NEW YORK–Heading into 2020 credit unions focused on making their card rewards more attractive in an extremely competitive market sought to offer travel rewards and related points offers.
In the background, many others called for more robust efforts to get CU cards “top of wallet” for the default online, mobile and contactless payments an increasing number of consumers were making.
Now, the coronavirus pandemic has put a halt to most travel, while monthly default payments for certain services, such as Amazon, have become the only purchases aside from groceries many Americans are making.
A good example of the flip-flop: Forbes is out with a new list recommending the best credit cards for monthly streaming services, which have soared in popularity with Americans ordered to stay home.
“Dozens of new streaming entertainment options have launched in the last couple of years, giving homebound Americans seemingly endless hours of entertainment options,” noted the Forbes report. “Whether you’re signing up for a new streaming service or looking to maximize the subscriptions you already have, it’s important to use the right credit card.”
The Best Cards
According to Forbes, the best cards to use for recurring streaming bills are:
Blue Cash Preferred Card from American Express
“The best overall card for paying for streaming services is the Blue Cash Preferred Card from American Express,” said Forbes. “This card earns an excellent 6% cash back on purchases at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) and 6% cash back on select streaming services—two very relevant categories right now.”
The list of streaming services eligible for the benefits include Apple TV+, Apple Music, AT&T Now, CBS All Access, Disney+, ESPN+, HBO Now, Hulu, iHeartRadio, Netflix, Pandora, Showtime, Sling TV, Spotify, YouTubeTV and more.
“If you don’t have the card yet, it’s offering a solid welcome bonus of $250 cash back after spending just $1,000 in the first three months of card membership,” the report added. “If you spend all $1,000 on streaming services and grocery stores, you’ll earn a combined 31% cash back on these purchases.”
Chase Freedom Card
From April through June 2020, the Chase Freedom Card is “going to be your next-best cash back option. This card earns 5% cash back on up to $1,500 in purchases on select categories that change each quarter. For the second quarter of 2020, the categories were originally announced as grocery stores, fitness clubs and gym memberships. However, thanks to a last-minute addition, select streaming services will also earn 5% cash back for the next three months.”
One caveat: the 5% earning is not automatic and cardholders must register their card each quarter to continue earning the cash back.
U.S. Bank Cash+ Visa Signature Card
“The U.S. Bank Cash+ Visa Signature Card is a unique card,” noted Forbes. “Rather than having set bonus categories, this no-annual-fee credit card lets cardholders choose their own 5% cash back categories. Cardmembers earn 5% cash back on the first $2,000 in combined purchases each quarter in the two categories chosen.
“There are 12 different categories to choose from, including gyms/fitness centers, movie theaters and fast food. In normal times, cardmembers might have trouble choosing between the list. However, in the days of social distancing, the TV, Internet & Streaming Services category is looking pretty appealing.”
Wells Fargo Propel American Express
Another no-annual-fee credit card that offers a solid return on streaming services, according to the Forbes report, is the Wells Fargo Propel American Experss card, on which cardholders earn three points per dollar spent on online streaming services Apple Music, Hulu, Netflix, Pandora, Sirius XM Radio and Spotify Premium.
The card also earns three points per dollar spent when “eating out and ordering in,” as well as on a number of travel-related expenses: gas stations, rideshares, transit, flights, hotels, homestays and car rentals, the report added.
Apple Card
“For those in the Apple ecosystem, the Apple Card is a solid choice. You’ll earn 3% cash back on all Apple purchases—from a new iPhone to everyday purchases in the App Store,” the Forbes report states. “If you don’t have a credit card with better earnings, the Apple Card should be your go-to for Apple TV+ subscriptions.”