The first five months of 2013 have seen a host of great new credit card deals from credit card companies looking to gain a competitive edge on one another. As a result of this competition, consumers really have a chance to benefit from compelling new credit card offers. Several card issuers have launched new cash back credit cards this year, so I figured this is a good time to break down the best cash back credit cards currently on the market.
Here are the top three cash back credit cards of the second quarter of 2013:
1. Discover it Card – The Discover it Card was launched in early 2013 as part of Discover’s complete credit card overhaul. Discover retired the vast majority of their old credit cards and rolled all the benefits into the new Discover it Card in order to simplify the entire credit card process. With the Discover it Card, cardholders earn 5% cash back on up to $1,500 in purchases at rotating categories throughout the year. The current bonus category through June applies to purchases made at home improvement stores. Cardholders also receive 1% cash back on all other purchases year-round, and are not required to pay an annual fee, or any overlimit or foreign transaction fees. Discover also does not charge a late fee on your first late payment, nor will they increase your APR for paying late. Lastly, the Discover it Card offers a 0% introductory APR on both purchases and balance transfers for 14 months.
2. Capital One Cash Rewards – $100 Cash Back Bonus – The Capital One Cash Rewards Card is another excellent cash back credit card for several reasons. First off, cardholders earn a $100 cash back bonus when they spend just $500 on purchases in the first three months that they have the card. Cardholders also receive 1% cash back on all purchases, as well as a 50% bonus at the end of each year on the cash back total earned during the year, which brings the effective cash back rate to 1.5%. The Capital One Cash Rewards Card also features no annual fee, and offers a 0% introductory period on both purchases and balance transfers until May 2014.
3. Blue Cash Preferred Card from American Express – The American Express Blue Cash Preferred Card also makes my list of the best cash back credit cards of the second quarter of 2013. With the Blue Cash Preferred Card, cardholders receive a $150 cash back bonus in the form of Reward Dollars when they make $1,000 in purchases in the first three months that they have the card. In addition, cardholders receive 6% cash back at US supermarkets up to $6,000 per year in purchases, 3% cash back at US gas stations and eligible US department stores, and 1% cash back on all other purchases. Cardholders also receive a 0% introductory period on purchases for 12 months. The only downside to the Blue Cash Preferred Card from American Express is that it carries a $75 annual fee, so if you’re not a big spender, then the Discover it Card or Capital One Cash Rewards Card are probably better choices.
This post was written by Logan Abbott. Logan is a personal finance and credit card expert, and he also runs operations at MyRatePlan.com, a leading comparison-shopping website for credit cards.