[UPDATE: Some offers mentioned below have expired and/or are no longer available on our site. You can view the current offers from our partners in our credit card marketplace. DISCLOSURE: Cards from our partners are mentioned below.]
If you’re struggling to invest your money, or looking for a new way to do so, getting a new credit card probably doesn’t seem like the answer. But American Express and Charles Schwab recently launched two co-branded cards that could help clients bolster their investments.
The Schwab Investor Credit Card from American Express lets cardholders earn an unlimited 1.5% cash back from eligible purchases, which is automatically deposited into an eligible Schwab brokerage account. Cardholders also receive a $100 card statement credit as a bonus once they’ve spent $1,000 on the card during the first three months. This card doesn’t have an annual fee and has a 0% introductory annual percentage rate for the first six months. After the introductory period, the APR is a variable 14.24% to 17.24%, depending on financial factors like your credit score, with a 25.49% variable APR for cash advances.
American Express is also launching a Schwab-branded version of its Platinum Card that lets cardholders deposit membership points into a eligible brokerage account. Cardholders earn one point per dollar spent; they can redeem points into the linked brokerage account at the rate of 1,000 points for a $12.50 deposit. Cardholders will also receive a $100 statement credit if they have at least $250,000 qualifying Schwab holdings or a $200 statement credit if they have at least $1 million in holdings. And, after spending $3,000 during the first three months of membership, they receive a credit of 40,000 points as a welcome bonus.
Like the standard Platinum Card (see full review here), the card has an $450 annual fee, though it does feature some premium travel rewards like exclusive access to airport lounges and a potential $200 airline credit. There’s no interest charges since the Platinum Card for Schwab is a charge card and cardholders are expected to pay the balance off in full at the end of each month. (You can see how it stacks up to the winners of our best premium credit cards in America ranking here.)
Being a Schwab customer is an eligibility requirement to sign up for either of these cards, which can be done online or over the phone. Current American Express cardholders will need to apply and be approved for a Schwab Investor card and cannot just convert a current card. Once you have the card, you will have the option to set up your rewards to be invested through Schwab.
Rewards Credit Card 101
There are lots of different rewards credit cards on the market and determining which card may be right for you hinges largely on your spending habits and financial goals. It’s also important to note that rewards credit cards are generally best-suited for people who pay their balances off each month. Otherwise, any points, miles and cash back you earn would be negated by interest charges.
When you’re considering getting a new credit card, it is important to read all the terms and conditions.You also may want to crunch some numbers to see if you spend enough to recoup any annual fee. And to help you get the best rates and deals, it is important to have a good credit score. (To find out where you stand, check out your two free credit scores, which are updated every 14 days, on Credit.com.)
At publishing time, the American Express Platinum Card is offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this card. However, this relationship does not result in any preferential editorial treatment.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
Image: RomoloTavani
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