2010 Chase Reward Debit Cards (& Cash Back Debit Cards)

Must say, I am very pleased with my 2010 Chase rewards debit card.

It's a United MileagePlus debit card that earns 1 air mile for every $2 spent using the debit card (as long as the transaction is processed as credit, not debit, meaning no PIN was entered).

There is a $25 annual fee for this rewards debit card, but it seems well worth it so far since:

a) It comes with 2,500 bonus air miles.

b) When I switched to Chase, I received a $125 new checking account bonus. So even with the annual fee on this debit card, I still made $100 free and clear the first year.

c) I plan to travel a lot more later this year and it's nice knowing my debit purchases are counting toward a few free United flights. 

d) Rewards debit cards, at least this one, have zero liability for fraudulent purchases AND added protections that regular debit cards don't have.

Chase also offers a FREE rewards debit card that is a part of their Debit Rewards Program. Ask about it at your local branch. Additionally, there is a third option: a Continental Airlines rewards debit card, which is similar to my United debit card, except you earn miles toward Continental's program. (This card similarly has a $25 annual fee, just like mine.) 

What about other banks? Bank of America, as far as I know, does not offer rewards debit cards like this -- but they need to get on the boat soon! Citi does offer rewards debit cards that earn points in their ThankYou Network. 

Overall, rewards debit cards (sometimes called "debit as credit cards" since they are treated like credit cards, but withdraw funds from your checking account) do NOT have reward programs as good as their credit card counterparts.

If I were to get a new Chase United MileagePlus credit card, for example, I would have received around 30,000 bonus points to start, instead of my meager 2,500 bonus points. Plus, I would be accruing miles/points at a higher rate. 

But hey, you never have to worry about a due date. And there's no risk of falling into debt and paying insanely high interest charges. That's why I advocate you use a regular debit card or a rewards debit card INSTEAD of a credit card.

Most folks don't need a credit card at all. Or, have one, and keep it on you for emergencies only.

True emergencies... getting a friends & family discount at Bloomingdale's is not an emergency.

Outlaw

Comments

[Chris]

There is also a coupon for 25,000 free miles from Continental Airlines/Chase when you open a new checking account with minimum deposit of $100 and sign up to receive the $65 Continental Preferred debit card. In essence, you are getting a roundtrip flight from Chase/CO for just $65. You also can receive up to 7,500 more bonus miles by adding 3 other people to your checking account (for free).

When I used this coupon at a branch, the branch manager informed me that the coupon was good for use once each year. So, I will be back in the Chase branch early in 2011 to receive my 2nd free flight from Continental/Chase.