There are many tricks and hacks on how to get the most out of your retirement, and choosing the right credit card is one of them. From cash-back to amazing travel perks, there is a lot to be gained from using credit cards effectively. But, many of them are not actually tailored towards seniors.
Instead, we’ve done the hard-work and found which credit cards can have the biggest benefits for seniors who live on a fixed-incomes and tend to spend less. But, it’s still important for you to weigh up the different interest rates and rewards before you apply. Here, we have listed different types of credit cards that will best suit seniors and retirees.
1. Blue Cash Preferred® Card from American Express
Biggest Perk: 6% Cash Back at Grocery Stores
If you spend a lot on groceries, the Blue Cash Preferred® Card from American Express could be the perfect card for you. This card offers 6% cash back at American supermarkets, though after you make $6,000 in purchases the rate lowers to 1%. At U.S gas stations and select department stores, you can make 3% of the money you spend back and 1% on other purchases.
The cash back on this card isn’t its only perk. Within the first year, you can get a $200 bonus in the form of credits on your statement. To be eligible, you’ll need to spend $1,000 on purchases within the first 3 months of having the Blue Cash card.
To use this card, there is a $95 annual fee, but if used to your advantage the perks will more than pay for it. Additionally, for the first 12 months, the interest rate is 0.0% APR. But this will range from 13.99% – 24.99% after the first year, depending on your creditworthiness.
2. Citi® Double Cash Card – 18 Month BT Offer
Biggest Perk: 18 Months of 0% APR
The Citi® Double Cash Card – 18 Month BT Offer is a simpler card, but will still give you some great rewards. This card offers 1% cash back on every purchase you make, and an additional 1% when you pay off your credit card balance.
This works as a good system because you don’t have to remember to sign up for quarterly bonuses or remember credit card bonus limits. It’s just a solid rate of 1%, and you know what you’re getting. Another great perk is that there is no annual fee for this card, so as long as you keep up with your payments you’ll never owe the company a single dollar.
Let’s talk interest. For the first 18 months, this card offers an introductory rate of 0% APR. Once the period of 1.5 years is over, you’ll be charged 14.49% – 24.49% based on your creditworthiness.
3. Bank of America® Cash Rewards Credit Card
Biggest Perk: $150 Cash Reward Bonus
Just like #2, there is no annual fee to use a Bank of America® Cash Rewards Credit Card. Another great perk is the cash back you can earn. At gas stations, you can make 3% cash back, and at grocery stores and wholesale clubs, you’ll get 2%. However, these rates only apply to the first $2,500 spent in each quarter.
There is an attractive bonus, though. To get a cash reward bonus of $150, new cardholders need to spend $500 on purchases within the first 90 days of opening their account. Also, if you’re a Bank of America® customer, you can get an extra 10% bonus when you redeem your cash into your checking or savings account.
Interest-wise, this credit card offers an introductory rate of 0% APR for the first 12 billing cycles. This will rise to a regular a rate of 13.99% – 23.99% percent Variable APR once the initial period has finished.