The Best Credit Cards

I've written a few times about how to find the "best" credit card (see How to Choose the Best Reward Credit Card, Earn Money with Cash-Back Reward Credit Cards and The Best Cash-Back Credit Card as examples), but credit card companies keep changing their programs and introducing new cards, so I have to keep updating the list. Here's my latest update, this time from Kiplinger's, on the best credit cards. Their list:

• BEST GASOLINE CREDIT CARD - BP Visa - Gives a 5% rebate on all BP purchases, including car washes and items at its convenience store. In addition, you get 2% back on most travel and dining purchases and 1% on the rest of your spending.

• BEST CASH-REBATE CARD - American Express Blue Cash - You earn 1% on gas, grocery and drugstore purchases, plus 0.5% on all other spending up to $6,500. After that, your rebate jumps to 5% on gas, groceries and drugstore products (excluding purchases at Costco and similar stores) and 1.5% on everything else.

• BEST CARD FOR TRAVEL ABROAD - Capital One Platinum MasterCard - Most major credit-card issuers pass along to customers the 1% fee Visa and MasterCard charge for purchases made in a foreign currency, plus an additional 2% fee when a purchase must be converted into dollars. Capital One's no-fee Platinum MasterCard charges neither.

• BEST AIRLINE REWARDS CARD - Citi PremierPass Elite - You earn two points per dollar spent for groceries, gas, commuter transportation and parking, plus one point per dollar on everything else. Purchase a qualifying ticket, which generally means one that costs at least $299 for a ticket within the U.S. (including Hawaii in season), and you receive a free companion ticket.

• BEST LOW-RATE CARD ISSUERS - Capital One, Simmons First, Pulaski Bank - Interest rates in the 7-8% range.

• BEST CARD FOR BUSINESS EXPENSES - Advanta Platinum - Simplifies your life at tax time because you don't have to separate business and personal expenses. The no-fee Advanta Platinum business card also offers a generous 5% rebate on gasoline, office supplies, utility bills and Internet service, with a $300 annual cap.

Personally, I go for cash. I use the American Express Blue Cash card (it earned me $330 last year) and supplement it with a Subaru MasterCard (because Amex isn't taken everywhere and the MasterCard has saved me a ton of money used the right way).

So, what reward cards do you use and why?

Comments

[MM]

I use the Citi Dividend Platinum Select card -- cash rebate of 5% on groceries/gas and 1% on everything else. Supposedly they lowered the rates on 10/13, but I haven't received the notification letter that many cardholders did 2 months ago. I'll be looking at my statement closely this month. If the rates aren't attractive anymore, I'll move to my Chase Cash Plus Rewards card, with 5 points on groceries/gas and 1 point on everything else.

I use the Citi Professional card with 3 points at restaurants.

[BL]

I use Blue Cash from Amex. Definitely the best cash back card available right now.

[David B.]

This is one thing I've been meaning to do for a while now...get a credit card that offers cash back with purchases. Since I put everything on Credit and pay it off at the end of every period, it just makes sense to get some sort of rewards card. I'll definitely have to check out the AMEX Blue Cash. My only worry there is that not every place accepts AMEX.

[Terry]

On the Amex Blue Cash - is there an easy way to see what % they have attached to each purchase to make sure they got it right?

The rules are also a little vague. Two big questions I have are:

1. Purchasing Gas at Costco
2. Purchasing groceries at Walmart

I imagine they are at the lowest rate, but again - it is not 100% clear since they dont detail it out on your bill.

[FMF]

Terry -- I'm not sure. Your best bet would be to email them with a question -- or they may have an FAQ on their site that answers this.

[credit card cash back rewards enthusiast]

The Citi Driver's Edge is tough to beat for the first year's 6% on gas, grocery, drug stores. The Citi Professional is great for 3% at restaurants and other merchant types. But there are all kinds of cards that are better or worse in various spending categories, so "best" depends on one's spending profile.