- Centurion Member
- Posts: 875
- Joined: Thu Apr 30, 2009 2:32 pm
- Location: Texas
If you must carry a balance, you should do it on whatever card offers you the lowest ultimate interest. If that happens to be a rewards card with a promotional rate, that's fine. Just remember to adhere to the rules of the promotion and pay off the balance before it ends. It seems the majority of cards out there now offer some form of rewards.
If you are card surfing for promotional rates, a balance transfer to a new account, i.e., one that offers you a promotional rate in order to get your business, will likely be a better deal (lower/no interest, longer promotion term).
I used to carry around a large balance and re-home it every 6-9 months to a new card with a 0% promotional rate, paying only the 2-3% balance transfer rate each time. That got old so I paid off the debt.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).
*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.