Cut Costs With Cards That Pay You Back
Beat inflation with a card that complements your spending habits and rewards your purchases.
One way to cut the cost of credit-card purchases is to keep your interest rate as low as possible. If your card company raises your rate, call customer service, advises Bill Hardekopf, of LowCards.com. "Tell the issuer, 'I need you to lower the rate or I'll leave.'"
With prices rising on many consumer staples, you can also beat inflation by selecting a credit card that complements your spending habits and rewards your purchases.
Row 0 - Cell 0 | Inflation-Proof Your Portfolio |
Row 1 - Cell 0 | 5 Ways to Whip Inflation When You Shop at a Warehouse Club |
Row 2 - Cell 0 | Beat High Prices |
Keep a balance? Get a low-rate card. Iberia Bank, in Louisiana, offers a no-fee Visa card with a variable rate between 4.25% and 6.25%, depending on your creditworthiness. If you have excellent credit, you can apply for Pulaski Bank' fixed-rate 6.5% Visa card ($35 annual fee).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Pay your bill in full? Earn cash rebates that go straight to the bottom line. Once a year you receive a credit on your statement that reduces your bill by the amount of your rebate. To find the best cash card, we assumed that you spend $2,600 a year on gas, $5,200 on groceries, $3,900 on eating out (including lunches), $500 at the drugstore, $4,300 on vacation travel, and $1,500 on gifts and miscellaneous expenses, for a total of $18,000. At that rate, using Blue Cash from American Express would cut your bill by more than $400. You earn 1% on everyday spending, including groceries, gas and drugstore purchases, and 0.5% on everything else, up to $6,500. After that, you receive 5% on everyday spending and 1.5% on everything else.
Want a break on high gas prices? Consider a gas-rebate card, such as the BP Visa. If you spend $4,000 a year on gas and $15,400 on everything else, you could lower your bill by $500. The card rebates 10% on BP gas purchases, 4% on airfare, dining, lodging and car rentals, and 2% on all other spending for the first two billing cycles. After that, the rebate is cut in half. To get a rebate on any brand of gas, select the Chase PerfectCard MasterCard. It pays a 6% gas rebate for the first 90 days, then 3% on gas and 1% on everything else. That would net you an annual refund of up to $302 on outlays of the same $4,000 for gas and $15,400 for all other purchases.
Like to earn airline miles? You earn one point for every dollar spent with the Simmons First Visa Platinum travel rewards card. It takes just 22,000 miles to earn a coach ticket worth $325 for anywhere in the 48 contiguous states and 50,000 miles for a ticket worth up to $1,000 for a flight to Europe. Blue Sky from American Express gives you a $100 credit for 7,500 miles.
Belong to a credit union? Check out special cards for credit-union members. Spend $18,000 yearly with the no-fee Visa Platinum Rewards card from the Pentagon Federal Credit Union and you'll get $362. The card offers a 2% rebate on groceries, 5% on gas and 1.25% on everything else.
SEARCH REWARD CREDIT CARD OFFERS
-
Use An iPhone? You May Be Hearing From A Class-Action Lawsuit Group
A handful of suits against the iPhone maker seek to crack down on everything from app store purchases to messaging.
By Keerthi Vedantam Published
-
Capital One/Discover: What's In Their Wallet For You?
Push back on Capital One's planned merger with Discover is growing with one group of consumer advocates calling for a public hearing.
By Keerthi Vedantam Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel Procrastinator? No matter. You can pull off a fun and memorable getaway on a moment's notice — without breaking the bank.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published
-
5 Ways to Shop for a Low Mortgage Rate
Becoming a Homeowner Rates are high this year, but you can still find an affordable loan.
By Daniel Bortz Published