Debt-ridden American consumers are reforming their free-spending ways. We've paid off $160 billion of revolving debt (almost all credit-card debt) since September 2008. It may seem counterintuitive, but some credit cards actually encourage this new frugal behavior. The cards below are all good deals -- at least for the first year.
Discover's no-fee Motiva card rewards cardholders who carry a balance for making monthly payments on time. Do that six times in a row and you receive the next month's interest as a Pay-On-Time Bonus. You'll receive your interest rebate twice a year if you pay on time every month. And you earn up to a 1% cash-back bonus on purchases. Automatic payment reminders and free payments by phone help cardholders stay on schedule.
Citi Forward card users who pay on time for three months in a row and stay under their credit limit receive a reduction in their interest rate of 0.25 percentage point (you can earn a maximum reduction of two points). Holders of this no-fee card earn ThankYou reward points for every dollar they spend, and they earn additional points for paying on time. Points can be redeemed for cash, travel or merchandise.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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.
Use the no-fee Capital One MTV Visa card and you'll earn 25 bonus points each billing period that you pay on time. You also earn five points for every dollar spent on entertainment, two for money spent at restaurants and one for all other outlays. Redeem the points for MTV merchandise or for shows, cash, airline tickets or gift cards. Or you can donate your points to charity.
-
Quiz: How Much Do You Know About Taxes on Social Security Benefits?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
Are You Ready for 65? The Medicare Initial Enrollment Period QuizQuiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Does Amazon Prime Day End in October? Everything We Know, Plus the Best Deals on Samsonite, Samsung and MoreAmazon Prime The Amazon Prime Big Deal Days sale ends soon. Here are the key details you need to know, plus some of our favorite deals members can shop before it's over.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
