Unlimited 2.5% Cash-Back Credit Card Debuts

» This offer has expired

The offer described below has expired. See our card details page for the Alliant Cashback Visa® Signature Credit Card's current terms.

It's not every day a new credit card makes your 2% rewards card look stingy. But Alliant Credit Union — named one of NerdWallet's best credit unions — has introduced just such a card.

The new Alliant Cashback Visa® Signature Credit Card leapfrogs the 2% competition with these rewards rates:

• 3% unlimited cash back on all purchases in the first year

• 2.5% unlimited cash back on all purchases in following years

This card has an annual fee of $0 intro for the first year, then $99; for many consumers, that fee will make it more expensive than no-fee cards with 1.5% or 2% cash-back rates. But for bigger spenders, the card still slides ahead. Here's when it becomes a better deal:

• Compared with a 2% cash-back card with no annual fee: After the first year, you'd earn more rewards with the Alliant Cashback Visa® Signature Credit Card if you spend more than $19,800 annually

• Compared with a 1.5% cash-back card with no annual fee: After the first year, you'd earn more rewards with the Alliant Cashback Visa® Signature Credit Card if you spend more than $9,900 annually

However, it's still edged out by USAA's unlimited 2.5% cash-back card with no annual fee, released last year.

As with most credit unions, you have to be a member to qualify for the card. Check your eligibility on Alliant's website. If you're not affiliated with a qualifying organization, you can become a member by contributing to Foster Care to Success, according to Alliant's website.

» MORE: How to choose the best credit card for you