• Cardmembers earn Membership Rewards points by making everyday purchases with American Express.
• Pay1040.com and Official Payments Corp. both allow participants to convert 200 rewards points into $1 in IRS payment.
• Use your American Express card to pay the balance of your tax bill, and you’ll even earn points toward next year’s payment.

The points conversion program takes advantage of IRS rules that allow Americans to make up to two third party tax payments each year. This way, you can still make another credit card payment to the IRS if your points don’t cover the entire bill. It takes about five to seven business days for payments processed by third party companies to post to your IRS account. Therefore, if you intend to convert points into tax payments, give yourself at least a week before the IRS’ April 15 filing deadline.

Not Every AmEx Cardmember Will Get to Pay the IRS with Points

On average, the IRS reports that most individuals get refund checks in the neighborhood of $2,300. However, small business owners who like to earn Membership Rewards points by managing company expenses on their AmEx cards could have the best chance of landing an IRS bill instead of a refund.

Of course, a 200 point to $1 ratio might not be for everyone, even those of us scrambling to find ways to pay off the IRS in a pinch. Many of the luxury rewards offered on the American Express website translate to somewhat more favorable valuations. However, if your tax software surprises you by telling you that you’re in the red for the year, Membership Rewards points could be a great way to keep from tapping into your savings or increasing your credit card balance.

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Under the points-based program, dubbed Ultimate Rewards, customers will earn points for every dollar spent on certain Chase credit cards, with no earnings caps or expiration dates. Points can be redeemed for travel, cash, statement credits or gift cards, generally on a one-for-one basis with each point worth one penny. Users can also redeem points for merchandise, although the redemption rate is slightly less than one percent.

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Well, according to Matthew…

The non-5% rewards will be dropping to 1.25% instead of 1.5% after $6500 in annual spending. In addition, purchases over $400 at gas stations (how would you get that high? I guess if you’re a trucker…) will no longer be classified as “Everyday” purchases. The last major rewards change was that it now specifically states the purchases must be made for personal consumption.

This information was apparently sent out with April card statements. I’ve since checked the application page for this card, and it seems that Matthew’s information is correct. The lower reward level after you reach $6500 in spending will indeed be 1.25%, and mega-purchases at gas stations (the $400 limit appears to be per transaction) will no longer qualify for 5% cash back.

While this might not strike you as a huge change, the drop from 1.5% to 1.25% represents a 17% decrease. Thus, while it’s still a good card, it’s not quite as good as it used to be.

*Note: Prior to hitting the $6500 spending level, this card pays 1% rewards on “Everyday” purchases and 0.5% rewards on everything else.

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You can signup on the AmEx website or by calling 1-800-794-1308 and providing the promo code 139150001. As many of you know, we use the AmEx Blue Cash rewards card, so we won’t benefit from this promo. But if you’re currently earning points from AmEx, then you sign up right away.

Via: CreditMattersBlog

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Here’s the Deal

Simply apply for a 0% credit card and then use it to buy up as much cash as you can from the Mint. When your cash arrives, use it to pay off other debts. Voíla! A homemade 0% balance transfer with no fees. And you might even earn some credit card rewards while you’re at it!

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Here’s the Deal

Just hop on over to the US Mint and order $250 or $500 worth of coins. They come boxes of 250, with a limit of two boxes. You can pay with a credit card and, as noted above, shipping is free. Also note that there’s no explicit limit on the number of orders that an individual can place, so you should be able to do this over and over.

If you have (for example) an Amex Blue Cash rewards card, this strategy will generate $7.50 in rewards for every two boxes purchased (1.5% rewards on $500 in purchases). If you don’t want the coins, you can always spend them or just deposit them at the bank.

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But wait… It gets better… If you open your account over the phone, you can make an initial deposit of up to $1k with your credit card. In other words, you can earn a nice little dollop of credit card rewards on top of the bonus.

Via: Money Tipper

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Personally, I’m still partial to the Amex Blue Cash rewards card since it offers 5% on both gas and groceries, and 1.5% on everything else. However, the PenFed card doesn’t have a reduced reward tier on the first $6500 in spending, meaning that it might work out better for people who spend less than we do.

The hoops that I was talking about? You have to be a member of PenFed to apply for the card. The good news is that it’s pretty easy to join. If you don’t fit any of their standard eligbility criteria, you can always join the National Military Family Association (NMFA) for $20, join PenFed, and then let your NMFA membership lapse.

If the PenFed Visa Platinum Rewards card isn’t what you want, be sure to check out my this list of the best cash back credit cards for alternatives.

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Check this out… The Advanta Net-90 Platinum BusinessCard offers no interest on all purchases for 90 days on an ongoing basis. This isn’t a promotional offer. Rather, you get 90 days interest free on every purchase every time you use your card.

While this is a business card, anyone can apply. There is also a rewards program that pays 1 point per dollar spent, and there is no annual fee. If this card isn’t your cup of tea, check out these other 0% APR credit card offers.

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If you’re in the market for a high end credit card, check out the Visa Black card. It’s an exclusive Visa-branded credit card that’s backed by Barclay’s Bank and only available to ~1% of US residents (presumably selected based on credit history and income).

The key features of this card include:

• Limited Membership
• 24-Hour Concierge Service
• Exclusive Rewards Program
• Luxury Gifts
• Travel Lounge Priority Pass

The card also comes with a six month 0% balance transfer offer. The cost for all of this? $495 per year. While the concierge service, luxury gifts, and travel lounge pass (which provides access to airline lounges around the world) may be well worth it, the rewards program is a simple 1% cash back or points for airline travel.

If you’re mainly after a reward credit card (and you don’t mind carrying a less exclusive card) you’re better off applying for something like Blue Cash from American Express. Then again, the Visa Black card is made from carbon graphite (seriously), so…

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