If you have a brokerage account with Charles Schwab and are looking for a rewards-earning credit card that could help you maximize your investments, you may want to look into the Schwab Investor Card from American Express.
This card offers 1.5% cash back on purchases deposited directly into your linked Schwab account. And there’s no annual fee.
Schwab Investor Card from American Express Benefits
When you open a Schwab Investor Card, you get a 0% introductory APR for the first six months. Moreover, you’d get a $200 Card Statement Credit after spending $1,000 in purchases within the first three months of membership.
As a card member, you’d also get assistance with booking dinner and event reservations.
Schwab Investor Card fees
For the first six months, the Schwab Investor Card from American Express offers 0% APR. Afterward, the APR may vary between 19.24% to 22.24%, based on your creditworthiness and other factors at the time of account opening. The APR would also vary with the market based on the Prime Rate.
The Verdict: Is the Schwab Investor Card from American Express worth it?
If you already have an investing account with Charles Schwab and you’re satisfied with your service, then the Schwab Investor Card from American Express may be worth your while.
It offers 1.5% cash-back automatically deposited into your Schwab account. So you can earn more money to invest as you use it to make every-day purchases or big-ticket items.
But keep in mind these rewards can only be deposited into one eligible Schwab account. This includes a taxable Schwab brokerage account, a Schwab individual retirement account (IRA), a Schwab Roth IRA or a Schwab One account. Schwab 529 plans, a Schwab HSA and other account types aren’t eligible to receive these rewards.
Similar options from providers like Fidelity Investments offer a wider variety of account options for which you can deposit your reward bonuses into.
And while a 1.5% cash-back offer is fair, you can find higher rates from other providers like Wells Fargo if you’re just looking for a credit card with a generous rewards program. You can always deposit cash back from these credit cards into your Schwab account if you please.
In addition, the Schwab Investor Card from American Express is typically secured by people with good-to-excellent credit. That’s generally a score of 670+.
How to apply for the Schwab Investor Card
If you want to apply for the Schwab Investor Card, log into your Schwab account and visit the Schwab Cards from American Express page. Then, Click on “Apply now.”
From there, the process would be similar to applying to any credit card. You’d need to provide personal, employment and financial information. The creditor would also gather your credit report in what’s known as a “hard pull.” As with all lenders and creditors, this would affect your credit score.
When using your credit card, it’s important to be aware of ways you could avoid interest charges. In addition, you can access checking and savings accounts through the subsidiary Charles Schwab Bank, a member of the FDIC.
If you’re curious about any other part of the Charles Schwab, check out this page: a regularly updated list of all our Charles Schwab, news coverage, and lists of benefits.
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