[UPDATE: Some offers mentioned below have expired. You can view the current offers from our partners here — Chase Freedom and Citi ThankYou Premier Card. DISCLOSURE: Cards from our partners are mentioned below.]
While tea is the hot beverage of choice across much of the world, Americans decidedly prefer coffee. Many Americans stop at a nearby coffee shop each day, and grab their regular Cup of Joe. And while every coffee drinker has long ago discovered his or her favorite brew, many haven’t considered what the best credit card is for their frequent coffee purchases.
Here are four credit cards for coffee lovers to consider.
1. Chase Freedom
As far as your credit card issuer is concerned, a coffee shop falls under the category of restaurants, and the Chase Freedom card is offering 5% cash back on all restaurant purchases during the third quarter of 2016 (July to September). During this time, cardholders earn 5% cash back on their first $1,500 spent at restaurants and at wholesale clubs, such as Costco, Sam’s Club and BJ’s, and 1% cash back on all other purchases. In fact, Chase specifically mentions major coffee retailers Starbucks, Dunkin Donuts and Peet’s Coffee & Tea as being eligible for the bonus cash back at restaurants on its website.
With the Chase Freedom, new applicants receive a $150 sign-up bonus after spending $500 on new purchases within three months of account opening. New cardholders also receive 15 months of 0% introductory annual percentage rate financing on both new purchases and balance transfers, with a 5% balance transfer fee. After that, the APR will be between 14.24% and 23.24%, depending on creditworthiness. There is no annual fee for this card.
2. American Express Everyday Preferred Credit Card
An interesting way that coffee lovers can earn more rewards is by using a credit card that rewards them for their frequent purchases. The American Express Everyday Preferred credit card (see full review here) offers customers a 50% points bonus during each statement period that they make 30 charges or more. Therefore, coffee drinkers who charge a cup nearly every day will be virtually assured to receive this points bonus. This card offers 3x the points on up to $6,000 spent each calendar year at U.S. supermarkets (then 1x), 2x the points for purchases at U.S. gas stations, and one point per dollar spent elsewhere. American Express is offering a 0% introductory APR on purchases and balance transfers for 12 months. After that, the APR will between 13.24% and 23.24%, based on your creditworthiness, among other factors. There is a $95 annual fee for this card, and no foreign transaction fees.
3. Chase Sapphire Preferred
The Chase Sapphire Preferred card (see full review here) offers double points on all dining purchases, which includes coffee shops. It also offers double points on travel reservations and one point per dollar spent elsewhere. Points are earned in the Chase Ultimate Rewards program and can be redeemed for gift cards, merchandise and travel reservations. In addition, points can be transferred to airline miles or hotel points. There is a $95 annual fee for this card that is waived the first year, and no foreign transaction fees. The card’s APR is between 16.24% and 23.24%, depending on creditworthiness.
4. Citi ThankYou Premier
This card offer double points on all dining out and entertainment, as well as 3x the points on all travel expenses, including gas. Points are earned in Citi’s ThankYou Rewards program and can be redeemed for merchandise, gift cards and travel reservations or transferred to airline miles or points with the Hilton HHonors program. There is a $95 annual fee for this card that is waived the first year, and no foreign transaction fees. The card carries a 14.24% to 23.24% APR, depending on your creditworthiness. (Full Disclosure: Citibank as well as Chase advertise on Credit.com, but that results in no preferential editorial treatment.)
Keep in mind, any rewards credit card is best suited to people who avoid interest charges by paying each month’s statement balance in full, as you can expect higher interest rates from a rewards card than from one that doesn’t offer any. It’s also a good idea to read the terms and conditions of any card you are considering before applying — and to check your credit to get an idea of whether you can qualify for some new plastic. (You can see where you currently stand by viewing two of your credit scores, updated each month, for free on Credit.com.)
At publishing time, the Chase Freedom, along with Citi products, are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for these cards. 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.