By Jennifer Calonia, Go Banking Rates
Which credit card has best rewards?
As the winter season draws near and holiday giving expectations become more and more grandiose, shoppers are starting to scrutinize how much their holiday spirit will cost them at the end of the year. However, shopping for presents can actually provide boomerang benefits with the use of a rewards credit card.
Those in the market for a new credit card stand to gain the most from rewards-based cards, especially during the holidays. With credit card companies offering more sign-up incentives to entice new customers, it’s prime time for free money.
In addition to incredible cash bonus offers — some in the hundreds of dollars — charging gifts on a rewards credit card can also earn you points.
Here are a few of the best reward credit cards available today.
1. Barclaycard Rewards MasterCard
Having a credit card that helps you earn points during one of the busiest shopping periods of the year can be crucial when it comes to saving money. The Barclaycard Rewards MasterCard also provides new customers with an easy 5,000 bonus points (equivalent to $50) with the first purchase or balance transfer into the account.
But the benefits don’t stop upon opening a new line of credit — they last all year long. The rewards credit card provides cardholders with an impressive two points on gas, groceries and utility expenses, so customers get cash back on daily living. All other charges earn one point for every dollar spent.
A few additional perks to the Barclaycard Rewards MasterCard include:
No annual fees
No blackout dates, caps or expiration on points
0% APR on purchases and balance transfers for 12 months
Points can be used on anything from next year’s holiday flights and gift cards to getting a head start on 2014 wishlists.
2. PenFed Platinum Rewards Visa Signature Card
Pentagon Federal Credit Union is one of the largest credit unions in the nation, giving more than 1.2 million members the chance at exceptional cash-back returns through its PenFed Platinum Rewards Visa Card.
In addition to earning one point for every dollar charged to the account, the PenFed credit card also has a limited-time offer through Dec. 31, 2013 that will give cardholders five points on gas purchases at the pump and three points for grocery store purchases. After that date, points are adjusted to three and two points on gas and groceries, respectively.
There is no annual fee dragging down rewards, and the low 9.99% APR introductory rate won’t cause shoppers to turn into Scrooge on account of excessive interest charges.
3. Chase Sapphire Card
Shoppers who are too busy make dinner between gift list excursions can still benefit from reward credit card savings. Users of the Chase Sapphire credit card earn a generous two points on restaurant dining, plus one point for all other purchases.
Cardholders also receive an extra point for every $1 spent on travel purchases (airfare and hotel bookings) when purchased through Chase‘s Ultimate Rewards website. The perks don’t end there, as the bank is currently offering 10,000 bonus points to new customers that spend at least $500 in the first three months of opening the account.
The Chase Sapphire credit card has no annual fee and no point caps that hinder how much cardholders can earn through the year.
4. Discover It Card
The It card is Discover‘s new way of giving back to its customers with quarterly reward categories that have the potential to earn users a lot of return.
Discover It cardholders earn as much as 5 percent cash back on online shopping during the months of October to December 2013. There are no annual fees associated with the account, and the reward cap is as high as $1,500 in purchases for the holiday shopping season. All other purchases brings in 1 percent cash back, which is unlimited.
Additional perks of the Discover It credit card include an introductory 0 percent APR for the first 14 months on purchases and balance transfers. Additionally, rewards can be instantly redeemed on Amazon.com.
Read the full article by Jennifer Calonia from Go Banking Rates.
