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Readers Review
Cash Back Credit Cards

Reader's Question Which Cashback Card Is Best?

I basically use 1 credit card to make all my purchases (Citibank). I pay my bill in full each month. I pay everything (including groceries ) on credit cards because it is easier to use then cash. Citibank used to offer Buyer's protection, and extend warranties, but recently it has cut back on a lot of things. I am looking for credit card that offers cash back or merchandise, because I spend close to $10,000 a year in credit card charges. Also I have excellent credit rating. Your help will greatly be appreciated. --Saffiyah

Kroger Mastercard or TJMaxx Visa 1% or 2% (in store)

I've had good experiences with the Mastercard offered by Kroger (if you happen to have Kroger grocery stores in your area). You get a rebate of 1% back on all purchases except Kroger purchases, which give a 2% rebate, paid to you in the form of grocery store gift certificates. Another bonus is that with each statement, the store sends you two or three coupons for free items at Kroger--anything from free crackers to free coffee to free photo finishing.

Another good card is the TJ Maxx VISA. It's good at TJ Maxx and Marshall's stores. Same rebates as with the Kroger card (2% at that store, 1% at all others) and they send you a free $15 gift certificate when you open the account AND another one when you first use the card. That's $30 I've gotten in free merchandise, just for using a card with no fee that gives me a cashback bonus. --Ronda S

Sears 1% plus Discounts

If you are looking for a credit card that offers cash back you should consider a Sears card. They offer the bonus club, which gives you a 1% coupon good for your next purchase, once you have charged $300. If you charge enough there, you can become a Sears Best Customer, and you will be eligable for special discounts, as well as getting advance notice of sales. They also have specials, usually around Christmas, where you can save an extra 10% if you make your purchase on your Sears card. If you apply for the card while making a puchase, you can save $5 on your purchase, ask for rapid credit. Sam's Club also offers a 1% cash back coupon yearly. I just got my check for $12.53! --Shane P.

GE Mastercard Warning

I have a GE Rewards Mastercard that pays cash back for purchases. (1%) I was really happy with it until they decided to change their terms last year and charge a $35 annual fee. The annual fee only applies if you do not pay at least $35 in interest during the year. In a way, it punishes their credit card customers who pay off their balance every month by forcing you to pay them something extra anyhow. My annual rebate is always larger than $35, but I am looking for another card anyhow because I don't like being punished for being good with my money. So please check the terms of any cash back card before you sign up or you might feel like you're not getting all you expected to. --Julie

Bellsouth at 1%

I would suggest either Discover or we have a Bellsouth Visa card. We have decided to just use the Bellsouth because it gives 1% back from the beginnning. Discover you have to work up to 1%. --June

Discover for Me

The Discover Card has a cash back feature. I am using this card for all my purchases and also pay the bill in full each month. Last year I earned a $450 cash back award. --P

Giant Food Visa 1% and 3% on groceries

It probably won't help you, because if you were in this area you would probably already know about it, but... We have the "Giant Food Visa" card issued by Chevy Chase Bank. We found that it had the right combination of features for us. First, no annual fee. Second, all the normal advantages of a gold card (for the gold card version). Finally, we get "free groceries" in the amount of 3% of all Giant Food purchases and 1% of all other purchases. Every quarter we get mailed coupons that are essentially Giant gift certificates in the appropriate amount.

We calculated that $300 a month in groceries (most spent at Giant anyway) translates into $9/month, even if we didn't spend anything else. Sure we "have to" spend it on groceries, but we were going to do that anyway. It frees up other money to go straight into savings.

You should be able to pick up an application at any Giant Food store. If there isn't one in your area, the card won't be of much use to you anyway. --sKw

Citibank frequent flier miles

Discover is probably the best. We don't use ours enough, but it is nice to get a check for spending money! Plus, most businesses now accept Discover, so you can use it almost anywhere.

Because I travel for work, I have a Citibank credit card tied to my American frequent flier card. So, everytime I spend a dollar, I get miles. This allows me to get extra miles so my husband can join me on some trips. --Melinda L.

Bi-Lo Visa 2% and 3% on groceries

My husband and I do the same thing -- charge all of our purchases and then pay the balance at the end of the month. We have always had a cash-back card. Our first was Discover which offered 1% back. Now we have 2 separate Visas -- a BellSouth Visa for my husband's business that offers 1% cashback, and a Bi-Lo Visa which offers 3% back on all Bi-Lo (grocery) purchases and 2% back on all other purchases. Bi-Lo Visa handles these cash-backs in the form of grocery coupons. The very first month, we received a coupon for over $20 of groceries. Considering that my husband and I have no children and spend just over $100 a month on groceries anyway, $20 is an awful lot to save!

I encourage you to check out large grocery store chains in your areas to see if any of them have a Visa with a cashback. My husband and I never really searched for our cards -- we stumbled upon them! So just keep your eyes open! --A.

Fisher Price Visa savings bonds

We use the Fisher Price Visa card. For every $2500 you charge, you get a $50 savings bond. You extra credits for purchasing Fisher Price products with your card, and for referrals. Over all we have been happy with the card, and have used some of the savings bonds as gifts for our nephews and nieces at Christmas time by transferring ownership of the bond to them. Good luck - I'll be anxious to see what your other readers come up with. Phone number to contact Fisher Price is 1-800-845-2987. -- Tam

Discover 1%

Discover card is one of the credit cards that pays interest when you use it. I believe it pays 1% of what you spend each year in in- terest. I do know that Discover is not accepted everywhere since it is not a major credit card, but it is accepted in many places. Good luck! Maureen M. Ewing, N.J.

Beware of Interest Rates

Discover offers the best cashback deal I've found. It has a graduated scale depending on how much you charge. Call them at (800) DISCOVER.

Sometimes you need a Visa or a MasterCard. U.S. West (the telephone company) has a card which offers a rebate plus all the gold or platinum card accoutrements and no annual fee. 800 872 2699.

With either card, plan to pay balances in full because interest with either of these cards is punitive. U.S. West just added lots of new "features" like a higher late fee, bounced check fee and cash advance fees. None of these are for the faint of heart. --Sean

Associates Visa Gold

Associates Visa Gold card offers a percentage rebate on the amount spent each month. Up until now there has been no yearly fee for the card. You can always call and ask them to waive the fee and most times they will. --JM

Another Associates Visa 1% or 3% (if you carry a balance)

The card I've been using for the past year or so is a Visa card from Associates National Bank in Delaware. The customer service number is 1-800-233-1343, but there may be another general number if you call 1-800-555-1212 for toll free information. I just got a Discover/Novus card which is accepted almost everywhere. I compared them and decided to try to use Novus first and if they don't take it I'll use Visa.

The Visa card gives you 1% on all purchases if you pay off the balance each month and up to 3% if you carry a balance. I wouldn't carry a balance. The Novus card is more complicated. On the 1st $1000, they pay you .25% (or .0025 x the purchase). On the second $1000 they pay you .50%, the 3rd $1000 = .75%, 4th and 5th $1000 = 1% and over $5000 they pay you 2%. I did the math and because I charge everything I can and pay it off each month, I think I'll be better off with Novus. Associates uses the calendar year; the Novus year begins with the month you start using it and goes for 12 months.

I think it's a good idea to use this type of card. You get to keep your money a little longer, there's no service charge and they pay you for using it. The only caution I'd give is if you have a tendency to spend more if you charge it (instead of paying with cash or check) or there is any chance you might not be able to pay it off each month, it could end up costing you more than they pay you. So be careful. --Jean M.

Editor's note: another later review Click Here.

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