- Posted by NateKragness on September 23, 2009
Card rebates aren't what they used to be, but there are still some excellent deals out there. The best general-purpose card right now is the Charles Schwab Invest First Visa. It gives you 2% back on everything you buy as a credit to your Charles Schwab brokerage account every month. This is great, since (a) 2% is the best you can get, and (b) most credit cards credit your cash back annually, not each and every month. Once you are credited your monthly rebate, you can easily transfer it directly into your bank account at any time. But there are additional steps you can take, aside from getting the best credit card, to maximize your spending rewards. So get this card if you don't have it already, and move on to the next step.
Once you have applied for your new card, or if you have one already, create an account over at U-Promise, a site that gives you cash back for things like dining out, or buying something in the supermarket, and paying with your credit card. You don't have to do anything special aside from a one-time registration of your card, and you occasionally get cash rewards credited to your account by using your card as you normally would. You can designate anyone (including yourself) as a beneficiary, so this is a great way to begin saving for yourself, a relative, or anyone else that you choose. Setting up your account only takes a moment, so go register now. Note that since the fund is designated as a 529 education savings plan, unless you are using the money towards your tuition you will incur a small penalty for withdrawing your money. But remember, paying a 10% penalty on money that didn't cost you anything is a lot better than not having the money at all!
Finally, make sure that any time you buy something online, you check to see what rebates are available. Use evreward.com, where you can enter a merchant name and get the cash-back results from various providers. You can usually find U-Promise amongst the results, along with at least several other companies. Using this data, you can make a decision which rewards company you want to use. Sometimes the differences between companies can be substantial, so always check evreward.com first, before you buy anything online.
For those who are really looking to maximize their rebates, consider a card like the Discover Get More in additional to the Charles Schwab Invest First Visa. The Discover card has various categories that pay you 5% cash back, and the categories change four times a year. By keeping track of which categories are active as you spend (use this calendar), you can manage a 5% rebate on gas, restaurants, travel, and many other categories. The best part is that the 5% cash-back is completely separate from your U-Promise bonuses, so using both can result in as much at 10% off purchases, and all you have to do is sign up once and forget about it.