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moneysense.ca, 19/02/06
Citi Driver’s Edge MasterCard
After years of using the American Express AIR MILES credit card, I recently applied for the American Express Costco Cash Rebate Card. The rewards rate on the AIR MILES credit card is 0.68%, whereas the Costco Cash Rebate is 1.5% (on spending over $5,000 to a maximum of $500).
In the comments to the earlier post, a reader recommended the Citi Driver’s Edge MasterCard. The card, which has no annual fee and offers 2% cash rebate towards the purchase or lease of any new or used car, truck, motorcycle etc. up to $2,500, might appeal to consumers considering a vehicle purchase in the next 3-5 years.
PS: Hunting for rewards is worthwhile only if the entire credit card balance is paid in full every month. If you are planning on carrying a balance, it is better to look for a card with the lowest interest rate.
moneysense.ca, 19/02/06
Thanks CC, for your mail on Canadian banks. It is very helpful.
Good Information.
Thanks.
The Costco card you mention is the same as the Amex “Blue” card, isn’t it?
[...] I just read one common misconception a few days ago: “Hunting for rewards is worthwhile only if the entire credit card balance is paid in full every month.” While technically correct (in my opinion) for a small minority of the population, as the Wealthy Barber says, “many people who pay off their balance each month are still hurt by their use of credit cards.” Just because one pays of his/her credit card bill every month does not mean that the credit is just acting like a convenient replacement for cash. In fact most people spend more using a credit card without even realizing it, even those who pay it off every month. And if you accept this fact, than hunting for rewards programs is not worthwhile. Which brings me to one of the best blog posts I have read in a long time about cash-back credit cards. Okay, the hottest thing going today, in the financial realm, is the “Cash Back” credit card. Almost every major credit card issuer is offering one of these “wonderful” things, promising you cash back for the purchases you make. Some promise cash back for groceries, gas, or everyday purchases. You can get bonus miles, bonus cash, and bonus gift cards. Wow! These things are wonderful… [...]
FMF: I am not familiar with the Blue card. Here in Canada, I was able to apply for a Amex card (It is called Platinum Costco Cash Rebate card), which doubles as a Costco card and gives upto 1.5% cashback on all purchases.
We have been using the Citibank Driver’s Edge card for the past 4 years and will be looking for a used vehicle next year. We should be up around the $2800-$3000 mark by then so it will be nice. One thing to note…the maximum is $5000 not $2500…so this makes it all the more attractive if you are looking to purchase a vehicle in the next 5 years.