Pros:

• No balance transfer fee
• No cash advance fee
• Fixed interest rate
• Stunningly lucrative rewards offers
• High credit lines

Cons:

• Limited eligibility for the Navy Federal Credit Union
• $49 annual fee
• Cap on points accural of 100,000 points/year
• Expiration of unspent points after 5 years

No card can be a perfect card, but this one comes close.  If you’re eligible to join the Navy Federal Credit Union and are a heavy credit card user, then this is the card that should feature prominently in your wallet.  This card scores a 9 out of 10.

Know of other great credit cards?  Let me know about them in the comments below, and I’ll do a review on them.

On the wrong side of the ledger sat Direct Merchants and Providian, mainly because of high interest rates and high fees, with both of them charging an average of 17% interest (and a higher APR). The biggest complaint about Providian was a combination of unannounced interest rate hikes and an outdated billing system that prevented customers from getting bills in time to avoid late payment fees and paying interest.

Not surprisingly, 27% of respondents to the Consumer Reports survey said that they had difficulties in calling customer support. In an industry where efforts to squeeze operational costs mean increased use of computerized touch tone systems (the “press 1 for English” that you hear on your phone when you call the customer service number) and through offshoring customer service representatives to India, the Philippines, and Costa Rica, where credit card usage is not nearly as widespread, the resultant decline in service quality is not a surprise.

What do you think of the results? Leave a comment below and let me know!

Pros:

• No annual fee
• Competitive interest rate
• It does offer rewards

Cons:

• The rewards redemption rate is very skewed in the bank’s favor
• $.006/point rate for gift card redemption
• $.006/point rate for cash redemption
• $.003/point rate for gift purchase redemption
• $.009/point rate for airline travel redemption

This is the worst of the crop for rewards cards. It rates a 3 out of 10. Do yourself a favor and look at any other rewards card that has been reviewed here to find a better card.

Know of a card which ranks lower in the rewards dishonor roll? Let me know about it by commenting below.

Pros:

• USAA’s customer service
• Low APR variable rate (8.9%)
• Decent high end rewards
• > $.01/point travel rewards ratio on higher end

Cons:

• Lower end rewards not great
• Cash rewards is less than $1/$100 spent
• Must be a USAA member

Overall, this is a pretty good rewards program, but it could be better, and it could be open to non-USAA members. This card rates a 6.5 out of 10.

1. No annual fees
2. Cash back rewards

However, despite a $39 annual fee and miles accrual, this card certainly has its advantages for people who are frequent travelers or have always had the hankering to become one.

Pros:

• Earn 2 miles per dollar spent
• No blackout dates
• Ability to use your card to purchase travel and then get redemption from rewards center
• No airline restriction
• No foreign exchange fee for credit card purchases made internationally
  • This is the only card I know of which does not tack on a FOREX fee

Cons:

• Tiered redemption structure means that it’s most cost efficient to purchase highest priced tickets or to get tickets at top end of pricing tier
• $39 annual fee
• No miles earned for cycles where late fee is applied
• No redemption for rewards other than flights

All in all, this is definitely a good card if you are a traveler, particularly a foreign traveler, since you won’t get smacked with FOREX fees and the rewards structure favors more expensive flights. This card rates an 8 out of 10.

• Reports to credit bureaus
• Available for people with spotty credit scores

Cons:

• $222/year in fees
  • $150 annual fee
  • $6/month maintenance fee
• High minimum floor on APR
• APR tied to the highest rate in the trailing 90 day period
• Making the minimum monthly payment will never pay the card off

If you have a poor credit rating, you may be better off checking with your bank and conducting passbook savings loans from banks which report to credit bureaus, such as the Citizens~Union Savings Bank in Falls River, MA.

This card is an option if you are desperate to rebuild your credit and can afford the fees. The $150 annual fee is very stiff. Given low credit limits, the fees can represent potentially half of the available credit. This card scores a 1 out of 10.

• Olympic medals
• Beach bodies
• Statues and sculptures
• Historical ages

However, if you’re looking for a good rewards credit card, the Citi Bronze/AAdvantage Mastercard is not one of them. While not a bad card, such as the Aspire Visa credit card, it is not a particularly strong rewards card.




Pros:

• It does offer rewards
• No annual fee
• No blackout dates on American Airlines travel

Cons:

• 1 point for every $2 spent
• Maximum limit of 25,000 miles earned per year
• Miles will expire unless you fly at least once every 3 years on American Airline
• 5,000 bonus miles offered on website…except the offer expired four months ago

From the website:

TERMS AND CONDITIONS

1. American Airlines AAdvantage® bonus mileage can only be earned by new Citi® Bronze® / AAdvantage® Card card members approved through this offer. Your 5,000 AAdvantage® miles will appear as a bonus in your American Airlines AAdvantage® program account 8-10 weeks after your first purchase with the card. The AAdvantage® bonus mile offer expires on April 30, 2007.

Note to the product’s marketing manager: next time you put up an offer that expires, make sure that the webpage reverts back when the offer expires.

This card rates as a 3 out of 10. Citi has some strong rewards cards, such as the Citibank Diamond Preferred Rewards Card, but the Citi Bronze/AAdvantage Mastercard is not one of them.

What’s the worst card you’ve ever seen? Tell me about it in the comments below.

–Edwin McCain

For those of you who want a little help in getting out of town, many travel rewards card options exist. Today’s card, the Bank of America World Mastercard with WorldPoints is one that can help you on the way down the road.



Pros:

• No annual fee
• Low APR
• 0% for first 12 months, including on convenience checks
• No blackout dates on travel
• WorldPoints program is surprisingly strong with offers

Cons:

• 3% charge on foreign purchases. I thought this was a TRAVEL card…
• Mastercard not quite as widely accepted as Visa

If you like to travel and want to redeem points for travel rewards or concierge services, this is one of the better cards around. I still prefer cash back cards, but for the globe hopping set, this comes pretty close. I rate this as a 7.5 out of 10.

So, what, then, do I consider, if not the cool pictures?

• No annual fee: There are too many cards out there which can offer you what you’re looking for without having to pay the annual fee. The annual fee is effectively your way of saying, “Credit Card Company executives, I want to give you money for giving me the right to make you more money.” There is a rare exception to this rule, which I will discuss in a future post.
• Low interest rates: While you should have a zero balance, the reality is that about 45% people carry some balance, with a median balance of $2,200.
• Cash back that accrues immediately: If there is a choice between a 1% reward that gets discounted immediately and one that gives you a check at the end of the year, take the one that gets discounted from your bill immediately. Because of the time value of money, money in your pocket now (or, in this case, less money out now) is worth more than money in your pocket later.
• Rewards that are equivalent to cash: Unless the reward is equivalent to cash, you can always take the cash and buy the reward. An example of this is an airline miles card which gives out miles at the equivalent of .75 cents/dollar spent. If you can get a 1% cashback card, then you’re generally better off using it and buying the airline ticket with your saved money.

What do you look for in a credit card? Tell me by leaving a comment below.