How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The AARP® Essential Rewards Mastercard® is an underwhelming rewards card with limited bonus categories and a meager sign-up bonus. It may be good for someone who spends heavily on health care and related items since it offers elevated rewards in these areas. It may also appeal to those who like the charitable side of the card, with $10 being donated to the AARP Foundation for each new card issued, plus 1% of all spending going to the same foundation. It’s also a good choice for financing a large purchase, with a longer-than-average intro APR for new purchases.
But the rewards outside of medical-related purchases are limited. Aside from a 3% bonus on gas purchases, all other purchases only earn 1% cash back.
Intro Purchase APR
N/A
Regular Purchase APR
21.24% - 29.99% Variable
Intro BT APR
0% introductory APR for the first fifteen billing cycles following each balance transfer that posts to your account within 45 days of account opening
Regular BT APR
21.24% - 29.99% Variable
Annual Fee
$0
Cash Advance Fee
Either $10 or 5% of the amount of each cash advance, whichever is greater
Foreign Transaction Fee
3% of each transaction in U.S. dollars
Balance Transfer Fee
either $5 or 5% of the amount of each transfer, whichever is greater
No annual fee
Like many cash back credit cards, the AARP® Essential Rewards Mastercard® has a $0 annual fee.
Welcome offer
The AARP website currently features a welcome offer that allows you to earn a $100 cash back bonus after spending $500 on purchases in the first 90 days. It’s not the best welcome offer — for example, the Capital One Quicksilver Cash Rewards Credit Card offers a earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening. But it’s easy enough to earn, especially since you have about three months in which to complete the offer.
Bonus rewards on medical expenses
Several rewards cards offer elevated rewards on drugstores and gas, but the AARP® Essential Rewards Mastercard® is a rare one that offers 2% cash back on eligible medical expenses. This could be a plus if you are paying out-of-pocket for these medical expenses.
Note that with the AARP® Essential Rewards Mastercard® you need to have $25 in rewards before you can redeem them.
Purchases at gas stations and drugstores earn 3% cash back while all other purchases earn 1% cash back.
0% APR for 18 months
If the cash back on medical purchases is beneficial, the intro APR on new purchases may extend the usefulness of this card. You’ll get a N/A, followed by a 21.24% - 29.99% Variable APR. If you have an upcoming expense, this offer lets you finance it for a year and a half.
The offer applies to balance transfers as well, but the 5% balance transfer fee lowers the savings compared to choosing a card with a lower balance transfer fee. If you’re looking at a card for balance transfers, the Citi Simplicity® Card is our top pick for best balance transfer credit cards. It comes with a 21-month intro APR on balance transfers. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
No AARP membership requirement
AARP membership and the AARP® Essential Rewards Mastercard® isn’t limited to people over 50. The organization’s mission is dedicated to serving the needs of that population, but anyone 18 or older can join. For a successful card application, it’s recommended to have a good credit score. If you’d like, you can use your AARP® Essential Rewards Mastercard® rewards to purchase an AARP membership for yourself or as a gift.
Complimentary donation to the AARP Foundation
Another unique feature of the AARP® Essential Rewards Mastercard® is that, through March 31, 2024, for each successful application Barclays, the card issuer donates $10 to the AARP Foundation. Barclays also donates 1% of eligible purchases to the foundation.
Mediocre rewards rate
Although the AARP® Essential Rewards Mastercard® offers tiered cash back rewards, LendingTree gives it a 1-star rating in terms of cash back value. We estimate that your savings with AARP® Essential Rewards Mastercard® are just $361* in the first year which seems respectable until it’s compared with other cards. For a simple flat-rate, $0 annual fee credit card, the Wells Fargo Active Cash® Card saves you $600* your first year.
*Based on LendingTree’s value methodology.
High balance transfer fee
Despite the long intro APR offered on balance transfers, this isn’t the best card to use for one as it charges 5%. There are many cards that offer lower fees and you can even find some no-balance-transfer-fee cards if you’re willing to have a shorter term and possibly join a credit union — as that’s where you can find some of the best cards with no fees.
Foreign transaction fee
The AARP® Essential Rewards Mastercard® is one that you’ll want to leave at home when you go abroad. It charges 3% of each transaction in U.S. dollars in foreign countries. If you’re a frequent traveler, then a no-foreign-transaction-fee credit card will save you hundreds of dollars on your trips.
Exclusions on elevated rewards spending
While you receive elevated rewards at drugstores, sometimes the same over-the-counter products that you’d buy there are available for less at retailers such as Walmart and Target, both of which are excluded from earning the higher tier of rewards. You will earn 1% on purchases from those stores, but if you’re a devotee to a certain store, their co-branded store cards might be a better fit.
Fees may be added for paying medical bills with a credit card
It’s becoming increasingly common for medical offices to add a surcharge or convenience fee when you pay with a credit card (and this sometimes extends to your debit card and HSA card). It is legal to charge customers a credit card processing fee, so ask about payment options before swiping your card. The fee, in most cases, will wipe out any rewards you’d earn.
| Credit Cards | Our Ratings | Rewards Rate | Welcome Offer | Annual Fee | |
|---|---|---|---|---|---|
AARP® Essential Rewards Mastercard®*
Learn More
on ABOC's secure site |
Earn 3% cash back on gas and drugstore purchases (excluding Target and Walmart), unlimited 2% cash back on medical expenses, unlimited 1% cash back on all other purchases | Earn a $100 cash back bonus after spending $500 on purchases in the first 90 days | $0 |
Learn More
on ABOC's secure site |
|
Chase Freedom Flex℠*
|
5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories each quarter. Plus, earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1% on all other purchases. | Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. | $0 | ||
Discover it® Cash Back*
|
5% cash back at different places each quarter up to the quarterly maximum when you activate. 1% unlimited cash back on all other purchases - automatically | Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300. | $0 | ||
Wells Fargo Active Cash® Card*
|
Earn unlimited 2% cash rewards on purchases | Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months | $0 |
An excellent alternative to the AARP® Essential Rewards Mastercard® is the Chase Freedom Flex℠. It offers the same 3% rewards at drugstores and on dining, plus the potential to earn 5% on up to $1,500 in purchases each quarter in the rotating categories.
Previous Chase Freedom 5% bonus categories have included Target, wholesale clubs, grocery stores, gym memberships, Amazon.com and gas stations. Additionally, the sign-up bonus is more valuable. While the intro APR term is shorter, there is a more valuable sign-up bonus and no minimum for redeeming cash back.
Depending on your main spending areas, the Discover it® Cash Back may offer more cash back rewards as well as a solid sign-up bonus. The Discover it® Cash Back includes the same $0 annual fee and an intro offer on both purchases and balance transfers, albeit shorter than the AARP® Essential Rewards Mastercard®.
Like the Chase Freedom Flex℠, the Discover it® Cash Back offers rotating bonus categories to maximize rewards. Discover Bonus categories have included restaurants, drugstores, gas stations and more.
The Wells Fargo Active Cash® Card is ideal for maximizing rewards. Cardholders earn 2% on every purchase, without having to opt in or remember bonus categories. Like the Chase Freedom Flex℠, it has a generous, easy-to-attain welcome offer. Plus, It has an intro APR on both new purchases and balance transfers.
The AARP® Essential Rewards Mastercard® is only a good card if you spend heavily on out-of-pocket medical expenses within eligible categories. Since both the Chase Freedom Flex℠ and Discover it® Cash Back offer the opportunity to earn elevated rewards on drugstore purchases, we recommend considering those cards if you want to maximize the cash back you earn.
But if keeping track of rotating categories is too complicated for your taste, the Wells Fargo Active Cash® Card is our pick for the best 2% cash back credit card with a $0 annual fee.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The information related to the AARP® Essential Rewards Mastercard®, Wells Fargo Active Cash® Card, Target Circle™ Card, Sam's Club Mastercard, Costco Anywhere Visa® Card by Citi, Chase Freedom Flex℠ and Discover it® Cash Back has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
