Undisclosed but profitable cashback card

The Shop Your Way Mastercard® is offering a high welcome bonus until January 28, 2023: $75 statement credit for every $500 spent in the cardholder’s first 90 days. The maximum promotion is $225 in statement balances, which requires you to spend $1,500. This is an attractive deal.

Typically $200 is a solid introductory bonus for getting a cashback card with no annual fees. For example, this is the current offer from the Wells Fargo Active Cash® Card, US Bank Cash + ® Visa Signature® Card, Capital One Quicksilver Cash Rewards Credit Card, Citi Custom Cash℠ Card, Bank of America® Custom Cash Rewards Credit Card and Blue Card Cash Everyday® from American Express.

Note that almost all of these cards have lower spending limits: $1,000 in three months on active cash, $1,000 in 120 days on cash + card, $500 in three months on Quicksilver, $750 in three months on dedicated cash, $1,000 in 90 days on a dedicated cash rewards card and $2,000 in six months on Blue Cash Everyday.

However, $225 for spending $1,500 in 90 days on a Shop Your Way Mastercard is attractive. That’s a 15 percent return on the spot, and it doesn’t even include the card’s standard reward categories. And that’s interesting, too.

Ongoing rewards

Shop Your Way Cardholders get 5 percent (in points) on eligible purchases at gas stations and 3 percent (in points) on eligible purchases at grocery stores and restaurants. There is a total spending limit of $10,000 per year on these three reward categories. Cardholders receive an unlimited 2 percent refund (in points) on eligible purchases at Shop Your Way merchants (such as Sears, Kmart, Sears Hometown, and Sears Home Services). The profit rate on all other purchases is 1 percent (also in points).

These points essentially represent cashback that can be redeemed for gift cards or Sears purchases. There are hundreds of gift card options, including Applebee’s, Banana Republic, CVS, Hotels.com, Lowe’s, Pottery Barn, Uber, and many other retailers. Two exceptions are rewards earned via Sears and Kmart purchases; Those that must be replaced in future purchases with those brands.

The $10,000 cap on gas, groceries, and restaurant rewards is generous. According to the latest data from the Bureau of Labor Statistics, the average American household spends $1,568 annually on gas, $4,942 on groceries and $2,375 on restaurants. That’s a grand total of $8885.

With a 3 percent rewards rate (in points), the Shop Your Way Mastercard is one of the best gasoline credit cards. This is especially important with gas prices currently at record levels. It’s rare to get 3 percent cashback on groceries and dining with the same card. These are popular categories that are also experiencing rapid inflation.

Other notable alternatives

Chase Freedom Unlimited® and Chase Freedom Flex℠ cards are worthy competitors because they each give a $200 bonus after new cardholders spend $500 in the first three months, plus they give 5 percent cash back on up to $6,000 in purchases Gas through each new card holder. first year. Note that this welcome offer is only available to those who apply directly through Chase.

Standard Freedom Unlimited rewards are 5 percent cashback on travel purchased through Chase Ultimate Rewards, 3 percent cashback at restaurants and pharmacies and 1.5 percent cashback on everything else.

Freedom Flex has the same travel, restaurant, and drugstore categories as well as recurring quarterly tiers that earn 5 percent cash back. Activation is required, and this rate applies to up to $1,500 in quarterly spending. Cardholders earn 1 percent cashback thereafter on all other purchases.

These are two of my favorite annual fee-free cashback cards, but the Shop Your Way Mastercard is also a contender. Its 5 percent profit rate on gas extends beyond the first year, plus a 3 percent cash back at grocery stores. These cards can actually compliment each other quite well.

bottom line

The Shop Your Way Mastercard is under the radar, perhaps in large part due to its association with several retail brands that have been struggling for years, but it’s much more than a store credit card. It is indeed a powerful and versatile cashback card.

Do you have a question about credit cards? Email me at [email protected] and I’ll be happy to help.

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