as long as each redemption type is above the minimum amount (either $20 or $50). It is important to note that although your rewards will never expire, if your account is inactive for 18 months or closed for any reason; your accumulated rewards will forever be lost. The same is true if you are late making two consecutive months payments; your rewards will be lost and reset to zero.

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So, Which Is The Best Gas Rewards Card Anyway?

If you look at our pages listing the best consumer gas rewards credit card and the best business gas rewards card, you will notice that we list a Chase and an American Express card for business, while on the consumer side we list a Discover card together with an American Express card. We do this because, for each category, these cards are tied for first place.

Reason for the tie on the business card side: American Express is a highly reputable bank which offers truly excellent customer service. The TrueEarnings® Business Card from Costco and American Express offers a generous 5% cash back on automobile gas purchases. However, with the Amex TrueEarnings card, you claim your earned rewards annually, which some cardholders find restrictive. Here's a snippet from the TrueEarnings terms and conditions:

"...Rebate is awarded annually in the form of an in-store coupon redeemable for cash or merchandise at any U.S. Costco Warehouse..."

With the Chase Business Rebate Card, you get 3% cash back on gas purchases, which is great. As a bonus, you can claim your rebate whenever you want. Once you've accumulated enough points, you can log onto Chase's rebate center website and browse their catalog. Among the items you can get with your rebate dollars is a statement credit, and a statement credit is as good as cash.


On the consumer side: The Discover® Open Road Card offers a 5% Cashback Bonus on gas and auto maintenance purchases. But there's a catch. From the terms and conditions:

"...Earn unlimited cash rewards on all purchases. Earn a full 5% Cashback Bonus on your first $100 in combined gas and auto maintenance purchases each billing period - up to $1,200 annually. In addition, earn a full 1% unlimited Cashback Bonus on all other purchases after your total annual purchases exceed $3,000; other purchases that are part of your first $1,500 earn .25% and other purchases that are part of your second $1,500 earn .50%. Combined gas and auto maintenance purchases in excess of $100 each billing period earn Cashback Bonus at the same rate as other purchases..."

We all know how pricey gas is these days. Getting 5% cashback on the first $100 in gas purchases each month is nice, but for folks who do a lot of driving, this may be a significant buzzkill.


With The TrueEarnings® Credit Card from Costco and American Express, which is a "personal" or "consumer" credit card, you get 3% cash back on gasoline purchases. You can also transfer a credit card balance at 1.99% intro APR for 6 months, and pay no balance transfer transaction fee.

With all other credit card categories in this site, there's a clear winner, and that' why we list only one card on these pages. As for the best consumer and business gas rewards credit card, we'll let you decide between the finalists.

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