Thursday, March 30, 2006

Credit cards with the best rewards

I'm in the market for a new credit card that gives better rebates. I know that many people think they are terrible and for many people they are terrible. But, I consider myself a fairly responsible user. I've never carried a balance on a credit card. When I got my first card, my parents gave me a handy tip: when you charge something, write it into your check book ledger so you know it will always balance.

Today I mostly use cash, but I have a number of automatic bills paid through my credit card. I figure that they're bills I have to pay anyway, so why not get some cash back?

My current plastic is an MBNA World Points MasterCard. I recently cashed out some of my miles for prepaid cards and received a $100 card for every 12,000 miles, which is a reward rate of 0.83 percent. Not terrible, but I want to do better.

That's why I read with interest an article from Kiplinger's Personal Finance on the best credit card reward programs. It looks like the Chase Rewards Plus Visa is the card for me. Hat tip to Inchoate Random Abstractions in the discussion on MyMoneyForest.

Anyone have a better suggestion?