It’s not unusual for a flat-rate cashback credit card to offer 1.5% back, or even 2% back, for every $1 spent. But 2.5% cash back? That’s an exceptional rewards rate — and if that appeals to you, you might want to consider the Alliant Cashback Visa® Signature Credit Card. However, the card is not without its drawbacks.

Read on and we’ll explain the details of the cashback program, how to qualify for membership with Alliant Credit Union and consider another cashback card that might work better for some consumers.

• Exceptional cashback rate

  With the Alliant Cashback Visa® Signature Credit Card, you can earn up to 2.5% cash back on your first $10,000 of qualifying eligible purchases (1.5% for purchases over $10,000).

  Even with the spending cap, this is a generous rewards program. The $10,000 spending cap applies per billing cycle — if you max it out, that’s $250 in cash back before your earning rate drops.

• Doesn't charge an annual fee

  Thanks to its $0 annual fee, all the cash back you earn with the Alliant Cashback Visa® Signature Credit Card is a net gain (assuming you don’t incur other fees or interest charges).

• No foreign transaction fee

  You can take the Alliant Cashback Visa® Signature Credit Card abroad without worrying about a foreign transaction fee being tacked on each time you use the card — there is none.

• 2.5% cash back comes with a catch

  Just because you have the Alliant Cashback Visa® Signature Credit Card doesn’t mean you’ll automatically earn 2.5% cash back on your first $10,000 in purchases each billing cycle.

  Some cardholders will qualify for what the credit union calls “Tier One” rewards, meaning the 2.5% rate, while others will only qualify for “Tier Two” rewards, meaning 1.5% cash back per $1 spent.

  To qualify for the higher rate, you must meet the requirements for Alliant High-Rate Checking. Note that eligibility is determined on a quarterly basis, and to qualify, you must meet the requirements for each month of the preceding calendar quarter.

  Requirements are as follows:

  • Open an Alliant checking account.
  • Sign up for eStatements and have one monthly electronic deposit.
  • Maintain an average daily balance in your checking account of $1,000 or more each month.

• You won't earn a sign-up bonus

  It’s fairly common for cashback credit cards to offer a sign-up bonus if you meet a certain spending target in your first few months with the card. This can be particularly helpful if you’ve got a big purchase planned and would like to take advantage of such a bonus to offset the cost of the purchase. However, the Alliant Cashback Visa® Signature Credit Card doesn’t offer a sign-up bonus.

• Credit union membership required

  If you want the Alliant Cashback Visa® Signature Credit Card, you’ll have to join Alliant Credit Union, which has its corporate headquarters in Chicago. It’s possible to qualify for membership if you work for or are retired from an Alliant partner; you’re a domestic partner or immediate family of an Alliant member; or you live or work in one of Alliant’s eligible communities.

  If you’re not eligible through those options, you can join Foster Care to Success (FC2S) and Alliant will pay the $5 membership fee on your behalf; this will qualify you for membership with the credit union. This essentially opens up membership to anyone — but if you don’t want to deal with extra steps when applying for a new card, joining the credit union could be considered an inconvenience.

• Lack of a 0% intro APR period

  If you’re looking for a credit card that offers a 0% intro APR on purchases or balance transfers — which would allow you a window of time where no interest accrues — this isn’t the card you want. There’s no intro APR, so you’ll start out immediately at the regular 12.49% to 22.49% variable APR.

 

If meeting the requirements to earn 2.5% cash back with the Alliant Cashback Visa® Signature Credit Card seems challenging, a better cashback credit card to consider might be the Wells Fargo Active Cash^® Card. With the latter card, you’ll earn unlimited 2% cash rewards on purchases, no strings attached.

Plus, the Wells Fargo Active Cash^® Card comes with a sign-up bonus and 0% intro APR periods on both purchases and balance transfers, which the Alliant Cashback Visa® Signature Credit Card lacks.

For the bonus, earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months.

On new purchases, enjoy a 0% intro APR for 15 months from account opening, after which a 17.24%, 22.24%, or 27.24% variable apr APR applies. There’s also a 0% intro APR for 15 months from account opening on qualifying balance transfers; after, a 17.24%, 22.24%, or 27.24% variable apr APR applies.

The Wells Fargo Active Cash^® Card charges a $0 annual fee, but there is a 3% foreign transaction fee — so pick a different card with no foreign transaction fees if traveling outside the United States.

If you plan to do your banking with Alliant — and if keeping an average daily balance of $1,000 or more in your checking account works for your budget — the Alliant Cashback Visa® Signature Credit Card offers an exceptional flat cashback rate. If, however, you don’t want strings attached to how much you earn, or you’d like a sign-up bonus or an intro APR, consider a card like the Wells Fargo Active Cash^® Card instead.