It's finally time to shop around for a new credit card. You can visit any of the many money blogs to get an idea of what the best rewarding credit card is but the ones I've chosen to compare are specifically for my driving and other spending habits. Here are the cards:
On an initial glance, I personally think Open Road is better if you're able to get the lower purchase APR. However, let's take a look at the fine print for both cards regarding their rebate % restrictions and limitations:
Discover Open Road
Earn unlimited cash rewards on all purchases. Earn a full 5% Cashback Bonus on your first $100 in combined gas and auto maintenance purchases each billing period, up $1,200 annually. In addition, earn a full 1% on all other purchases after your total annual purchases exceed $3,000; other purchases that are part of your first $1,500 earn .25% and other purchases that are part of your second $1,500 earn .50%. Combined gas and auto maintenance purchases in excess of $100 each billing period earn Cashback Bonus at the same rate as other purchases. Gas and auto maintenance purchases are those made at merchants we classify as gas stations and at stores that primarily sell automotive parts and services, such as auto dealerships, auto repair shops, tire stores and car washes. Warehouse purchases (those made at select warehouse clubs, discount stores and their affiliates) earn .25%. We do not include warehouse purchases or your first $100 in combined gas and auto maintenance purchases each month in calculating your total annual purchases to determine your tier level.
Citi Driver's Edge
Get rewarded for the purchases you make:
- 6% rebates on everyday purchases-at supermarkets, drugstores and gas stations-for the first 12 months
- 3% rebates at supermarkets, drugstores and gas stations after your introductory 12-month period
- 1% rebates on all other types of purchases
Supermarkets are defined as stand-alone merchants that primarily sell a complete line of food merchandise for home consumption. Drugstores are stand-alone merchants that primarily sell prescription and proprietary drugs and nonprescription (over-the-counter) medicines. Gas stations are merchants that primarily sell vehicle fuel for consumer use. Purchases not eligible to receive the 3% rebates (6% rebates for 12 months) include, but are not limited to, purchases made at warehouse clubs, discount stores, department stores and convenience stores. In addition, online, catalog, mail order and telephone purchases are not eligible to receive 3% rebates (6% rebates for 12 months) unless the merchants identify the transactions as being made at a supermarket, drugstore or gas station. We do not determine whether merchants correctly identify and bill transactions as being made at a supermarket, drugstore or gas station. However, we do reserve the right to determine which purchases qualify for the 3% rebates (6% rebates for 12 months). The 3% rebates (6% rebates for 12 months) offer applies only to new Driver's Edge accounts.
You may earn a maximum of $1,000 in rebates each year under the Driver's Edge Rebate Program based upon the date you become a Citi Driver's Edge cardmember.
All of this reading can be confusing. Basically Open Road let's you keep the 5% cashback bonus throughout the entire time you own the card. However, Driver's Edge's 6% rebate is only for 12 months, then it goes down to a 3% - which is definitely not comparable to Open Road's 5%. So, I guess I'm going with Discover, right?
Not quite. Credit Card Flyers has a neat tool where you can compare different credit cards as well as calculate their rewards earnings. Take a look at both cards' with only some food, gas, and travel purchases made: Open Road and Driver's Edge. Total earnings annually for Open Road is $66.00, while Driver's Edge's is $232.80.
Within the first 12 months of using Driver's Edge, I can earn $166.80 more than using Open Road. Even if I use the 3% rebate instead of introductory 6%, I will earn $137.40, which is still earn $71.40 more. The credit card company I want to get away from offers the best frequent drivers' card. Go figure.
