Today I’m going to analyze the first four credit cards that offer higher than average cash returns and they don’t have an annual fee.
Let me tell you, cash returns are real. Last year I received more than $300 in cash. Before we go any further, let me tell you two rules for cash returns on credit cards.
The first rule is that you don’t buy anything, and if you don’t need it, because you get 2% cash back, what you’re doing is spending 98% of the money you don’t need. I may or may not be the best example, but I think I need all of these things.
The second rule is that you don’t have the balance of these credit cards. The APR on these cards is very high. If you usually have the balance, you’d better use your local credit card.
The reason is very simple. In my case, APR is much lower, and introduction is hardly enough.
Let’s look at the top four credit cards. We have unlimited freedom to chase, double citi cash, HSBC cash incentives and Wells Fargo cash wise. Wells Fargo offers you the highest initial bonus, and the citi offers you no bonus.
HSBC offers you a regular $150 bonus, but it doesn’t have international fees. The rest of the cards are purchased by FIFA.
Let’s see how these cards behave over time. If we spend $1,000 a month, we’ll consider the initial bonus, and you’ll need to spend a certain amount to get the bonus.
As we saw in the last slide, the winner in this case was HSBC’s cash incentive. The bonus was small at first, but the promotional rate for the first six months was 2%, and the cumulative cash refund was 10% more than the year before the other announcements. But the citi had the highest cash refund rate.
Since it didn’t offer the initial bonus, it started slowly, so let’s take a look at the rest of the situation at $15,200 a month, and surprisingly HSBC took the lead again.
With that in mind, I think the short and long term two years are long term, and HSBC is by far the best short and long term credit card to date in 2018.
As the only credit card that doesn’t have international fees, it gets extra bonus points, and HSBC notes that, at some point, higher cash-back rates in the citi will make it a winner, but it will take longer or longer to settle monthly bills.
I almost forgot that there was an honorary prize for the Pope’s cash return, but it didn’t offer anything different from the citi.