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Unlimited 2.5% Cash-Back Credit Card Debuts

Cash Back Credit Cards, Credit Cards, Promos
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Unlimited cash back card

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 a $59 annual fee; 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 $11,800 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 $5,900 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

Claire Tsosie is a staff writer at NerdWallet, a personal finance website. Email: claire@nerdwallet.com. Twitter: @ideclaire7.