Credit Card Comparison
Selecting the right credit card is a task that many people don't actually do. Most people simply select a credit card through their bank or some other source. Some people make a point of getting a credit card with a rewards program to Everyday rewards. However, very little research usually goes into that card. Why is that? Well, I think it's because we're just happy to get some sort of reward at all.
Today, I'll discuss the Cashback Credit Card vs. an Airmiles Credit Card. For both cards I'll select the "no fee" credit cards. ie: those credit cards that are free and you get the rewards as a bonus. In later articles I will discuss credit cards that you must pay a yearly fee.
Lets assume the person with the card spend a yearly total of $15,000 on the card.
- With a %1 cashback card that means the person will get a $150 back in cash. Although, we say 'cash' its never really cash. It's more like 'credit' to your next bill. Money is money though.
- With an Airmiles No fee Credit Card
like the American Express Card you would get 750 Airmiles. 750 Airmiles as we know using Gift Certificates is worth approx $80 at Shell. However, during the low flying season you'll be 150 airmiles below the amount needed to fly a short distance (ex: Calgary to Vancouver). (With the Bronze Mosaik Credit Card you'll only have 375 airmiles. )
What this comparison isn't doing is taking into consideration the fact with the airmiles credit card you'll be collecting when you shop at certain locations. How many times will you buy gas at Shell or shop at Safeway or buy something at TigerDirect's Liquidation Sale! at airmilesshops.ca.
Plus with the American Express Credit Card you get 100 Bonus AIR MILES®* reward miles. when signing up. So now you're at 850 airmiles and basically have enough for a free flight at Westjet or Air Canada. Assuming you're flying from Vancouver to Calgary this will cost you approximately $200 (before taxes).
Therefore, if this is your first American Express Credit Card it's definitely worth considering this card as you'll get a free flight in your first year as a collector. However, not taking into account airmiles collected through stores it would seem the %1 Cashback Credit Card is better for those collecting for a period of time.
You can sign-up for an American Express No-Fee Airmiles Credit Card by clicking on the image below.
Next time i'll discuss credit cards that you must pay an annual fee but get better rewards!
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