Costco and American Express are offering a $25 bonus in the form of a statement credit for new customers who make their first purchase using their TrueEarnings® Card.

The TrueEarnings® Card from Costco and American Express also offers significant cash back awards on most purchases, including 3% on gasoline and restaurants, 2% for travel, and 1% everywhere else. This cash back is unlimited, so you don’t have to worry about an annual cap. You’ll even earn cash back when shopping at Costco, which from what I understand already has low prices.

There is no annual fee for current members of Costco, but that’s the catch. You have to be a member of Costco to be approved for this card.

Also consider the equivalent card for businesses, the TrueEarnings® Business Card from Costco and American Express. This is a very similar card, but it does not offer the $25 statement credit with your first purchase. This card does, however, offer 5% cash back on gasoline rather than 3%. Therefore, if you plan on spending more than $1,250 on gas and if you don’t need $25 right away, the business card may be the better choice.

Kiva is an international non-profit organization that facilitates “microlending” for the purpose of its mission, alleviating poverty across the world. The organization allows those who wish to contribute to lend money in small amounts to entrepreneurs in the developing world. Kiva’s website lets you browse entrepreneurs’ profiles to select the recipient of your micro-loan and allows you to make that loan. The terms of the loan are generally 6 to 12 months. Kiva claims that repayment rates are 99.7%, so there is very little risk of default.

Even with the potential for earning interest as a lender, I’d be careful about including microlending as an important part of an investment portfolio. It might be best to lend money only with amounts you don’t mind losing. Despite success stories—Endless Gibberish is “addicted” to Kiva and has lent over $20,000—there is always a risk.

For anyone who finds Kiva to be a valuable resource, the Kiva BusinessCard, a credit card offered by Advanta, is an excellent choice. This is the only credit card I’ve encountered that is geared towards philanthropy. The Kiva BusinessCard matches your Kiva contribution (when placed on the credit card) dollar for dollar, up to $200 each month. Your contribution has twice the power. This match is considered a grant, however, and not part of your microloan. When the loan is repaid, you will only receive the amount of your contribution, not including the match. The matching portion will be paid back to Advanta.

Additionally, the card offers an 5% cash back rebate in the form of a statement credit for grants to Kiva, charitable donations, and some expense categories, up to $1,200 in charges to the card. Beyond that $1,200 limit, and in other expense categories, the program offers a cash back rebate of up to 1% on all other purchases. The total cash back you receive is unlimited. The cash back incentive for charitable donations is an excellent idea; to loan $100 to Kiva or donate $100 to your favorite non-profit, it will only cost you $95 (after you receive your credit).

That same $95 you spent on a $100 microloan provides the recipient with $200, thanks to Advanta’s matching grant.

Like other business credit cards, you don’t have to be a business in order to apply and be approved for this credit card.

Every week, cash back credit card deals are decreasing. American Express recently emailed me to let me know that they have lowered the cash back rate on their SimplyCash Business Card from 5% to 3% on gas station purchases. If this is your card, it might be time to seek out another deal.

Here are a few suggestions designed to maximize your cash back based on your spending habits.

Blue Cash from American Express.

If you use credit cards for most of your spending, you might like this card. While the first yearly $6,500 of your spending is subject to only 1% cash back on “everyday” purchases (including purchases at gas stations, supermarkets, and drug stores) and 0.5% cash back on everything else, once you pass that threshold, you will earn 5% cash back on your “everyday” purchases and 1.5% cash back on everything else.

Discover Open Road Card.

If you’re not a heavy spender on your credit cards but you’re still looking for the best deal, the Discover Open Road Card may be a good choice. You will earn 5% cash back of the first $100 you spend each month on gas and auto maintenance. In other categories, you will earn 0.25% or 0.50% cash back. Spend more than $3,000 over the entire year and you’ll earn 1% cash back on your spending in excess of this minimum.

TrueEarnings Card from Costco and American Express.

Even if you don’t shop at Costco, this card provides a good cash back bonus. You can earn 3% back on gas, as long as you don’t buy 75 gallons or more in one transaction. There’s no yearly limit to this cash back, however. The catch here, as you might have guessed, is that you must be a member of Costco in order to qualify for this card.

Note: This is a “business” card, but you can apply as an individual.

Chase BP Visa Rewards Card.

If you’re loyal to these brands of gasoline, this card provides a strong 5% cash back rebate for your purchases at BP or Amoco stations. You’ll also receive a 2% cash back rebate in other categories and 1% cash back on everything else (except gasoline sold at gas stations branded with anything other than BP or Amoco). BP has low prices on the path of my commute, but usually not the lowest. The question is whether the larger cash back amount will offset the slightly higher price.

As with any rewards-offering credit cards, taking advantage of cash back depends on your ability not to carry a balance, accrue interest, or pay late fees. Any method of using a rewards credit card other than paying the balance in full every month will negate any benefit offered by the issuer.

As a number of Consumerism Commentary visitors have mentioned over the past few months, it’s getting harder to find good credit card deals, including 0% APR no-fee balance transfer offers and worthwhile sign-up bonuses. Other commenters who have been successful milking credit card companies with balance arbitrage strategies have slowed down their pursuit with fewer deals and lower interest rates on savings.

Yet, there are still many credit cards, like the AmEx Platinum Business FreedomPass card, that offer sign-up bonuses in the form of cash back or “points,” though redeeming the reward may either be a hassle, require a waiting period, and/or take the form of a statement credit or retail gift card.

How effective are these bonuses, particularly when there are so many restrictions? What would it take to get you to sign up for a new credit card? You have to weigh the possibility of a temporary decrease in your credit score. You also have to keep in mind your predisposition towards credit use. With a new card, perhaps you would be tempted to spend more.

It’s important to note that $50 (for example) has a different “value” for different people. An extra $50 could be the difference between coming out ahead for the month and falling behind. Money received from a credit card bonus might be what enables someone to make their child support payment.

This isn’t lost on the credit card issuers. They know “low hanging fruit” will snag users more likely to become permanent and profitable customers. These customers pay for those who take advantage of credit card issuers by being smart and careful about rewards.

I have not seen any bonus available that would convince me to sign up for a new card at this time. For me, the threshold would be $300 or $400 in cash. I would meet the minimum requirements for receiving the bonus and then forget about the card unless it also offers cash back on purchases at a level higher than the cards I use currently (American Express Blue Cash for Business and Citi Dividend World MasterCard).

I would expect that some individuals will never be tempted to sign up for a credit card regardless of the amount of the sign-up bonus, while others have no qualms about gathering as many credit cards as possible to take advantage of the cash that is out there.

How much would it take for a credit card company to buy your patronage? Do you have a dollar minimum after which you’ll start to consider taking advantage? Or would a free flight be attractive to you?

Jim submitted this news today, but I’ve been unable to find a confirmation online. Perhaps holders of the Emigrant Direct MasterCard have received this announcement.

The party is over on the Emigrant Direct Savings account and Mastercard program.

As the Fed has cut interest rates, so too has Emigrant Direct (2.75% as of 4/19.2008). What is worse, they just pulled the rug out of their cash back program on the Mastercard side.

It used to be that you could earn 1.4% cash back on all purchases as long as you maintained a $10,000 balance in your Emigrant Direct savings account. However, that will all end on 5/15/2008. Emigrant Direct is now issuing a new card called the World Elite. The new cash back program is now capped at 1.5% back on the first $10,000 in purchases or in other words $150 maximum cash back.

We used to charge EVERYTHING to our Emigrant Direct Platinum card. We earned over $500 in cash back last year, so this comes as quite a disappointment. In fact, with the lousy interest rate in the Emigrant Direct Savings account and now coupled with the horrible cash back program of their Mastercard program, it may be time to shut down my accounts and move elsewhere.

A cash back rebate capped at $150 is hardly a benefit.

Thanks to the recent reduction in the federal funds interest rate, debtors have reason to celebrate. Interest rates on credit cards pegged to the prime rate are decreasing. CitiBank recently reset the APRs on a number of their credit cards. Here are some of the highlights.

Citi CashReturns MasterCard (apply here)

Now as low as 9.99% on purchases. The Citi CashReturns MasterCard is one of Citi’s newer cards and may be one of the best rewards cards for people who look for cash back. The card offers 1% cash back on all purchases. The rewards accumulate as “CitiDollars” and Citi will automatically send a check once 50 CitiDollars are accumulated.

If you are lamenting the lower benefits of the Citi Dividend Platinum Select, call the number on the back of the card and ask to have your program changed to CashReturns.

Citi Professional Cash Card (apply here)

Now 9.99% on purchases. This Citi Professional Cash Card and its cousin, the Citi Professional Card With ThankYou Network, offer similar rewards. Purchases at restaurants, gas stations, office supplies, and car rentals earn 3% cash back or 3 points for every dollar spent. All other purchases earn 1% cash back or 1 point per dollar.

The difference is that the earnings from the cash card can be redeemed via check while the points earned with the ThankYou Network card can only be collected through purchasing items through Citi’s network of merchants. The good news is that many of these merchants offer gift cards.

Also, the Citi Professional Card With ThankYou Network is currently offering 10,000 ThankYou® Points after $250 in purchases, redeemable for a $100 gift card..

The Citi Professional Cash Card and Citi Professional Card With ThankYou Network have a 0% introductory rate or purchases for 12 months.

Citi Bronze / AAdvantage® World MasterCard (apply here)

Now 14.99% on purchases. The Citi Bronze / AAdvantage® World MasterCard, which comes in other flavors such as Gold and Platinum, offer rewards for frequent travelers on American Airlines. With the Bronze card, one mile is earned for each two dollar spent, while the Gold and Platinum level cards earn one mile for each dollar. Miles can be redeemed not only with American Airlines, but with 25 top airlines, car rental companies, and hotels.

These three cards offer sign-on bonuses after your first purchase. You will earn 10,000, 15,000, or 25,000 points depending on the level of card you own. The increasing benefits come with increasing annual fees, however. The Bronze card has no annual fee while the Gold and Platinum cards charge $50 and $85 respectively. This annual fee can be worthwhile if you make the most out of these credit card rewards.

Citi Dividend Platinum Select (apply here)

Now as low as 10.99% on purchases. I consider the Citi Dividend Platinum Select to be the flagship rewards card. Unfortunately, it is not quite the card it used to be. Many past cardholders saw a reduction of the cash back rewards and were later suggested to change to the Citi Dividend World MasterCard. For new card members, the Citi Dividend Platinum Select offers 5% cash back on purchases at supermarkets drugstores, gas stations, convenience stores, and utilities including cable. After 6 months, this is reduced to a 2% cash back bonus. All other purchases earn 1% cash back.

The Citi Dividend Platinum Select Card for Students offers the same features, but has a different promotional rate. The card for students offers a 0% APR on purchases, cash advances, and balance transfers for 6 months, while the standard card extends that offer for up to 12 months on balance transfers only.

Citi Driver’s Edge Platinum Card for Students (apply here)

Now 14.99% on purchases. This card offers 3% cash back on purchases at supermarkets, gas stations, and drugstores and 1% rebates on all other purchases. The Citi Driver’s Edge Platinum Card for Students benefits students with an introductory 0% APR on purchases, balance transfers, and cash advances for 6 months. You also receive rebates for each mile you drive, $1 for each 100 miles. That can add up considerably. Citi verifies your mileage by requiring a copy of auto service receipts with odometer readings.

Unfortunately, the rebate isn’t pure cash. The rebated can only be used towards the purchase of a car, repairs or service, or merchandise in the Thank You network. The maximum you can earn each year is $1,000 in rebates, higher than other rebate programs, but not unlimited.

Citi Home Rebate Platinum Select Card (apply here)

Now 9.99% on purchases. The Citi Home Rebate Platinum Select Card is another good replacement for the Citi Dividend Platinum Select. For 12 months, this card earns a 6% rebate benefit on purchases on utilities, cable and satellite television, internet connection, and telecommunications services. After 6 months, this rebate is reduced to 1%, the same as the rebate for all other purchases.

If you don’t want to use this card for purchases, consider balance transfers. During this promotion, no interest is charged on transfers for one year.

As always, these credit card rewards are not for everyone. If you pay interest or late fees, you won’t benefit from any special offers. Only consider opening new credit if you are an expert at managing your own money and buy only what you can afford to pay each month.

Liz Pulliam Weston asked credit card experts for their recommendations for making the most of the rewards that the issuing companies offer. I’ve done well with my Citi Dividend Platinum Select and now my American Express Blue Cash for Business, but it’s interesting to see what is recommended by those who live and breathe credit cards.

Travel Rewards

For travel programs, the winners were American Express Starwood Card and the Diners Club MasterCard. With the Starwood Card, you earn 10,000 points after the first purchase which can be redeemed for up to 3 nights at a hotel. More rewards come quickly afterward. Read about all the benefits here.

The runners up in the travel category were the American Airlines AAdvantage® MasterCard, United Mileage Plus Visa, Choice Privileges Visa, and Citi PremierPass Elite MasterCard.

Cash Back Rewards

Cash back is my personal favorite type of reward. The top card picked by the experts is the American Express Blue Cash, which offers 5% cash back on “everyday purchases” and 1.5% cash back on everything else. In order to reach this level of reward, the card requires a total yearly charge of at least $6,500. As Liz points out, if you charge less than $2,500 on the card each month, the Chase Freedom Visa will be a better choice with its offer of 3% cash back on each month’s most charged category and 1% on all other purchases. With this card, you’ll also receive an additional $50 cash back after your first purchase. MSN claims 200 points earns you $250 cash back with this card, so the cash back rebate is effectively 1.25%, but I can’t find any evidence of this.

The runners up in the cash back category include the Citi Professional Cash Card and Discover Motiva. I still run across some stores that don’t accept Discover Cards, so that wouldn’t be my choice if you intend on carrying only one card.

Savings Rewards

If you’re saving for a child’s future education, a number of cards offer options that provide savings incentives each time you charge. The Fidelity Investments 529 College Rewards American Express Card is the clear winner, particularly for an investor with a 529 education savings account at Fidelity. 1.5% of your purchases, up to $1,500, are credited to your 529 account annually.

I formerly used a Citi Upromise MasterCard, the runner up in this category. With this card, 1% of all purchases is deposited into a holding account at Upromise which can later be invested in a 529 or returned to you in the form of a check. The latter was my option. In addition to the 1% rebate, the Upromise card is also now offering 2% on ExxonMobil purchases and 10% cash back on certain supermarket and grocery store items.

Cards honorably mentioned by the experts on MSN include the Citi Home Rebate Platinum Select MasterCard, GM Flexible Earnings and NestEggz Platinum Visa Card. This is the first I’ve heard of the NestEggz Card, which offers a 1% rebate and a $25 incentive for using the card, to be deposited into a qualifying retirement account.

Summary: MSN’s 15 Credit Cards With The Best Rewards

1. American Express Starwood Card (Travel)
2. Diners Club MasterCard (Travel)
3. American Airlines AAdvantage® MasterCard (Travel)
4. United Mileage Plus Visa (Travel)
5. Choice Privileges Visa (Travel)
6. Citi PremierPass Elite MasterCard (Travel)
7. American Express Blue Cash (Cash Back)
8. Chase Freedom Visa (Cash Back)
9. Citi Professional Cash Card (Cash Back)
10. Discover Motiva (Cash Back)
11. Fidelity Investments 529 College Rewards American Express Card (Savings)
12. Citi Upromise MasterCard (Savings)
13. Citi Home Rebate Platinum Select MasterCard (Savings)
14. GM Flexible Earnings (Savings)
15. NestEggz Platinum Visa Card (Savings)

The 15 Most Rewarding Credit Cards [MSN Money]

Updated June 16, 2008. Any indented text is excerpted directly from the issuer’s marketing.

Here is an update to an article I posted about four months ago. If you’re looking for 0% APR offers, here are 79 of them.

Warning! Taking advantage of credit card companies may be fun and profitable, but it is dangerous if you don’t know what you’re doing, or if you do know what you’re doing but are not careful. If you miss one payment, in most cases, you will owe back interest at the default rate.

That being said, here are a bunch of credit cards offering 0% APR on purchases, balance transfers, or cash advances for a year or six months. Use these cards responsibly, and you can save yourself money two ways. First, you can earn interest on your cash while paying off the card, and second, you can use inflation to your advantage. For example, if you pay $100 each month for thirteen months, your last payment is worth about 3% less in purchasing power. Here are 79 cards that offer 0% interest on purchases or more.

Chase TravelPlus Visa (apply here)
0% on purchases and balance transfers for 12 months
17.49% variable APR (standard)

This card, in addition to the introductory APR offer, provides 2 miles for every $1 spent on travel-related purchases and 1 mile for every $1 on other categories. There is a $29 annual fee for the rewards program, however.

Discover Business Miles Card (apply here)
0% APR on purchases for 12 months
13.99% APR on purchases (standard)

You don’t have to have a business to apply and be accepted for this card, as with any business card. With this card, you also earn miles which can be redeemed for travel credits. The standard Discover Business Card offers a similar introductory rate, but rather than miles, earns the spender 5% cash back on office supplies, 2% on gas, and 1% on all other purchases.

GM Business World MasterCard (apply here)
0% APR on purchases and balance transfers for 12 months
13.49% APR on purchases (standard)

The GM Business World MasterCard offers cash back with no limit. You can earn 3% cash back on fuel, restaurant, office supply, and GM parts and service purchases. All other purchases earn you 1% cash back. Also, if you purchase or lease a GM vehicle, you will be given a $500 credit on your statement. I’m not a GM fan, but if you are, this could be a good way to save money.

Here are more 0% interest introductory offers on purchases, balance transfers and cash advances.

Chase Business Cash Rewards Card: 0% APR on purchases and balance transfers for 6 months 12 months
Chase Platinum Business Card: 0% APR on purchases and balance transfers for 12 months
Chase Business Rebate Visa Card: 0% APR on purchases and balance transfers for 12 months
American Express Platinum Business FreedomPass: 0% APR on purchases for 12 months
American Express Blue Cash for Business Card: 0% APR on purchases for 6 months

American Express Platinum Business Card: 0% APR on purchases for 12 months
American Express SimplyCash Business Card: 0% APR on purchases for 12 months
Citi Professional Cash Card: 0% APR on purchases for 12 months
Citi Professional Card: 0% APR on purchases and for 12 months
Citi Professional Card With ThankYou Network: 0% APR on purchases for 12 months