US Bank Cash+ Credit Card: The Best 5% Card?

The U.S. Bank Cash+ card looks great, it really does. It’s one of the best 5% back credit cards out there right now, and its ongoing rewards unparalleled. If you’re looking for flexibility in your bonus categories and high rates, you can’t do much better. There are, however, a few cases where other cards might win out. But for all that, the Cash+ is a welcome addition to the rotating bonus category family, and might just be the favorite son.

5% as a starting point

The US Bank Cash+ offers an unlimited 5% cash back on bonus categories that change every quarter, a hard number to beat in the credit card world. You can choose two 5% categories from a rotating list that shifts quarterly, and purportedly include broad categories like airfare, bill payments and restaurants (you have to sign up to see the full list.) You’ll also get 2% rewards on gas, groceries or drugstores – you pick ‘em. Best of all, the rewards are unlimited – you aren’t subject to the quarterly or annual caps that restrict the Chase Freedom, Discover it and Citi Dividend Platinum Select.

The U.S. Bank card seems to have this 5% bonus thing figured out. But it gets better: If you save up $100 worth of rewards, US Bank will throw in an extra $25. This means that if you wait to redeem until you’ve spent $2,000 in the bonus categories (or $10,000 in non-bonus categories) you’ll see your rewards rate jump to 6.25%/2.5%/1.25%. Not too shabby! Of course, you do have to rack up those rewards, but if you do, you’ll find it well worth your while. Plus, there’s no annual fee, so you needn’t worry about bleeding charges if you don’t use it as much as you’d planned.

Cash+ vs. Chase Freedom: 5 on 5

The Cash+ actually stacks up quite well against the reigning 5% cash back champ, the Chase Freedom. The Freedom gives 5% back on rotating bonus categories, but those categories are preset, and capped at $1,500 in purchases a quarter. It doesn’t have a 2% bonus, but it does offer an additional 0.1% +$0.10 back on every purchase if you have a Chase checking account. This can really raise your rewards rate on small purchases, though it’s less of a benefit on larger ones. Its key feature, though, is its signup bonus of $100.

The Freedom’s bonus categories for 2013 are:

• Q1 (January – March): Gas, drugstores and Starbucks
• Q2 (April – June): Restaurants and movie theaters
• Q3 (July – September): Gas, theme parks and Kohl’s
• Q4 (October – December): Amazon.com and “select department stores”

The Cash+ is not without its drawbacks. First, there’s no signup bonus – contrast that with the Freedom’s $100. Second, its 0% introductory APR offer of 6 months on balance transfers doesn’t quite compare. The Freedom gives you 15 months of no interest on purchases as well as transfers. Third, it doesn’t have a bonus rewards mall.

That one deserves some explaining. Chase, Bank of America and other card issuers have online bonus malls where, if you click through from their site to another merchant’s, you can earn anywhere from 2% to 30% back on your purchases. The Chase Ultimate Rewards Mall, for example, gives 15% back on Restaurant.com, 6% on Backcountry.com and The North Face, and many, many more. If you’re a prolific online shopper, having access to an online bonus mall can prove quite lucrative.

Moral of the story? Get the US Bank Cash+ if:

• You think the Freedom’s bonus categories aren’t that great for you
• You think you’ll spend more than $1,500 a quarter in bonus categories
• You plan to hold the card for more than 2 years

Get the Freedom if:

• The bonus categories dovetail with your spending
• You’d get some good mileage out of having access to the Chase Ultimate Rewards mall and its discounts
• You plan to hold the card for 2 years or fewer

It comes down to signup bonus vs. ongoing rewards: the Chase Freedom delivers a lot of value very quickly, while the Cash+ has less short-term value but more staying power.

Chase Freedom® Visa	U.S. Bank Cash+™ Visa Signature® Card
Signing Promo
Earn $100 Bonus Cash Back after you make $500 in purchases in your first 3 months from account opening.	None
Intro APR Promo
0% APR for 15 months on purchases & balance transfers	Purchase: None Bal Trans: 0% for 6 mos
Annual fee
$0	$0
Details
This offer is for people with a good to excellent credit history which means, among other things, that your credit history is clear of bankruptcy and seriously delinquent accounts Earn $100 Bonus Cash Back after you make $500 in purchases in your first 3 months from account opening 0% Intro APR for 15 months on purchases and balance transfers 5% Cash Back on up to $1,500 spent between Apr 1 and Jun 30, 2013 at restaurants, movie theaters, and Lowe's® You'll enjoy new 5% categories every 3 months like gas stations, restaurants and Amazon.com. It's free and easy to activate your bonus each quarter! Unlimited 1% Cash Back on all other purchases No annual fee and rewards never expire	Earn 5% cash back on two categories that you choose, like department stores, restaurants...plus many more Earn 2% cash back on gas, groceries or drug stores - choose one Earn 1% cash back on everything else Get a $25 Cash+ Bonus each time you redeem $100 or more cash back in a single redemption No Annual Fee