Whereas it is not often a good suggestion to redeem your bank card rewards to purchase a present card, you need to maximize your purchases by paying for them with the correct bank card.
Fortunately, loads of playing cards supply bonus rewards at locations like gasoline stations, grocery shops and workplace provide shops that promote reward playing cards to simply about wherever. Listed below are a few of our favorites.
Greatest playing cards for buying reward playing cards
Every of those playing cards comes from a unique issuer, so no matter the place your issuer preferences lay you need to be capable of discover the correct decide for you.
Let’s have a look at how these playing cards evaluate.
Evaluating the most effective playing cards for reward playing cards
| Card | Class bonus on retailers that promote reward playing cards | Return on spend (primarily based on TPG’s August 2024 valuations) | Welcome bonus |
|---|---|---|---|
| Ink Enterprise Money Credit score Card | 5% money again (or 5 factors per greenback) on the primary $25,000 in spend at workplace provide shops every account anniversary 12 months | 5%-10.25% | Earn $350 after spending $3,000 on purchases within the first 3 months your account is open. Plus, earn a further $400 after spending $6,000 on purchases within the first 6 months after account opening. |
| American Categorical Gold Card | 4 factors per greenback on as much as $25,000 per calendar 12 months at U.S. supermarkets; then 1 level per greenback | 8% | Earn 60,000 bonus factors after spending $6,000 on eligible purchases along with your new card inside the first six months. Plus, obtain 20% again in assertion credit on eligible purchases made at eating places worldwide inside the first 6 months (as much as $100 again). Provide ends 11/6. Phrases apply. |
| Financial institution of America Personalized Money Rewards bank card | 3% money again on the primary $2,500 per quarter in mixed purchases within the class of your selecting (then 1%) | 3% | Earn a $200 money bonus after spending $1,000 in purchases within the first 90 days of account opening. |
| Costco Wherever Visa Card by Citi | 4% money again on the primary $7,000 spent on eligible gasoline per 12 months, then 1%; 2% on all different Costco purchases. | 2%-4% | N/A |
Let’s take a deeper have a look at the small print of every of our prime picks.
Ink Enterprise Money
In case your small enterprise needs to buy reward playing cards for worker items, buying them with the Ink Enterprise Money is a good suggestion.
Annual price: $0
Welcome supply: Earn $350 after spending $3,000 on purchases within the first 3 months your account is open. Plus, earn a further $400 after spending $6,000 on purchases within the first 6 months after account opening.
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Why it is nice for reward card purchases: The Ink Enterprise Money affords 5% again on workplace provide retailer purchases (on as much as $25,000 in annual bonus spend). Workplace provide chains similar to Staples are recognized for having a big choice of reward playing cards — together with ones for a lot of retailers that will not earn rewards with different playing cards, making reward playing cards are sometimes one of the simplest ways to earn rewards on these purchases.
A present card buy at an workplace provide retailer turns into much more profitable in the event you even have one other choose Chase card. Then, your 5% again turns into 5 Final Rewards factors per greenback spent, which will be redeemed at a a lot greater worth than money again by way of Chase’s switch companions.
Past that, the Ink Enterprise Money Credit score Card is the greatest enterprise bank card for workplace provides in the marketplace immediately.
To study extra, try our full assessment of the Ink Enterprise Money.
Amex Gold Card
Because the Amex Gold has a improbable incomes charge on U.S. grocery store purchases (as much as the primary $25,000 in spending per calendar 12 months), it is an ideal choice for buying reward playing cards.
Annual price: $325 (see charges and costs)
Welcome supply: Earn 60,000 bonus factors after spending $6,000 on eligible purchases along with your new card inside the first six months. Plus, obtain 20% again in assertion credit on eligible purchases made at eating places worldwide inside the first 6 months (as much as $100 again). Provide ends 11/6. Phrases apply.
Why it is nice for reward card purchases: With the Amex Gold, you will earn 4 factors per greenback on the primary $25,000 spent at U.S. supermarkets every calendar 12 months (then 1 level per greenback), leading to an 8% return primarily based on TPG’s August 2024 valuations.
Supermarkets are one other great spot to select up a wide range of reward playing cards. Simply do not forget that superstores like Walmart and Goal should not included within the grocery store bonus class.
Incomes class bonuses on reward playing cards (particularly when purchased at grocery shops) will be hit and miss, so maintain a watch out for incomes patterns in your card.
To study extra, try our full assessment of the Amex Gold.
Financial institution of America Personalized Money Rewards bank card
For those who’re a Financial institution of America Most well-liked Rewards® member, the Personalized Money Rewards is likely one of the greatest playing cards for reward card purchases.
Annual price: $0
Welcome supply: Earn a $200 money rewards bonus after spending $1,000 within the first 90 days of account opening.
Why it is nice for reward card purchases: With the Financial institution of America Personalized Money Rewards card, you may select which class earns 3% again. This checklist contains drugstores, on-line retailers, gasoline stations and residential enchancment shops, all of that are locations you’ll find reward playing cards.
You may additionally earn 2% again on grocery shops and wholesale golf equipment. There’s a $2,500 cap on mixed rewards spending per quarter (then 1%).
On-line purchasing is an particularly compelling class as a result of you’ll get money again on digital reward playing cards from a member of the family’s favourite on-line boutique, Etsy outlets or different small companies that won’t promote bodily reward playing cards.
For those who qualify for the Financial institution of America Most well-liked Rewards program, you may really earn wherever from 3.75% again to five.25% again in your chosen bonus class, in addition to 2.5% to three.5% at grocery shops and wholesale golf equipment. Contemplating this card comes with no annual price, that is an ideal cash-back return for reward playing cards.
To study extra, try our full assessment of the Financial institution of America Personalized Money Rewards.
Costco Wherever Visa by Citi
If Costco is your house of selection for buying reward playing cards, the Costco Wherever Visa is the correct bank card for you.
Annual price: $0 when you have a Costco membership
Welcome supply: None
Why it is nice for reward card purchases: For those who get gasoline at a spot that additionally sells reward playing cards, you possibly can earn 4% again with the Costco Wherever Visa on these purchases (on the primary $7,000 per 12 months; then 1%). Moreover, Costco sells all kinds of reward playing cards, and you will earn 2% again throughout all Costco purchases.
After all, that is not fairly as excessive as among the different choices on this checklist, however it’s price mentioning.
The 2 downsides to this card are that it’s important to have a Costco membership to use and also you solely get rewards as soon as per 12 months within the type of a reward certificates.
To study extra, try our full assessment of the Costco Wherever Visa.
Can you purchase reward playing cards with a bank card?
Sure, you should buy reward playing cards with a bank card. Most retailers will settle for them, however your issuer might or might not allow you to earn rewards for this buy, so test the stipulations concerning reward card purchases in your account beforehand.
Issuers typically frown upon buying reward playing cards to fulfill the spending requirement for a welcome supply, so train warning right here. Within the worst-case state of affairs, your welcome supply may very well be clawed again, or your account might even be shut down.
In keeping with CNN, People have a collective $21 billion in unused reward playing cards. So, whereas your family members is probably not taking advantage of their reward card redemptions each vacation season, you are able to do your analysis and relaxation on the satisfaction that you simply no less than acquired your bank card rewards from the acquisition.
Why ought to I take advantage of reward playing cards?
The obvious purpose to purchase reward playing cards is to present them to a pal or beloved one, however there are additionally the explanation why shopping for reward playing cards for your self is perhaps a good suggestion.
Reward playing cards function like money at most retailers, so utilizing the reward playing cards themselves will not earn rewards. Provided that, you is perhaps asking why I’d counsel buying them to make use of. Would not it’s higher to make use of a rewards bank card on your retail buy to earn rewards?
Sadly, many retailers do not fall into frequent bonus classes, which implies you’d doubtless solely find yourself with 1% or 1 level per greenback on these purchases. Nevertheless, reward playing cards will be purchased at places that do earn rewards.
For those who purchase a present card to Nordstrom or Bass Professional Store at Staples along with your Ink Enterprise Money, that is 5% or 5 factors per greenback earned on these purchases as a substitute of the 1% or 1 level per greenback you’ll earn in any other case.
Ought to I take advantage of rewards to purchase reward playing cards?
Many bank cards will let you redeem your rewards for reward playing cards, however it’s not often a good suggestion. When redeeming factors or miles, you need to be sure that you are getting a stable redemption worth from every level or mile, and reward playing cards not often provide the greatest reward worth.
Relating to transferable currencies like Amex Membership Rewards or Chase Final Rewards, you are sometimes solely getting between 0.7 cents and 1.1 cents of worth from every level. However your factors are additionally simply price greater than that while you maximize every of the issuer’s switch associate redemption choices.
There’s an exception to this. Some bank cards supply fixed-value rewards, such because the Financial institution of America Personalized Money Rewards card talked about above. With fixed-value bank cards, your rewards are price the identical quantity, irrespective of the way you redeem them.
In that case, you possibly can get the identical worth from shopping for reward playing cards as you’ll journey. Simply understand that in the event you’re utilizing your rewards to purchase the reward playing cards, you will not get to reap the advantages of bonus rewards in your buy.
Utilizing a portal to redeem reward playing cards
Shopping for reward playing cards is type of like shopping for money for a sure retailer, which implies you may lose out on rewards while you redeem the reward playing cards. Nevertheless, there’s a approach to double dip on reward card rewards: on-line purchasing portals.
For example you utilize your Amex Gold to earn 4 factors per greenback on Ulta Magnificence reward playing cards purchased at your native U.S. grocery store (on the primary $25,000 in purchases every calendar 12 months, then 1 level per greenback). You may then redeem that reward card at Ulta.com by a purchasing portal, like Chase’s or Amex’s.
So, the place you’ll have gotten no rewards from restocking your favourite concealer and haircare merchandise by shopping for in-store, you possibly can get bonus factors by that respective purchasing portal.
Backside line
Reward playing cards make simple, glorious items for choosy family and friends members, and so they may also enable you to maximize your personal rewards and bank card technique. Simply ensure you’re utilizing the most effective bank card to purchase these reward playing cards and at all times keep in mind to make use of a web based purchasing portal at any time when attainable to redeem them.
Apply right here: Ink Enterprise Money
Apply right here: Amex Gold
Apply right here: Financial institution of America Personalized Money Rewards
Apply right here: Costco Wherever Visa by Citi
Associated: One of the best bank cards for Goal purchases
For charges and costs of the Amex Gold Card, click on right here.
