The Ultimate Guide to Credit Cards
Friday, September 24, 2021

Best Credit Cards For Wealth Management in 2021

Best Credit Cards For Wealth Management

credit card advice

Eric Bank
By: Eric Bank
Posted: August 26, 2021
Advertiser Disclosure

Even the best credit cards for wealth management are not going to suddenly thrust you into the billionaire’s club. But almost anyone can profit by investing credit card bonuses and rewards.

Whether you plow your cash back into an FDIC-insured savings account or invest it in options on uranium futures, these credit cards can help you as you build and manage your wealth.

Best Cash Back Cards For Wealth Management

The following variable APR (annual percentage rate) credit cards all offer signup bonuses and/or cash back rewards that you can invest. What’s more, you can earn your cash back rewards without having to fork over an annual fee. Consider getting one or more of these cards if you can afford to save and invest your rewards instead of spending them.

If your credit score is too low to qualify for these cards, consider getting a secured card first. You can use a secured card to build a good credit score by paying your bills on time and keeping your balances low.

Wells Fargo Active Cash℠ Card Review

at the issuer’ssecure website

CASH BACK RATING

★★★★★

4.8

OVERALL RATING

4.8/5.0
  • New! Earn a $200 cash rewards bonus after spending $1,000 on purchases in the first 3 months
  • Earn unlimited 2% cash rewards on purchases
  • 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then a 14.99% to 24.99% variable APR; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5
  • $0 annual fee
  • No category restrictions or sign ups and cash rewards don’t expire as long as your account remains open
  • Enjoy a premium collection of benefits at a selection of the world’s most intriguing and prestigious hotel properties with Visa Signature Concierge
  • Get up to $600 protection on your cell phone (subject to $25 deductible) against covered damage or theft when you pay your monthly cellular telephone bill with your Wells Fargo Active Cash℠ Card
  • Select "Apply Now" to learn more about the product features, terms and conditions
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% intro APR 15 months from account opening
0% intro APR 15 months from account opening
14.99%-24.99% Variable APR
$0
Good/Excellent

The Wells Fargo Active Cash℠ Card offers a high unlimited cash back rewards rate on top of a modest signup bonus. If you wish, you can conveniently siphon your cash back from this Visa credit card account into a WellsTrade® Online Brokerage account that has a $0 minimum to open.

This allows you to build your relationship with Wells Fargo Bank while enjoying commission-free online stock and ETF trades.

CASH BACK RATING

★★★★★

4.8

OVERALL RATING

4.8/5.0
  • One-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
  • Earn unlimited 1.5% cash back on every purchase, every day
  • No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won’t expire for the life of the account and there’s no limit to how much you can earn
  • 0% intro APR on purchases for 15 months; 14.99%-24.99% variable APR after that
  • $0 annual fee and no foreign transaction fees
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
N/A
14.99% – 24.99% (Variable)
$0
Excellent, Good

Every cardmember can earn a small signup bonus and a high cash back rate with the Capital One Quicksilver Cash Rewards Credit Card. Capital One Investing accounts migrated to E*Trade in 2018, but if you have a spare $100,000 to invest, you can now open a new Capital One Investing account to manage your finances.

This new investment option includes some interesting features, including a personal risk score, financial planning, and advanced spending analysis.

Discover it® Cash Back Review

at Discover Card’ssecure website

CASH BACK RATING

★★★★★

4.8

OVERALL RATING

4.9/5.0
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases – automatically.
  • Redeem cash back in any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • #1 Most Trusted Credit Card according to Investor’s Business Daily.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 14 months
0% for 14 months
11.99% – 22.99% Variable APR
$0
Good/Excellent

We’ve always been big fans of the Discover it® Cash Back card because of its unique Cashback Match program. Discover Bank also offers several savings products, including online savings, CDs, and money market accounts, where you can put your cash back to work earning you interest income.

The bank even offers traditional and Roth IRAs to help you build your retirement nest egg.

Chase Freedom Unlimited® Review

at Chase’ssecure website

CASH BACK RATING

★★★★★

4.7

OVERALL RATING

4.8/5.0
  • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
  • Earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
  • Earn unlimited 1.5% cash back on all other purchases.
  • Earn 5% on Chase travel purchased through Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.
  • No annual fee.
  • 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 – 23.74%.
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% Intro APR on Purchases 15 months
N/A
14.99% – 23.74% Variable
$0
Good/Excellent

The high Chase Ultimate Reward points (that are easily cashed in) and modest signup bonus provided by the Chase Freedom Unlimited® card can be directly funneled into the investment accounts offered by J.P. Morgan. These include commission-free online trading accounts and traditional and Roth IRAs, all with a $0 minimum balance.

Or, with a $500 starting balance, you can hire the bank’s robo-advisor service for automated investing matched to your risk profile, time horizon, and specific goals.

Cash Magnet® Card Review

at the issuer’ssecure website

CASH BACK RATING

★★★★★

4.7

OVERALL RATING

4.7/5.0
  • Earn $200 back after you spend $2,000 in purchases on your new card in your first 6 months. You will receive the $200 back in the form of a statement credit.
  • Unlimited 1.5% cash back on every purchase
  • 0% intro APR on purchases for 15 months from the date of account opening, then a variable APR applies
  • Rental car loss and damage insurance when you use your eligible card to reserve and pay for the entire rental and decline the collision waiver at the rental company counter
  • $0 annual fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 15 months
N/A
13.99% – 23.99% Variable
$0
Good/Excellent

We’re attracted to the simplicity of the Cash Magnet® Card from American Express, which offers a good unlimited cash back rate on all eligible purchases and an extended signup bonus period. On the downside, it charges a foreign transaction fee.

Amex groupies will find it easy to put their rewards to work with American Express high-yield savings or CD accounts that have no required minimum deposit. You can also hold your IRA plan at American Express.

Citi® Double Cash Card Review

at Citi’ssecure website

CASH BACK RATING

★★★★★

4.6

OVERALL RATING

4.8/5.0
  • Earn cash back twice! Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
  • To earn cash back, pay at least the minimum due on time
  • Balance Transfer Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 13.99% – 23.99%, based on your creditworthiness. Balance Transfers do not earn cash back and will have a fee of either $5 or 3% of the amount of each transfer, whichever is greater.
  • If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
  • 24/7 access to customer service representatives
  • $0 annual fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
0% for 18 months
13.99% – 23.99% Variable
$0
Excellent/Good

The Citi® Double Cash Card lets you earn an outstanding cash back rate, but alas, no signup bonus. If you’re a fan of Citibank, you can invest your cash back in a Citi Self Invest self-directed account that features no-cost trading of stocks and ETFs while charging no account minimums.

For added convenience, you can manage all your accounts in the Citi Mobile App, supplemented by live support available 24/7.

Brokerage Cards That Automatically Invest Rewards

The following three brokerages offer credit cards that seamlessly move your cash back rewards into your investment account. The cards charge no annual fees (although some charge a foreign transaction fee) and offer the same kinds of benefits you would receive from a rewards card issued by a bank or credit union.

Fidelity® Rewards Visa Signature® Card Review

at the issuer’ssecure website

CASH BACK RATING

★★★★★

4.5

OVERALL RATING

4.4/5.0
  • Unlimited 2% cash back. Every eligible net $1 spent equals 2 Reward Points. No limits on total Reward Points and no restrictive categories.
  • Deposit your rewards into one eligible Fidelity account or divide them among several. You can even use your rewards to fund a loved one’s account. Choose from up to 5 eligible accounts.
  • Enjoy hotel and transportation discounts, a best available rate guarantee, beverage credits, and special offers at premium retailers
  • Access 24-hour complimentary assistance with everything from booking travel to getting concert tickets for your favorite musician
  • $0 Annual Fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
N/A
13.99% Variable
$0
Good/Excellent

The Fidelity® Rewards Visa Signature® Card offers a generous 2% cash back on all eligible net purchases. You can link this Visa credit card account to any of the seven Fidelity account types, including brokerage, cash management, and retirement accounts.

The card is enabled for digital wallet use and has no reward limits, no annual fee, no restrictive categories on everyday purchases, and a reasonable credit line.

Schwab Investor Card® from American Express Review

at the issuer’ssecure website

CASH BACK RATING

★★★★★

4.5

OVERALL RATING

4.6/5.0
  • The Schwab Investor Card® from American Express is only available to clients who maintain an eligible Schwab account.
  • Earn an unlimited 1.5% cash back automatically deposited into your eligible Schwab account for purchases made with your Card.
  • Earn a $200 Card Statement Credit after spending $1,000 in purchases on your Schwab Investor Card® from American Express in the first 3 months of Card Membership.
  • 0% introductory APR on purchases for 6 months starting from the date of account opening. After that, your APR will be a variable rate, 13.99% to 16.99%, based on your creditworthiness and other factors.
  • $0 Annual Fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
0% for 6 months
N/A
13.99% to 16.99% variable
$0
Good/Excellent

If you have a Schwab investment account, you can get the Schwab Investor Card® from American Express. It features a signup bonus of a $200 statement credit when you spend $1,000 on purchases during the first three months, plus 1.5% cash back on all eligible net purchases.

You can link this no-annual-fee card to your Schwab One® or Schwab General Brokerage account, as well as a Schwab traditional, Roth, or rollover IRA. Schwab also offers a Platinum Card, which is an exclusive credit card with a high annual fee.

TD Double Up℠ Credit Card Review

at the issuer’ssecure website

CASH BACK RATING

★★★★

4.4

OVERALL RATING

4.1/5.0
  • Earn up to 2% Cash Back Rewards when you redeem into an eligible TD Bank Deposit Account
  • Bonus Cash Back: Earn $150 Cash Back in the form of a statement credit when you spend $1,000 within the first 90 days after account opening
  • 0% introductory APR balance transfers for the first 15 billing cycles after account opening. After that, 14.99%, 19.99% or 24.99% variable APR based on your creditworthiness.
  • $0 Annual Fee
Intro (Purchases)
Intro (Transfers)
Regular APR
Annual Fee
Credit Needed
N/A
0% for 15 months
14.99%, 19.99%, or 24.99%
$0
Good/Excellent

The TD Double Up℠ Credit Card with a variable APR pays you an additional 1% cash back above the normal 1% cash back rate when you deposit your rewards into a TD Bank Deposit Account. You also can earn a $150 statement credit by spending $1,000 during the first 90 days after account opening.

You can earn a paltry 0.02% to 0.05% from a TD savings or money market account, where monthly maintenance fees or high account minimums apply.

How Do I Use a Credit Card For Wealth Management?

The concept behind the reviewed cards is to parlay your cash back rewards into a savings or investing account. Each card issuer offers one or more such accounts that usually provide automatic transfers of your cash back rewards.

Naturally, you are not limited to the investment accounts offered by the card issuer. What the issuers offer is the convenience of hassle-free transfers to in-house accounts.

It’s a compelling idea to compound your rewards by investing them and earning interest, dividends, and/or capital gains through your investment accounts. It’s also a luxury that many cardholders can’t afford — they may depend on their rewards to help pay the bills.

Who Qualifies For These Cards?

The cards in this review are aimed at consumers with average or good credit scores (or a score reflecting excellent credit) and a clean credit history.

FICO Credit Score Tiers
The cards in this review are for consumers with good to excellent credit scores.

None of the reviewed cards charge annual fees, which means they are not premium, exclusive credit card offerings festooned with various preferred rewards and perks.

All the cards offer at least 1.5% cash back on purchases, with several in the 2% club. A couple offer even higher rewards on select net purchases, as well as perks like 0% intro balance transfer transactions (with a balance transfer fee) or a high credit limit. That’s not bad for a regular, non-business credit card.

To get the three cards offered by investment brokers, the Fidelity® Rewards Visa Signature® Card, Schwab Investor Card® from American Express, and TD Double Up℠ Credit Card, you must have an investment or similar account with the brokerage. It’s very easy to transfer the preferred rewards from these cards to your investment account automatically.

Moreover, the investment accounts linked to these cards have no minimum amounts, and some commissions are waived. There is no secured credit card in this group, although some issuers separately offer a secured credit card.

The six bank-issued credit cards offer consumers an array of investment options, with almost none requiring a minimum deposit or commissions on certain online trades.

If you are a Wells Fargo Active Cash℠ Card, Citi® Double Cash Card, or Chase Freedom Unlimited® cardmember, you can link up with inexpensive online brokerage accounts offered by the card issuers.

Many banks offer brokerage accounts you can transfer your credit card rewards to.

By transferring your cash back or bonus points to a brokerage account, you have the opportunity to invest in stocks, bonds, mutual funds, exchange-traded funds, and other securities.

All offer some type of savings account or fixed income investing. If you aren’t familiar with investing, consider seeking out a qualified financial advisor.

What Is the Best Way Credit Cards Help You Get Rich?

Perhaps the most persuasive reason to invest your cash back rewards (or rewards point offers easily converted to cash back) is to help build your retirement nest egg via an IRA. You can contribute the lesser of your work earnings or $6,000 ($7,000 if you’re 50 or older) into your IRAs.

Understand that your cash back rewards do not count as work earnings for IRA purposes — you must have salary or wages that match your IRA contributions up to the legal limit. Nonetheless, by contributing your rewards, you free up some of your wages for other uses.

It may be psychologically easier for some cardmembers to use their rewards to purchase risky investments.

I think the right attitude is to treat your cash back the same as your work income, not as casino money to be bet on wild speculation. But hey, if you want to buy risky stocks or other investments with your cash back, enjoy the ride!

On the other hand, putting your cash back into a savings account earning 0.02% interest (as available through the TD Double Up℠ Credit Card) won’t even keep up with inflation, especially if the interest is taxable. You’d probably be better off spending your cash back on goods and services before their prices go up.

Unless you’re a big spender, you’re not likely to accumulate big cash back over the course of a year — with the possible exception of the Cashback Match cards from Discover.

For example, if you spend $2,000 per month on your rewards card and earn 1% cash back, you will earn $20 per month or $240 per year. Double that to $480 in Year One if you happen to have a new Discover it® Cash Back card.

That’s not exactly a jackpot, but it can help you build your wealth slowly and steadily. Plus, a few good investments might pay high returns.

If you deposit your rewards into a traditional IRA, you can also take a tax deduction that can increase their after-tax value by 10% or more (depending on your tax bracket). Plus, your earnings grow tax-deferred until withdrawn later on.

Or you can use a Roth IRA, which doesn’t provide a tax deduction but does offer tax-free growth and withdrawals.

Image credits: weisratings.com

Some rewards point credit cards allow you to cash out your points quickly and conveniently. They are just as convenient as true cash back cards.

Many cards, such as the Apple Card, let you transfer your cash rewards to your bank or credit union account. The Apple Card pays Daily Cash rewards that you can transfer through its mobile wallet.

Because your annual cash back rewards will probably be modest, consider depositing them into one or more mutual funds, preferably those with very low fees. Doing so lets you achieve immediate investment diversification, which would be hard to do through individual small stock purchases.

What are the Drawbacks of Using Credit Cards For Investing?

You’ll find that most brokerages do not allow you to buy securities with a credit card. You can get around this restriction in a few ways, but it may not be a very good idea because of the costs and risks involved.

The most straightforward way to buy stocks with a credit card is to take a cash advance and send the money to your brokerage account. However, the APR on cash advances is usually higher than 25%, and there’s also a 3% to 5% transaction fee.

Your investment would have to produce a profit above these costs to make the deal worthwhile. That’s almost a foolproof method for losing money, even if your stock goes up.

Moreover, if your investment actually loses money, you’ll have to reach into your own pocket to pay back the principal on the cash advance, much less the interest.

Some online brokerages accept payment in the form of gift cards, which you could buy with your credit card. Once again, you’ll be starting in a hole created by the fees, which typically are 3% for using the credit card plus $1 to $3 per gift card.

Another drawback of funding your investments with your credit cards is that it will increase your credit utilization ratio (i.e., credit used divided by total credit available). Your credit score will suffer when your CUR exceeds 30%, which may happen if you make a large stock purchase.

To make matters worse, you won’t earn cash back rewards on cash advances, gift cards, and other non-eligible purchases. In addition, the U.S. Securities and Exchange Commission has issued alerts regarding scam artists pressuring victims into buying stocks with their credit cards and then stealing the money.

All of these problems disappear if you purchase securities using only the cash back rewards from your credit card. Of course, you’ll still face the risks of possible losses, but at least it won’t plunge you into credit card debt or mar your credit history on your credit report.

Compare the Best Credit Cards For Wealth Management

If you’d like to begin investing in securities, our review of the best credit cards for wealth management should help you get started. You can use the cash back rewards offered by these cards to fund purchases of stocks, mutual funds, ETFs, and other investments without creating new credit card debt or fees.

You may want to take a safer route by using your cash back rewards for insured savings products, such as CDs, savings accounts, and money market funds. This can be a good habit even if the sums are small.

To learn more about each of the reviewed cards, simply click on the APPLY HERE links and read all the fine print before applying.

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