The best "Keeper" Credit Cards for an Average Family
This list is not about the biggest bonuses, but rather cards a regular family can use year after year. While my strategy is to switch accounts regularly and collect the bonuses along the way, this is not for everyone.
I will not list the sign-up bonuses here because things constantly change in this hobby. If you want updated info, you can always check my website, www.milesforfamily.com. Go to the page “Best credit card deals for family” where there is a link to my list of long-term card choices. On that page, you can also find an updated list of best credit card bonuses. Keep in mind, I am not a financial advisor. These are my opinions only. Also, I will not be held responsible for any decisions when it comes to your credit. So, without further ado:
1) American Express Blue Cash Preferred It’s tailor-made for a middle-class family. It gives 6 percent back on groceries on up to $6,000 per year, 3 percent back on gas and department stores and 1 percent back on everything else. The card comes with an annual fee of $75, but it's worth it for the groceries bonus alone.
If you spend $500 a month on groceries (most families do), you will have $360 at the end of the year just from that one category. A couple of caveats: There are still places that don't accept Amex. Another one: Walmart is usually not coded as a grocery store. If you shop at Publix or a similar store, it's not an issue.
2) Amex EveryDay Preferred This is the newest edition to my collection and the only card that earns Membership Rewards flexible points. It’s supposed to be launched in April 2014. Here is the earning structure:
Earn 3 percent on groceries on up to $6,000 in purchases per year.
Earn 2 percent on gas.
Earn 1 percent on everything else.
If you make 30 purchases per month, you earn a 50 percent bonus on points.
Annual fee is $95.
You could potentially earn close to 60,000 points through your regular spending of $24,000 per year. If transferred to British Airways Avios miles, it could pay for 4 roundtrip tickets from Tampa to New York.
3) Sallie Mae Barclaycard with no annual fee. Here is the earning structure:
5 percent rewards on up to $250 total for groceries per month. Reports are that Walmart currently qualifies.
5 percent rewards on up to $250 total for gas per month.
5 percent rewards on up to $750 total for books per month. Notice that Amazon purchases currently count under books.
1 percent on everything else.
4) US Bank Cash Plus Visa You can currently apply for this card in-branch only or convert from an existing US Bank credit card over the phone. Here is the earning structure:
Earn 5 percent cash back on your first $2,000 in net purchases each quarter on the combined two categories you choose, like restaurants or department Stores.
Earn 2 percent cash back on your choice of one everyday category, like gas, groceries or drug store purchases.
Earn 1 percent cash back on everything else.
Earn a $25 cash bonus when you redeem $100 or more in a single redemption. Limit of 1 per calendar year.
No limit on total cash back earned.
5) Chase Freedom Visa I think this card is inferior to the first 4 choices when it comes to a middle-class family. But it can get you established with Chase bank, which has most of the best sign-up bonuses. Chase Freedom has rotating categories where you get 5 percent back on up to $1,500 on gas, groceries, drug stores or restaurants, depending on the quarter of the year. There are many ways to leverage this deal, like buying Amazon gift cards at CVS when it's part of 5 percent bonus category and so forth.
6) Fidelity Amex credit card that gives flat 2 percent back on everything. It's currently the only 2 percent card with no annual fee. The scheme does require that you set up a Fidelity account, but from what I understood, it can be a Fidelity Cash management account, where cash back is deposited.
7) Discover IT This is actually a pretty good “keeper” card as well, similar to Chase Freedom, though it's not accepted everywhere. You get 5 percent back on rotating categories each quarter on up to $1,500.
"Keepers" for some, not for all
This is a list of cards that would work very well for some families, which is why I decided to create a special section.
1) US Bank Club Carlson Visa It is a hotel points card which earns 5 points per dollar on all spending. The annual fee is $75, but you get 40,000 points upon renewal. A special benefit is you can redeem the points to get every 2nd night free.
2) Marukai JCB card If you live in CA, OR, WA or NV, you may want to consider it because it gives 3 percent cash back on almost all your spending.
3) US Bank FlexPerks Visa You earn points, which can be redeemed for gift cards or airfare. Also, you get 2 points per dollar on gas or groceries, whichever you spend on most, and 3 points on charity contributions. Airfare redemption starts at 20,000 points for up to a $400 airline ticket, with no blackout dates or capacity controls. The annual fee is $49, but you get 3,500 points if you spend 24,000 per year.
4) Spirit Airlines MasterCard This is a "niche" product and will not be a good fit for everyone. It's a good deal, due to 2,500 miles one-way airfare redemption on certain routes. The card comes with an annual fee of $59 and earns 2 miles per dollar on all purchases. When you spend $10,000 per year and pay the renewal fee, you get 5,000 miles.
So, these are my picks. No card is right for everyone. I suggest you investigate the choices for yourself. All of these offers require good to excellent credit. Also, if you happen to have other cards from these issuers, you may be able to convert without applying and getting a new credit inquiry.