How do I know which rewards credit card to get?

Question

I have a Visa through my credit union and it is ok. I plan on having that one for the rest of my life. But I would like a rewards credit card, since mine has nothing.

How do I choose between which rewards card to get?

Right now it is between Chase Freedom Visa and Discover.

Chase Freedom- No annual fee, starting bonus points enough to get a $50 gift card, 3% cashback on most used 3 categories, 1% cashback on everything else. 14.99% variable APR.

Discover- No annual fee, 5% cashback on everyday purchases and 1% on everything else (that kind of confused me, but I think it's like the Chase categories), 0% Apr until Feb. 2009, 10.99-18.99% after that.

I don't need another Visa, but that one seems to be the best. I pay my other Visa in full every month. Never paid the bank a cent on interest. If I had to pay interest, I would use my 9.99% APR card. I don't intend (for now) to use it for more than $200 a month, unless I put my rent on it, just to earn points.

Any suggestions??

Answer 1

The low introductory rates are good but short-lives a few months or a year at best then they blow up into mass interest rate cards. I say steer clear of these. Depending on what you're looking for, rewards, points, cashback then choose that card feature that also features the lowest interest rate and annual fee (if any.)

Keep your usage to a minimum ideally less than 20% of your limit.

Answer 2

I went through the same frustration when i wanted to get a rewards card. I found the following site to be very helpful. They categorize the cards based on their reward type and tell you which ones are the best. You have to make sure that the annual fee you pay should justify for the rewards u r receiving back.

Answer 3

A couple of years ago I did a financial calculation on which of two reward cards would yield the highest reward for the type of points I want.  I chose the card with the highest award based on my known spending pattern.  Like you, I pay my entire balance each month.

God bless!