Top 3 Credit Cards for People Who Earn $60,000 – $70,000

by RateHub.ca July 29, 2015 / No Comments

We grow up hearing that, “with great risk comes great reward”. If we were talking about credit cards, we could change that statement to: with greater income comes greater rewards. Earlier this week, we started our series on credit card comparisons at each income level, and this week we’re going to finish that off with two more salary ranges.

As we discovered while working on this post, earning $60,000 to $70,000 a year opens your credit card options to include a few more cards, which can help you earn rewards faster or receive more cash back than you could’ve imagined. Typically, credit cards that offer better rewards or higher cash back rates have an annual fee, but if you use your credit card frequently enough, these fees can quickly be offset by the rewards or extra cash you receive (and sometimes the fees are even waived!).

Of course, once you know which of the best credit cards you can choose from, you should then ask yourself which type of reward you’d like to receive. If you’re earning between $60,000 and $70,000 per year, your best credit card options include two travel rewards credit cards and a cash back credit card. Take a look.

*Note: To compare the cards, we set a monthly spend of $2,000 on “everything”.

American Express Gold Rewards Card

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  • $150 annual fee (waived in the first year)
  • Earn a welcome bonus of 25,000 Membership Rewards points when you charge $1,500 in purchases to your card in your first three months
  • Convert your Membership Rewards points to Aeroplan Miles or Avios on a 1:1 basis

 

Annual Fee Sign-up Bonus Spending Rewards Monthly Spending Profile First Year Return
$150 (waived the first year) $250 2 points per $1 on gas, groceries, travel and pharmacy

1 point per $1 spent on everything else

1 point x $2,000 on everything = 2,000 points/month

Avg. value of 1 point = $0.01

2,000 point x $0.01 = $20/month

Sign-up: $250

SpendingRewards: $20 x 12 months = $240

Annual Fee: $0

Total: $250+$240-$0=$490

Return: $490/$24,000 = 2.04%

In top spot is the American Express Gold Rewards Card. Despite the fact that this credit card has the highest annual fee of the three we’ve listed, at just $20,000, it has the lowest annual income requirement. With this gold card, you’ll earn 2 points per $1 spent on gas, groceries, travel and at pharmacies, and 1 point per $1 spent on everything else. For this comparison, we’ve just assumed all $2,000 spent on the card was under the everything else category – so your return could be even higher, depending on what you spend your money on. The greatest perk of this card, though, might be its sign-up bonus: 25,000 points valued at $250.

TD Aeroplan Visa Infinite Card

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  • Receive up to 20,000 Bonus Aeroplan Miles
  • Earn up to 1.5 points per dollar spent
  • $120 Annual Fee rebate for the first year (offer valid until September 2, 2016)
  • Comprehensive suite of travel protection, including auto rental collision/loss damage insurance, travel medical insurance and trip cancellation/trip interruption insurance
  • Receive VISA Infinite benefits

 

Annual Fee Sign-up Bonus Spending Rewards Monthly Spending Profile First Year Return
$120 (rebate for the first year) $240 1.5 miles per $1 on gas, groceries, and pharmacy

1 mile per $1 spent on everything else

1 mile x $2,000 on everything = 2,000 miles/month

Avg. value of 1 mile = $0.012

2,000 miles x $0.012 = $24/month

Sign-up: $240

SpendingRewards: $24 x 12 months = $288

Annual Fee: $0

Total: $240+$280-$0=$528

Return: $528/$24,000 = 2.2%

Once you earn a $60,000 salary as an individual or have a household income of $100,000, you can qualify for the TD Aeroplan Visa Infinite. With this card, you’ll earn 1.5 miles per $1 spent on gas, groceries and at pharmacies, and 1 mile per $1 spent on everything else. The added bonus: you can also double dip and earn miles twice, when you show your free Aeroplan membership card at select retailers. As a cardholder, your miles will never expire, and if you redeem them for travel rewards, the primary cardholder will automatically receive additional perks, such as a complimentary checked bag, priority check-in and boarding and one-time, single guest access to the Air Canada Maple Leaf Lounge each year. Just remember that this card comes with a $120 annual fee.

Scotia Momentum VISA Infinite

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  • Earn 4% cash back on gas and groceries, 2% cash back on drug store purchases and recurring bill payments, and 1% cash back on all other purchases
  • $99 annual fee waived for the first year when you open an account before October 31, 2016
  • Receive VISA Infinite benefits

 

Annual Fee Sign-up Bonus Spending Rewards Monthly Spending Profile First Year Return
$99 (waived the first year) N/A 4% cash back on gas and groceries

2% cash back on pharmacy and recurring bills

1% cash back on everything else

1% x $2,000 on everything = $20/month Spending Rewards: $20 x 12 months = $240

Annual Fee: $0

Total: $240-$0=$240

Return: $240/$24,000 = 1.00%

And finally, if you earn a personal annual income of $60,000 or a household income of $100,000, you can earn cash back when you make a purchase with the Scotia Momentum Visa Infinite. For this comparison, we put all $2,000 of monthly purchases in the “everything else” category, which gives you 1% cash back. However, if you use the card to pay for gas and groceries, you’ll earn 4% cash back, and you’ll earn 2% cash back at drugstores and for recurring bill payments – so your return will probably be much larger than this, depending on what you spend your money on. Just remember that this credit card has a $99 annual fee, which is waived in the first year.

 

Flickr: Flazingo Photos