There are two overall credit card types, network, and cobranded retail store cards. Within these types, there are four network types of cards AMEX, Discover, VISA, and MASTERCARD as well as hundreds of cobranded retail store cards.
This can lead to a great deal of confusion in choosing what to apply for and obtain. Therefore, the goal of this post is to untangle the confusion by identifying the types, networks as well as cobranded ones that exist to distinguish and choose between them. This way, one will have the advantage of applying for and using the best cards while avoiding problematic or less valuable ones.
ADDITIONAL INFORMATION
Besides this post’s specific information, one can find the recently published blog post series on ‘A Credit Card Rating System’. For additional reading, it is filled with information about my helpful Credit Card Rating System in a five-part series.
The traffic signal is the primary visual for this blog series. This image is from Pixabay.
To begin with, there are four networks or ‘major’ Credit Cards. In fact, they are the pillars of the credit card world. Specifically, the first two listed have no bank affiliations. Within them, Discover has the most international acceptance. Then the second two partner with large banks. These cards networks are:
1. AMERICAN EXPRESS (AMEX)
2. DISCOVER
3. MASTERCARD
4. VISA
There are four major credit card types or networks: American Express, Discover Cards, VISA, and MasterCard. Image from Cardrates.com
SECOND TYPE: CO-BRANDED STORE CREDIT CARDS
Store Credit Cards image from rewardscreditcards.orgNext are the store credit cards. There is a significant difference between them and the major network credit cards category. That is their tendency to be backed by smaller banks and their primary function which is to provide no-interest payment plans for making large purchases (hundreds to thousands of dollars) at major retail stores.
EXPLANATION OF CO-BRANDED CARDS
Here’s an explanation of why cobranded cards are so valuable to have as part of the ideal mix of the two major types of credit cards.
The Benefits of Co-Branded Cards in Your Pocket from an unknown source
BEST STORE CREDIT CARDS
What banks do these cards cobrand with? Let’s take a look. This section actually has a list of of some of them as well as the bank affiliations they have. Best Store Credit Cards according to WalletHub.com
Best Retail Store Credit Cards and the banks that cobrand them. Enlargment of above image
BANKS THAT COBRAND THE BEST STORE CREDIT CARDS
According to WalletHub.com, this is a list of the banks that cobrand the best store credit cards. Amazon.com Store Card-Synchrony Bank
Costco Anywhere-Citibank
Target-TD Bank
TJX Store Card-Synchrony Bank
Kohl’s Credit Card-Capital One
Fingerhut Credit Account-WebBank
MORE ABOUT THE BANKS THAT COBRAND STORE CREDIT CARDS
Many stores are cobranded by Synchrony Bank to offer a huge variety of choices
Synchrony Bank
Synchrony Bank specializes in cobranded credit cards. Offering cards that are tailored to particular customers, they have credit cards for store brands, gas stations and more.
“Most are offered with no annual fee and some have excellent rewards available. Synchrony Bank credit cards can be a good choice if you’d like to earn and redeem rewards with a particular brand.” From Synchrony Cards report by US News
Although the following also cobranded with the top retail banks, they will not be gone into in detail at this point. With one exception, Comenity bank which cobrands with 91 retailers will be explored in detail after the list of the other four top cobranding banks. Citibank TD Bank Capital One WebBank
Comenity Bank
91 Comenity Bank partners with retail credit cards from UpgradedPoints.comComenity Bank cobrands with many store credit cards with fleible benefits, quote from upgradedpoints.com
WHAT’S NEXT IN PART TWO
The following issues will be explored in Part Two of this topic, Different Types of Credit Cards And Their Best Uses. Why get network cards? Why get store brand cards? Secured versus unsecured credit cards.
COMMENTS AND QUESTIONS
This is only a SAMPLE of the comment box that can be found and filled in at the bottom of this page as well as each blog post page.
Readers are welcome to comment on this blog post by scrolling down to the VERY bottom of the page. That is where you will find the comment form where the words ‘start the discussion’ are. Questions are also welcome. But it is best to contact me for Q&A on The Credit Card Maven Facebook Page.
There are numerous credit card categories and signup incentives available. For example, some credit cards offer hefty signup bonuses. Others have top cash rewards. Then there are travel points. Finally, there is balance pay down cards. You just have to know what you need, go over the details, see what you qualify for, and apply for the best card in that category. Because there is so much to cover, this blog post will focus only on one time sign up cash incentives and ongoing cash rewards.
Credit Card Sign Up Incentives and Ongoing Cash Reward
There are basically two ways that credit card companies entice new customers seeking cash rewards as their priority. First, there is a single signup cash back bonus. This is accomplished by offering a set amount of money to be charged on a new credit card within a given amount of time. In addition or instead, there can be ongoing cash rewards.
Bank of America® VISA or MC Cash Rewards Card
This particular card is a very good deal all around. It offers a number of excellent credit card signup incentives. In fact, it is ideal for someone seeking a credit card with cash rewards: The Bank of America® Cash Rewards VISA or Mastercard
• $150 cash reward bonus
• cash back on every purchase, every time
• no annual fee†
• your choice of a 3% cash back category, 2% and 1% categories
A recent promo that came in the mail for a Bank of America® Cash Reward Credit Card
Comparing Credit Card Offers
Spending Profile
Let’s compare the Bank of America VISA Cash Rewards Card with some of my other favorites. In fact, I have several other favorites. Determining which are the best cards or even single card depends on a person’s credit card charging needs or spending profile, as I like to call it. For example, I always aim to get the maximum cash back on every purchase I make. Therefore, when I signup for a card, I like to make sure it fits into my spending profile. For example, these are my major credit card charging categories: • GROCERIES
• DINING (EATING OUT)
• UTILITIES
• GAS
• HEALTHCARE
• HOME AND PERSONAL PURCHASES
GROCERIES: The Amex Blue Cash Everyday® Card
Here is how my system works. For example, the American Express Blue Everyday card offers 3% cash back so that is my card of choice for groceries. It has a similar profile to the Bank of America® card with a few differences. The American Express Blue Cash Everyday® Card
• $150 or $200 cash reward bonus
• cash back on every purchase, every time
• no annual fee†
• 3% cash back on groceries
Numerous credit card accounts provide charts like the this one to provide of breakdown of categories of expenses or vendors within a particular category. Breakdown of Expenses by category or vendor in a particular category. The Amex Blue Cash Everyday® Credit Card is dedicated to charging GROCERIES at 3% cash back. Therefore the charted breakdown is by retail store in this case.
DINING OR EATING OUT: Capital One® SAVOR Card
This card offers 4% for dining out. It even includes McDonald’s, Burger King, Dunkin Donuts, etc..
The chart below compares values of dining out cards. The Savor Card is close to the highest and charges less than others with higher or similar % bonuses. The best credit cards for dining rewards. Notice how well the Savor Card ranks.
UTILITIES: The New Credit Card Sign Up Sweet Spot
This is how I break in a new credit card to receive their one time sign up bonus. If I use it to charge my monthly utility bills such as cable, cell phone, and contents insurance, I charge about $275 a month on it. That easily covers a requirement of $500. in charges in two months. A requirement of $1000 in charges in three months can also be covered with a few extra charges are added in. I have fulfilled the requirements of a number of very useful cards with this method. In addition, I also get monthly cash rewards this way because I use the new card for charges and pay it the following month from my checking account. This technique is a real winner if I can remember which month I am supposed to do what task.
The cable bill gets charged to a new credit credit cards towards the sign up one time bonus.
GAS: Get 3% With the New ‘Choose Your Category’ from Bank of America®
Because Bank of America® Cash Rewards Cards now offers the option of choosing 3% on their new ‘Choose Your Category’ plan, we use it to pay for gas. That is the best cash back rate I have found to date for gas.
An added offer on Bank of America® credit cards, choose your top category
HEALTHCARE AND BEAUTY: The CareCredit® Rewards Master Card
The CareCredit® Rewards Master Card pays 2% on health related and other charges that the above and below cards do not cover for more than 1% or 1.5% The CareCredit® Rewards Card pays 2% on health care, beauty and veterinary charges“Whether you use your healthcare credit card to cover your deductible, or to pay for treatments and procedures not covered by insurance*, CareCredit helps make the health, wellness and beauty treatments and procedures you want possible today.
*Subject to credit approval.” Quoted from CareCredit® Card’s application material.
The Unique Coverage of the CareCredit® Card 2% Cash Rewards
CAPITAL ONE® QUICKSILVER CARD: For Everything Else
Capital One Quicksilver VISA Card covers what none of the other cards do for mmore than 1% and gets 1.5% 1.5% cash rewards available at all times
Quicksilver offers two cash rewards cards
HOME and PERSONAL PURCHASES
The Target Red Card has many perksStore cards have certain advantages and disadvantages. They often offer 3-5% as their regular cash reward or as special promotions. For example, Target always offers 5%. But remember to carry your PIN number to use this card in their stores.
MORE HOME and PERSONAL PURCHASES
TJ Maxx which includes Home Goods, Marshalls and Sierra have special promos that can triple their usual ratio of points for each dollar spent. On the other hand, Home Depot has a $25 signup bonus which is deducted from the first purchase only. There is no cash reward bonus for their card.
TJx offers two kinds of credit cards
A WINNING HAND
As a result of careful planning, almost every charged purchase can earn a cash reward of between 1.5 % TO 5%. One exception is HOME DEPOT. They don’t offer cash rewards. So, from maximum to minimum, this is what a winning hand of credit card cash rewards might look like.
HOME, OFFICE AND PERSONAL: 5% Staples, Target*
DINING AND EAT OUT: includes McDonald’s, Burger King, Dunkin Donuts, etc. 4% Capital One® SAVOR Card
GROCERIES: 3% American Express® Blue Everyday Cash Rewards
GAS: Choose 3% on the new BoA ‘choose your category’ plan
HEALTH-RELATED, PET AND SOME BEAUTY: 2% CareCredit® Rewards MC 2%
EVERYTHING ELSE: 1.5% Capital One® Quicksilver card *Special offers triple points at certain times of the year
Keeping Track of A Winning Hand
Jim Wang of Wallet Hacks has the best trick I’ve heard of to remember which card offers what. Write it directly on the card. For example, on the Capital One® Savor Card write, ‘DINING 4%’. Just one word to describe the category and the % reward. It works very well when you have three, four, or even five cards in your wallet.
SOURCES & RESOURCES
Wallet Hacks Target Staples
TJx Credit Cards
Capital One® Savor Card
Capital One® Quicksilver Card
American Express® Blue Cash Everyday Card
Bank of America® Cash Reward Cards
CareCredit® Rewards Card
.
