Q: I am a senior on a fixed income. I want a low APR, no annual charge, and any other free incentives I can get.
American Express is a CardRatings.com advertiser.
Maybe you're not leading the jet-setting lifestyle depicted in ads for Chase Sapphire and Capital One Venture Card. You still deserve a great rewards credit card that can save you some money on your everyday purchases.
I found three that could fit your situation very well:
- AARP Visa Card from Chase. This affinity rewards credit card offers a few benefits designed in partnership with the country's largest senior citizen advocacy group. Like many rewards cards, the APR is a little on the high side, but there's no annual fee. And you can take advantage of rebates of 3 percent on travel and 1 percent on everyday purchases. Chase also offers another version of this card where you can earn 3 percent cash back rewards on gasoline purchases at gas stations as well as earning 3 percent cash back rewards for dining at restaurants and 1 percent cash back rewards on all other purchases.
- Blue Cash Everyday® Card from American Express. With this offer you can earn 3 percent cash back at US supermarkets up to $6,000 per year in purchases, 2 percent cash back on gasoline at US gas stations and select US department stores, 1 percent cash back on other purchases. The first $6,000 of purchases at US supermarkets in a calendar year qualifies for 3 percent cash back; 1 percent thereafter. This card carries no annual fee. Cash back is earned on eligible purchases only and is received in the form of Reward Dollars that can be redeemed as a statement credit. The downside is that the APR is a little on the high side on this card so to maximize the rewards be sure you can pay off the balance each month. You might want to check out its cousin, the Blue Cash Preferred® Card from American Express. For a $75 annual membership fee, you can earn 6 percent cash back at US supermarkets up to $6,000 per year in purchases, 3 percent cash back on gasoline at US gas stations and select US department stores, 1 percent cash back on other purchases. The first $6,000 of purchases at US supermarkets in a calendar year qualifies for 6 percent cash back; 1 percent thereafter. Cash back is earned on eligible purchases only and is received in the form of Reward Dollars that can be redeemed as a statement credit. If you are interested in either offer be sure to review the American Express application page where you can access the terms, limitations and restrictions that apply to both offers.
- BankAmericard Cash Rewards Visa Signature Card If you live close to one of Bank of America's neighborhood branches, you might appreciate a cash back rewards card with the option of face-to-face support. Bank of America has done a great job integrating its credit card offerings into its retail branches. On the first $1,500 combined gasoline and grocery purchases you can receive 3 percent back at the gas pump, 2 percent back on groceries. And 1 percent cash back on other purchases. No annual fee and a relatively low APR.
Remember that banks often reserve their best rewards credit cards for consumers with higher incomes. Your fixed income won't disqualify you from getting approved for a cash back credit card, but the bank may set your credit limit a little lower than you might expect. However, your credit score reflects how well you manage your credit, not how much money you earn. Solid performance with mortgages, auto loans or other personal lines of credit can qualify you for at least a basic cash back card. As a reminder if the card has a rewards program be sure to review the rewards program information as well as the terms and conditions of the card before you apply for any card.