Is This Unlimited 2.5% Cash Back Card Worth the Fee?

Learn what the Alliant cash-back credit card has to offer.

When presented with the opportunity to apply for an unlimited cash-back credit card, most people in the market for a new credit card will probably at least consider one. Although unlimited cash back sounds appealing, other factors such as APR, annual fee and additional perks must also be weighed carefully.

With benefits like high cash-back rewards, a low starting APR and no annual fee for the first year, the Cashback Visa Signature Credit Card from Alliant Credit Union — selected as one of the best credit unions in a recent GOBankingRates evaluation — might be the best cash-back credit card for you.

Here’s a look at the various features and benefits of the Alliant Cashback Visa Signature Credit Card:

Alliant Cashback Visa Signature Credit Card Features and Benefits
Cashback Benefits3% in the first year; 2.5% thereafter
APR11.99% APR to 14.99% APR
Annual FeeNo annual fee in the first year; $59 thereafter
Foreign Transaction FeeNone
Balance Transfer Fee3 percent
Additional BenefitsPurchase security
Personal identity theft protection
Travel accident insurance
Roadside assistance

Compare: Best ‘No Annual Fee’ Credit Cards

Alliant Cashback Visa Signature Credit Card Features

Alliant’s Cashback Visa Signature card is one of the highest cash-back credit cards available because it comes with an unlimited cash-back benefit. So the more you spend with the card, the more you’ll receive in cash-back rewards.

Even though this particular Alliant credit card carries an annual fee of $59 after the first year, the perks might outweigh the cost. Unlike cards that restrict cash-back rewards to specific categories in varying amounts, this card offers a flat rate with no restrictions: a generous 3 percent cash-back rate on all purchases for the first year and 2.5 percent after that.

Plus, the maximum purchase APR of 14.99 percent that the card carries is considerably lower than its competitors’ maximum rates of 23.24 percent. There’s also no over-limit fee, and the maximum late fee is only $27. 

Perks and Conditions of the Alliant Cashback Visa Signature Credit Card

As with any credit card, the Alliant Visa Signature card has its own set of pros and cons. Here’s what you need to know:

Perks of the Alliant Visa

In addition to the first-year 3 percent unlimited cash-back rate and 2.5 percent after that, you’ll also get the following benefits:

  • Low purchase APR
  • Competitive or lower fees
  • A host of additional benefits, such as travel accident coverage and roadside assistance

Conditions of the Alliant Visa:

Alliant Credit Union membership or another qualification is required to obtain the card. Other conditions include:

  • $59 annual fee, whereas cash-back rewards credit cards from Chase, Discover and Citibank carry no annual fee 
  • $25 threshold applies to cash-back redemption

Related: Best Credit Card Offers, Deals and Bonuses

Other Considerations of the Alliant Cashback Visa Signature Credit Card

For people who like to travel internationally, no foreign transaction fees apply to this Alliant credit union credit card. Plus, the card offers a competitive balance transfer fee of 3 percent, which compares with offers from American Express, Discover and Citibank. And additional Visa Signature benefits apply, such as double warranty coverage on purchases and up to $5,000 of covered expenses in the event of a personal identity theft incident. 

Who Is the Alliant Cashback Visa Card Best For?

Alliant Credit Union designed its Cashback Visa Signature Credit Card for those who spend $50,000 a year or more on their card. For example, if you spend $50,000 during the first year, you could rack up $1,500 in cash rewards before the annual fee. One way to maximize your cash-back benefit from the card is to opt to pay for the majority of your monthly expenses with the card. Then, pay off the balance before interest charges accrue.

But that doesn’t mean the card isn’t worth the annual fee if you don’t spend that much. In fact, you’d only have to spend about $12,000 per year to outdo other 2 percent cash-back cards that don’t carry an annual fee. Although you won’t maximize the cash-back benefit you can get with this card, it’s still worth the fee if you spend at least $12,000 annually. Otherwise, you might want to look into cash-back cards with no fee.

Compare: Best Rewards Credit Cards

This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved, or otherwise endorsed by Alliant Credit Union or Visa.