New Schwab Credit Card Could Help Retirement Savings

Americans overextending themselves with debt – including credit card debt – is no small part of our current financial mess. Yet for savvy folks who can handle the responsibility, credit cards offer the most secure, efficient, and profitable method of paying bills. They key to succesful credit card use is simple: you absolutely must be prepared to pay off the card balance in it’s entirety each month.

If you can do this, you can pocket some decent money in the form of cash rebates, airline miles or other rewards. I’ve always been partial to the Fidelity 529 Credit Card that pays me a 2% rebate on all purchases made (I have an older version of the card that is grandfathered at 2%; newer versions pay a still respectable 1.50%). Over the last 5 years, I’ve been able to earn more than $4,000 from this card – money paid into a 529 college savings account.

But now Charles Schwab has announced the Schwab Bank Invest First Visa Credit Card, a card that may entice me to shift from funding college costs with my credit card rewards to funding retirement. Here’s the lowdown on the Schwab card:

Now there’s an easier way to put investing first: The Schwab Bank Invest First™ Visa Signature® credit card. It gives you unlimited 2% cash back on purchases, automatically deposited into a Schwab One brokerage account each month.

No cash back limits. No minimums. No annual fee.

* There’s no limit on the cash back you can earn.
* No minimum monthly purchase amount.
* And no annual fee or foreign exchange transaction fees.1
* Get a competitive variable Annual Percentage Rate (APR) on purchases, currently 14.99%.1

Again, not a credit card for anyone who carries a balance – 14.99% interest is pretty steep.

But if you’re a savvy user who pays the balance in full each month, this could be a great tool to supplement other retirement savings. to find out more, follow the link above.