An Overview of the AARP Mastercards
The AARP credit card portfolio, issued by Barclays, is designed with the spending habits of older adults in mind but is available to anyone, regardless of age or AARP membership status. The two primary cards are the AARP Essential Rewards Mastercard and the AARP Travel Rewards Mastercard. Both cards are known for their no-annual-fee structure and rewarding cash-back programs.
The AARP Essential Rewards Mastercard
The Essential Rewards version is tailored for everyday expenses, focusing on categories that often represent a significant portion of a household's budget. Here are its key features:
- Bonus Cash Back: Earn a heightened cash-back rate on purchases at gas stations and drugstores.
- Medical Expense Rewards: A unique feature is the bonus cash back earned on eligible medical expenses, a particularly valuable perk for seniors. This category often includes costs from doctors, dentists, hearing aids, and hospitals.
- Standard Cash Back: All other purchases earn a baseline cash-back percentage.
The AARP Travel Rewards Mastercard
The Travel Rewards card is an excellent choice for those who frequently travel or dine out. Its rewards structure is specifically catered to these activities:
- Travel Rewards: Offers elevated cash-back rates on airfare, hotel stays, and car rentals.
- Restaurant Rewards: Earns a bonus cash-back percentage on all restaurant purchases.
- Standard Cash Back: Like the Essential Rewards card, it provides a standard cash-back rate on all other purchases.
Core Benefits Shared by Both Cards
Beyond their specific reward structures, both AARP Mastercards share several important benefits:
- No Annual Fee: Both cards are free to carry, ensuring that the rewards you earn aren't offset by an annual cost.
- Introductory APR Offer: A valuable feature for those needing to consolidate or pay down debt. A promotional 0% introductory APR is typically offered on balance transfers for an initial period.
- Unlimited, Non-Expiring Rewards: The cash back you earn doesn't expire as long as your account remains open and in good standing. This allows for long-term saving and redemption.
- Flexible Redemption: You can redeem rewards for a variety of options, including a direct bank deposit, statement credits, gift cards, or merchandise.
- AARP Membership Redemption: An especially convenient option for AARP members, rewards can be used to pay for or renew an AARP membership.
- Complimentary FICO® Credit Score: Cardholders receive free access to their FICO credit score, an essential tool for monitoring financial health.
- Fraud Protection: Both cards include a $0 Fraud Liability Protection policy, meaning cardholders are not responsible for unauthorized charges.
- Donation to AARP Foundation: Barclays makes a charitable donation to the AARP Foundation for every new account opened, and for a portion of eligible electronic and telecommunication purchases.
Comparing the AARP Mastercards to Other Options
While the AARP cards offer solid rewards and no annual fees, it's wise to compare them to other popular no-annual-fee options to see how they stack up. Here is a comparison of the AARP Essential Rewards card against two well-regarded alternatives, helping you make an informed choice based on your spending habits.
| Feature | AARP Essential Rewards Mastercard | Citi Double Cash® Card | Capital One Quicksilver Cash Rewards |
|---|---|---|---|
| Annual Fee | $0 | $0 | $0 |
| Key Rewards | 3% gas/drugstores, 2% medical, 1% other | 2% cash back on all purchases (1% when you buy, 1% when you pay) | 1.5% cash back on all purchases |
| Balance Transfer Offer | 0% intro APR for 15 billing cycles (transfers within 45 days) | 0% intro APR for 18 months on balance transfers | 0% intro APR for 15 months on balance transfers |
| Redemption Options | Bank deposit, statement credit, gift cards, AARP membership | Statement credit, check, bank deposit | Statement credit, check, gift cards |
| Best For | Everyday spending focused on gas, drugstores, and medical expenses | Consistent, flat-rate cash back on all purchases | Simple, respectable cash back on all purchases |
Are the AARP Mastercards the Right Choice for You?
Choosing the right credit card is a personal decision based on your financial habits. The AARP Mastercards stand out by targeting spending categories—particularly medical expenses—that are highly relevant to many people, especially those in the older age demographic. For someone with significant out-of-pocket medical costs or frequent drugstore and gas purchases, the boosted rewards could make the AARP Essential Rewards card a clear winner. For travelers, the AARP Travel Rewards Mastercard's focus on travel and dining is compelling, especially with no foreign transaction fees.
However, if your spending is more varied and doesn't heavily align with these specific bonus categories, a card with a flat, high-percentage cash-back rate on all purchases, like the Citi Double Cash, might offer more overall value. It's crucial to evaluate your own budget to determine where you will earn the most rewards.
Making the Most of Your AARP Mastercard
To maximize the benefits of your AARP Mastercard, consider the following strategy:
- Strategize Spending: Use the card for all purchases within its bonus categories to take full advantage of the highest cash-back rates.
- Use for Balance Transfers: If you have existing credit card debt, leverage the introductory 0% APR offer to consolidate and pay it off without accruing interest for a set period. Always be mindful of the balance transfer fee.
- Redeem Wisely: Decide which redemption option offers you the most value. For some, a cash deposit is best, while others may prefer to use rewards toward their AARP membership or gift cards.
- Monitor Your Credit: Take advantage of the complimentary FICO credit score to stay on top of your financial health. Understanding your score is key to making sound financial decisions. AARP provides many financial resources for members and non-members on their website: https://www.aarp.org/money/
In conclusion, the AARP Mastercards, particularly the Essential Rewards card, offer a compelling package of targeted rewards, a $0 annual fee, and valuable benefits, especially for those with higher spending in specific categories like medical expenses. By understanding the card's features and comparing them to your financial habits, you can determine if it is the right choice for you.
Conclusion
Ultimately, the AARP Mastercard is a strong contender for anyone looking for a no-annual-fee credit card with focused cash-back rewards. The Essential Rewards card is particularly beneficial for those with frequent gas, drugstore, and medical expenses, offering a valuable way to earn cash back on spending that directly impacts health and home life. The Travel Rewards card caters to those with higher travel and dining expenditures. With additional perks like fraud protection, a complimentary FICO score, and flexible redemption options, it presents a solid financial tool. While it's always important to compare options based on your personal spending, the AARP Mastercards offer significant and relevant benefits that can provide substantial value over time, especially when used strategically to maximize bonus categories and introductory offers.
