Best Credit Cards for Subscription Services
In today’s digital age, subscription services have become a staple in our daily lives. From streaming platforms like Netflix and Hulu to monthly boxes of goodies from Birchbox and Blue Apron, these services offer convenience and entertainment. But, if you’re not using the right credit card, you might be missing out on some serious rewards. Let’s dive into the best credit cards for subscription services and how they can help you save money and earn rewards.
Understanding Subscription Services
Subscription services are recurring payments made for access to a product or service. Examples include streaming services (Netflix, Spotify), meal kits (HelloFresh, Blue Apron), and monthly box subscriptions (Birchbox, Dollar Shave Club). The convenience and variety offered by these services have made them incredibly popular, leading to a significant increase in subscription-based businesses.
Key Features to Look for in a Credit Card for Subscription Services
When choosing a credit card for your subscription services, there are a few key features to consider:
Rewards and Cashback Programs
Look for cards that offer high rewards rates or cashback for every dollar spent on recurring payments. This can help you save money over time.
No Foreign Transaction Fees
If you subscribe to international services, a card with no foreign transaction fees is essential to avoid extra charges.
Purchase Protection
Purchase protection can cover your purchases against damage or theft for a certain period after the purchase.
Extended Warranties
Some credit cards offer extended warranties on eligible purchases, which can be useful for expensive subscriptions that include equipment or gadgets.
Top Credit Cards for Subscription Services in 2024
Here are some of the top credit cards that excel in offering rewards and benefits for subscription services:
Chase Sapphire Preferred® Card
Key Benefits
- 2x points on travel and dining, including eligible delivery services
- 1x point on all other purchases
- No foreign transaction fees
Rewards Program
Points can be redeemed for travel, gift cards, or cashback. Points are worth 25% more when redeemed for travel through Chase Ultimate Rewards.
Why It’s Great for Subscriptions
The Chase Sapphire Preferred® Card is ideal for those who frequently dine out or travel. The points earned on dining can also include meal delivery services, making it perfect for food subscription services.
American Express Blue Cash Preferred® Card
Key Benefits
- 6% cashback on select U.S. streaming subscriptions
- 6% cashback at U.S. supermarkets (up to $6,000 per year)
- 3% cashback on transit
- 1% on all other purchases
Rewards Program
Cashback can be redeemed as statement credits, making it easy to lower your bill.
Why It’s Great for Subscriptions
This card is specifically tailored for streaming services, offering a high cashback rate on popular subscriptions like Netflix, Hulu, and Spotify.
Citi Double Cash Card
Key Benefits
- 2% cashback on all purchases (1% when you buy, 1% when you pay)
- No annual fee
Rewards Program
Simple and straightforward cashback program, with no categories to track or sign up for.
Why It’s Great for Subscriptions
With 2% cashback on everything, the Citi Double Cash Card is a great choice for those who want a no-fuss approach to earning rewards on their subscriptions.
Capital One SavorOne Cash Rewards Credit Card
Key Benefits
- 3% cashback on dining, entertainment, and popular streaming services
- 1% cashback on all other purchases
- No foreign transaction fees
Rewards Program
Cashback can be redeemed as statement credits, checks, or gift cards.
Why It’s Great for Subscriptions
This card offers a high cashback rate on both dining and entertainment, making it ideal for those who enjoy streaming services and dining out.
Discover it® Cash Back
Key Benefits
- 5% cashback on rotating categories each quarter (up to the quarterly maximum)
- 1% cashback on all other purchases
- No annual fee
Rewards Program
Cashback can be redeemed for statement credits, gift cards, or merchandise.
Why It’s Great for Subscriptions
The rotating categories often include popular subscription services, allowing you to earn significant cashback during certain quarters.
Comparing the Top Credit Cards
When comparing these cards, consider your spending habits and which subscriptions you use the most. Here’s a quick comparison:
| Card | Best For | Cashback/Rewards |
|---|---|---|
| Chase Sapphire Preferred® Card | Travel and dining | 2x points on travel and dining |
| American Express Blue Cash Preferred® Card | Streaming and groceries | 6% on streaming and groceries |
| Citi Double Cash Card | Simplicity and all purchases | 2% on all purchases |
| Capital One SavorOne Cash Rewards Credit Card | Dining and entertainment | 3% on dining and streaming |
| Discover it® Cash Back | Rotating categories | 5% on rotating categories |
How to Maximize Rewards with Subscription Services
Tips for Managing Subscriptions
- Keep track of all your subscriptions in one place.
- Regularly review your subscriptions to ensure you’re using them.
- Consider annual subscriptions for services you use regularly, as they often come with a discount.
Strategies for Maximizing Cashback and Rewards
- Use the credit card with the highest rewards for each specific subscription.
- Pay off your balance each month to avoid interest charges.
- Take advantage of signup bonuses and promotional offers.
Common Mistakes to Avoid with Subscription Services
Overlooking Fees and Interest Rates
Always read the fine print. Some cards have high interest rates or annual fees that can outweigh the rewards.
Forgetting to Cancel Unused Subscriptions
Set reminders to review your subscriptions monthly or quarterly and cancel any you no longer use.
The Role of Credit Scores in Choosing a Credit Card
Your credit score plays a crucial role in the types of credit cards you can qualify for. Higher scores typically mean better rewards and lower interest rates.
How Your Credit Score Affects Your Choices
- Excellent credit: Access to premium cards with high rewards
- Good credit: Solid rewards cards with moderate benefits
- Fair credit: Basic cards with fewer perks
Tips for Improving Your Credit Score
- Pay your bills on time.
- Keep your credit utilization low.
- Regularly check your credit report for errors.
Security Considerations for Subscription Services
Protecting Your Card Information
- Use unique passwords for your accounts.
- Enable two-factor authentication where possible.
- Monitor your accounts regularly for unauthorized charges.
What to Do in Case of Fraud
- Report the fraud to your card issuer immediately.
- Freeze your card and request a new one.
- Review all your subscriptions for unauthorized changes.
Conclusion
Choosing the right credit card for your subscription services can lead to significant savings and rewards. Whether you prefer streaming movies, ordering meal kits, or receiving monthly boxes of goodies, there’s a credit card that fits your needs. By considering factors like rewards programs, fees, and security features, you can make an informed decision and get the most out of your subscriptions.