2% Cash Back Credit Cards Currently Available
Guest: quiznut1
Post subject: 2% Cash Back Credit Cards Currently Available
Posted: Tue Mar 28, 2006 12:55 am
Hi everyone,
I want to start this thread completely devoted to the 2% cash back cards, as I know they are hard to come by. I will not include cards that give you an extra .5% cash back (resulting in 2%) for revolving a balance to the next month. I will also not list cards that have an annual fee. Here are the ones I am aware of, and feel free to add any more if I miss any.
Bank of America Power Rewards Platinum Visa
- 2% cash back when you redeem 50,000 points for $1,000 statement credit
- 1 point per dollar spent
- Points expire after 5 years, no limit to amount of points you can earn in a single year
Fidelity 529 College Rewards Mastercard
- 2% cash back on all purchases
- Once you accrue $25 in cash back, redeem points for a deposit into
your 529 plan
- Limit $1,500 cash back per year
NOTE: No annual 529 account maintenance fee if auto deposit of $50 monthly or $150 quarterly is made. Also, you may withdraw any or all of your $50 monthly or $150 quarterly principal at any time without penalty, tax free (as long as your account doesn't reach $0 - automatic closure in that case).
HSBC True 2% Cash Back Gold Mastercard
- 2% cash back on all purchases
- Limit $400 cash back per year
- Seems to target invites only, but this thread on fatwallet indicates you may be able to get the card by applying in a Best Buy store (for a store credit card initially, then you get a "mystery" HSBC card). It depends on what you qualify for.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: XeroK00L
Posted: Tue Mar 28, 2006 1:51 pm
quiznut1 wrote:
Fidelity 529 College Rewards Mastercard
- 2% cash back on all purchases
- Once you accrue $25 in cash back, redeem points for a deposit into
your 529 plan
- Limit $1,500 cash back per year
NOTE: No annual 529 account maintenance fee if auto deposit of $50 monthly or $150 quarterly is made. Also, you may withdraw any or all of your $50 monthly or $150 quarterly principal at any time without penalty, tax free (as long as your account doesn't reach $0 - automatic closure in that case).
This thread is a great idea for newcomers, quiznut1!
Reading the details of the 529 card, I just realized how to make the card work for the rest of us who have no future plans to go to a college AND have no child to build this fund for. As you said, withdrawals of principal are not subject to penalty at all (note that earnings on non-qualified college expense will be subject to federal income taxes at the distributee's rate, as well as a 10% federal penalty tax). That means, we can make auto deposit of $50 every month AND withdraw $50 every month, just to avoid the fees, right? If there are contributions from the 2% cash back from the 529 card, we can withdraw that money too, since those contributions become the new pricipal as well.
Anyone sees anything that can possibly go wrong with this idea?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: quiznut1
Posted: Tue Mar 28, 2006 2:11 pm
XeroK00L wrote:
That means, we can make auto deposit of $50 every month AND withdraw $50 every month, just to avoid the fees, right?
quiznut1 wrote:
Also, you may withdraw any or all of your $50 monthly or $150 quarterly principal at any time without penalty, tax free (as long as your account doesn't reach $0 - automatic closure in that case).
Reference my quote above from my first post. Your 529 cannot reach $0 in total balance or your account will be closed. When the auto $50 monthly deposit is set in place, you could withdraw $49 each month and leave $1 in there. What I would do is set up the plan, then apply for and get the 2% credit card, use the 2% card till you reach the $25 minimum cash back to deposit into the plan, and then cash out the whole principal as well as your $25 cash back. Your money you invested in the plan should have earned a little bit by then, so you can cash out and leave your earnings.
Any other 2% cash back cards besides the ones I referenced, or other questions about the Fidelity 529 card?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: XeroK00L
Posted: Tue Mar 28, 2006 2:20 pm
quiznut1 wrote:
Reference my quote above from my first post. Your 529 cannot reach $0 in total balance or your account will be closed. When the auto $50 monthly deposit is set in place, you could withdraw $49 each month and leave $1 in there. What I would do is set up the plan, then apply for and get the 2% credit card, use the 2% card till you reach the $25 minimum cash back to deposit into the plan, and then cash out the whole principal as well as your $25 cash back. Your money you invested in the plan should have earned a little bit by then, so you can cash out and leave your earnings.
Any other 2% cash back cards besides the ones I referenced, or other questions about the Fidelity 529 card?
Haha, yup yup, well said. I saw the >$0 restriction but just didn't include the note in my post.
Forget about the Power Rewards whose 2% requirement is hard to achieve and wastes your interest earnings during the lengthy accumulation, and forget about the HSBC/Household card that is not only hard to get but also usually comes with a low credit line. I think with the approach above the 529 card should be THE card to get for EVERYONE, particularly those who are looking for a "my wallet is only big enough for one card" solution.
EDIT: For that matter, forget about the Blue Cash as well wahaha.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: quiznut1
Posted: Tue Mar 28, 2006 10:14 pm
Yeah you're right...haha
Any other 2% credit cards I didn't mention already that are available right now as we speak?
Does anyone think we will see another flat 2% credit card become available later in 2006?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: 2% Cash Back Credit Cards Currently Available
Posted: Tue Mar 28, 2006 12:55 am
Hi everyone,
I want to start this thread completely devoted to the 2% cash back cards, as I know they are hard to come by. I will not include cards that give you an extra .5% cash back (resulting in 2%) for revolving a balance to the next month. I will also not list cards that have an annual fee. Here are the ones I am aware of, and feel free to add any more if I miss any.
Bank of America Power Rewards Platinum Visa
- 2% cash back when you redeem 50,000 points for $1,000 statement credit
- 1 point per dollar spent
- Points expire after 5 years, no limit to amount of points you can earn in a single year
Fidelity 529 College Rewards Mastercard
- 2% cash back on all purchases
- Once you accrue $25 in cash back, redeem points for a deposit into
your 529 plan
- Limit $1,500 cash back per year
NOTE: No annual 529 account maintenance fee if auto deposit of $50 monthly or $150 quarterly is made. Also, you may withdraw any or all of your $50 monthly or $150 quarterly principal at any time without penalty, tax free (as long as your account doesn't reach $0 - automatic closure in that case).
HSBC True 2% Cash Back Gold Mastercard
- 2% cash back on all purchases
- Limit $400 cash back per year
- Seems to target invites only, but this thread on fatwallet indicates you may be able to get the card by applying in a Best Buy store (for a store credit card initially, then you get a "mystery" HSBC card). It depends on what you qualify for.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: XeroK00L
Posted: Tue Mar 28, 2006 1:51 pm
quiznut1 wrote:
Fidelity 529 College Rewards Mastercard
- 2% cash back on all purchases
- Once you accrue $25 in cash back, redeem points for a deposit into
your 529 plan
- Limit $1,500 cash back per year
NOTE: No annual 529 account maintenance fee if auto deposit of $50 monthly or $150 quarterly is made. Also, you may withdraw any or all of your $50 monthly or $150 quarterly principal at any time without penalty, tax free (as long as your account doesn't reach $0 - automatic closure in that case).
This thread is a great idea for newcomers, quiznut1!
Reading the details of the 529 card, I just realized how to make the card work for the rest of us who have no future plans to go to a college AND have no child to build this fund for. As you said, withdrawals of principal are not subject to penalty at all (note that earnings on non-qualified college expense will be subject to federal income taxes at the distributee's rate, as well as a 10% federal penalty tax). That means, we can make auto deposit of $50 every month AND withdraw $50 every month, just to avoid the fees, right? If there are contributions from the 2% cash back from the 529 card, we can withdraw that money too, since those contributions become the new pricipal as well.
Anyone sees anything that can possibly go wrong with this idea?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: quiznut1
Posted: Tue Mar 28, 2006 2:11 pm
XeroK00L wrote:
That means, we can make auto deposit of $50 every month AND withdraw $50 every month, just to avoid the fees, right?
quiznut1 wrote:
Also, you may withdraw any or all of your $50 monthly or $150 quarterly principal at any time without penalty, tax free (as long as your account doesn't reach $0 - automatic closure in that case).
Reference my quote above from my first post. Your 529 cannot reach $0 in total balance or your account will be closed. When the auto $50 monthly deposit is set in place, you could withdraw $49 each month and leave $1 in there. What I would do is set up the plan, then apply for and get the 2% credit card, use the 2% card till you reach the $25 minimum cash back to deposit into the plan, and then cash out the whole principal as well as your $25 cash back. Your money you invested in the plan should have earned a little bit by then, so you can cash out and leave your earnings.
Any other 2% cash back cards besides the ones I referenced, or other questions about the Fidelity 529 card?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: XeroK00L
Posted: Tue Mar 28, 2006 2:20 pm
quiznut1 wrote:
Reference my quote above from my first post. Your 529 cannot reach $0 in total balance or your account will be closed. When the auto $50 monthly deposit is set in place, you could withdraw $49 each month and leave $1 in there. What I would do is set up the plan, then apply for and get the 2% credit card, use the 2% card till you reach the $25 minimum cash back to deposit into the plan, and then cash out the whole principal as well as your $25 cash back. Your money you invested in the plan should have earned a little bit by then, so you can cash out and leave your earnings.
Any other 2% cash back cards besides the ones I referenced, or other questions about the Fidelity 529 card?
Haha, yup yup, well said. I saw the >$0 restriction but just didn't include the note in my post.
Forget about the Power Rewards whose 2% requirement is hard to achieve and wastes your interest earnings during the lengthy accumulation, and forget about the HSBC/Household card that is not only hard to get but also usually comes with a low credit line. I think with the approach above the 529 card should be THE card to get for EVERYONE, particularly those who are looking for a "my wallet is only big enough for one card" solution.
EDIT: For that matter, forget about the Blue Cash as well wahaha.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: quiznut1
Posted: Tue Mar 28, 2006 10:14 pm
Yeah you're right...haha
Any other 2% credit cards I didn't mention already that are available right now as we speak?
Does anyone think we will see another flat 2% credit card become available later in 2006?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 4:54 PM
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