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A Credit Card For Daily Deal Seekers

LivingSocial is offering a new rewards credit card.LivingSocial, the daily deal shopping site, has come out with a new credit card that offers rewards on top of the discounts you get from participating merchants.

Every day, LivingSocial emails an offer from a merchant to subscribers, who receive a redemption voucher if they want to purchase the deal. A recent example: 50% off a $100 voucher at Eyeglass.com.

Purchasing members can also share the deal with any of their contacts.

The new LivingSocial Rewards Visa Card goes a step further.

By paying for their purchases with the card, members earn rewards points that they can use to pay for future purchases on LivingSocial.

Cardholders earn five points per dollar spent on LivingSocial purchases. They also earn three points on dining and restaurants, and one point per dollar on everything else.

One hundred points is worth one Deal Buck, a credit that is automatically applied to the customer’s next eligible purchase on LivingSocial.

In addition, as part of a special promotion for 2012 only, cardholders receive 1,000 bonus points, worth 10 Deal Bucks, after making 10 purchases on the card during each billing cycle.

That’s a pretty good deal.

There are no limits on the amount of points customers can earn with the card, and there’s no annual fee.

Here’s a look at the credit card details:

APR 15.24% variable on purchases and balance transfers.
National Average APR 14.91% (source: CreditCards.com)
Annual Fee None
Rewards Five points per dollar on LivingSocial purchases, three points on dining, one point on all other purchases; 100 points are redeemable for one Deal Buck. Bonus 10 Deal Bucks for making 10 purchases each billing cycle through 2012.
Verdict A good deal if you shop LivingSocial frequently.

LivingSocial, based in Washington, D.C., now has more than 65 million members in 22 countries. It’s the second-largest daily deal company, behind Groupon.

The company’s chief financial officer told Reuters the company hoped the credit card would help businesses featured on LivingSocial attract repeat customers by offering “features such as deferred interest payments and rewards for spending with merchants.”

For regular users of LivingSocial, the rewards are pretty generous (equivalent of a 5% discount), better than if you used a typical cash-back credit card. But the annual percentage rate is a bit higher than average, so pay off your credit card each month to enjoy the rewards.

Compare this deal with the rewards credit card offers in our database.

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