May 1st, 2012
Review: LivingSocial Rewards Visa® Card Gives You More Bang for Your Daily Deal Buck
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Are you addicted to online daily deals? Do you love maximizing your credit card rewards?
If you answered “yes,” we might have the perfect credit card for you.
For the first time in history, a credit card company has partnered with an online deal site to create a co-branded credit card. The new LivingSocial Rewards Visa Card gives you the opportunity to earn LivingSocial Deal Bucks, good towards LivingSocial’s daily deal offers, with every card purchase.
The Deal-Maximizing Details
LivingSocial, a popular online deal site that offers local and nationwide deals, features deals that range from discounted vouchers for eateries to skydiving adventures, and everything in between. Typically, you’ll pay just a fraction of the original cost of the voucher. It’s a great way to find new restaurants, save some serious dough on a getaway, or try an outdoor adventure without breaking the bank.
To help die-hard daily deal lovers maximize their spending, LivingSocial partnered with Chase to create the LivingSocial Rewards Visa Card. Cardholders get points for every dollar they spend on specific categories:
- Five points per $1 spent on LivingSocial purchases
- Three points per $1 spent on dining purchases
- One point per $1 spent on all other purchases
Every 100 points can be redeemed for one LivingSocial “Deal Buck.” One Deal Buck is equal to one dollar towards a purchase through LivingSocial. In other words, the more you spend, the more you can reward yourself with a LivingSocial deal.
Let’s say you spend $30 on a LivingSocial deal for a restaurant using your LivingSocial Rewards Visa card. That purchase gives you 150 points. Then, you spend $50 at a retail store on a new dress to wear out to dinner; that’ll get you another 50 points. With your 200 accumulated points, you can redeem it for two LivingSocial Deal Bucks, which will automatically be applied to your next eligible LivingSocial purchase.
In addition to the points you’ll receive for each purchase, this card comes with a special limited-time promotion: Just for 2012, your first 10 purchases on your card within one billing cycle will earn you 10 additional Deal Bucks. You’ll get this bonus for each 2012 billing cycle.
Plus, when you’re approved for the card, you’ll receive 30 Deal Bucks that are automatically credited to your LivingSocial account.
Is it the card for you?
This new Chase and LivingSocial partnership might be a match made in heaven, at least for the daily deal addict. Since the biggest bang for your buck comes from purchasing LivingSocial deals, that’s where this card truly shines.
But if you’re more interested in receiving cash back for your purchases, this card might not be right for you, since your rewards will lock you into choosing a LivingSocial deal. In the end, there might not be a deal that you want or would even use. Instead, go for a cash back credit like the Chase Freedom.
Bottom Line: If you’re interested in applying, first read the fine print here. Also, make sure to check your free credit score to make sure it’s in good shape for a new credit card account. If you’re approved, remember a few important tips:
- Don’t max out your card just to get rewards. LivingSocial has a lot of great deals, and they change every day. It’s tempting to purchase several, especially since you’ll be getting a great discount and bonus points. But remember to keep your credit utilization rate to less than 30 percent of your overall balances for good credit health.
- Don’t carry over a balance. You’ll end up paying interest on a balance left on your card, which could negate the rewards you’re racking up.
- Pay attention to expiration dates. If you’re deal-happy and end up purchasing quite a few, make sure to take note of when they expire. Use a service like CityPockets, which aggregates all of your deals and sends you reminder emails when they’re about to expire.
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