Charles Schwab Credit Card: what made it tick

The Charles Schwab Credit Card has since been discontinued by Schwab. But let’s try and scratch the surface and see what made this card tick. The Charles Schwab Credit Card was an effort by Schwab to try and get as many accounts to their fold as they possibly could. This gave birth to a card that was essence a cash rebate credit card. What that meant is that all of your rebates get accumulated straight into your Schwab account. Let’s now look at some numbers instead of going on about what the card was all about in the first place.

For every dollar that was spent on the card, the Charles Schwab Credit Card gave its cardholder a 2% cash rebate. And that amount of rebates that could be earned were potentially unlimited. Any rebates that are earned are automatically put into the Schwab account after each month has elapsed and they could be cashed in whenever you wanted to. And therein lay the catch; to get that 2% rebate. You needed a qualified Schwab account and that was what Schwab wanted in the first place, to increase the number of accounts it had on its books. Of course, you could still gather these rebates and cash them in later even if you didn’t have a Schwab account. Schwab would hold these rebates for you for a period of 5 years. Individual, joint, or trust Schwab One accounts were eligible for this program.

As such, there was no annual fee for the Charles Schwab Credit Card. And the APR was 13.74% with a balance transfer offer of 2.99% for the first six months of usage. Note that there was still a 3% balance transfer charge. Something that most credit cards charge anyhow these days. There were no caps on the fee itself but remarkably. The Charles Schwab Credit Card charged nothing for foreign transactions. Some variations of the card had no spending limits. But they did require for you to qualify for a certain amount of credit. After which you would be good to go. While it lasted, the Charles Schwab Credit Card was a great alternative to the usual 1% cash back offered.

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