Aw nerds! Looks like this article is out of date. Check out our Best Credit Cards page for other options.
Everyone knows someone with credit card debt. As a result, many of us conclude that credit cards are only good for getting into financial trouble. But did you know they can also provide an easy path to meeting financial goals? For instance:
Upromise World MasterCard® customers saved more than $50 million last year
Many parents feel overwhelmed by the responsibility of saving for college, so a credit card that helps get them toward that goal without much extra effort would be a boon. And it turns out there’s a card on the market that does this.
The Upromise World MasterCard® allows consumers to earn cash back on everyday purchases, plus bonus cash back at certain merchants, such as select restaurants, gas stations and movie theaters. Rewards can be funneled into a 529 plan or Sallie Mae savings account, among other options. The card charges no annual fee.
Barclaycard and Sallie Mae recently announced that customers with the Upromise World MasterCard® saved more than $50 million for college expenses in 2014. More than $450 million has been saved since the card was created, according to a Sallie Mae news release.
This is an example of how choosing the right credit card can make reaching a savings target a little bit easier.
This credit card helps you invest for a richer future
The Upromise World MasterCard® isn’t the only credit card out there that’s designed to help you save for tomorrow. Another outstanding choice is the Fidelity American Express.
With this card, you’ll earn unlimited 2% cash back, which can be automatically redeemed into your eligible Fidelity account. These include Fidelity-managed 529 plans, brokerage accounts, retirement accounts and more. The card’s $0, so it won’t cost you anything extra to save big.
This card provides a great opportunity to get closer to future goals. Whether you want to live the high life in retirement or let your investments carry you across the $1 million mark, the Fidelity American Express can get you there faster.
You can save rewards with almost any card
The Upromise World MasterCard® and the Fidelity American Express are intended for savers. But there’s no rule against using the rewards you’re earning with nearly any card to build up your nest egg. Simply pick a good cash back card and shuttle your earnings into the savings account of your choice.
These are two of the Nerds’ favorite cash back cards:
The Citi® Double Cash Card – 18 month BT offer
The Citi® Double Cash Card – 18 month BT offer has a unique earning structure: You’ll score 1% cash back when you make your purchases, then an additional 1% cash back when you pay them off. There’s no limit to the cash back you can earn, so those double rewards could go far in helping you get to your savings goal fast.
This card’s annual fee is $0, so it’s a good pick for the cost-conscious crowd.
The Capital One® Quicksilver® Card - 0% Intro APR for 15 Months
The Capital One® Quicksilver® Card - 0% Intro APR for 15 Months earns unlimited 1.5% cash back on all purchases. Rewards never expire, and you can redeem your cash back in any amount, at any time.
The Capital One® Quicksilver® Card - 0% Intro APR for 15 Months may offer a slightly lower rewards rate than the Citi® Double Cash Card – 18 month BT offer, but it does come with a signup bonus: One-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening. Its annual fee is $0, so you’re coming out ahead with every swipe (assuming you pay your bill in full every month, of course).
Image via iStock.