If you’re looking for a rewards card, there are a lot of options out there. But they can be confusing and difficult to compare, so here’s some advice on how to find the best one for you.
Rates
This card offers 3% cash back on all purchases. There are no categories or spending caps, meaning you can earn the same rewards regardless of what you buy. In addition to this, there’s no annual fee for the first year and an annual fee of $75 thereafter. Cashback is paid in the form of statement credits and can be used as a discount to reduce your bill or applied directly toward any balance you owe at the time of purchase.
Limits
You can cash out your rewards in a number of ways. For example, you can redeem them for statement credits, gift cards, or even travel. But be careful: not all options are created equal.
Cashback is paid in the form of a statement credit, which means you’ll get it automatically at the end of each billing cycle (you don’t have to worry about timing your redemption). If you’ve maxed out your rewards for the year and haven’t received any new cashback offers, you’ll still earn 3% on everything else with this card.
Transaction Fees
The 3% credit card offers no annual fee, but the balance transfer and cash advance fees are both 5%. If you’re thinking of getting this card to consolidate your debt into one monthly payment that’s lower than what you’re paying now, think again. SoFi professionals suggest, “Choose a card with no annual fee.”
The 3% Cash Back Card has a $10 or 3%, whichever is greater, foreign transaction fee. This means that every time you use the card overseas or order something online from another country, it will cost $10 (or 3%).
Promotions and Bonus Offers
You may also be interested in learning about promotions and bonus offers. For example, you can earn $150 when you spend $500 within the first three months of opening your account. With this card, you’ll get 2% cash back on gas purchases from pharmacies and superstores, 3% cash back on grocery store purchases, and 1% on all other spending categories.
Qualifying purchases
To take advantage of the 3% cash back, you have to ensure that you are only using it for qualifying purchases. If not, then your rate will be much lower. So, for example, if you used the card for all of your purchases and paid off the balance every month, then you would get 1% cash back on all purchases.
Instead of paying off the balance each month and making multiple small payments over time, or using another credit card with better rewards or a low APR, it could be worthwhile to keep this card in case there were large purchases made on it which would qualify as “3% cash back” days.
If you are looking for a cashback credit card, 3% cashback is a great choice. It’s a good way to earn money without hitting the minimum spend on your credit card. And if you’re planning on carrying a balance from month to month, this may be the card for you!
