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In addition, card users earn a 1 percent rebate on all other purchases made with the card. The card does not have an annual fee for the first year of usage. It does have a $19 fee for the following years but it can be waved if more than nine purchase transactions occur.
Lowest Rate/Best Reward:
Credit cards providing rewards for maintaining balances are to be avoided at all costs because in the end, these types of rewards do not pay. Additionally, while the APR is important, it should not be the deciding factor if you commit to paying off your balance in full each month. That said, although rates are guaranteed to fluctuate, there is one card that stands out at the moment for offering solid rewards at low rates:
Citi® Dividend Platinum Select® Card: While rewards and rebates often go hand in hand with high annual percentage rates, the Citi® Dividend Platinum Select® Card offers rebates at low rates. With no annual fee, this card provides up to 5 percent back on purchases made at supermarkets, drugstores and gas stations, and 1 percent back on all other purchases. New cardholders enjoy an APR of 0 percent for an introductory period (usually nine to 12 months), after which a standard APR for purchases will be applied, most recently at 9.49 percent. Again, keep in mind, the APR only affects you if you do not pay off your credit card balance each month.
Mellody Hobson, president of Ariel Capital Management (arielmutualfunds.com) in Chicago, is Good Morning America's personal finance expert. Ariel associates Matthew Yale and Aimee Daley contributed to this report.
