Amongst finance bloggers there is a fair amount of debate about whether credit cards should be part of your financial arsenal. On one hand, when used irresponsibly they are the gateway to reckless spending and high interest debt. On the other hand, if you pay off your balance in full each month, you get rewarded with cash back rebates or other rewards.
As explained in my post Thank You For Irresponsible Credit Card Usage, card issuers are able to provide rewards because it is more than made up for by the interest being charged on outstanding balances. It’s only free rewards if you have the use your credit card right.
Basically it all comes down to whether you have the willpower to only charge what you can afford to pay off each month. If you can’t control your spending, it may be best to steer clear of credit cards and adopt a cash only budget.
Personally I pay off my balance in full each month and earn cash back on all my card purchases. Plus by using my credit card I am entitled to extra buyer protection. Hey, works for me. It doesn’t work for everyone though.
For people who can control their spending, I present a comparison of the best credit card offers:
Best US Credit Card Offer
This year Discover Card released a revolutionary credit card that is changing the playing field. While other card issuers are sneaking in fees wherever they can, Discover prides itself on providing a card that works for you. There’s no annual fee. No overlimit fee. No foreign transactions fee & no pay-by-phone fee. No late fee on your first late payment. And they won’t increase your APR for paying late*. You even get to choose your payment due date.
Generous…5% Cashback Bonus on up to $1,500 in purchases in categories that change throughout the year with free and easy sign-up. And 1% cash back on all other purchases.*. They also have a new feature called ‘Cash Back ConciergeSM’ which will help you get the most rewards with your card.
Plus for the first 14 months, enjoy 0% interest on purchases and balance transfers. Now that’s my kind of card.
Best Canadian Credit Card Offer
Smart Cash MasterCard® credit card
As a Canadian I have been jealous of the great credit cards they can take advantage of. Until recently you just couldn’t find a Canadian credit card with comparable cash back and other perks. Now the playing field is leveling off.
When I was searching for the best cash back credit card to apply for late last year, the best offer I came across is the Smart Cash MasterCard® credit card from MBNA. Now it is my primary credit card that I use for as many of my purchases as possible.
I don’t particularly like that they mail me a check for cash back rebates instead of just crediting it to my account, but I couldn’t pass up their cash back rates. I especially like that they give a higher percentage cash back on groceries and gas. For most people those are their highest credit card spending categories.
If you need help comparing the best credit card offers, feel free to contact me and I’ll be happy to help guide you in the right direction.
Disclaimer: The content above is not provided or commissioned by Discover Card or MBNA. Opinions expressed here are the author’s alone, not those of Discover Card or MBNA, and have not been reviewed, approved or otherwise endorsed by Discover Card or MBNA. This site may be compensated through Discover Card and MBNA Affiliate Programs.
Be sure to check the card issuer’s website for up to date card terms and conditions. While I make every effort to keep this information up to date, the credit card offer terms can change at any time. Current terms are available on the application page.