best rewards credit card

[huggytree]

my 1% reward credit card just went to 0% ( 1 year expired)

i have been looking for a new one to apply for...

any suggestions on what works for you?

considering airline miles....what should i do?

typical monthly bill is around $1k

my suppliers give me a 1-2% discount for early pay, but wont if i use a credit card...otherwise i could get $6k-10k a month on it.

[Evan]

I'd stay away from airline miles. It's a fake currency, and the rules for redemption are becoming harder and harder. They are also "inflating" it requiring you to use more and more miles for free trips.

I prefer cash back options. Discover and American Express both offer nice cash back cards. Chase has a few options as well.

Go with a low interest rate if you maintain balances month to month (which diminish any potential reward you'd get).

[Aaron Hats]

Our bank, Citizens Bank, has a good rewards program if you use your debit card like a credit card. In other words, if you don't use your pin code and have it swiped like a credit card. I forget what the percentage is but you can redeem the points for almost anything like a percentage off a loan, money in your IRA, gift certificates to tons of major stores as well as Mastercard gift cards. Since I use the card so much the points really add up fast.

[Evan]

Our bank, Citizens Bank, has a good rewards program if you use your debit card like a credit card. In other words, if you don't use your pin code and have it swiped like a credit card. I forget what the percentage is but you can redeem the points for almost anything like a percentage off a loan, money in your IRA, gift certificates to tons of major stores as well as Mastercard gift cards. Since I use the card so much the points really add up fast.

As a Citizens Bank customer as well, I know the program you're referring to. I still find credit card rewards to be more worthwhile than debit card rewards. But the program Citizens does offer is a good program.

In some states it may be called Charter One.

[huggytree]

i chose the 'Advanta why wait' card...it gives 1% back and $200 back for signing up

i always use Citi bank cards in the past, but ill try this one..Citibank usually gives you a true 1% back....while i found the others dont...fine print thing...we'll see about this one


for my personal life i always use a 5% back on gas/food....i found an offer once for a new citibank card called 'drivers edge' which was supposed to give 6% on food/gas...somehow it ended up giving me 9%...being mr.honest i even called them up to find out whats going on...they said 9% is correct....i was making $100-$150 back per month on food/gas....it was fantastic....i maxed it out at $1,200 back that year....$1,200 all for doing nothing...

i cant find any business cards for over 1% back...most are less than that....

[phanio]

There are less and less business credit card program. Most issuers and lenders are pulling their business programs. They are more focused on personal cards.

Advanta does have some good programs remaining. They have a 90 day interest free card. This is a rolling program. Each purchase is given at 90 days no interest. It is not an intro offer - it relates to each and every purchase.

[Steve B]

Can't you just get a personal card, but only use it strictly for business?

[huggytree]

Steve,

ive never thought about that one..your right!

i always thought i needed a business card because im a business...maybe i dont

any thoughts?

[Steve B]

I have a "business" card that accumulates some points that can be "spent" on crap that we really don't need. It was a Quickbooks card that is supposed to dump the data directly - but, we never signed up for that feature.

[Evan]

Can't you just get a personal card, but only use it strictly for business?

If you're a corporation, this is something that could be used against you to demonstrate you are "piercing the veil" by commingling business and personal (even if it's exclusively used for business) transactions.

Keep in mind that a personal card also means you're required to pay for the debts even if the business fails. Though most business cards also require a personal guarantee, so you'd probably be on the hook even if the business did fail.

[Evan]

It was a Quickbooks card that is supposed to dump the data directly - but, we never signed up for that feature.

Some cards can be set up to automatically import. At a minimum, you can always download transactions to QuickBooks each month to help with reconciling your credit card each month. You do reconcile it every month, right? :D

[Steve B]

"Though most business cards also require a personal guarantee"

Exactly. So, now the only difference between the cards is the way they are marketed to you. I wouldn't think a superficial difference like that would come into play in a lawsuit. But, I'm often wrong.

[huggytree]

i rarely go over $1,500 per month on the card...usually $500 range lately..

if i cant pay that im really in trouble financially.

i will ask my accountant next week about the idea...sounds like i have a card that gets me 1% again....

[Business Attorney]

If you're a corporation, this is something that could be used against you to demonstrate you are "piercing the veil" by commingling business and personal (even if it's exclusively used for business) transactions.

While it might be a factor, I think if you consistently treat a credit card as a business credit card, you are arguably not commingling funds at all. In light of the fact that some big companies have taken away company credit cards and require employees to use their personal credit cards and submit reimbursement requests and
as Evan noted, most business cards are really the obligation of the individual listed on the card anyway,

it does not seem that having a credit card that is consistently used only for business and paid off with company funds should be held against the owner of the company in a case of piercing the corporate veil.

One thing to note, however, is that if it is a company card, then the cash back should also belong to the company. Pocketing the cash back while deducting the full amount of the original charge is not right.

[Evan]

One thing to note, however, is that if it is a company card, then the cash back should also belong to the company. Pocketing the cash back while deducting the full amount of the original charge is not right.

That becomes a very messy area (ethically).

[Steve B]

Honestly, that doesn't seem messy at all to me. If it's a business account, paid for by the business, why would anyone think they have the right to an individual benefit? Just because a lot of people WANT to personally benefit from it (and think they can get away with it) doesn't make it messy in my opinion. Unless you meant "messy" because so many people do it.

[billbenson]

We had a card we had to use for hotels and flights in the name of the company president.20 field sales guys with 100% travel. I guess he was furnishing his house with the reward charges.

[Evan]

David is referencing company policies which prohibit giving out company credit cards. So when you go out traveling and get that 5% cash back on your hotel and flight (assuming you make it), technically that 5% cash back should be the employers not the employees. I guess it applies, similarly, to all those free hotel points (for free hotel stays) or "miles" to fly for free. Most employees will only use it for their personal benefit, not for that of the employer.

[billbenson]

But, it shouldn't be in the presidents hands of a public company either???

[Evan]

No, it shouldn't. The "cash back" or "points" should be the company's for their use.