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The Best Reward Credit Cards You Probably Haven’t Heard Of

By WTOP Staff

Reward credit cards may seem like a simple way to generate some extra money, but many consumers don’t truly know how to play the game. Cash back cards are certainly not created equally, and everyone’s spending habits are different. Whether you pay more for groceries, gas or travel, the seven cards below offer the best opportunities to maximize your spending habits.

Pure Cash Back

Capital One’s Quicksilver Card dominated the cash back space for a while — and who didn’t enjoy those Alec Baldwin commercials? — but the 1.5 percent cash back deal has been dethroned. The Fidelity Investment Rewards American Express Card and Citi Double Cash Card both offer flat 2 percent cash back on all purchases. This card also provides an automatic way to invest in a retirement account, 529 college savings account or brokerage account. There is no annual fee, and you get a $50 bonus if you spend $500 in the first 60 days.

The catch: With Fidelity, customers must have a Fidelity account. This can be a cash management account, which users can link to another checking account to transfer the earned cash back.

Citi Double Cash offers 1 percent cash back on all purchases, and when customers pay their bill on time the cash back doubles. There is also no annual fee for this card.

The catch: Citibank states on its website: “Just make sure to pay at least the minimum due. You don’t have to wait until you’ve paid off a purchase to earn cash back on each payment.” But if cardholders don’t pay off their purchases in full, the interest owed to Citi on the revolving debt will likely wipe out the value of double cash back.

Got a Gas-Guzzler?

Gas prices may be dropping, but many Americans still fork over a significant amount of money at the pump each month.

The Pentagon Federal Credit Union’s Platinum Cash Rewards Visa Plus Card offers 5 percent cash back on gas purchases with no caps, limits or tiers on rewards. There is no annual fee for the Visa Plus Card. Members can elect to get the standard Platinum Cash Rewards Card, which only offers 3 percent cash back at the pump. There is no fee for the first year, but a $25 annual fee on subsequent years.

The catch: The card is only available to the credit union’s members. However, anyone can join PenFed credit union with a one-time $15 donation to either Voices for America’s Troops or the National Military Family Association. Members will also be asked to make a $5 deposit into a savings account to establish membership. This deposit is refundable should a member elect to terminate the relationship.

If a family spends $3,000 on gas in a year, this card is a simple way to earn $150 in straight cash back, or $135 in year one after the cost to join the credit union.

To qualify for the Visa Plus, members must also have one of the following:

— Active checking account with direct deposit ($250 minimum)

— Money market certificate or IRA certificate

— Mortgage with PenFed

— Installment loan with PenFed

— Equity loan or equity line of credit

— Thrifty credit service

— Personal line of credit

— Money Market Savings Accounts

Fill Up Your Belly and Your Wallet

Those who typically spend big in the grocery store should consider adding the Blue Cash Preferred Card from American Express to their credit card line up. The card offers 6 percent cash back on groceries up to $6,000 a year. Blue Cash Preferred also offers 3 percent cash back (with no cap) at gas stations and select department stores. First-time customers will get a $100 statement credit after spending $1,000 in the first three months as well as a free Amazon Prime one-year membership.

The catch: There is a steep annual fee of $75, so users need to ensure the annual fee makes sense for the amount of cash back they’d receive.

For the Frequent Traveler

Separate from cards used to churn miles or points for free airfare, AAA offers a card to maximize money spent on traveling.

The AAA Member Rewards Visa Signature Card offers 3 percent cash back on qualifying travel purchases such as hotels, airfare, cruise lines and car rentals. There is no annual fee, and cardholders do not need to be AAA members.

The catch: There is a lot of fine print on this card, so check to see if your hotels, airlines and car rental companies are included as eligible merchants.

PenFed offers a slightly less restrictive travel card: the Premium Travel Rewards American Express Card. The card offers five points on all airfare purchases and one point on all other purchases.

The catch: This card is really only a good value for frequent fliers.

Want to Carry Just One Card?

Santandar Bravo MasterCard offers triple points on gas, groceries and restaurants, and one point per dollar spent on other purchases. New cardholders earn a $100 bonus after spending $1,000 in the first three months.

The catch: The card caps rewards at $5,000 in purchases each quarter, and there is an annual fee of $49 after the first year.

The Bottom Line: If you want to take advantage of rewards, do it responsibly. Pay credit card bills on time and in full. If you carry over balances, using a rewards credit card is pointless because the interest you pay will ultimately wipe out the cash back earned.

More from U.S. News

8 Ways to Maximize Your Credit Card Rewards

The Debit Card Danger You’re Probably Forgetting

10 Ways Consumers Are Often Duped

The Best Reward Credit Cards You Probably Haven’t Heard Of originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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