The US Bank Cash Plus Visa Signature card is a no annual fee card that gives cash back on purchases. The interesting part of the card is that you pick the categories each quarter (one 2% category and two 5% categories).
U.S. Bank Cash+ Visa Signature Card Benefits
- 5% cash back on your first $2,000 in combined net purchases each quarter on two categories you choose (like department stores or cell phone service).
- 2% cash back on your choice of one everyday category (like gas or groceries).
- 1% cash back on everything else.
- No limit on total cash back earned.
Make sure you choose your categories each quarter. If you do not choose your categories, all net purchases will still earn 1% cash back. Categories are subject to change quarterly. You can find a list of the categories here.
What’s interesting is that one of the 5% categories is charity and that one of the qualifying categories is Kiva.
I’ve talked about Kiva in the past here and my personal experience with Kiva. Essentially, you make microloans to those in need in countries around the world, and get your money returned over time without interest.
Given that you can make these loans with your credit card, you could consider the miles or points earned from the credit cards as your interest. Keep in mind that you are floating money and will be getting paid over months.
So, if you make these loans using the US Bank Cash plus signature visa card, you would be earning 5% on your contributions. Since US bank limits to $2000 on 5% categories every quarter, that works out to $8000 spend over the year. Earning 5% on $8000 is $400.
As an added one time bonus, US bank gives $25 when you redeem at least $100. Thus, you could receive $425 over the course of the year. This is more money that you would normally get in an average checking or savings account. Of course, you could withdraw money from checking or savings accounts, but that’s not the case here. In addition, this money from US Bank is tax free.
Keep in mind that there are risks to Kiva such as loans defaulting. My personal rate of default has been very low (0.3 %) equivalent to losing $24 on an $8000 loan.
In comparison, there are many cards such as Chase Freedom and Discover card that offer 5% back on rotating categories. The difference between those cards is that you have to go buy things and there is no such thing as floating money. With this approach and the US Bank Cash Plus card, you’re not buying anything, but loaning money which you will eventually get back.
If loaning money is not your thing, you could still get 5% cash back by picking other categories. Given that it’s a no annual fee card, it is just as valuable as the Discover card or Chase Freedom.
Also keep in mind that this strategy applies specifically to the Cash Plus Signature Visa. If you do not qualify for the U.S. Bank Cash+ Visa Signature Card, you will automatically be considered for the U.S. Bank Cash Rewards Visa Card that earns 1% cash back on all net purchases, but does not offer the 5% and 2% Cash+ Categories. You can only apply for this card in person. It is not available online.