Fidelity Credit Card Rewards Review – A Cash Back Gold Mine?

ElitePersonalFinance
Last Update: February 8, 2021 Credit Card Reviews

The credit card business is competitive. This competition yields an incredible advantage for the consumer in reward offerings. However, comparing credit cards can be difficult because the perks’ value depends on their lifestyle and spending habits.

This is why choosing a card with superior cashback rewards is wise. All consumers can benefit from this perk. Cashback holds value for avid travelers as much as it does for those who prefer to stay at home. Our preferences and lifestyles change and using a credit card with a high cashback offering allow flexibility. This is the central reason why the Fidelity Rewards Visa Signature Card is a great option for nearly anyone.

The Value of The Fidelity Rewards Card

The immediate value is the substantial cashback offered. Cardholders are entitled to unlimited 2% cashback on purchases. This comes without restrictions on categories. As a result, your change in spending habits over time will not impact the value you get from the card. Each dollar spent earns 2 reward points, which don’t expire. These points can be redeemed for merchandise, gift cards, or even a credit on your statement. There is no limit to the number of points you can earn. This has great value for those who use a credit card for most purchases. As with all credit cards, you are incentivized to spend more.

The card boasts no annual fee. This means you won’t have to give up any value you build from earning 2% cashback. Cardholders can enjoy the freedom of a card that is accepted worldwide. The included “Visa Signature Concierge” service enables free 24-hour assistance with booking travel or arraigning entertainment like live events. The U.S.-based customer service will please those seeking easy resolutions to any problems.

What’s The Catch

Yes, of course, there is always a catch. However, here the “catch” is quite reasonable. Eligibility requires that you have or open a Fidelity account to receive the Fidelity Rewards benefits. Also, points cannot be used to fund a newly opened Fidelity account initially. Applicants must be 18 or older and living in the U.S.

Some drawn to this card may be dissuaded by the need to open a Fidelity account. The intent is clear; draw consumers in with a strong rewards program, then capitalize on their future brokerage account business.

Building value from the points system will take time. A cardholder must reach a minimum of 5,000 points before opting to redeem the value for a cash deposit. At 2 points per dollar, this equates to $2,500 in spending. The value accrues slowly. When choosing to redeem points for travel, merchandise, gift cards, or a credit on your statement, this minimum begins at 2,500 points or $1,250 in spending.

Who is The Fidelity Rewards Card for?

The Fidelity Rewards card’s value suits nearly every consumer profile. Those who wish to optimize savings will be hard-pressed to find other cards offering more. The offer’s simplicity is a refreshing change from other, more complex cards. All too often, the rewards structure of a card can be confusing. Other cards differentiate benefits based on categories of spending. This makes assessing the value of cashback difficult. Furthermore, as your spending habits change, the rewards’ value can drop. The Fidelity Rewards card solves this with a simple 2% cashback on all spending. It’s easy.

In short: the card is for those looking for simple, straightforward value on all spending.

However, those who travel frequently can find better deals. Other credit card competitors are better suited for those wishing to get more travel value. Consider the Starwood Preferred Guest credit card offered by American Express. The points program here is optimized for frequent travelers. A hotel stay can be a cheap as 2,000 points ($1 equates to 1 point).

The Fidelity Rewards card is especially great for those that already have a Fidelity account. The card is designed to create synergies between these two entities. This card is perfect if you are already committed to an investment or retirement account at Fidelity.

Putting The Numbers Together

The simple way to understand the Fidelity Rewards card’s value is to look at the numbers and characteristics.

Perks:

  • 2% Cashback on all purchases.
  • 2 Reward points for each $1 spent.
  • Points granted for all spending, no restricted categories.
  • Points can be redeemed for statement credit, travel, or merchandise.
  • No expiration on points.
  • No annual fee.
  • S.-based customer service 24/7.
  • Purchase APR 14.24%.

The card presents simplicity and value. Those who do not want to open a Fidelity account may consider the Blue Cash Preferred Card as an alternative. This credit card offered by American Express shares a lot of characteristics with the Fidelity Rewards card. The Blue card offers generous cashback on groceries (6% up to $6,000, then 1%). A 3% cashback perk is earned on U.S. gas stations and 1% on other qualified purchases. While the Blue card is sensitive to categories, specific areas’ value is immense. We all buy groceries, so 6% is an attractive offer.

The Trick to Choosing The Perfect Credit Card

With flexibility and ease of use, the Fidelity Rewards card is a great choice. Everyone can save with this card. If you expect to travel frequently or are devoted to leveraging spending categories to maximize rewards, choose a different card. Credit cards defy true comparison because each consumer is different.

One simple exercise can lead you to the right credit card every time. Do this: sit down for 1 hour and draft an annual estimate of all your spending. This is much easier than most anticipate. Today, nearly all purchases are made with a debit card or credit card. As a result, downloading total year spending is simple. Use these numbers to understand better what categories carry most of your spending. Knowing your spending habits results in knowing the card that’s right for you.

Pick one card. Stick with it. Spend and save and watch every penny.

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