It should go without saying that picking the right cash-back credit card can be surprisingly challenging. With dozens of cards available, all promising the best perks, you have to seriously consider your shopping habits and the kind of perks you want to have available.
In the case of one Redditor, there is a real question about what to do after finding that their current Alliant 2.5% cashback card isn’t all it’s cracked up to be. Between terrible customer service and a cash-back percentage that drops intermittently, the poster is on the hunt for something new.
As someone always looking at credit cards for the best perks, I empathize with this Redditor, but I also know plenty of other options are available.
The Alliant Card
With a unique hook, the Alliant card that the Redditor currently uses offers unlimited cash back, with the first $10,000 in qualifying eligible purchases earning 2.5% per billing cycle. However, the caveat, and what is causing the Redditor some frustration, is that after you spend $10,000 on the card, again, you only earn 1.5% per billing cycle.
To be fair, even members of the FIRE community are unlikely to regularly spend more than $10,000 on a credit card monthly, save for months where a vacation is booked. As a result, it’s hard to imagine this coming up as a regular frustration for the Redditor, but it’s still something in the back of their mind.
Of course, this now means that you have the challenge of maintaining this 2.5% perk ongoing, which also requires you to receive at least one electronic deposit per month and maintain an average daily balance of $1,000, which is just crazy. For this reason, the Redditor is on the hunt for a new card.
The Best Options
The reality is that this Redditor doesn’t have to look all that hard to find another card, as they are already considering whether to invest with Fidelity. As someone who has and regularly uses a 2% Fidelity card, I highly recommend this option because of its benefits, and Fidelity’s customer service is best-in-class. This would immediately address one primary concern with Alliant, so we’re already checking off boxes.
However, another option would be a Bank of America card like the Premium Rewards or Unlimited Cash Rewards, which offer as much as 2.625% cash back. The caveat is that you must have $100,000 invested at Merrill Lynch (or more), but the premium card also gets 3.5% on dining and travel, so there is something here to consider, and the Bank of America card remains a Reddit favorite.
Authorized User Update
Some of the recommendations to the Redditor have a caveat. As the original poster and many other Redditors point out, it’s also important to remember that the authorized user rule applies to all credit cards. If the authorized user is later removed from an account, it drops off their credit report.
If this Redditor has the funds, another strong option is the Robinhood Gold Card, which offers 3% cash back on all purchases but has an annual fee. Similar to Bank of America, a necessary balance is required here, so the benefits will depend on how much is invested at Robinhood.
Ultimately, the best course of action is probably the Fidelity card as it’s the most basic card that offers a flat 2% cash back amount, no fees, no category adjustments, and no headaches. Plus, you get the benefit of its customer service department, which is beloved across Reddit.
Go With Fidelity
As the Redditor already invests with Fidelity, this seems like a no-brainer. You already have an account, might already have a financial advisor or planner, and the ability to transfer the cash back funds from a credit card right into an investment account is a huge perk. Again, I speak from experience that this card has been a seamless experience from the beginning, and I can’t imagine trying another card anytime soon.
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