This is part of the TFB Awards for Best In Class in Financial Services series.
Update on December 17, 2006:
The Chase Rewards Plus Visa card no long appears on Chase web site. Links to online application and rewards brochure are dead. This card may not be available to new applicants any more. Exisiting card holders may still enjoy the same benefits. Call Chase and find out.
The Chase Cash Plus Rewards MasterCard no longer appears on Chase web site. This card may not be available to new applicants any more. No change to the rewards program so far.
The Chase Rewards Plus Visa card wins the award in the category of Best Credit Card for Grocery, Gas, and Drugstore Purchases. It is one of the few cards that still gives 5% reward on grocery, gas and drugstore purchases on an ongoing basis. There are other 5% reward cards for these so-called “everyday” purchases, but most of them offer the 5% reward only for a limited time, typically the first 12 months. A popular Citibank Platinum Dividend Select card recently scaled back the rewards for the “everyday” purchases from 5% to 2%. Although any card can change the reward program at any time, until the policy changes, this is the best card for grocery, gas, and drugstore purchases because it has a high annual reward limit of $750. For best redemption value, you must wait until $100 worth of reward is accumulated. Besides cash, you can also redeem the rewards for travel, which can be worth more than the cash reward. For example for 25,000 points you can get a ticket within the US and for 50,000 points you can get a ticket to anywhere in Europe. The ticket may cost more than $250 and $500 respectively.
Runner Up: Chase Cash Plus Rewards MasterCard
This card, also offered by Chase, is a close second to the Rewards Plus Visa. It also offers 5% reward on “everyday” purchases. The redemption option is cash only but you only need to accumulate 5,000 points for a $50 reward check. The annual reward limit is $300 (equal to $6,000 in purchases in grocery, gas and drugstore categories). The lower reward limit makes it the 2nd choice. If you think will not hit the limit and you don’t care about the option to redeem points for travel, but would rather receive the reward sooner, this is also a very good card for “everyday” purchases.
- Apply by phone: call1-888-787-0329
- Discussion on FatWallet Finance